Redfin made a major announcement this morning, not only saying, as a company, it will leave the National Association of Realtors, but it will also require Redfin agents to do so as well. The major move is due to what Redfin calls NAR’s pattern of alleged sexual harassment and the Association’s policies requiring a fee for the buyer’s agent on every listing.
“We’ve had many meetings with NAR execs to explore compromises on the policies that would let us continue our support. Since a Redfin-wide initiative to join NAR in 2017, we’ve paid more than $13 million in dues, in an effort to influence NAR to advocate for an open, technology-driven marketplace that would benefit consumers,” a company release states. “We’ll now explore other ways to advance those goals.”
The release notes that Redfin had already resigned its national board seat in June, prior to the sexual harassment claims coming to light. Additionally, Redfin execs add that NAR rules are requiring the company to leave local and state associations despite the concerns sitting with the national association.
“In about half the U.S., including in cities like Charlotte, Dallas, Houston, Las Vegas, Long Island, Minneapolis, Nashville, Phoenix and Salt Lake City, we can’t quit NAR individually or en masse, because NAR membership is required for agents to access listing databases, lockboxes, and industry-standard contracts,” the Redfin release adds. “It’s impossible to be an agent if you can’t see which homes are for sale, or unlock the door to those homes, or even write an offer.
“We’re asking NAR to decouple local access to these tools, including the listing databases known as Multiple Listing Services, from support for the national lobbying organization,” the release continued. “Agents shouldn’t have to underwrite policies and legal efforts that hurt consumers when most of us got into real estate to help consumers. Redfin’s mission after all is to redefine real estate in consumers’ favor.”
NAR spokesperson Mantill Williams responded to the news saying that the organization respected Redfin’s decision to separate, and defended the local MLS broker marketplace model.
“Redfin told us in June they were planning to separate from NAR, and we respect their choice to do so. The U.S. model of local MLS broker marketplaces has long been—and still is—considered the best value in the world. NAR stands by its pro-consumer, pro-competitive guidance for affiliated local broker marketplaces that ensure equity, efficiency, transparency and market-driven pricing options for home buyers and sellers,” per a NAR statement.