Dues Are Due

Today was the day.  The REALTORS® in St. Paul who want to remain REALTORS® and not forfeit use of the MLS or membership in their local trade association had to pay their dues by today.  A thirty day grace period exists with a late fee penalty but beyond that the non-paying REALTOR® member would get booted out of the club, lose access to the MLS, not be allowed to join some real estate companies, and be demoted to real estate agent.  As Bill on Saturday Night Live would say, "Ooooooh, noooooo!"

Now a real estate agent who is not a member of the REALTOR® association still has a legal right to sell real estate in Minnesota if the real estate agent has passed the Minnesota state licensing test, maintained continuing education credits including fair housing and agency requirements, and has a broker willing to hold their license.  Their license is issued by the State of Minnesota making it legal for an agent to sell real property throughout the state. 

Membership in the Association of REALTORS® does not make selling real estate legal.  The state license does that.  Membership in the Association gives the real estate agent the right to call him/herself a REALTOR®, to directly access the MLS and to use the electronic lockbox system.  That isn't true in all states, but in St. Paul it is.

Selling real estate is pretty hard without the MLS.  In fact it's a formidable task.  It's also pretty hard to sell real estate without access to the electronic keypad which opens the electronic lockboxes.  Most difficult of all is that many real estate companies require membership in the association before one can sell with their company.

Imagine a non-member agent using another agent's (REALTOR®'S) website to find a property for a client, calling for an appointment and being told there's an electronic lockbox.  "But I don't have a key," says the forlorn agent.  "Well, I'm sorry, sir, but that's how you gain access to the property."  The next call would be to the listing agent.  "Will you meet me at 1234 Looksee St. at noon tomorrow so I can show your listing?"  "Why don't you use the lockbox?"  "Because I don't have a key."  "Well, I'm sorry, but I'm going to be out of town tomorrow and can't meet you there."  The discouraged non-member agent asks for someone else to meet him there.  "I'm afraid they'll want a referral fee for doing YOUR job for you.  Why don't you just pay your dues, join the Association, and do the showing yourself?  Wouldn't it be easier?"

Granted, there are a few mavericks who manage to sell real estate without becoming REALTOR® members, but the numbers are small.   Many are investors licensed so they can buy and sell for themselves.

So, today was an important day for St. Paul REALTORS®.  The bottom line on my membership dues statement was $583!  Of that amount, $389 is the minimum required for membership.  Almost $200 is for voluntary fees like prepaid education and charity.  The fees come due when sales are traditionally low and REALTOR® budgets tighten up.  This year it will be interesting to see how many REALTORS® choose to become agents or quit the business all together.  Perhaps some REALTORS® have discovered that being REALTORS® isn't the easy job they thought it was and the pay isn't so good anymore?  Will they bite the bullet and pay the fee?  Or will they disappear into the night?

Comments

[Bonnie Erickson]

I think you're right, Aaron, that numbers will fall as commissions decrease. The job is much harder when there market is flooded with inventory than it was when there were too few houses on the market!

[Aaron Dickinson - Edina Realty]

Funny... MAAR obligatory dues totaled only $360 for us... MAAR itself is $120/yr.

To me this is still quite cheap for the capabilities it provides but, as you stated, for some agents that are not doing much business it will come as a wakeup call and my guess is some will not renew.

We're up dramatically in membership from when I joined the business 5 years ago and it is very reasonable to see that number continue to fall over the next few years.