National Association of Realtors

Definition

The National Association of Realtors (NAR) is a professional organization for real estate agents and brokers in the United States, dedicated to promoting ethical standards and professional development within the real estate industry. It plays a critical role in providing resources, education, and advocacy for its members while also establishing benchmarks and indices that help measure real estate market performance across the nation.

5 Must Know Facts For Your Next Test

1. The NAR was founded in 1908 and has grown to be one of the largest trade associations in the United States, representing over a million members.
2. NAR provides access to valuable market data, research, and resources that help Realtors stay informed and make educated decisions.
3. The association advocates for policies that benefit the real estate industry at local, state, and national levels, influencing legislation that impacts property ownership and real estate transactions.
4. NAR develops various benchmarks and indices such as the Existing Home Sales Index, which measures sales trends across different regions in the U.S.
5. Membership in NAR requires adherence to a strict code of ethics, which ensures that Realtors provide a high standard of service to their clients.

Review Questions

• How does the National Association of Realtors contribute to the establishment of real estate benchmarks and indices?
  • The National Association of Realtors plays a vital role in creating benchmarks and indices that measure real estate market performance. By collecting comprehensive data on home sales, pricing trends, and market conditions, NAR analyzes this information to develop reliable indices like the Existing Home Sales Index. This data helps Realtors understand market trends better, enabling them to provide informed advice to their clients.
• Discuss the ethical responsibilities imposed on members of the National Association of Realtors and how they impact client relations.
  • Members of the National Association of Realtors are required to adhere to a strict code of ethics that governs their professional conduct. This code emphasizes honesty, integrity, and fairness in all dealings with clients and other professionals in the industry. By committing to these ethical standards, Realtors build trust with clients, ensuring transparent transactions and fostering positive relationships that can lead to repeat business and referrals.
• Evaluate the significance of the National Association of Realtors in shaping real estate policies and practices within the U.S. economy.
  • The National Association of Realtors significantly influences real estate policies and practices in the U.S. economy by advocating for legislation that protects property rights and promotes homeownership. Through lobbying efforts at various government levels, NAR helps shape laws that impact tax incentives for homeowners, zoning regulations, and financing options. This active involvement not only supports its members but also affects broader economic conditions related to housing markets, making NAR an essential player in the overall health of the U.S. economy.

Related terms

Multiple Listing Service (MLS): A database used by real estate professionals to share information about properties for sale, allowing for greater collaboration and access to market data.

Realtor: A licensed real estate professional who is a member of the National Association of Realtors and adheres to its code of ethics.

Real Estate Commission: A government agency responsible for regulating the real estate industry, ensuring compliance with laws and protecting consumers.