Speaking of Real Estate: Why Our History Matters
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Why Our History Matters

By Daniel Rothamel, ABR®, SRES

This post is part of a series covering my journey of discovery through the history of the National Association of REALTORS. As my guide and my inspiration, I am using a book published by NAR, "100 Years in Celebration of The American Dream," celebrating the Centennial of NAR. The following was inspired by reading just the first ten pages.

The NATIONAL ASSOCIATION OF REALTORS® turns 100 years old this year. That is pretty old, as organizations go. It is old enough that there is not one single member of our organization alive today that can remember the birth of NAR. This is both good and bad.

The Good. One hundred years is a long time. Here is some simple math:

1908 to 2008 = 100 years. 1776 to 2008 = 232 years. NAR has been around for ALMOST HALF OF AMERICAN HISTORY! The people who make up the membership of NAR have lived and worked through many of the significant events in American history. The fact that our organization is 100 years old is a testament to the vision and hard work of the men who met together in Chicago 100 years ago with the idea of starting a national organization of "real estate men," as they were then called. As a general rule, bad ideas don't usually stick around for 100 years (I can think of a few exceptions, but most of them required a war or two for survival). Those men, and all those who have come and gone since, obviously did something right.

The Bad. One hundred years is a long time. Our culture has changed quite a lot over that time. Attention spans are much shorter, and so are memories. This means that much of what has been learned might have already have been forgotten. This fact is what makes the NAR centennial book such an important publication. We should always be reminded of those who came before, we should always be willing to learn from their example and from their work. If we fail to do that, then the end result is that all of their hard work will have been in vain. I hope very sincerely that those of us who have chosen to bear the title of REALTOR® today, will do our best to honor those without whom our privileges would not be possible.

Let's Begin at the Beginning

I dare think that the practice of real estate at the turn of the 20th century would be almost completely foreign to REALTORS® practicing today. When I say this, I'm not talking about the many technologies that make our daily work life more efficient. I'm talking about the actual cultural, professional, historical, and legal climate that was present 100 years ago for real estate men. Some things to consider about the world of real estate 100 years ago:

1) Widespread private real estate ownership is brand new. I think it is pretty safe to say that the majority of you reading this post own the home in which you currently live. There is also a pretty good chance that you live in a suburb, or even a rural area (like me). One hundred years ago, that was not the case. Most Americans did not own their homes, and the cities held the vast majority of the American population. The concept of the suburb hadn't even been born yet. It was about this time, however, that many cities and towns were rapidly expanding. This meant that those expanding cities and towns needed a place for people to live, they needed real estate.

2) There were no licensees. One hundred years ago, anyone, I mean ANYONE could call themselves a real estate dealer. There were people called "curbstoners." These unscrupulous individuals would basically set up shop as a real estate dealer on the sidewalk (the curbstone), and bilk or swindle anyone they could. Have you ever been in a city and been approached by people handing out flyers for something, or saying, "Psst, come check out these watches and handbags I have. . .." Now, imagine if those people were peddling real estate. Scary, but it was happening all over.

3) There were no rules or laws governing transactions. We live in a world with RESPA. One hundred years ago, however, real estate transactions were governed by simple contracts common law. All that was needed was an agreement between the buyer and the seller. No mountains of paperwork, no lengthy disclosures, no warranties, and very little recourse if they whole thing went awry.

These Conditions Warranted A Solution

The ethical practitioners of real estate recognized there were problems. What they didn't have was a viable way of solving them. They did recognize, however, that the problems were similar all over the country. As the number of real estate practitioners grew, so too did the need for cooperation and collaboration among them if they were to address the issues facing their profession. It took the leadership and vision of some of the nation's largest real estate boards at that time to address these issues and launch the organization that would eventually be known as the NATIONAL ASSOCIATION OF REALTORS®. We all know, however, what can happen to the best laid plans of mice and men if there is no leadership to guide them. The necessary leadership would come first from the man who would eventually be the fifth president of NAR. More on him, and the seed that he planted, in my next installment. . ..

Comments

Like this article! I am working for Toronto real estate agent and time from time I am confronted with people, stating that there's no need for realtors. But history shows we emerged because of peoples needs, nut just "so", just to "make business"

Good morning everyone. Santa Clara County Association of Realtors received over 600 essays from students in April of 2008 sharing Their American Dream. I was priviledged of being one of the judges. I was at the Board from 9AM til almost 3 PM reading over 400 essays and assisted in the selection process. I was deeply moved reading essays from students whose single parent struggle with two jobs, moving from one place to another, living in unsafe areas, being teased in school when their parents parked their trailer close to school so they can get to school quicker. Most of the students want to get the best education to buy a home for their family, raise their children in a nice and safe area, house with bedroom for all and not having to share a two bedroom home with 10 people. One young man's essay stood out for me from the 400 essays that I read. He wants to be the first in his family to graduate from college, his father was in jail, his grandma raises him, he hasn't seen or heard from his mom. His dream is to have a career in music, to buy his grandma a home and take care of her. Other judges also voted for him to be the grand prize winner of $1500 scholarship. I asked staff for this family phone number to call to congratulate them. I talked with Grandma and acknowledged her for who she was being to raise an outstanding young man. She asked me to speak to her grandson. I told him that his essay stood out from the 400 essays that I read and I wished him an incredible journey and success in his life. I thanked him for making a difference in the world. NAR came to our Board this week training our Leaders on the new campaign of Surround Sound, we shared with them the vision of our young people. Our kids are thriven and they love the opportunity to show themselves. We haven't seen this many essays coming to our Board until this year. Kids love the opportunity to show off their hard work and winning scholarships will be even more attractive. NAR, CAR and our Local Boards should provide more money for scholarships and offer more scholarships. That cost less than commercials and offer the gifs that last a life time. Education and Dream building for our kids. Realtors make a diffence in the World, that's who We are and We are proud of our Profession.

Thought this was a great video, and would love to be able to have it continually play full screen during open houses, and conducting Buyers' / Sellers' Seminars..... what a way to educate consumers about professional REALTORS.... not all real estate agents are REALTORS. CONGRATULATIONS on a great video!

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