AN ALTERNATIVE TO MLS - A.R.E.A. AMERICAN REAL ESTATE ASSOCIATION

In a groundbreaking shift within the real estate industry, Mauricio Umansky, a renowned broker and co-founder of The Agency, along with Jason Haber, a Compass agent and the founder of the NAR Accountability Project, have spearheaded the launch of the American Real Estate Association (AREA). This initiative emerges as a direct competitor to the National Association of Realtors (NAR), which has dominated the industry for over a century but now faces criticism for antitrust litigation, leadership changes, and other controversies.

AREA seeks to differentiate itself by not replicating NAR's model, focusing on providing innovative solutions and addressing the concerns raised by its founders about the current state of the real estate industry. Among its key features, AREA has introduced a nationwide listings database, the National Listing Service (NLS), leveraging technology from Umansky's private listings service to offer a centralized platform for listings across the country. This move aims to facilitate better access and efficiency within the industry, breaking away from NAR's traditional grip on property listings through its Multiple Listing Services (MLS).

The founders of AREA are determined to redefine the industry norms, including allowing member agents to set their own commission rates and not mandating cooperation between listing and buyer's agents, a significant shift from the current practices. Furthermore, AREA plans to operate without a traditional leadership hierarchy, such as a president or vice president, and is currently self-funded by Umansky and Haber, with plans to raise significant funding to support its initiatives.

NAR, in response to the emergence of AREA, has emphasized its commitment to competition, innovation, and advocacy for its members, highlighting its efforts in improving access to homeownership, housing inventory, and fair housing initiatives. NAR asserts its value to its members through leadership, educational opportunities, and a range of other benefits.

This bold move by AREA is not without its skeptics and challenges. The real estate community is watching closely to see how AREA will navigate the complexities of establishing a new association and what impacts it will have on the industry's future dynamics. As discussions and debates unfold, the real estate landscape is poised for potentially transformative changes, driven by innovation and a fresh perspective on traditional practices.

Watch this great episode of To Live And Buy In Los Angeles with Ben Belack and Zack Goldsmith as they interview Mauricio Umansky for more info on the subject.