There has been a lot of discussion this month among REALTORS® about raising the bar for real estate agents. It started as a result of discussion about how real estate agents are viewed in the business world. It has continued with conversations held on Twitter, Facebook, Google Wave, blogs, conferences, phone calls and face to face discussions about how and what bar to raise.
There has been concern that agents will look bad, for the public nature of the discussion, something I obviously disagree with given where I have placed this particular post. It’s not that I’m not sensitive to the idea that we shouldn’t air our dirty laundry in front of everybody, It’s more a belief that it is out there and everyone needs to see that we are interested in cleaning it up. It is the public that has said their perception of us is low; it can’t hurt to have the public know that they have been heard and we are working to improve.
However, the question does persist, as to what we need to improve. Personally, I believe that a well trained, seasoned real estate agent can add value with negotiation skills, finance, construction & market knowledge, as well as marketing skills, area expertise and be a counselor, consultant and sounding board so that the consumer can make good real estate decisions.
On the other hand, I believe that as real estate agents, we operate in the middle of a semi-adversarial process where opposing parties have very different goals. This often leads to situations where one or both agents in a transaction may be perceived as a villain for not obtaining all the goals. In other words, if a party to the transaction believes they gave up more than they thought they were going to, they may like their agent and despise all others.
I believe that we must always strive to be better or raise the bar, and I will continue to take courses, read, attend meetings, study the market, talk to economists, talk to builders and developers, and study mortgage markets, real estate law and pass it on when I can. I would also really like to hear, from REALTORS® and CONSUMERS as to what services, what knowledge, what expertise, what educational standards, in other words, what bar should be raised.
Be great,
John
John, you have some great points that will always be posed to our industry as it continues to change and competency is what the Realtor is suppose to represent. It professionals like you that help motivate others to keep on learning. Thanks, Mike
ReplyDeleteJohn,
ReplyDeleteExcellent post.
While I am not in Real Estate I do understand your intent to bring transparency to an issue plaguing the RE markets and I commend you for doing so. Difficult questions are always uncomfortable but unless the issues are brought to the forefront solutions will be elusive.
Nice work.
I agree that raising the bar is essential to raising public opinion and general respect for our profession.
ReplyDeleteI think the public would like to think of us as semi-adversarial. I like to think that the Realtors are working together toward the same goal: to transfer ownership of the real estate from the Seller to the Buyer for the best possible terms with the least amount of stress for the Seller and Buyer. Making that happen requires skill, finesse, patience, and experience. It doesn't just happen.
Higher standards are one part of solution. Making sure those standards are met and exceeded is the other part. No easy task.
I started to write a similar post today after following conversations on Twitter regarding the same subject but got distracted with a negotiation. You have expressed my thoughts so eloquently. The intention of #RTB is not to bash anybody but to work towards a new set of standards as the profession moves forward. The one constant is change and there needs to be new criteria to meet the dynamics of the industry as well as define levels of professionalism in our industry. That is what we all should be working towards together.
ReplyDeleteRemuneration structure needs to be considered in the discussions. Realtors want their percentages 'just because.' The expenses for listing and marketing a home have been reduced dramatically, but the commissions have not. Why should my commission be the same as someone who has a law degree and has lived here all their life? It shouldn't.
ReplyDeleteI too have been following the "raise the bar" discussion. As someone who has been involved in the industry in a number of ways, Mortgage Broker, Franchisor, Agent, and Broker I have seen everything from the very professional to the very sleazy.
ReplyDeleteMany argue that real estate professionals should have the same standing as a Doctor, Lawyer or Accountant. These professionals require years of formal education to practice the trade. The requirement for real estate is measured in hours. Often people will make the comparison to the insurance industry. When one compares the licensing requirments this comparison also falls short. Insurance agents are licensed by skill set. A property and causalty license is different than a health and life license and so on. Until NAR, The Big Franchisors, and other national players demand higher standards the "raise the bar" conversation will be a great social media conversation and not much else. Just my $0.02
Jeff: Interesting comment. Under the current structure and mindset of NAR, can change happen? I think they equate education to their very costly designations.
ReplyDeleteJohn, I agree wholeheartedly with your notion about transparency. Consumers "get it" about real estate and the fact the industry is greatly troubled.
ReplyDeleteI am increasingly convinced that raising the bar is the province of brokers. NAR has a wealth of resources. Many of those resources are untapped.
"You can lead a horse to water but you cannot make him drink."
What does it take to motivate people? Is it just fear? Will it be a series of lawsuits closing brokerage doors? If the last couple of years are not enough motivation to improve, what on earth will move real estate licensees to change?
The discussion continues ...
Thanks, John, for your latest thoughts.