The "Realtor®" Scam That's Still Fooling You

Here's the truth: The "Realtor®" title isn't earned—it's bought.

A licensed real estate agent and a "Realtor®" receive identical state-mandated education and testing. The supposed "enhanced training" that justifies premium pricing? A 2.5-hour online ethics course every three years that is more of a click-through-the-slides formality than meaningful education.

That's it. That's the professional superiority you're paying extra for.

Meanwhile, this same organization that claims ethical superiority just paid $418 million for operating an illegal price-fixing conspiracy. The irony would be laughable if it weren't costing American homeowners billions.

NAR's actual function has nothing to do with professional standards. It's about controlling two critical market assets:

Before the lawsuit, this system made nearly 9 out of 10 transactions show identical commission rates—like if almost every gas station charged exactly $3.50 per gallon. That's not competition, that's price-fixing.

Some MLSs won't even let licensed agents access their system without paying NAR membership fees first. A licensed professional can't properly market properties unless they pay the trade association's dues—textbook monopoly behavior.

Personal Experience: When I tried to test transparent selling by listing my own property without offering an upfront buyer agent commission, the MLS threatened to remove my listing. This was right before NAR agreed to settle the lawsuit—proving my experience wasn't isolated but part of systematic market manipulation

Research estimates Americans pay $100 billion annually in commission overcharges compared to competitive markets. On a typical $420,000 home, that's $23,100 in commissions versus $6,300 in countries without NAR-style market control.

That $16,800+ difference per transaction? Pure extraction enabled by anticompetitive practices disguised as professional superiority.

First: Stop calling all real estate agents "Realtors®." They're not the same thing, and the confusion is deliberate.

If you're selling: Don't automatically assume you need to work with a "Realtor®." Licensed agents without NAR membership often provide identical or superior service at fair rates—they just face systematic exclusion from NAR-controlled marketing channels.

If you're buying: Understand that the "Realtor®" designation signals participation in an artificially expensive system, not superior professional capability.

The distinction that actually matters: 

Bottom line: You need an agent who understands how to reduce transaction costs through transparency—not one who hides behind ethical claims while following the same expensive playbook.

Despite settlement pressure, major brokerages like Compass, RE/MAX, eXp Realty, Redfin, Coldwell Banker, and Sotheby's International Realty are fighting tooth and nail to preserve inflated commissions. They're still training agents that "5.6% in total commissions is standard"—because their publicly traded business models depend on it. When investors demand maximum profits, consumer savings become the sacrifice.

The real battle ahead: Consumer education vs. industry manipulation. Armed with knowledge, you can demand better. Without it, you'll keep overpaying while brokerages prioritize maximum profit extraction over your financial well-being.

Bottom line: The Realtor® premium may have started with good intentions, but today's reality is market manipulation disguised as professional superiority.

Want to outsmart the brokerages who refuse to adopt consumer-first practices? I've developed proven systems that simplify transactions and save tens of thousands—while the industry clings to outdated methods that prioritize their profits over your savings.

Write me directly at [email protected] or schedule a free strategy call for specific strategies that are saving buyers and sellers tens of thousands.

How the MLS monopoly sells your property data to Zillow without your permission—while you pay agents to access the same system that profits from your information.

I'm Mathew Speer, creator of PropertyPage.io, the first consumer centered, fully transparent real estate listing platform. After 20 years investing and 14 years as an agent, I authored The Consumer's Guide to Buying and Selling Real Estate and write this newsletter to expose industry dysfunction and arm consumers with insider knowledge.