The Room Where It Happens

This past week, the National Association of Realtors (NAR) invited me to participate in a meeting with the NAR leadership and Jonathan Kanter, the Assistant Attorney General of the United States, Antitrust Division. The parties agreed in advance that to encourage an open and frank discussion, only high-level elements of the conversation, which took place in a large conference room in the Department of Justice building in Washington D.C., should be shared with the public. Of course, I intend to do my part in honoring that agreement. 

Kevin Sears, the current NAR president, led the discussion on NAR’s behalf. Jonathan Kanter, the Assistant AG, accompanied by about 15 government attorneys from his office, led on behalf of the government. Following the meeting, Mr. Sears sent a letter to the 1.6 million members of NAR describing the highlights of the meeting. Rather than paraphrase the contents of his letter, I have included it in its entirety at the end of this blog. 

What I can share is how critical it was that I was there. Not surprisingly, out of almost 30 people, I was the only Latino in the room. I believe this is important because the decisions made by the people in that room will likely profoundly affect how residential property is bought and sold in America. Considering that Hispanics are projected to account for the large majority of homeownership gains nationwide over the next two decades, I think it was critical that someone able to speak on behalf of that cohort was present. 

The meeting was part of a larger process to explore whether there was enough common ground between NAR and the U.S. government to avoid litigation on the part of the government. For those who think the settlement agreed upon in March represents the end of the lawsuits against the real estate industry, the meeting with the DOJ confirmed there is much more work in front of us.  

The DOJ called the meeting, and early on, it became clear that the viewpoint I was there to express was not part of the agenda. I wasn’t really deterred. I have been in a number of exchanges with powerful people in the past and have learned never to get emotional and always play the long game. 

While I didn’t get to make the statement I had prepared about how the disruption to the market would likely have a devasting impact on Hispanic homebuyers, I did get to make a few points. I did say that Latinos were the largest share of first-time buyers in the market, and any changes to industry practices that required buyers to bring more cash to a transaction would disproportionately affect Latino buyers and potentially exacerbate homeownership disparities in the market. I also said that the current system, with all its flaws, created a 75% homeownership rate for White Americans, and now when for the very first time in U.S. history, the majority of new homebuyers are expected to be Hispanic, there are calls to dismantle that very system. 

For those who question whether representation matters, believe me, it does. Major decisions that affect the livelihood of hundreds of thousands of Latinos and millions of future homebuyers are made by a handful of people who sit in a room like the one I was in last Wednesday. While I was in the meeting, I couldn’t help but allow my eyes to wander to the portraits of Teddy Roosevelt and Robert F. Kennedy and think about meetings that took place in that room and how I hope there aren’t future meetings like the one I was in without a Latino with a seat at the table. 

I am grateful to the NAR leadership team for including me in the meeting. I look forward to the next opportunity to meet with the DOJ and other government members about the role of Latinos in housing and the U.S. economy. 

 

Dear NAR members,

I’m reaching out to share an update from Washington, D.C., where I was excited to be this week with members of NAR Leadership for an important meeting with the Department of Justice Antitrust Division to discuss the issues, the DOJ is reviewing in the real estate industry. We were pleased that, from the DOJ side, the meeting was led by U.S. Assistant Attorney General Jonathan Kanter, a top decision maker and leader on antitrust policy at the Department. We were also happy to have alongside us Gary Acosta, CEO of the National Association of Hispanic Real Estate Professionals and strong real estate policy advocate.

This meeting was a big step in our process to have meaningful dialogue with the DOJ, directly between leaders, about the issues that matter to us as REALTORS®. While there is much more work to be done, the meeting was productive as we try to find “common ground” on topics that define how we do business and support the dream of home ownership in America.

At the end of our meeting, my first question was, “when can we meet again?” We are committed to continuing the conversations with the DOJ on topics such as the value REALTORS bring to real estate transactions, the critical importance of competition in our industry, offers of compensation, listing availability, consumer choice, and promoting access to homeownership for all.

Coming out of the meeting, there were some clear takeaways we wanted to share with you regarding areas of DOJ focus. As we all work together to prepare ahead of the August 17 practice change implementation date, please keep the following in mind:

• Developing new or revised forms: 

   encourage all members involved in creating new or revised forms to evaluate them for clarity and emphasis on consumer choice. The settlement empowers buyers and brokers to negotiate and mutually agree to services and compensation that work for them. REALTORSâ should work with consumers to ensure they fully understand the options available to them while continuing to seek fair compensation for their services. We’ve compiled tips on developing written buyer agreements here, and I encourage you to take a look.

• Implementing and adhering to settlement provisions in good faith: 

  The DOJ raised concerns regarding industry participants using potential avenues to “circumvent” the coming practice changes. To be clear: NAR—and I personally—oppose any attempts to circumvent the settlement. The practice changes should be implemented fully and in good faith, in the service of promoting consumer empowerment, consumer choice, and healthy competition. Answers to questions about how to approach the practice changes in detail are available in our FAQ, and we will continue to provide resources as we navigate the days ahead.

• While conversations are ongoing, it does not prevent additional DOJ action: Our recent meeting marks an important step forward in maintaining a productive relationship with the DOJ. However, we expect the DOJ to continue making inquiries into industry practices. Please reach out to the NAR legal team for support requests or questions.

As always, thank you for your membership and all that you do to make homeownership dreams a reality. We will continue to keep you updated as our conversations with the DOJ progress.

Thank you,

Kevin Sears

2024 NAR President