The US real estate industry, dominated by the National Association of REALTORS and its affiliates nationwide is still a closed business that is highly resistant to change.

Implementing any change that would have a direct impact on consumers (like lowers fees) is like trying to turn the Titanic around in a bathtub.

Most consumers have no idea that the NAR has a strangle hold on virtually every state real estate regulatory body (the very entity that was established to protect consumers). They exercise this control through their state affiliates and it goes virtually unnoticed.

Real estate regulatory bodies like the Kentucky Real Estate Commission (KREC), operate with little or no oversight and rarely make a move without the direct involvement of the Kentucky Association Of REALTORS (KAR). It’s easy enough to see that that the objectives of the KAR would be “industry” oriented and that the KREC should be “consumer” oriented.

We are not likely to see any meaningful change in the way the real estate industry functions until we restore independence to real estate regulators.

Currently in many states, a position on the state real estate regulatory body is a “pay-back” for past political involvement and has to be approved by the state REALTOR trade group.

What we actually need are “subject matter experts” serving the interest of consumers and establishing reasonable rules and policies that reflect the fact that we are living in 2008 not 1960.