Organized Real Estate The Engine that Works

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Organized Real EstateThe Engine that Works

• Terry McDermott, CEO
• NATIONAL ASSOCIATION OF REALTORS August, 2005

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Planning and Action The Gears of an Effective
Organization

• Run Independently

But incollaboration with one another
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The Power of Teamwork Moves Us Forward
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Leadership Is Key
I Have Had the Good Fortune to Serve with Many
Outstanding NAR Leaders
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NAR Presidents
Russ Booth 1997
Martin Edwards 2002
Layne Morrill 1998
Cathy Whatley 2003
Sharon Millett 1999
Walt McDonald 2004
Al Mansell 2005
Dennis Cronk 2000

• Richard Mendenhall
• 2001

Tom Stevens 2006
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Special Thanks to

• NAR Staff
• 500 State Presidents
• 50 State EOs
• The Entire Realtor AE Community

For Your Tremendous Contributions!
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Thanks to ALL for the

• Opportunities
• Challenges
• And FUN!!

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Ask yourselfWhat are the core beliefs and
long-term goals that define you?
As We Look To the Future
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NARs Answer

• Core Purpose
• Help members become more profitable and
  successful.
• Vision
• Be the collective force influencing and shaping
  the real estate industry.
• Visionary Goals
• Leading advocate of the right to own, use and
  transfer real property.
• Acknowledged leader in developing standards for
  efficient, effective and ethical real estate
  business practices.
• Valued by highly skilled real estate
  professionals and viewed by them as crucial to
  their success.

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Core Organizational Principles

• Support members business success.
• Local, state, national and international
  relationships are integrated.
• REALTORS have access to all entities of the
  organization.
• Coalitions achieve policy, legislative, business
  and strategic goals.
• Information is transformed into knowledge and
  easily accessible by members.
• Diversity and inclusion are a part of all NAR
  planning and activity.

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Core Business Model Principles

• REALTOR remains first point of contact and
  central to the transaction.
• Member and association data and its uses are
  protected.
• REALTOR brand and trademark are preserved and
  enhanced.
• Revenue models cover costs of services.

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Core Real Estate Industry Principles

• Highest standards of professional ethics and
  conduct are maintained and promoted.
• The right to own, use and transfer real property
  is protected and promoted.
• Private enterprise, a free/orderly market and a
  governmental environment supportive to the
  industry are protected/promoted.

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Core Principles Drive Change
65 Years of Progress (Revenue Growth)
5 per member Legal Action Fund Assessment
started in 1972 and ended in 1981.
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Major Steps Forward
Approved Approved
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Continuing the Momentum
New/ExpPrgming Levels 1999
Approved2005
Proposed Proposed
Addl Prgming
Major Initiatives
2006
2007
1.56MM
7.3MM
2.05MM
360K
608K
191K
235K
1.03MM
229K
1.44MM
513K
2.07MM
2.34MM
3.72MM
328
328
328
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Never a Lack of Challenges

• 2005-2006
• Kelo Decision
• DOJ Policy Challenge
• GAO Study on Competition
• Banks in Real Estate
• 2006 Tax Law Changes

Solutions Are Within Reach!
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Prime Opportunity

• Small Business Healthcare Fairness Act (HR 525)
• passed House by a vote of 263-165
• We WILL pass healthcare legislation before 2006
  elections!

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The Future of Organized Real Estate Begins with
YOU

• The Realtor Movement
• Contribute to the Realtor Organization.
• Meet the Challenges We Face Today.
• Drive Change in the Future.

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The measure of success is not whether you have a
tough problem to deal with, but whether its the
same problem you had last year.
What Are You Doing To Secure Our Success?

• John Foster Dulles

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Organized Real EstateThe Engine that Works

• Terry McDermott, CEO
• NATIONAL ASSOCIATION OF REALTORS August, 2005