We continue to hear the rumblings of how our industry will continue to change, and some even predict it will all but evaporate entirely. That is probably too severe, but I believe it is definitely headed toward being the Wal-Mart of professions.
It has been obvious to me for a very long time that our standards have been compromised by agencies who have hired salespeople based primarily on two things 1) if they have a license and 2) who their sphere of influence is. Whether the applicant has any talent, is dedicated to being an ethical agent, etc., are far down on the list of qualifications.
The idea is essentially kin to the way debit life insurance companies have traditionally hired agents: Bring ‘em in, let them sell a policy to all of their relatives and friends, if they succeed after that, good...if they don't at least we got the new business they wrote on their family and friends.
I read some of the absurd pontifications on Active Rain by pseudo-professionals, and I want to scream, "Who taught you that junk? You have no earthly clue what you're talking about!" My sadness comes because they actually think they know what they're talking about.
An agent in one state has recently written more than a handful of all but illiterate messages in the Questions and Answer section saying that the laws of her state prohibit people licensed elsewhere from discussing how to buy and sell real estate in her state. She always reminds us that we aren't attorneys. What is she talking about? How is this applicable? No one of the those who have responded seems to be discussing real estate law, they are discussing how to solve a problem.
Most of how one should approach real estate transactions, whether as an agent or as a participant in the transaction, is from a business standpoint. The business points are the ones that must be thought through, not some cockamamie state laws that have absolutely nothing to do with the situation.
I would, therefore, like to see it become an NAR policy that local associations must offer continuing education courses, say GRI and so forth, and that their successful completion is required for any member to renew his membership. The cost of these courses should be built into our dues, and should be under the auspices of the association, not the XYZ Real Estate School.
And this type of education should continue for as long as a person is a Realtor. It's education that molds business principals so that they include an equal portion of real estate principals and law. Now the Realtor is able to thoroughly think through a situation and offer an educated answer. That's what we want to claim we do now, but the facts are among many agents it is sorely lacking.
If we were to redirect our professionalism in the direction of required continuing education, it would be proof to the public that a quicky course in real estate for a license, and a few hundred bucks for membership in the local association of Realtors, is not all that we have to offer them. And it would also likely shore up the value of having a Realtor involved in every real estate transaction, because the value would really be there.
I believe this is the way to side track the Wal-Mart-style profession from coming into being. It is not by complaining, lobbying and filing one lawsuit after another. Why? Because that tactic is going to fail. It's already on its way down the slippery slope.
Hi Bill,
Good topic and you obviously have put a lot of thought into this. I suspect you are a longtime agent and feel very passionately about this profession. In that spirit I will offer two counterpoints which you, and others, may want to consider.
1. You reference our business reflecting more and more of the Wal-Mart business model. As I read your analysis I was looking for your solution to this comparison. If it was that we would be required to take NAR sponsored courses as long as we were in the profession then I have to disagree. Not sure having NAR conduct the courses would really be any different than what we have now - ranging from the very bad to the very good. And taking a course on ethics does not make an ethical agent. Granted, your premise that better educated agents would bring more value to the table is probably your best idea. Do you think the kind of expertise, which is the basis for your discussion, is something you learn in a classroom ?
2. Public perception of our fellow agents tends to be negative. Here we probably part company as to how we upgrade the way people see us. Continuing education is the proper foundation for upgrading our knowledge. However, I bet all of us know several agents who prosper in spite of their ethics ( or lack ) and they would surely do well in your classes. History teaches us that it is pretty much impossible to legislate morality. All the classes in the world will not force an agent to become ethical. I do think the current NAR media commercials do us all a terrific service with their message of service and professionalism. Those few bad apples may do all of us harm but a well designed national media program may be the most effective way to change public attitudes. Your thoughts ?
Laurie and Bill -- Thanks to both of you. Great comments.
Sometimes I don't express myself thoroughly. That was the case here.
I want to make the professional designation classes/courses as requirements for Board membership. For an example, everyone should have the GRI designation (Note that I don't have any of them myself). Those wanting to work with the seniors, should have that applicable designation.
Agents ought to be trained how to put a deal together, they ought to know the math required to know whether or not a listing will make them any money, they ought to know the ins and outs of finance, and they need on-going classes in sales. They ought to be able to read a title chain and know why a previous loan is renewed and extended in the documents of the latest loan. They ought to be able to read a survey and have a cursory knowledge of reading building plans.
You're right about ethics. You either have them or you don't. And with me, don't even breathe the possibility that you may consider doing something unethical, lest you get the quick show/kick out of the door. I believe every broker should be that rabid.
When we are able to show the world that we have superior educations and knowledge about our trade, it will be a whole lot easier, in my view, to keep the public from considering they can do it as easily as we can, and further, thinking that there is no reason they shouldn't have full access to the MLS.
It is ridiculous most training is left up to the latest guy who claims he has a secret for generating $50 million in sales a year without ever having to take off his pajamas.
It is beyond belief that no one monitors what is taught to prospective agents in those over-night real estate schools. Consequently, some come out with a good foundation, others come out with nothing more than how to pass the test.
You're right, Bill. I've been a broker for a long time...43 years. I've got a Ph.D. in business (international banking), and I've been involved in real estate sales, deal-making and finance since Adam and Eve.
Yet, I still take courses and study. At best, I'm an OK broker, nothing special. So if I have and continue to spend as much time learning about real estate as I do, I want to know where the majority of those who haven't been exposed to what I have fit into the scheme of things? I say they are somewhere between me and Real Estate Skid Row. A few may excel solely because of talent.
I agree with you completely , Bill . Here in Ontario, Canada , we have one of the highest standards for real estate education/licensing in North America and as such are held in much higher regard by the public. FSBOS are not common here. I believe it is mainly due to the strict standards of professionalism we must maintain in order to continue in our field.
"The Real Estate Council of Ontario (RECO) is a self-managed, not-for-profit corporation, responsible for administering the Real Estate and Business Brokers Act, 2002 (REBBA 2002) and associated regulations on behalf of the provincial government and protecting the public interest through a fair, safe and informed marketplace." RECO
They keep us on our toes with mandatory continuing education requirements, including a RECO Real Estate Update course in every two year cycle. All courses that give credits recognized by RECO , must be provided by RECO approved providers. They are very strict on this.
That being said, our industry is fairly clean here. The bad weeds tend to be weeded out pretty quickly. RECO also has a strict disciplinary program that keeps an eye on Reators VERY closely. They can have your license suspended or revoked as quick as a wink and the public has access to a complaints procedure through RECO. We take ethics and education extremely seriously here.
I believe that all provinces and all states should be doing the same.
Excellent and timely post, Bill.
Jo
I once had a woman who signed on with me as an agent. She was beautiful...tall, well-dressed, smart and knew her real estate. She had worked in a nearby city.
Within almost moments of her arrival, she started out performing my entire staff. Can't be, I said. She comes in to town knowing no one, but within moments she's the high society real estate person? Naw, can't fool me.
So I put my ear to the ground. She was hussling at one of the fine bars. Real estate was her sideline. Boom! I dumped her. Never said anything about it to anyone.
And everyone ... especially my competitors thought I was nuts, and they wanted to hire her. But she and I had an agreement,
Move elsewhere, otherwise everyone will know why you and I parted ways. Got that, sister? Don't mess with Bill.
My broker runs a very tight ship also, Bill. I think it is very necessary to be that way in order to run a successful business. You basically are the people who you associate with or who work for your company.
I have heard there are a lot of agents in the USA that do 'sideline' businesses. Most brokers here don't allow that, no matter 'what' the sideline is. ((-:
Jo
You know Bill, tonight as I was driving down to my office and then over to a client's house to drop some papers off, I was thinking to myself how nice it would have been to have Bill Cherry as my broker these past 11 years.
I know I would have really enjoyed it. You are a wealth of wisdom, knowledge and ingenuity, not to mention extremely personable and interesting and talented. I just can't help saying it like it is. It's a habit of mine. I read somewhere that you are a master storyteller in real life too and are a jazz musician. Amazing ! Hmm, seems I could write your MeMe for you.
I don't know about living in Texas though. I would miss our freshwater lakes . ((-:
Jo
Bill...I just love food for thought!
I am fortunate to work in a small office (9 agents) with a Broker who has 35 years in the business. We had individual training when we joined his office and our weekly meetings are always on a Business related topic. I myself take as many courses as I can squeeze in. But I'm a lover of learning. I do it because I like the stimulation, I like being confident that I am giving my clients the best, and I like to be on top of all the changes. Our association does require a certain amount of education yearly...but it's not enough!
There are shirkers, sliders and slick willies in every profession. But I believe they eventually get found out
It's not the education...it's what you do with it!
Thanks for another good post...but I miss my bedtime story!!