What is NAR?

Have you ever wondered what the three-letter acronym NAR stands for and what the organization actually does? Here’s what NAR is, what it does, and why it matters to home buyers and sellers.

The National Association of REALTORS® and Its Duties 

• The National Association of REALTORS® (NAR) stands as one of the most influential professional organizations in the United States. Founded in 1908, NAR represents more than 1.4 million members at the time this article was published. NAR is involved in all aspects of the residential and commercial real estate industries. Its members include real estate brokers, agents, appraisers, property managers, and other professionals who subscribe to a strict Code of Ethics and commit to promoting integrity, professionalism, and consumer protection in every transaction. 

The Mission and Purpose of NAR 

• At its core, NAR’s mission is to help its members become more successful while advocating for property ownership and real estate investment as cornerstones of the American Dream. The organization’s purpose extends beyond serving its members—it also plays a vital role in shaping housing policy, protecting property rights, and ensuring that the real estate market remains fair, transparent, and accessible. 

The three things I feel NAR does that are most important:

1. Advocacy: Representing REALTORS® and property owners before Congress, state legislatures, and regulatory agencies.
2. Education: Providing training, certifications, and continuing education to elevate professional standards.
3. Community: Fostering collaboration among real estate professionals and promoting ethical practices that strengthen public trust.

Historical Background 

• The organization was founded in Chicago in 1908 as the National Association of Real Estate Exchanges. Its name changed over the years before becoming the National Association of REALTORS®.
• Its founders sought to create a unified body that would standardize real estate practices and elevate the profession’s reputation.
• The term “REALTOR®” itself is a registered trademark owned by NAR. 
• It distinguishes members who adhere to the association’s Code of Ethics from other real estate licensees. 
• This distinction is significant – not all licensed agents are REALTORS®!
• Membership in NAR signals that person is part of an organization committed to standards of professionalism and accountability. 

The REALTOR® Code of Ethics 

• One of NAR’s most defining features is its Code of Ethics, first adopted in 1913. 
• This document outlines the moral and professional responsibilities of REALTORS® toward clients, customers, the public, and other real estate professionals. It emphasizes honesty, fairness, and respect in all dealings. 

Key principles include:

• Protecting and promoting the interests of clients while treating all parties honestly.
• Avoiding misrepresentation and ensuring truthful advertising.
• Maintaining confidentiality and safeguarding client information.
• Cooperating with other brokers to advance the interests of buyers and sellers.
• Upholding professional competence through ongoing education and ethical behavior.

The Code of Ethics is reviewed and updated regularly to reflect changes in law, technology, and market practices. NAR enforces these standards through local REALTOR® associations, which handle ethics complaints and disciplinary actions when necessary. 

Advocacy and Public Policy 

NAR is deeply involved in advocating for policies that support homeownership, real estate investment, and fair housing. 

Through its Washington, D.C. headquarters and state-level affiliates, NAR works with lawmakers to influence legislation on issues such as:

• Tax incentives for homeowners and investors.
• Fair housing laws that prevent discrimination.
• Mortgage lending regulations that ensure accessibility and affordability.
• Environmental and zoning policies that affect property development.
• Data privacy and technology standards in real estate transactions.

NAR’s advocacy efforts are nonpartisan and focus on protecting the rights of property owners and promoting a healthy housing market. The organization also operates the REALTOR® Political Action Committee (RPAC), which supports candidates and initiatives aligned with real estate interests. 

Education and Professional Development

Education is another cornerstone of NAR’s mission. The association offers a wide range of designations and certifications that help REALTORS® specialize and advance their careers. Examples include:

• Accredited Buyer’s Representative (ABR®)
• Certified Residential Specialist (CRS®)
• Senior Real Estate Specialist (SRES®)
• Graduate, REALTOR® Institute (GRI®)

These programs provide in-depth training on negotiation, marketing, ethics, and emerging trends. NAR also hosts national conferences, webinars, and workshops that connect professionals with industry leaders and new technologies. 

By investing in education, NAR ensures that its members remain knowledgeable, adaptable, and capable of serving clients in an ever-changing market. 

Research and Market Insights 

NAR is widely respected for its research and data analysis on housing trends, affordability, and consumer behavior. Its reports—such as the Existing-Home Sales Report, Profile of Home Buyers and Sellers, and Commercial Real Estate Outlook—are used by policymakers, economists, and journalists to understand the state of the market. 

These insights help REALTORS® make informed decisions and guide clients effectively. They also contribute to public understanding of housing dynamics, from interest rate fluctuations to demographic shifts in homeownership. 

Community and Member Support 

Beyond advocacy and education, NAR provides extensive resources and support to its members. This includes: 

• Legal assistance and risk management tools.
• Technology platforms for marketing and transaction management.
• Networking opportunities through local and national events.
• Discount programs for business services, insurance, and travel.

NAR also encourages community involvement through initiatives like REALTORS® Relief Foundation, which provides housing assistance to victims of natural disasters. This humanitarian work underscores the organization’s commitment to service and social responsibility. 

Promoting Fair Housing and Diversity 

1. A major focus of NAR’s modern mission is promoting diversity, equity, and inclusion within the real estate industry. 
2. The association actively supports fair housing laws and works to eliminate bias in home buying and selling. 
3. Through training programs and partnerships, NAR helps REALTORS® understand and address issues related to discrimination, accessibility, and cultural competency. 

Its Fair Housing Action Plan, known as ACT! (Accountability, Culture Change, and Training), reinforces the REALTOR® pledge to provide equal professional service to all clients, regardless of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. 

The Structure of NAR 

NAR operates through a three-tier system:

1. Local Associations: Where REALTORS® join and participate in community-level activities.
2. State Associations: Which coordinate advocacy and professional development across regions.
3. National Headquarters: Located in Chicago and Washington, D.C., overseeing national policy, research, and branding.

This structure ensures that members receive support at every level—from local networking to national representation.

The Future of NAR 

As technology transforms the real estate landscape, NAR continues to evolve. The organization invests in digital tools, data security, and artificial intelligence to help REALTORS® serve clients more efficiently. It also addresses emerging challenges such as climate resilience, housing affordability, and generational shifts in homeownership.

NAR’s enduring relevance lies in its ability to adapt while maintaining its ethical foundation. By balancing innovation with integrity, it ensures that REALTORS® remain trusted advisors in one of life’s most significant decisions—buying or selling a home.

The National Association of REALTORS® is far more than a trade group. Through its Code of Ethics, advocacy, education, and community service, NAR strives to safeguard the interests of both REALTORS® and the public. Its work promotes professionalism, protects property rights, and strengthens the dream of homeownership for millions of Americans.

In every sense, NAR embodies the values of trust, expertise, and service that define the real estate industry—and its influence continues to shape the future of housing across the nation.