A reality television star and his colleague are launching a new real estate trade association after recent negative press for the National Association of Realtors. Find out how they plan to take on the real estate giant.
Reality Star Starts New Venture
Fans of California-based reality television might recognize Mauricio Umansky from his time on “Buying Beverly Hills” or “The Real Housewives of Beverly Hills.”
He’s also a celebrity real estate agent who primarily deals in luxury properties.
Experienced Agents Challenge Century Old Organization
Umansky is partnering with Jason Haber, a highly renowned real estate agent in New York, to take on the National Association of Realtors after what the pair consider an unforgivable series of actions in recent years.
New Real Estate Group to Compete With Old
Their plan is to start a new group, which they’re calling AREA, or the American Real Estate Association, which will act as a direct competitor to the NAR. Haber and Umansky announced their plans at Inman Connect New York this week.
Scandal Surrounding the N.A.R.
Last fall, the N.A.R.’s president, Kenny Parcell, faced several allegations of sexual assault. Since then, Haber has been vocal about his feelings toward Parcell, the N.A.R., and other key figures involved with the association.
Haber’s Takedown of Parcell
Haber started an organization which aimed to hold Parcell to the flame. The N.A.R. Accountability Project pushed for Parcell’s resignation (as well as that of CEO Bob Goldberg). Haber’s efforts were successful and both Parcell and Goldberg resigned.
Umansky’s Legal Brush With N.A.R.
Umansky is also no stranger to the N.A.R. The reality TV celebrity has launched a lawsuit against the association which is still ongoing.
N.A.R. Policies Strike a Nerve
The basis of that lawsuit was built around policies that the N.A.R. has in place which regulate the way real estate listings can be organized in databases.
Umansky’s Damage Claims
Umansky runs a database of his own for Los Angeles listings, and claims that the N.A.R. rules caused issues for him.
AREA Launch Moved Up Amid N.A.R. Legal Trouble
It would seem that AREA’s launch has been accelerated in response to the ongoing internal issues at the N.A.R.
New N.A.R. President Gone As Quickly As She Came
When Parcel resigned as N.A.R. president, Tracy Kasper took over. But just four months after her presidency began, it came to a swift end following what the organization called a “threat.”
Kasper Blackmailed Out of Position
Kasper “received a threat to disclose a past personal, nonfinancial matter unless she compromised her position,” the N.A.R. announced earlier this month. Kasper reported the threat, but ultimately chose to tender her resignation.
N.A.R.’s Legal Obstacles
The N.A.R. faces several current legal issues, including a lawsuit challenging the exclusive member access to the Multiple Listing Services. AREA has responded to this issue by announcing its own national database of listings.
The NLS vs MLS
AREA’s database is called the National Listing Service, or NLS. Umansky suggested that the creation of a database of this scope was a long time coming.
Commission Rules Differ for AREA
AREA will also challenge N.A.R.’s commission rules by giving agents the autonomy to set commission rates as they see fit. They plan to have looser requirements around how buyer and seller’s agents have to work together.
A New Concept on the Horizon
Haber and Umansky have decided not to have traditional leadership roles like president within AREA. They claim their goal is to create something new and entirely separate that acts as an alternative to the N.A.R. and its policies.
AREA Seeking Investors
At this time, AREA’s founders are backing it financially on their own, but are seeking investors to help raise the capital they need.
AREA Membership Dues Will Undersell N.A.R.
They plan to start assessing membership dues later in the year at rates significantly lower than those of the N.A.R.
Uncertainty a True Enemy
The uncertainty that haunts the N.A.R. threatens to help bring on its downfall, and Haber and Umansky intend to be there to pick up the pieces with AREA.
Alternative Options at the Core of AREA Goals
They emphasize that they don’t want to recreate what already exists, but offer an alternative for agents to thrive under.
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Featured Image Credit: Shutterstock /Mauricio Umansky. The people shown in the images are for illustrative purposes only, not the actual people featured in the story.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
