The American Real Estate Association is coming into its own 

Two years after rising from the flames of the National Association of Realtors' sexual harassment scandal, the American Real Estate Association is growing up.

The trade group is now 10,000 members strong and expects to have 100,000 members by the end of the year, according to Co-founder and Compass agent Jason Haber. It has also recruited corporate sponsors, created a board of directors and is hiring its first paid staff member. 

An 'unlikely' activist is born

In August 2023, The New York Times published an exposé detailing sexual harassment allegations at NAR; days later, Haber formed the NAR Accountability Project, saying at the time that while he was an "unlikely candidate" to lead the effort, "I've never been afraid to speak up when I see an injustice."  

Haber encouraged others to join him in demanding reforms from the trade group. "I didn't really have much experience with NAR," Haber told Real Estate News. "I just thought this was wrong and something should change."

He created an online petition calling for the departures of several executives — NAR CEO Bob Goldberg, Chief Legal Officer Katie Johnson, HR head Donna Gland and General Counsel Lesley Muchow — as well as independent third-party vetting of sexual harassment claims and the release of former NAR workers from non-disclosure agreements. 

All except the last demand eventually transpired, but Haber noted that single-party NDAs — those in which only one party is bound to silence, even if the other party chooses to speak publicly — have become illegal in Illinois, where NAR is based, in cases involving harassment, discrimination or retaliation.

"The work isn't done," Haber acknowledged, but "because we had those hard conversations, … managers are more attuned to dealing with these issues," Haber said, and "agents are more aware of boundaries and where boundaries can get crossed."

Aiming to 'coexist peacefully with NAR'

Haber praised NAR CEO Nykia Wright for stepping into "a very difficult situation" and leading a "cultural change" at the trade group.

"Obviously there were issues with sexual harassment before. I think she's done a good job with policy and helping to right the ship there," Haber said. "There's a general sense that NAR is listening much more now," he added.

Despite NAR's troubled history, American REA isn't trying to take down the association.

"NAR is a massive organization," Haber said. "We're not gunning for them or aiming to be their size. We're aiming to fill a lane that we think we can exist in and coexist peacefully with NAR."

Membership growth and risk mitigation

The American Real Estate Association launched its paid membership program a year ago and has since grown to at least 10,000 members, according to Haber. 

The trade group has also formed a five-member board of directors that includes Haber, American REA co-founder Mauricio Umansky, two real estate growth company founders and Douglas Elliman General Counsel Deva Roberts.

"We wanted to have at least one lawyer to bring a legal perspective to the decisions that we'll be making as an organization," Haber said.

Knowing how many lawsuits NAR has faced over the years, the risk of litigation involving American REA has been "back, side and front of my mind," Haber added. "You have to be careful these days, and you have to have your organization set up to defend and protect when necessary," Haber said. "We'll be very well-insured."

Transitioning to a fully staffed organization

The American Real Estate Association gets revenue from dues and events, but it's not enough to cover salaries. That's where sponsorships come in.

Agent services provider RLTYco — whose co-founder and CEO Briggs Elwell is on the American REA board — and security app company Forcefield Protection are the organization's first two sponsors, and they will pay a fee to have their services promoted to the trade group's members.

The added revenue will enable the association to transition from an all-volunteer nonprofit to one with a full-time staff — which is "what this trade group needs as it enters its next iteration," Haber said. But none of the funds will go to the founders, he emphasized: "Mauricio and I take no compensation for the trade group. Never have, never will."

The staff will include a communications person and a political director, but the first hire will be an executive director. 

The association has begun interviewing candidates for that position and hopes to extend an offer by the end of October. The job will go to someone who not only has leadership chops, but also is "experienced in the policy minutia of the industry," Haber said.

"If they don't know what Clear Cooperation is, or … if they don't know what things happened in the industry over the last two years, it's probably a difficult job."

Not a Compass 'front'

While Haber, a Compass agent, has shaped the trade group's policy positions so far — particularly in regard to the Clear Cooperation Policy — that doesn't mean the American Real Estate Association is a Trojan horse for Compass's views, according to Haber. 

He noted that less than 10% of members are affiliated with Compass, and the trade group actually suggested tweaking the CCP rather than scrapping it altogether, in contrast to Compass CEO Robert Reffkin.

"They have no seat on our board of directors, Compass," Haber said. "It's important for people to know this is not some sort of Compass front. We have received $0 from Compass from a sponsorship perspective to date."

As the association evolves, Haber believes it will represent a diverse set of viewpoints from brokers nationwide: "Mauricio and I are guiding lights, but the train will ultimately be driven by [brokerage leaders], our agents and the community at large."