Leadership turmoil and legal controversies at the National Association of Realtors may have harmed the short-term credibility of the giant real estate trade association representing 1.5 million members around the country.

But NAR, or an organization similar to it, is still necessary to protect and promote the interests of homeowners, property rights and industry players across the nation, according to real estate leaders in New Hampshire.

There’s little doubt 2023 was an annus horribillis for NAR, which over the span of just four months lost its president, its CEO and a federal court case that could cost the group $1.8 billion in damages and the loss of an unknown number of members over coming years. In a continuation of the string of bad news, the new president of NAR, Tracy Kasper, abruptly resigned in early 2024, saying she was the victim of a blackmail threat that sought to compromise her leadership role.

The seemingly never-ending controversies have mostly left local real estate officials discouraged and exasperated.

“It’s been difficult,” said Joanie McIntire, the 2024 president of the New Hampshire Association of Realtors, an affiliate of NAR. “There seem to be something [bad] happening all the time” at the national level.

“It’s disturbing,” agreed Stephan Morrissey, an associate broker at Alison James in Nashua and a member of both NAR and NHAR. “I don’t like the damage all these controversies are doing to the reputation of the real estate industry. You need credibility – and a lack of credibility hurts.”

The turmoil has definitely left the national industry group with a reputational black eye.

In August, then NAR president Kenny Parcell resigned amid allegations of sexual harassment and creation of a “toxic” work environment at association headquarters, leveled in a New York Times investigation.

Then in November, a federal jury in Missouri found that NAR and two brokerage firms were liable for $1.8 billion in damages for allegedly conspiring to keep agents’ commissions artificially high. NAR’s chief executive, Bob Goldberg, resigned after that commission ruling, which the association has vowed to appeal.

Two other brokerage firms – RE/MAX and Anywhere Real Estate, owner and franchiser of Better Homes and Gardens Real Estate, Century 21, Coldwell Banker Commercial, Sotheby’s International Realty and other brands – had previously settled the commission cases out of court.

Concern Members May Bolt

Among the terms of those settlements: No company requirements that affiliated agents must join NAR.

Jason Haber, an agent with Compass Real Estate in New York and Florida, said the allegations against Parcell and NAR’s failure to promptly implement new policies after his ouster are what led to the formation of the NAR Accountability Project, a group of thousands of Realtors nation-wide pushing the association to reform.

Among the group’s current demands: an independent probe of the sexual-harassment charges; creation of a third-party HR unit where sexual-harassment allegations can be reported; and the releasing of women from NAR non-disclosure agreements tied to past sexual harassment charges. NAR has agreed to all but the final demand.

He said all the controversies surrounding NAR add up to a picture of a dysfunctional national association in need of leadership and structural changes.

“It really exposes the underbelly of the organization in a bad way,” he said. “This usually doesn’t happen at other organizations. But at NAR, the unusual is the usual.”

He predicted that the association might soon hit a “membership cliff” if alienated agents, who are now no longer required to join NAR at some major brokerages, opt to not join the trade group.

In a statement, an NAR spokesperson said the trade group continues to provide value to home buyers and sellers, as well to its members.

“NAR’s work ultimately serves consumers, who benefit from an industry-wide commitment to ethics and professionalism and NAR’s efforts to bolster the right to real property ownership and fair housing for all,” the statement reads.

“NAR supports members through advocacy efforts as well as by offering learning opportunities and resources; proprietary tech tools; economic research and property data; legal and risk management support; special offers and savings on small business solutions; and in-person and virtual networking events.”

Enthusiasm for New NAR Leader

McIntire, the NHAR president and an agent at Coldwell Banker-J.Hampe Assoc., said “it’s too bad [the national group] is taking all these hits.” But she agreed that NAR is still providing key value to consumers and members, especially when it comes to advocating on key industry-related issues, such as property rights.

She expressed enthusiasm for NAR’s third president in less than six months, Kevin Sears, a fellow New Englander who took charge at NAR after Tracy Kasper resigned earlier this month. Sears runs a real estate firm in Springfield, Mass. and has previously served as president of the Massachusetts Association of Realtors.

“He’s really great,” said McIntire, who personally knows Sears and is in regular email contact with him. “He’s a nice, genuine guy.”

Sears couldn’t be reached for comment.

McIntire emphasized that the recent leadership turmoil hasn’t harmed the New Hampshire Association of Realtors: “The shakeup doesn’t really impact us.”

She said the NHAR will continue to be a “strong advocate” for the industry at the State House in Concord.

NHAR Members Quiet So Far

As for the potential loss of members, McIntire said declining membership levels, both at the national and state levels, were a concern long before the group’s recent leadership scandals and legal problems.

She noted that NHAR’s membership stood at about 7,600 members in 2022, down about 4 percent from 2021. The decline is probably tied to the aging of the group’s membership and recent market conditions making it more difficult to succeed in the residential real estate business, she said.

She noted she’s heard little from agents about the national association’s problems. “I haven’t had anyone say to me, ‘This is crazy. I can’t take it anymore. I’m out of here.’”

Adam Dow, chief executive of the Dow Group at Keller Williams, expressed frustration with what he’s been seeing at the national organization.

“It take only one bad seed to harm something,” he said.

But having real estate trade groups, both at the national and state levels, is critical to the industry.

“I do believe we need a strong Realtor code and organizations,” he said.

A member of both NAR and NHAR, Dow said the New Hampshire Association of Realtors is especially valuable to consumers and members, due largely to its advocacy on key real estate and housing issues in Concord.

“The local association is really trying to help,” he said. “They’re doing good.”