The Real Estate Business

Question 1

Big Business

Answer 1

The business of real estate is big business - big in the number of people it touches and big in the money it generates. For most people, buying and selling real estate represents the most significant monetary transaction of their lives.

The business of bringing buyers and sellers together and assisting in negotiations and transactions concerning the sale of real estate is known as real estate brokerage.

Real estate organizations at local, state, and national levels promote and police the real estate business. They also promote professionalism and specialization in the real estate business

Question 2

Related Industries

Answer 2

Other industries are related to the real estate business, including:
Appraising;
Abstracting;
Lending;
Property management;
Development;
Construction;
Insuring;
Renovating; and
Remodeling.
Various professional organizations at local, state, and national levels exist to regulate and promote professional conduct and standards in all these related businesses.

Question 3

National Association of REALTORS®

Answer 3

The largest professional association in the real estate industry is the National Association of REALTORS® (NAR), which was first organized in 1908. To be a full member of this association, a person must be licensed in an individual state to sell real estate and must join the local board of the NAR. In most areas, this board is called the Association of REALTORS®.

To be an affiliate member of the NAR a person must be closely affiliated with the real estate business, such as an attorney, a lender or an abstractor. Only members of the NAR are REALTORS®.

The term REALTORS® is a registered trademark owned and controlled by the NAR, indicated by the symbol accompanying every use of the term. A REALTOR® is a professional in real estate who subscribes to a strict code of ethics known as the Code of Ethics and Standards of Practice.

Question 4

Local Associations

Answer 4

The NAR at the local level promotes local real estate business. The local board or association may sponsor seminars on home ownership, civil rights, recycling or other issues of public concern. The local board is also instrumental in policing the local real estate business. The goal of local NAR associations is to promote the highest ethical standards in the brokerage business.

Cooperative agreements between brokers to share information, such as the Multiple Listing Service (MLS), usually are established at the NAR local level

Question 5

NAR Activities

Answer 5

At the state and national levels, the NAR lobbies in the state legislatures and Congress on matters specific to the real estate business. The NAR has developed special institutes that have designations and certifications in specialized areas of real estate. Examples include the Realtors National Marketing Institute and The Institute of Real Estate Management. This function of the NAR has added to the professional image of the real estate business