The New York Times (NYSE: NYT) has published another investigative report into the National Association of Realtors (NAR), this time examining the financial benefits enjoyed by its executive leadership.
Under the headline “Chauffeured Cars and Broadway Tickets: Inside the National Realtors Group,” the report cites former CEO Bob Goldberg’s “package of gold-plated perks” that included “membership dues for private clubs in both Chicago and Washington and a country club of his choice, including an initiation fee of up to $75,000.” Goldberg also received first-class airline tickets for business travel while his wife snagged a round-trip first-class ticket each month.
“He was given a $1,500 monthly car allowance and $2,250 a month to cover utilities and insurance at his pied-à-terre in Chicago, where NAR has its headquarters,” the Times report stated. “NAR even agreed to pay for a pet sitter to watch his dogs when Mr. Goldberg was away from his home outside Washington on business. The extras came on top of his $1.2 million salary that would, according to NAR’s tax returns, grow to $2.6 million in five years.
Reporter Debra Kamin claimed that she spoke to 18 former NAR officers and both former and current employees of the organization while examining “tax documents, internal budgets and a confidential employment contract.” She was also provided with a recording of a “confidential budget call” led by NAR CEO Nykia Wright.
The report noted how NAR’s “president, president-elect and first vice president are elected by members and receive annual six-figure payments, tax records show. NAR refers to officers as ‘volunteers.’ They have been given corporate credit cards, and on work trips, they have racked up charges from expensive dinners, golf outings, spa treatments and sports tickets.” It also detailed how NAR’s leaders used corporate credit cards to buy tickets to the Broadway show “Hamilton” when it opened in 2015.
The report further claimed that ‘seven lawyers who specialize in nonprofit law said the group’s spending not only appears excessive but also may run afoul of tax law,” adding that NAR’s “spending is known among watchers of nonprofits.”
The Times previously put NAR in the spotlight regarding sexual harassment allegations against members of its leadership and the lawsuit that brought about the historic settlement resulting in changes to how NAR members determine their commissions. The new article also cited lawsuits filed by agents in Michigan, Pennsylvania and California against the requirement for all NAR members to join their local, state and national associations, along with a hitherto unannounced consideration of charging for NAR’s educational programs that had previously been free.
The article closed with a quote from Jen McDonald, a broker in Reno, Nevada, who declared that NAR has done nothing for its members.
“I don’t think they defended us,” she said. “I think they defended themselves.”
;
I agree. They definitely did not represent us Realtors. There was not even a case. Couldn’t they afford a good group of lawyers ? They acted in a disgraceful way.
Fire all of them
Build new pay/benefits structures
Exactly. Completely ridiculous.
I’ve been saying this for over 1 year. This NAR betrayed us with the Lawsuit settlements, Cost hard working honest realtors money, they do NOTHING for us, except charge ridiculous membership fees. Why should it be mandatory to belong to this useless and greedy and corrupt and Criminal NAR???
Flush every single one of these Crooks right down the Fucken Toilet!!! Everyone of them from the Top Down!!!
RRC /CRS is just as Bad. Liars liars liars.
I’m not being dramatic when I say NAR is a cartel. Unfortunately, an incompetent cartel. They rolled over when commissions were always negotiable. The result is more calls asking about commissions and lots of unnecessary paperwork burdening Realtors that are commission-only salespeople. Could have made one disclosure and a paragraph in the listing agreement stating commissions are negotiable and saved us all the headaches if they were too chicken to go to court and fight like they should for what we paying dues.
I agree, this could have been cut off at the pass with some common sense and an upfront disclosure on the listing agreement. Now we have another time drain to already busy schedules dealing with calls and extra paperwork.
Why is none of this surprising?
As a Realtor for 45 years, disappoints me for our high fees paid annually going to ridiculous salaries, lavish lifestyles.
This is a shame and defenseless behavior.
What I’m most concerned about is what I see as NARs and CAR (Calif assoc of Realtors) abandonment of the core of our focus. Private property ownership and private property ownership rights.
They rolled over in the so called pandemic and permitted one group of property owners to be denied the ability to collect rent or to evict their tenants. One group was targeted to endure losses if they happen to have a tenant who lost their job. (Due to the government decrees) if that’s had to happen (which I don’t believe that it did) , I think it was a well orchestrated effort to impose fear upon all Americans. However, property owners had to endure losses that should have been a shared loss, if necessary. They introduced an element of fear that it will take a long time before property owners recover from that. CAR did the same. They Rolled over and played dead. What they should have been doing is saying. No—- this isn’t right. This isn’t fair and so forth.
In San Diego we have a new approved statement with our city council that Housing is a right. Again. Where were the organizations fighting that? Where are they in the fight against rent control ?
More and more private property is now being treated as if it is public property. I won’t stand for it and I encourage others to raise the alarm. This is what we sell. Real property with a. Legal bundle of rights that accompany it. 1) possession 2) control 3) exclusion 4) enjoyment and 5) disposition.
These rights were trounced upon during the pandemic. In California bit by bit our socialists in power are taking away our private property rights form under our noses under the guise of creating more affordable housing. Our private properties but by bit are losing our rights to these “progressives”. Wake up Realtors. We are not being represented. Our private property rights and the private property rights are being taken away.
hopefully a change is on the horizon. But, it’s been abysmal for a while and the farce of the pandemic put them into overdrive to take away these critical rights. And what did NAR and CAR do about it? Not much.
My last name is Burr and Aaron is my uncle seven generations ago; sure do wish I had a corporate card to go see Hamilton.
They are over spending while our Board membership dues keep going up. Meanwhile, they threw their realtor members under the bus. It is time to replace NAR with an organization that truly represents real estate agents and will work for the best interest of its members.
YES!!
Latest shouldn’t surprise members r e spending-same people made Worst settlement in the history of anti trust suits – no way do realtors set commissions – the market is to competitive
There should be a national movement to get rid of NAR. How is it that membership is mandatory? And look at what they do with our money!
I have never heard of joining an association as mandatory, anywhere!
Right?!
If someone is willing to lead a national movement to get rid of NAR, I will contribute to that movement. I have been a Realtor for 35 years and can’t think of any benefit from belonging to NAR.
No surprise at all to anyone who is observant. NAR is a private club.
I smell the end of NAR…. it is of value or use anymore, they lost the only case that ever mattered to the livelihood of real estate agents. I’d say pull the plug…. let it end. it’s nothing but a leech leaching off the livelihood of real estate agents.
Don’t forget they also sold realtor dot com and now it charges us to promote our listings, after 20 years as a Realtor Im done, the “MLS book” is no longer a thing and new tech will be taking over soon. Time to flush NAR.
I’ve been a broker for 17 years and was a member of NAR for just one — that’s all it took for me to realize there is no value in membership. I hope other agents are waking up to realize their dues lined the pockets of the “leadership” team while no tangible bennefit is realized for it’s constituents.
The NYT investigtion should be a “must read” for every broker and NAR member BEFORE handing over dues this upcoming year.
Absolutely! Unfortunately, a majority of agents are reliant on associations for MLS, Contracts, Lockbox access, etc. I was more than happy to provide a quote to the NYT!
When I first learned of the 6-figure salaries of ‘volunteers’, I was shocked and disappointed. I can’t believed I’ve never heard that we were paying member volunteers serving in the 3 executive positions. I can understand why it has been a secret.
What is the salary of the new CEO? What are her ‘perks’?
We need to fix all this or lose our organization.
How many of you are still paying dues to these charlatans? It’s time to end the NAR!!!
What no mention of how much they paid for Mar-a-lago membership?
I belong to three Real Estate Associations and their MLS’s – all within a 50 mile circle. Between the Association’s Dues, their MLS membership fees and the mandatory NAR membership fees and CE course fees and my Brokerage Commission Splits and Legal Fees and Administrative Support Fees and “Broker-Transaction Fees”, and other sundry “Fee Fees” I have to sell 3 properties just to break even. Time to “Clean House” and start developing a truly fair, transparent and inclusive nation-wide set of Real Estate Transaction guidelines which can be fine-tuned for each state. The ambulance chasers that represented the Plaintiffs in the NAR lawsuit are as crooked as the NAR grifters.
Gill Woods 1995 Past President of NAR, The volunteers that take part in running NAR, various commitees and subcommitees, and there are are thousands of them are NOT paid for there service to the organization, and I received not a dime in salary for the many years of my life I devoted to the organization including my time in leadership.
Thank you for sharing. There are a great many half truths in this article. And, Bob was a paid professional. ALL Businesses and Corporations have professional managers.
First, Bob Goldberg left almost a year ago. The Leadership from President-elect to President are on the road around 250 to 300 days per year. They do not sell real estate or work in their businesses for at least two to three years. It only seems sensible to take care of Leadership, the President needs to be able to afford the job. Otherwise, who can afford to do it? Not everyone in Leadership is wealthy. That would promote ONLY having the wealthy or large real estate corporations run our associations or move into leadership not the best people who are real leaders. Our paid staff are NOT doing this for free. Its like a corporation, they have paid staff…only makes sense for $1,300,000 +/- Members. Most of the volunteers DO all of this on their own “nickels”. AND, we should pay Leadersips expenses. They couldn’t afford to travel. Corporations have employees and stockholders. They pay their employees salaries AND expenses. REALTORS do not need Oligarchs running our Association(s). We need boots on the ground REALTORS.
Really!!! Large salaries, car & utility allowances, lifestyle perks, and more for these so-called Volunteers. NAR is a non-profit and supposedly exists to represent the thousands of Realtors BEST INTERESTS…And what do our agents get in return? A settlement agreement which set us up for NO PAY for Buyer Agents- but millions for attorneys who obviously didn’t give a flip about how our industry works. FLUSH THIS CRAP and let’s get some true leadership.
Amazingly, they wrote the code of Ethics!
Not surprising one bit!
NAR has been an embarrassment to our industry , seeing this organization devolve steadily for decades , they have consistently made bad decisions with almost every important decision , initiative and false narrative they continued to push , flush them out , they’ve proven themselves, Thanks for shining the light on them ..
Are there any Real estate companies that do not require their Real Estate Agents join N.A.R. ?
If so I would like to know of them in California.
Our state REALTOR group is small, responsive, volunteers who work hard in our communities and statewide. No first class tickets, no country clubs or chauffeurs. Just hard working people who care about the real estate industry, buyers, sellers and our communities. We need a national voice for the real estate industry and transparency, leadership. Think what no national voice would do to our industry, legislation, etc.
Other industries have figured this out (example insurers of consumers needs) whereby non profits are independent in all 50 states. This mitigates federal legal issues as there is no federal entity to sue! Every state has different law. Furthermore everyone should write in commission language as commercial brokers have done this for years. They didn’t get sued did they. Attorneys have told me it creates a contingent liability in a sale. REALLY compared to the national lawsuit? Poor legal advice on a national level that shouldn’t have existed in the 1st place. Great test, look up your state attorneys purchase agreements and compare it with your realtor purchase agreement. See the differences, Minnesota’s attorney agreement is shorter and so much better than our boards. Get an attorney to disagree to a document that their state has adopted for them!
Bring in Elon and Vivik and Drain The Swamp!👍👍👍
Quit NAR now.
Brokerages CAN opt out.
We CAN quit and still have MLS access.
They give us NOTHING.
We pay for on-line classes that cost them nothing.
We get discounts on things they get kick-backs from.
What else do they do?
“Your comment is awaiting moderation.”
My comment is being censored????
Jimmy Hoffa style NAR graft and corruption on its paying Members are disgraceful! Average annual income of $52,000 per Realtor shows why this overspending by their leaders is wrong. Too it off with Anti-Buyer and Anti-Agent crap “Settlement” with NO MEMBER VOTE and it is time to shut down the NAR and start over with solid, ethical new NAR!