NAR President Kevin Sears Champions Resilience and Reform at Inman Connect

Photo byinman

In a dynamic display of leadership, National Association of Realtors (NAR) President Kevin Sears took center stage at the Aria Resort & Casino in Las Vegas on Tuesday, delivering a potent message of resilience and transparency amid the challenges facing the real estate industry. Addressing a crowd of NAR members and industry stakeholders at the Inman Connect Las Vegas (ICLV) event, Sears offered a candid overview of his tenure and the road ahead for the 1.5 million-member organization.

A Call for Stability Amidst Turbulence

Sears, who assumed the NAR presidency in January after a tumultuous period marked by abrupt leadership changes, emphasized his commitment to restoring stability within the organization. Reflecting on the past 18 months of turmoil, including high-profile commission lawsuits and internal scandals, Sears stated, "I hope to look back at the end of my term and see that we brought some stability and calm back into our organization and industry."

The backdrop of Sears’ address was a mix of anticipation and skepticism. His appearance was prompted by a direct query from moderator Clelia Warburg Peters, managing partner at ERA Ventures, during a session titled “Okay, Seriously: What Now?” Peters’ probing question about Sears’ job performance elicited a mix of applause and critical murmurs from the audience, highlighting the divided opinions on NAR’s recent effectiveness.

Navigating Legal and Regulatory Challenges

A significant portion of Sears’ speech focused on NAR’s legal battles and the impact of recent settlements. Under his leadership, NAR has agreed to a landmark $418 million settlement to address lawsuits challenging the industry’s commission structures. The settlement mandates sweeping changes in how Realtors are compensated, while also providing a framework for other brokerages and members to settle similar disputes. Despite this, Sears acknowledged the financial strain this settlement will impose on the organization, stating, "Unfortunately, this is going to hurt everyone, but we can’t cripple anyone."

Compounding NAR’s challenges are ongoing investigations by the Department of Justice (DOJ), which has shown an increasing interest in NAR’s practices. Sears revealed that DOJ Assistant Attorney General Jonathan Kanter has requested meetings with NAR leadership, underscoring the regulatory scrutiny facing the organization.

Advocacy and Reform: A Dual Focus

Amid these challenges, Sears highlighted NAR’s continued focus on advocacy and education. He took credit for significant policy changes, including the reversal of a long-standing rule preventing veteran buyers from compensating brokers—a change he credited exclusively to NAR’s efforts. "Do not let somebody else take credit for this," Sears asserted. "This was done solely by the National Association of Realtors."

Sears also addressed concerns about the DOJ's push for separating commissions between buyers and sellers. He defended the current system, noting that commissions are legally negotiable in over 40 states and criticized the DOJ’s approach. "If they don’t like it, they should do the hard work of going to state legislatures and change the law," he said, eliciting applause from the audience.

Guidance for the Future

Looking ahead, Sears cautioned against attempts by agents or brokerages to circumvent the settlement terms, particularly in relation to commission structures. "Don’t get cute," he warned, urging members to adhere to both the letter and spirit of the settlement agreement. He emphasized that staying consumer-centric would be crucial for navigating future regulatory scrutiny.

The crowd responded with multiple rounds of applause, reflecting a sense of cautious optimism about Sears’ leadership. As Peters concluded the session, she thanked Sears for his forthrightness and dedication during a challenging period for NAR.

Sears’ message at ICLV was clear: despite the turbulence, the NAR is committed to navigating these stormy waters with resilience and transparency, focusing on advocacy and maintaining its core mission of supporting the real estate industry.