In a letter from Redfin’s leadership team this morning, the budget online brokerage announced that it will leave the National Association of Realtors. The letter, which went out to brokers and agents this morning before being posted on the brokerage’s “From Our CEO” page, said that Redfin’s departure is due largely to NAR’s rules that buyer agent commissions be paid by sellers as well as the organization’s response to allegations of sexual harassment among its leadership.
The leadership team at the budget-friendly national broker includes Chief Human Resources Officer Anna Stevens, Chief Legal Officer Anthony Kappus, Chief Technology Officer Bridget Frey, CFO Chris Nielsen, Chief Product Officer Christian Taubman, CEO Glenn Kelman, and Senior Vice Presidents of Real Estate Operations Jason Aleem and Keith Broxterman.
Splitting From NAR And Local Organizations
In explanation, the letter pointed out that Redfin had already vacated its NAR board seat in June of this year due to ongoing issues at the real estate professional organization. But after what Redfin leadership called “careful deliberation,” Redfin will take it a step further by requiring brokers and agents to depart NAR in areas that allow it.
“Most brokerages are only a loose affiliation of independent agents,” the letter said, “and none of us wants to impose a policy that could alienate any of the people who generate our revenue.”
Unfortunately, that might be the unintended consequence of Redfin’s announcement, which was acknowledged by Redfin’s leadership team in the letter:
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. 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.
Membership is Required For Listing Access
As the letter noted, membership to NAR and local Realtor boards and associations is required for access to Multiple Listing Services and, in turn, the listings themselves. To mitigate the hardship to Redfin brokers and agents made from the departure, Redfin is lobbying NAR to “decouple local access to these tools” from the organization’s central infrastructure.
“Agents shouldn’t have to underwrite policies and legal efforts that hurt consumers when most of us got into real estate to help consumers,” the letter explained. “Redfin’s mission, after all, is to redefine real estate in consumers’ favor.”
Redfin’s brokerage model focuses heavily on providing value to sellers, saying that selling your home with the brand will only cost you 1 percent of the sales price—a third of what most brokerages ask.
Redfin Agents in Dallas-Fort Worth
We reached out to Bill Head, director of communications at MetroTex Association of Realtors, on how Redfin’s departure from NAR will affect brokers and agents affiliated with the brand in North Texas.
“As of this morning, we have not had any discussion with Redfin regarding their membership status with MetroTex,” Head told daltxrealestate.com. “In regards to listings, brokerages can acquire access to the MLS without membership in a local association of Realtors.”
While MetroTex members can access the MLS at a non-member rate and list or buy a property through that service, they cannot access any additional resources, Head explained. That would go for Redfin brokers and all of the agents under that licensee.
“They would not, however, have services to lockboxes or certain forms of libraries, which are Realtor member benefits,” he added.
