Why Would One Need You?
Question: When asked to articulate why your career needs to exist, how would you respond?
It may not surprise you to know that most agents cannot answer this very simple question. If you are thinking that you couldn’t answer this question, you may want to reconsider your career choice. After all the bravado and rah-rah that most agents and their companies spew, they still don’t seem to know why they may actually be needed in a transaction. Oh sure, they might be able to write a contract or run an ad, but most agents, when the hard times come, simply default to their broker who may or….may not know the answer. If you can’t understand what need the client has for you, than how do you expect anyone else to know? The reality is that most people, in generations past, used an agent ‘because that’s what you do’, but the consumer of today is not satisfied with that rational.
Your Knowledge Is What Counts
2008 Swanepoel Report: “87% of Brokers feel that servicing smarter and more informed consumers as their largest concern.
Its sad that 87% of brokers feel that informed consumers are their biggest threat! I feel that solely relates to the Broker’s lack of confidence in their agent’s ability to know what to do when a problem comes up; and that they may not be capable to have an intelligent conversation about a given real estate related topic.
The lack of faith is well founded. As an instructor, I take a very interactive approach to courses designed at problem solving. I recently asked a series of situational questions to a class of REALTORS®, once the question was delivered you could hear the crickets chirping in the room. I again asked “If XYZ occurred in your transaction, what would you do?” One student raised his hand and said “Put a Twix in my mouth….” Whereas I found that very funny, I recall the question being very rudimentary and the fact that 50+ students couldn’t resolve it scared me.
My wife and I educate our children at home, and one of the primary lesson plans we try to instill in our children is a level of self reliance and critical thinking. We want our children to know how to resolve issues on their own and to concentrate on those skillsets in life that will allow them to always be learning. I find that this is one of the large areas of lacking in real estate practitioners.
Education Doesn’t Stop After Pre-Licensing
Since finding the treasure chest – that are my social media friends in RE.net, I’ve been charmed by the collective knowledge about real estate and often forget that the writers, readers and commenters involved in this venue represent the minority of real estate practitioners. I have started treating most agents as if they were as educated as those in RE.net. Boy, what a mistake that has become…
Recently I received a batch of course evaluations from a class that I had taught, to a large group. The evals were great and there was only one negative person. This Technology class had one person who was VERY anti-technology; so I presume it was him. The evaluation comment said: “The instructors level of knowledge was considerable, but his ability to deliver this knowledge to the ‘least common denominator’ was questionable” (I paraphrase, as his vernacular was somewhat limited) Wow! Since when should a professional expect a program lecturer teach to the “least common denominator?” I readily agree that I am an intellectual elitist when it comes to this career, because the income and liability is so great.
Where Do You Get Your Knowledge?
Please understand that I am not suggesting that Bloggers are the only, or even best place to get knowledge. Truth be told, with the exception of AgentGenius.com, Inman.com, RealtyTimes.com and other highly regarded blogs or new sources, I tend to think that a lot of misinformation comes from bloggers. However, without a well balance SELF DIRECTED EFFORT to learn more about the industry, in which you profess to be an expert in, you wouldn’t know the truth from a misinformed author. The Agent has to desire more knowledge – it doesn’t just occur by osmosis.
I know that most agents feel overwhelmed about the number of industry newsletters, magazines, blogs and emails that we tend to get. However, the knowledge contained in those venues are exactly what your clients presume that you know and understand. Anything less than current knowledge is failure to meet your agency responsibilities. The courts, real estate commissions and professional standard panels are in agreement in this. I have cases histories where not knowing that the DOT was going to widen a roadway resulted in a punitive loss to the practitioner.
Agents need to be the “source of the source” we should know about local politics, practices, ordinances, market trends, history, economics, Federal regulations, lending practices, real estate board regulations, MLS policies, company policies, Standards of Practice, etc…. Does it sound overwhelming and hard? Yes and it should be….or the consumer could easily write their own contracts and find their own lenders. The career is simply more difficult than most practitioners think it is. So, are you armed with the right knowledge to give the best advise to your client when that advise is critical?
September 21, 2008 at 4:55 pm
You hit on a point that I ran into constantly when I worked at a large franchise brokerage. I got tired of hearing “what the client doens’t know won’t hurt me” or “I don’t need to know that as long as the client doesn’t care” or my personal favorite in regards to listing appointments “it’s not what I know it’s what I make the customer believe”. I know this is not representative of all real estate professionals but I heard it enough to make me the anti-social agent of the office and at one point ashamed to be part of an industry with that attitude. I agree Matthew that finding this community does give postiive reinforcement but also doens’t always transfer into the “real world of Real Estate”.
September 21, 2008 at 5:05 pm
Matt: I agree that the vision relayed by the RE.net doesn’t immediately translate to the current industry, but it is the future. We’ll get there…
September 21, 2008 at 5:46 pm
Catering to the lowest common denominator…thank you for saying that out loud. It has to stop if we are ever going to raise the level of professionalism in our industry. Consumers are out there teaching themselves about many facets of our business. If we don’t outpace them in that and prove our value, we are doomed.
September 21, 2008 at 10:24 pm
Mathew, I love the title.
“they still don’t seem to know why they may actually be needed in a transaction.”
The truth is that those types aren’t needed in a transaction.
“Its sad that 87% of brokers feel that informed consumers are their biggest threat!”
Read Activerain and that is readily apparent. The typical response is to insult the intelligence of the consumer. The reason they feel threatened is that many agents really do know that they know very little, so when challenged, they react like Bill Murray in Ghostbusters, “Back off man, I’m a scientist”.
The consumer has access to info like they never did before and the knowledgeable agent should welcome that. It is another way to differentiate yourself from the competition, because we are now at a point in many markets where knowledge talks and BS walks.
September 22, 2008 at 5:47 am
I have been in the real estate classroom for well over twenty years (and a part time gig running a large county for eight); I have never seen (before) the lack of ethics that I have witnessed in the last two years.
Remarks like, “Make me an offer, they are desperate, they’ll take anything” coming from the Seller’s Agent puts the whole industry in trouble. It isn’t only that remarks like this are aired, but that it doesn’t even raise an eyebrow that concerns me. I post almost daily on my blog and a few weeks back i wrote about an agent that was refusing to open the listing (not because the time was inconvenient, but because they didn’t feel like it). She told me, “If I do all the work I get all the money and I should have my Buyer, Client, call her directly”. Her boss fixed nothing, he (the broker) just said there were issues with this agent like there are issues with all agents, and it would work out. He has well over a hundred agents working in a shop where bringing in agents gets you an down line monthly income! Almost like, no offense to Amway, but Amway…
My point is coming.
I also speak almost daily with my oldest (a family and criminal attorney). I handle the website for her and love listening to my adult/child explain the daily goings on in court, etc.
To get this lawyer to put something on the web requires an act of congress. Careful about every word that comes out of her mouth. Sheknows she is responsible for what she says.
When I listen to my doctor, he is careful to the same level. Nothing is 100%. He is thoughtful to the point of speaking so slow and measured , you just want to “slap” him sometimes; but I know he is doing what is right. He is a professional.
Both of these “Pros” would never speak and hurt a client or patient’s position.
Then I think back to the series of five or six motorcycle shops I was ina few months back when I was buying a new bike. I think to the sales reps line of garbage. Lack of product knowledge, false promises etc.
If the current trend continues (the trend towards I will say and do what is in my interest not the client’s), either because the agent hs not ethics or doesn’t even know what is ethical or legal; we are going to earn less and less. You will see there is a direct relationship between the way you conduct yourself and the fees you can charge. Clerks make less than professionals.
The only hope is a two pronged attack: education and enforcement.
Real estate education is going through a very big change, the online world has taken over (I have an online real estate school). There will nned to be some adjustments to the delivery systems, and the course content, and the testing. As far as the enforcement, the rules have always been there. It is just that now the enforcement is so spotty that wholesale disobedience is the norm. Rules without enforcement is like “no rules”…
Self policing doesn’t work.
I haven’t given up, I attempt to teach and correct as I make my way through the business world. I aggravate a lot of folks 🙂
Just my thoughts on the topic:)
September 22, 2008 at 7:10 pm
Today I had the enjoyable experience of conversation with a self professed real estate expert of 37 years. I had shown a buyer a property this agent has listed and there was some interest. When looking at the comps I could not come close to the list price. So when I called the agent today and asked for her help with applicable comps she informed me that she didn’t need comps to price a home, she had worked in that area for 37 years and she new what the houses were worth. Obviously she knows “What’s In Her Noggin”, unfortunately it can’t substantiated by the recent sales. Because of what is in her noggin she is doing her sellers a disservice and has the sellers home overpriced by a minimum of 10%. Even if she did get an offer it would never appraise.