PRESIDENT’S CORNER: A World Without the Three-Way Agreement: The High-Stakes Consequences for Local Associations

Imagine waking up to a reality where local real estate associations operate in isolation, stripped of the powerful framework provided by the Three-Way Agreement (see https://www.nar.realtor/about-nar/policies/the-three-way-agreement). What would that mean for us? The implications would be staggering—leaving us vulnerable to significant losses, weakened advocacy, and a compromised industry. Let’s discuss the potential fallout of a fractured real estate landscape.

1. Voiceless Advocacy and Lost Opportunities

Without the Three-Way Agreement, the collective voice Realtors rely on to advocate for vital issues would be silenced. Picture local associations trying to tackle major legislation without the National Association of Realtors’ backing—it’s like entering a championship without your teammates.

What We’d Lose: Critical protections, such as the mortgage interest deduction, would be in jeopardy. Without our unified lobbying efforts, it’s easy to see how this key benefit could quickly erode.

Real-World Impact: Just recently, we saw how united action led to the removal of a costly sprinkler mandate for new homes. Without that unity, communities could face skyrocketing costs. Local agents would be powerless to combat restrictive policies threatening homeownership, leaving clients struggling to afford homes. Don’t let this be your reality—the stakes are too high.

2. The Wild West of Standards and Ethics

Consider the chaos that would ensue without a cohesive Code of Ethics. Right now, NAR’s strict guidelines uphold professionalism across our industry. Without them, local associations could set their own rules—or worse, none at all.

What We’d Lose: Standards that ensure fairness and accountability could vanish. Manipulative practices would thrive, making the market a dangerous place for consumers.

Real-World Impact: Research shows that over 80% of homebuyers trust Realtors to act in their best interest. If that trust erodes, so does our entire profession. Imagine a marketplace where clients can’t tell which Realtors they can trust—this is a battle we can’t afford to lose.

3. The Rising Power of Special Interest Groups

In a fragmented landscape, special interest groups would seize the opportunity to push their agendas—often at the expense of average homeowners. Without NAR’s influence, these powerful entities could easily sideline our industry.

What We’d Lose: Disjointed advocacy would leave us vulnerable to legislation that benefits corporations over individuals.

Real-World Impact: Recent trends show that 59% of homeowners are concerned about rising corporate influence in real estate. Imagine a future where housing policies are dictated by profit-seeking developers instead of community needs. We must unite to ensure that doesn’t happen!

4. A Resource Desert

Without the Three-Way Agreement, local associations would be deprived of the essential resources that sustain daily operations.

What We’d Lose: Access to vital tools like the Realtors Property Resource (RPR) would dry up, leaving Realtors unable to compete effectively.

Real-World Impact: Think about negotiations without critical market data. You’d be making blind decisions while your competitors have all the advantages. In our industry, knowledge is power, and we can’t afford to fall behind.

5. Isolation Equals Irrelevance

Without the collaborative influence of the Three-Way Agreement, local associations would become isolated, crippling their ability to adapt to market dynamics.

What We’d Lose: Networking opportunities and partnerships would dwindle. The valuable insights we gain from each other would disappear.

Real-World Impact: In a survey, 70% of real estate professionals stated that industry connections were essential for success. Picture navigating a market without that support—agents risk becoming irrelevant in a competitive landscape.

6. Consumer Confidence in Shambles

The absence of a unified framework would devastate consumer trust, leading to a crisis in our industry's credibility.

What We’d Lose: Without NAR's backing, consumers might see Realtors as just salespeople, not trusted advisors.

Real-World Impact: If consumers lose faith in real estate transactions, buying activity could drop, resulting in a market downturn that impacts everyone. Are you prepared for that?

7. The Constant Threat of the DOJ

Finally, let’s acknowledge the ongoing scrutiny from the Department of Justice. The DOJ aims to ensure competition, but without the Three-Way Agreement's guidance, we could face damaging regulations based on misunderstandings of our industry.

What We’d Lose: NAR’s collective lobbying power educates lawmakers on maintaining fair commission structures that benefit Realtors and consumers alike.

Real-World Impact: Imagine policies limiting commissions or enforcing unreasonable regulations that fail to consider the complexities of our business. Such measures could hinder our ability to support clients effectively and jeopardize the livelihoods of dedicated Realtors throughout the region.

Lessons from the Medical Industry

To highlight the gravity of this situation, let’s look at the medical industry, which has faced significant challenges when cooperative agreements were weakened. In several states, the dissolution of collaborative structures between state medical boards and local physician associations resulted in disarray, causing an influx of non-licensed providers and inconsistent patient care.

Consequences: The lack of unified guidelines led to a decline in the quality of care, ultimately eroding patient trust.

Real-World Impact: Patients became confused about where to seek reliable medical care, which compromised their health and safety. Just as in real estate, a lack of unity can hinder consumer confidence and create chaos, leaving both professionals and clients vulnerable.

Conclusion

In a world without the Three-Way Agreement, the real estate landscape would be riddled with challenges and upheaval. Disconnected advocacy would leave local associations voiceless against special interest groups that do not prioritize homeowners’ needs. Our standards would erode, ethical practices would decline and consumer confidence would evaporate.

Now is the time to recognize the critical role of the Three-Way Agreement in our industry. Let’s commit to supporting it, advocating fiercely for our profession, and ensuring we stand united against external pressures. Together, we can shape an industry that thrives on integrity and collaboration, paving the way for success for all Realtors.