Realtors throughout history have not had the best public image or national reputation. In fact, I believe we're still a step above the used car salesperson on some poll that rates professions or something. Why is that? Lack of experience and ease of honesty is my guess. Naturally this bothers me and I'd like to do whatever I can to make sure the Realtors that deserve to be seen in a more positive light... are. Remember that 97% of the homes that are sold are sold by 3% of the agents in the industry. The goal is to connect with that top 3%.Many people don't believe Realtors and yet they still need them, similar to attorneys. That's ironic. Many people see becoming a Realtor as the easiest thing in the world to do and anyone can do it. That's true, anyone can do it! Anyone could potentially become a doctor or sausage maker too. It doesn't mean everyone should or that you would want just anyone cutting you open or handling your breakfast meat. I may have just become a vegetarian.
So what's all the negativity about when it comes to Realtors? I've seen many, many scenarios over the years in this business and I've seen all types of personalities. Of course there are great success stories and some people love their agent. We're trying to focus on the negative here, bear with me. Here are some of the misconceptions or reasons I believe real estate agents aren't shall we say... liked...
- You can get your real estate license in about a month for about a thousand bucks. It's not exactly a Harvard degree. Many look down on that automatically.
- Real estate agents don't do enough to justify the big paychecks they get. Natural presumption for those that do not understand the business.
- We're to blame for the mortgage melt down and foreclosures in this country. We don't buy the homes, we just sell them...
- Realtors are in their 60's, not tech savvy enough, wear fur coats and take pictures holding telephones or their dogs for their business card. There are doctors who do the same...
- Many home buyers believe that real estate agents work on behalf of the seller and many sellers believe they work on behalf of the home buyer. Anything to sell the home, right?
- Real estate commissions make people angry. They don't want to pay them. Naturally, negative comments and images start to stir and spread.
- Some real estate agents work part time in the industry while teaching, being moms or holding other positions in other fields. It's seen as a temporary job and not a full time, serious career.
- Real estate agents aren't trained enough and don't have the proper experience or knowledge to negotiate or sell a home creatively during unique or difficult situations.
I'm a total believer and supporter of real estate agents needing tougher schooling and higher fees before going out into the field. I always have been. I personally think that the one million+ Realtors in this country could be cut down significantly if tighter regulations were in place. This would weed out many who are not serious or experienced enough to run a successful real estate business. As long as there's money to be made from newly licensed Realtors through the many fees that are collected nationally and locally, this may not change anytime soon. What does that mean for you and what should you know about our industry?
You need to ask questions and scout out a good agent. It's your responsibility to do your own homework and select a qualified Realtor. Just as you would ask a surgeon questions or a financial advisor. Don't just pick anybody. Choose with your gut and make sure they've been in the field long enough to be able to handle your needs properly. Not all Realtors are created equal just like with any other profession. A bad apple can really spoil a bunch.
Realtors do get trained after their schooling and not all brokers train new agents the same. Find out about the company they work for and how they operate. Are they on their own or do they have a great team backing? With experience comes knowledge. There are also many Realtors who are college educated before entering the field. You won't know until you ask.
Yes, we get paid a lot of money. Sometimes there's little work involved and sometimes it takes years to collect a paycheck. Our marketing and time isn't paid for unless we sell your home at the price you want or find you one (Working with an agent to buy a home is free). With all the taxes, fees and broker splits involved, ask your agent exactly how much they're taking home or making per hour to sell your home. You may be surprised.
In many parts of the country, there are housing issues and declines in value due to bad mortgage choices and foreclosures driving down home prices. We're not to blame unless we're not answering your questions or being your advocate. I believe there should be more buyer education before and during the home buying process. Buying a home is a big deal and I think there should be certain classes and more education for the home buyer. I try to provide as much of this information as I can on this site. Here is a list of questions to ask a Realtor and make sure that the mortgage your signing up for is right for you and your finances. It's a big deal!
Yes, many Realtors are part time. This is your call. If you've interviewed them and find that their reasons are suitable for you and work with your needs, there's nothing wrong with that. Make sure you know they're reachable and can be contacted when you need something. There are pros and cons with both full and part time agents. Sometimes a part time agent will decrease their real estate work load and have even more time for you individually. Some full time agents may be overloaded. It just depends. Again, find one that works well for you.
What are your views and opinions of real estate agents? Have they improved or decreased over time? Do you agree or disagree with me? What are your biggest issues with Realtors? Have you had a good or bad experience with one? Post your comments below, let's have it... !
posted by Cleveland Real Estate at
8/29/2008
9 Comments:
Great article. Some people do not understand the time and money it costs to successfully market a property. Some of the best clients are the FSBO failures. "Gosh, I didn't think it would be so much work!" As in most things--you get what you pay for.
Great article. Keep up the good work.
The present system, as established and maintained by the NAR & major brands is badly broken. For over 100 years agents have no medical or health insurance
benefits.
They are not entitled to workemens compensation claims.
They have no disability insurance.
They blindly accept the greatest con they are all "independent agents" yet are forced to join NAR(and pay dues) by the major franchise brands.
Agents have no true united voice or representation. NAR & the brands represent themselves first and the broker-owners.
NAR ( using agents money)contribute millions each year to congress and state governments to maintain the status quo.
GoO to the web site
"Open secrets.com" and see just how much money the NAR contribute, each year, to congress, state by state and elected official by elected offical.
Bill Mcineney of New Hampshire
Mike, that's so true... They don't believe us at first and we're the automatic enemy. It's not until they need us that we become their friends...
Bill, I agree. The NAR is the government. They do little for us but want lots in return. I understand their fight in Washington but what about the fight we have here on the ground? They let anyone just enter the field and then collect and kick them out to sell homes. These people aren't qualified... They aren't prepared... They make the industry weak and the public perception a negative one when they make mistakes...
I've seen some agents so desperate to make a living, they'd do anything to sell a home regardless of ethics. That's not what we need and it can't be tolerated.
And you're right, by the time you pay ALL your fees, buy your supplies, spend money on marketing, pay for your own insurance both professional and personal, give your broker their hefty cut, along with putting money away for taxes and retirement, the lure of being your own boss can quickly turn to a nightmare and trap. I'm not sure many new agents know this.
New agents need to be told the realities of this profession and new home buyers and sellers should be told how new their agent is...
There's a phrase used to answer the age old question in real estate:
"How long have you been doing this?"
"Gosh, it seems like forever..."
Come on...
Tighten the belts, increase standards and work minimums and weed out a good majority of people in this field who aren't cut out for it.
That may sound harsh, but it's oh-so-needed to reform real estate tactics and practices.
We're responsible for the largest purchase or sale in a person's life and some are winging it after a full shift at the bar the night before. It's just not good enough.
There's a reason 3% of the agents do 97% of the business. It's the other 97% that needs to be worked on or weeded out...
In my area - Fairfield County, CT, too many (not all) Realtors can't or don't care to read "Showing Instructions"
We had a realtor stop bye and just knock of the door, yesterday, and proceed to lie about calling and speaking to someone, and just wantd to preview! The listing say 6 hours notice. Called her Mgr. -he was rude. Called Coldweel banker Corporate, and it's all voice mail - and no call has been returned!
That's another reason we're not liked! Some agents are really inconsiderate when showing properties or scheduling. From last minute appointments and cancellations to telling their buyers to do their own legwork and walk the property before calling them.
It can really be frustrating when your home is for sale and you have to encounter stuff like that...
Great post. I agree, especially about the licensing requirements. In Missouri a 70% score is passing on both the salesperson and broker licensing exams (and plenty of people take the exam 4 or 5 times before they even get to that level). So, we're basically saying that a 30% failure rate is acceptable. No wonder there are people in the profession who don't have a clue what they're doing.
It's the same here... They cram so much information into a 12 hour class each day that it's almost impossible to comprehend it all. Most of what we're taught in real estate school is the technical laws and terms.
It speaks nothing of the real world, people, homes, selling, negotiating or how to deal with compromise. Not to mention the raw psychological aspect that we have to endure. Some people are getting divorced, going through a death, or major life changes. There is NOTHING taught to handle real estate or people within these classes. It's a shame.
Doctors have to go through a rigorous residency for years and have to be supervised. We need something similar before letting new agents out into the field on their own.
Hi, it seems as if stereotypes make sense since most people don't bother to look at things with a lot of depth, it's human nature. I also agree that 'people don't understand' and while periodically I say I'm going to start blogging more from the perspective of what I do each day, it doesn't seem to happen consistently. I think so much of what we do is behind the scenes that people assume we don't do anything much just collect checks. SO many agents are professional and wonderful but people only remember the not so good things they hear.
You write so well and gave good tips about what to look for!
It mostly about the money. The public see Realtors as money hungry. Any commisson based person has a hurdle to get over in public opinion polls.
Richard
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