The National Association of Realtors has taken a small but welcome step. NAR met members’ expectations for progress toward a more modern, effective, and accountable structure by eliminating eight committees and advisory groups, tightening application standards, and demonstrating a broader commitment to governance reform.
However, NAR’s system includes more than 90 working groups. While this reduction is a positive start, it highlights how opportunities remain to streamline and strengthen the way the association operates.
Organizations like NAR don’t aim to be overly complex. Over time, they added groups with good intentions, each created to address a need, incorporate more voices, or tackle new issues. This growth is natural and not unhealthy.
But without regular adjustments, even well-intentioned structures can become unwieldy, and recalibration is even more important in today’s rapidly evolving environment.
Complexities that NARs have to deal with
Few organizations operate on the scale of NAR. With over one million members and a wide range of stakeholders, its governance worked to balance representativeness and effectiveness. That inclusivity has sometimes created duplication of responsibility, delayed decision-making, and weakened the potential strength of member engagement.
Recent changes show that NAR is listening. My members have said recently that they have heard the “right words” from NAR, but expect action to follow. This small trimming of bureaucracy is a concrete move in the right direction.
But simplifying a system of this scale requires much more, especially at a time when the industry itself is demanding greater agility.
Efficiency and comprehensiveness can coexist
As NAR continues its work, we must remember that efficiency and inclusiveness are not mutually exclusive.
A more streamlined governance structure is essential. But so is ensuring that broader industry insights continue to factor into those decisions.
NAR has a unique opportunity to build a modern, scalable approach to engagement. This allows us to “crowdsource” ideas, feedback, and solutions from across our membership and stakeholder ecosystem. Adjusting the participation model can significantly expand the pool of contributors without increasing the size of the formal governance structure itself. The NAR should also adopt an “informal governance” strategy, rather than relying solely on formal working groups for input.
Perhaps NAR could move all “forum” meetings online in advance of the meeting, allowing for wider membership and eliminating the need to go to meetings in person. Face-to-face meetings where decisions are made will continue to be held in person, with stronger feedback from the broader community who participated in the forum virtually.
In this model, a more focused set of committees would be more effective because they would be supported by broader and more dynamic input.
By leveraging online surveys on a variety of topics throughout the year, NAR may be able to gain further insight into industry policy and association programs from thousands of members who previously were unable to find accommodation in any city during the convention.
Transparency strengthens trust
As governance evolves, transparency must become a top priority.
For many members, governance sometimes feels like a “black box” and decisions arise from processes that are not always visible or well-understood. This is especially true of recent MLS policy decisions, exacerbated by the growing interest of opportunistic plaintiffs’ attorneys and federal regulators.
Without transparency and widespread engagement, the resulting policies often invite criticism and are not adopted.
Future reforms could directly address this issue. This means clearer communication about how decisions are made, clearer visibility into what inputs are being considered, and more consistent feedback loops that help members understand how their perspectives are shaping outcomes.
Transparency is more than just a communication strategy. It’s a mechanism that builds trust. And trust is essential for an organization operating at NAR’s scale.
Unleash the participation of untapped experts
Another important opportunity depends on who participates.
Many of the owners and leaders of brokerage firms – the people most involved in the market – are underrepresented. Not for lack of interest or qualifications, but because the current structure often requires unreasonable time commitments and direct participation.
If NAR wants to align governance and expertise, it must implement more flexible and accessible ways for these leaders to contribute, such as through virtual engagements, targeted advisory roles, and more efficient meeting structures. Doing a significant amount of real estate business should probably be at the top of your list of service and leadership requirements.
The industry will benefit from greater access to meaningful participation for the most experienced practitioners.
Rethink the conference model
The same is true for NAR conferences, which can be time-consuming and expensive. They need to be shorter, more focused, and redesigned to align with the way today’s professionals work.
As an example, I am always amazed by the small groups assembled for the Business Affairs Policy Committee. This committee addresses a broad area of perhaps the most important issues related to the regulation of real estate practice. It is also possible that other specialized policy working groups could combine and the new committee could meet in larger venues, such as those hosting the Housing Economic Issues and Trends Forum.
NAR volunteers will be better informed through this integrated agenda, and the resulting actions will benefit from drawing on a broader range of expertise and experience.
A more streamlined format (potentially organized into role-specific tracks for agents, brokers, MLS leaders, and association leaders) allows attendees to receive the latest information they need, participate in decision-making, and fulfill key responsibilities in less time. I am confident that NAR volunteers can do all of this during a three-day conference.
This redesign has the potential to significantly increase the participation of real players in the industry while also improving outcomes.
Build a strong first step
The move to a slightly smaller group is progress, but it also highlights how much work remains.
The path forward includes further streamlining formal structures, increasing access to input, increasing transparency, enabling broader participation, and modernizing systems that support governance. It also means top players ensure meaningful involvement.
This is not about appeasing members or checking the box for “governance reform.” It is about enabling NAR to effectively lead in an increasingly complex and changing market.
As the saying goes, a journey of a thousand miles begins with a single step. NAR got just one.
NAR must continue this process and think boldly and innovatively to identify even more opportunities to build back better.
Craig Cheatham is in his 20th year as President and CEO of Realty Alliance, an invitation-only network of North America’s largest full-service residential real estate companies and their affiliates. Previously, he served as CEO of the International Federation of Real Estate Licensing and Regulatory Agencies and COO of the State Association of Realtors.
