National Association of Realtors and the Control of Home Sales

The National Association of Realtors (NAR) has a significant influence on the home sales industry in the United States. With nearly 9 out of 10 home sales handled by NAR-affiliated agents, they have historically controlled the rules around agent fees and market access. NAR's extensive system includes owning the copyright to the word 'realtor,' making it challenging to sell a house without their membership. The requirement to list properties on MLS platforms, predominantly owned by NAR subsidiaries, further solidifies their control. Through these databases, agents communicate commission rates, typically around 5% to 6%, one of the highest globally, creating resentment among sellers. This commission structure results in substantial payments to agents, reaching as high as $60,000 on a million-dollar home sale. NAR's influence has played a key role in maintaining the 6% commission fee, causing frustration among home sellers who perceive it as a significant expense impacting their investment returns.