The complete list
The 50 Dangers
Every danger, ranked by its danger index. Filter by section, severity or timing.
- A1
Masses of Marginal Agents Destroy Reputation
The real estate industry is saddled with a large number of part-time, untrained, unethical, and/or incompetent agents.
100Critical - B1
Regulatory Tsunami Hits
Regulatory creep and large financial penalties increase compliance costs.
100Critical - C1
Decision-Making Structure Becomes A Hindrance
The existing decision-making structure becomes a liability, slowing down the organization's ability to adapt and respond to industry changes.
100Critical - D1
Leaders Not in Unison with Fast-Paced World
Leaders of state and local associations are not keeping pace with the fast-moving world around them.
100Critical - E1
Entry by a New Player
A new player enters the MLS space, disrupting the established order and creating competition.
100Critical - E2
Unclear End Result
The outcome of changes in the MLS landscape is unclear, creating uncertainty for stakeholders.
90Critical - A2
Commissions Spiral Downward
A variety of powerful forces exert significant downward pressure on real estate commissions.
87.5Critical - B2
Paper Brokerages Cause Disruption
With no walls and little operating costs, Paper Brokerages proliferate and become a major force overnight.
80Severe - C2
The Three-Tier Structure Liability
The three-tier structure of the organization becomes a liability, creating inefficiencies and misalignments.
80Severe - D2
Too Many Uninformed Decisions Are Taken
Uninformed decisions are being made at the state and local association levels, leading to suboptimal outcomes.
80Severe - B3
Brokers Lose Control of Data
Consumer confidence in industry data erodes due to the multiplicity of conflicting data sources.
72Severe - C3
Out Positioned as Industry Spokesperson
NAR is out positioned as the industry's leading spokesperson, losing influence and credibility.
72Severe - E3
Control of a National MLS
Control of a national MLS becomes a contentious issue, impacting cooperation and competition.
72Severe - A3
Agent Teams Threaten the Survival of Brokerages
Teams cannibalize brokerage companies by siphoning off their profits, leaving them exposed to all the risk.
70Severe - D3
Broad Resistance to Consolidation
There is broad resistance to consolidation among state and local associations, hindering their ability to adapt and thrive.
70Severe - E4
Decentralized Infrastructure Becomes Obsolete
The decentralized infrastructure of the MLS system becomes obsolete, requiring significant upgrades or replacement.
70Severe - B4
A Consumer Brand Crashes the Party
A well-established consumer brand is introduced into the marketplace and a new multi-billion dollar residential real estate brokerage brand is created.
64Severe - C4
Mission Creep
NAR's mission expands beyond its core purpose, diluting its effectiveness and focus.
64Severe - C5
The Catch-22 Tech Quandary
NAR faces a catch-22 with technology investments, struggling to balance innovation with member needs and expectations.
64Severe - D4
The Lowest Common Denominator Impediment
State and local associations are hindered by a focus on the lowest common denominator, limiting their ability to innovate and excel.
64Severe - E5
Large Patent Troll Attack
The MLS system faces a large patent troll attack, creating legal and financial risks.
64Severe - A4
IRS Forces Exodus of Independent Contractors
An IRS ruling is handed down that reclassifies the legal status of real estate agents from independent contractors to employees.
63Severe - B5
New Business Models Go Mainstream
The existing compensation structure gets eclipsed as new business models gain rapid traction.
63Severe - A5
The Decline in the Relevancy of Agents
The role, function, and perceived value of agents deteriorates as agents fail to properly assess and respond to changing consumer demands and expectations.
60High - C6
The Quality / Quantity Challenge
NAR struggles to balance the quality and quantity of its membership, impacting its reputation and effectiveness.
60High - D5
The Unwieldy Governance Structure
The governance structure of state and local associations is unwieldy, creating inefficiencies and hindering effective decision-making.
60High - E6
Security Breach
The MLS system experiences a significant security breach, compromising data and eroding trust.
60High - B6
Brokers Simply Go Broke
Increasing costs and decreasing revenues squeeze brokers' profits, leading to an increasing number of brokerages going out of business.
56High - C7
Insufficient New Blood
NAR faces a shortage of new talent and leadership, impacting its ability to innovate and adapt.
56High - D6
Reluctance of Leaders to Step Up
There is a reluctance among potential leaders to step up and take on leadership roles within state and local associations.
56High - D7
Loss of Primary Revenue Source
State and local associations face the risk of losing their primary revenue sources, impacting their financial stability.
54High - A6
The Agent-Centric Era Ends
The disproportionate power that independent contractors have enjoyed over the past three decades goes out of vogue as capital or economies of scale change the rules and the Wall Street reign begins.
52.5High - A7
Housing Finance System Fails
Mortgage-backed securities as a method of financing is discontinued because it’s too risky and the related fines imposed on banks too severe.
48High - B7
Technology Becomes a Runaway Train
The pace of technological change accelerates, outstripping the ability of brokers to keep up.
48High - C8
Shortage of Leadership Talent
A shortage of leadership talent impacts NAR's ability to effectively lead and manage the organization.
48High - E7
Off-MLS Listings Escalate
The prevalence of off-MLS listings escalates, undermining the value and effectiveness of the MLS system.
48High - E8
Increased Hostility in the Real Estate Community
Increased hostility and competition within the real estate community create challenges for MLSs.
48High - A8
Commoditization of Residential Real Estate
The concentration of residential ownership into the hands of a few large investors commoditizes residential real estate and impacts market dynamics and liquidity.
42High - B8
FSBO Develops into a Do-It-Yourself Model
The For Sale By Owner (FSBO) model gains traction as technology enables homeowners to sell their homes without the assistance of a broker.
42High - D8
Changing of the Old Guard
The changing of the old guard creates challenges for state and local associations, as experienced leaders retire or step down.
42High - A9
Commissions Concentrate into Fewer Hands
A very small group of very efficient and effective agents discover the winning formula and secure a disproportionate market share.
40Moderate - B9
Sales Tax Threatens Margins
The imposition of a sales tax on real estate transactions threatens brokers' profit margins.
40Moderate - B10
Portals Leverage Lead Gen Dominance
Real estate portals dominate lead generation, squeezing brokers' margins.
36Moderate - C9
REALTOR® Brand Loses its Desirability and Power
The REALTOR® brand loses its desirability and power, impacting NAR's ability to attract and retain members.
36Moderate - D9
Local Association Charter Revoked
The risk of local association charters being revoked creates uncertainty and instability.
36Moderate - E9
Consumer-Facing Websites at the Crossroad
Consumer-facing real estate websites face a crossroads, impacting their relationship with MLSs.
36Moderate - E10
A Better Mouse Trap
A new and improved platform or technology emerges, rendering traditional MLS systems obsolete.
36Moderate - A10
The Agent is Removed from the Transaction
A tech company cracks the code and connects enough of the dots to conduct real estate transactions without the need of an agent.
31.5Moderate - C10
Core Standards Too Low
The core standards for membership are set too low, impacting the quality and professionalism of NAR members.
30Moderate - D10
The Dues Disconnect
The disconnect between dues and member value creates dissatisfaction and disengagement among members.
30Moderate
No dangers match those filters.