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There are No Short Cuts to Becoming a Real Estate Professional

I have run into many inexperienced people in our industry from all facets of the business. I see a common problem in an overwhelming percentage of them. Very few are prepared to do what it takes to learn their craft.

The fact is that most newbie's take short cuts. They are unwilling to make the investment of time, money and education required to become a top professional.

One story that sticks out in my mind was told to me my brother who is a Realtor in another state. An agent in his office came crying to him. She was in tears over how hard this business was. She thought that selling homes only required her to drive people around and show people houses. In the end he suggested that maybe she was not cut out for this line of work.

Unfortunately we have thousands of people all over the country jumping in to our industry with the same idea that this is easy money. Many jump in make a mess and jump out. Others jump in find some way to linger around for several years and make several messes.

Then there is a small minority who jump in, invest in learning the trade. Put in long hours of hard work and over a period of time they become leaders in our industry.

For those of us that have made the commitment we see two sides to this.

Competitive Level:

They create job security for us.
They will not get many referrals.
They will not gain the reputation needed to bring them continued business.
They will only be able to compete on price.
They will lose many clients who will come running to us.

The Bad Part:

I will be on the other side of them and forced to clean up their messes.
If they work in my office they will hurt the reputation of my company.
They give our industry a black eye.
The clients they have worked with will be difficult for us to work with in the future. They will have a hard time trusting any of us.
They will cause us a lot of extra work.

A few words of advice to someone who is thinking of getting in to our industry:

Be prepared to work hard and put in long hours.
Have a business plan.
Team up with an experienced agent if you can.
Go to school! Be prepared to spend time for education.
Once you get going in the business, plan to take classes every year.
Do not fake anything. If you are not sure, do your research.
Always put the needs of your clients ahead of yours.

If you approach this career in the correct way it can be quite rewarding. If you think it is something you can dabble in, you may want to consider another line of work.

Posted by Randy L. Prothero - Hawaii REALTOR® on 05/20/2007 01:24 PM

Comments (67)

real estate, training, ethics, realtors, hawaii, mililani, century 21

Originally posted at: Hawaii Randy's Real Estate Opinions: There are No Short Cuts to Becoming a Real Estate Professional

This post has been included in Hawaii Information

67 Comments on There are No Short Cuts to Becoming a Real Estate Professional

MAY

2007

WooHoo! Great...great ...post...and you hit all the nails on the head! Look how many have come and gone from our office and didn't even have one sale!

Sally - They wasted a lot of time and money and weren't prepared to do it right.

There it is folks, in black and white. No bones about it, this is the truth : )

Randy-Very Nice! Great warning! Our board deffered our local dues until June, well June is around the corner, I wonder how many agents will drop out of the business!

Amen brother Randy. I take RE very very serious. I live and breathe RE and it is very disheartening when I have to do deals with folks that are just in it to make a buck and are clueless about what it takes to be successful. They gives us all a bad name. I truly hope this difficult market will cleanse our industry.

As a Broker/Owner, I commend you.

Brokers and Managers..............don't forget we lead by example.

What would you like to see incorporated into the process of getting a license that would improve the professionalism and competency of the new agent?

Yes, aything good takes time. Most people don't have a clue what we do and how involved it is. They think we show up at the closing, take the money and leave!. HA this is why so many people leave in a short period of time. They don't know what it involves and how long it takes to build up a clientiel. It weeds out the rif raf, which is good for us who have been in it for 2 decades!!

Patricia Aulson/Hampton NH/MA/ & ME

Does it reallyweed out the riff raff? The Swanpoel Report suggested that at least 25% more agents need to leave the business.

Kelli - Thank you, I do not believe there should ever be gray areas on this stuff.

Midori - Dues is a great way to drop dead names off the roles.

Bryant - It will cleanse out many and make some even worse.

Julie - Great point!

Access San Diego - I would like to see the education requirements increased dramatically.

Patricia - Unfortunately some of the riff raff finds ways of hanging around.

Access San Diego - 25% may be conservative

Great Post. Successful real estate agents need to have lot of skill and diplomacy. You can not develop the required skills overnight.

Nalliah - Thank you

I would like to see a minimum number of 10 closings per year or revokation of license and a training period of 1800 hours, along with minimum 15 closed transactions prior to licensing....... similiar to appraisers. I would be willing to pay up to $500.00 in dues per transaction to off-set lower number of licensees, just to ensure that my colleagues are serious about a career in real estate.

Krista - That is pretty strong. I do not want to see a toll of $500, but would definitely like to see more education hours to get a license and a time limit to meet certain education requirements for new agents to retain their license. I think it should be mandatory that they at a minimum get all of the essentials classes. When they enter the market they do not even understand the basics of our contracts.

I don't want it either however, there is a reason the NAR is one of the strongest lobbying groups in the Nation, and they like the Carte-Blanche of licensing laws, as it enables everyone and their brother a license, making them only stronger.Local boards, State boards, and the NAR could care less who is selling what...they just want the dues. So, off set and pay a fee...we get our integrity and they keep their piggy banks as they were.

No such education restrictions will ever be implimented. Too much $$ involved.

First, we should have a requirement that a prospective RE student get a license to take the classes to begin with. It should be taught be an active agent not a broker, not affiliated with a school. Tell them like it really is, they might keep their day job.

Renewals should require some proof of active participation to represent clients. I acknowledge that a license may be required or desirable in RE related industries, but those people should not be allowed to represent clients.

Very strict broker accountability should be required with new agents. If broker cannot coach a coach should be assigned. My company doesn't do this, but 10 years ago when I was new and had a listing in an area I wasn't familiar with, I partnered up with someone who was.

Some form of training period should be required. I have met folks who could pass the test, but had no chance in the real world.

Krista - They can raise the money through education if they need to raise money. Bringing more value to our industry is the best way to justify fees.

Jim - I have not met any new agents who were qualified to sell a home. The license would lead the public to believe they are.

Randy,

If you read my post about real estate on steroids and the effects you will see that many new realtor's mainly just wanted to hang their license to buy and sell their own properties. They never really experienced what it is like to work with strangers at an arms length transaction. That is all fine with me but now they are learning that they need to conduct business not with just themselves but with the public and they are not getting used to it as it becomes hard for them to make any sort of living and then they let their license expire..you will see even more realtor's leave the business then foreclosures. I placed a link to a story about the job market and realtors in one of my links.

Randy- is it really true that you have not met ANY new agents that were qualified to sell a home? That seems unrealistic. By "new" do you mean fresh out of high school or college? Or are you even considering people with professional work experience? I just find it hard to believe that you've never met a new agent that was qualified for the job right out of the gate.

Neal - I am expecting a lot of agents leaving. I am not opposed to anyone joining the business that wants to be here. i juts think the standards need to be held high to protect the public and to keep our industry from facing outside scrutinizing.

Amy - That is a fact. I have never met a newly licensed agent who was qualified to sell a home unless they were in the business previously. New agents are not qualified in the following areas.

Writing a contract
Timeline or the escrow process
Sales skills
Disclosures
Survey issues
Condo documents
Reading a title report
Appraisal issues
Lending process
Home Inspections
Termite inspections
Marketing
Record keeping

The prelicensing classes brush over many of these items, but do not train you to any acceptable level. They give you just enough information to be dangerous.

I agree with you Randy. That's why a lot of brokerage firms have training classes. Same for someone who just graduated from college...no work experience does not qualify one to do the job they went to school for.

Exactly..I too have no problem with someone looking to make it in the real estate business but licensee standards need to be tinkered with a bit.

This is a good post. I have mentioned before that in the state of NC, the initial license that is received is called a provisional brokers license. We then have 3 years to take 90 credit hours of post licensing courses to remove the provisional status. There are 3 classes that are 30 hours each with a test at the end of each one. One of them is called contracts and closing. It is an extremely informative and helpful class.

Also, in my RE/MAX office the broker has all new agents go through a 12 week new agent class. We learn about prospecting, writing business plans, working with buyers and sellers and the paperwork that goes along with each. From what I understand, there are not too many offices here that offer any training(that includes the other RE/MAX offices). Without this training I would have felt very lost and unprepared. I think that more states should increase the education requirements.

Randy...

I hope you don't mind but I feel that I need to add something to your list...

It is important for anyone who's getting into this business to prepare themselves financially. Like save a years salary before taking the leap.

Yah. I know. It's unrealistic for me to think people will actually do that. However, if just one person sees my comment and takes it to heart I may save someone a lot of heartache :)

TLW...ROAR!

Sally - Absolutely, it just means you are ready to get training.

Neal - I agree, after all the license is supposed to protect the public.

Anne-Marie - 12 weeks sounds like your company also agrees that they are ready to hit the streets.

TLW - That is a great point!

To get started in real estate you have to spend a lot of time and money before you see the first dollar. It takes a little time before you begin to see a return on that investment. If you are not prepared to go full time it will take much longer and you may never see a lot of success.

Amen and amen...............sorry, you've already said it all.

Teri - Thank you

Randy:

You have said it so well. I have been told - "They fake it till they make it". The problem is we have to clean it up after them.

The biggest problem is to have them beleive you are talking to them.

What you have to do to get a license and take the test is a breeze. It has NOTHING to do with the REAL WORLD of REAL ESTATE. Too bad no one tells people getting into the business what it all REALLY ENTAILS! NAR should be upfront and have a REALITY SHOW for people before they take classes or sit for a Real Estate License Exam.

Randy,

Great post and I love TLW's additional comment. If this information was made available to prospective new agents, there would be fewer people going broke out there.

Aloha,

Lucky :)

Excellent points to consider when getting into the business. I noticed that you said "Business Plan" -- thank you so much! Most people get into the profession without a business plan. This is a business, so you need a good business plan. I prepared a business plan before I even got my license. It covered marketing, advertising, technical issues, budgets and much more. And it's served me well.

I agree with your post. It is sad, as I have to say I have seen several with "potential" and a great head on their shoulders, but they did expect a bit of an easier ride, and dropped out of the field fairly quickly. Better preparation and expectations would be of benefit to the professionals as well as the consumer. And we all seem to be missing the boat on one more thing: we focus on the law and the conduction of business, but forget about training people on the business end of it - my first year was a wake-up call at tax time - and I still flounder with it after 7 years! Bookkeeping and tax preparation should be part of the training! Great points! Liz

Yes, I do agree that some agents are not trained and do not know what being a REALTOR is all about.

There are some things to consider. First off, the broker you work for has an option to hire the newbie or pass him/her off. Secondly, the broker has a responsibility to see that the agent working within their company is properly trained. That means a set of standards must be met by anyone who works for that company. Our company requires all new agents to attend a company run training program for weeks. The new agent is also assigned to a mentor that has as much as 20 years eperience to work under the guidance and wing for 6 months. Our company and our agents take pride in our work and look forward to young minds and new ideas. If they can't cut the work we as mentors dish out, our broker asks them to move on or perhaps take additional training.

I am mentoring one young man right now that I am quite proud of and will no doubt make him part of my business plan.

Are there bad agents out there? Sure. Can we as seasoned agents help them along the way to be good agents? Sure. Is there enough business for all of us? Yes. The bad agents will fall through the cracks and it will be due to lack of training which in my mind is the responsibility of the broker who brings them on board.

In our office we work as a team and assist each other and offer advice and assistance when needed. You know the old saying-Do unto others as you would want them to do unto you. It works.

One of the most eye opening events of my career was when my own husband (after 23 years in corporate management) came to work for me as salesperson. After taking the online course, not studying-prior to taking his exam (good retention) and making over 91 on his exam, he did not feel qualified to work in this field. (College educated and corporate management training, including hiring and firing 1000's of employees., franchise owner/operator training, etc. ...................... ) His words were "the only thing I learned from the real estate course and exam was what "not" to do, not what to do. It is your broker's responsibility to teach you what to do.

Post license is not completed in Georgia for up to 12 months after you are licensed which should be completed prior to starting work. Again, those of us who are experience can only lead by example and brokers and managers take responsibility for your agents. No contract exits my office without being reviewed by at least two people other than the person writing it - I don't pay my agents until they turn in their notes for their files and all completed documents, etc. It really decreases errors and increases referrals.

Randy, short cuts don't get you anywhere in life, unfortunately some only see the dollar signs. Success takes hard work and a lot of hours, if someone is not willing to do that then they better hope they hit the Lotto.

Randy, great post, and as others have mentioned, training is VERY important...choosing as your first Broker one that provides intense training in all the points you mentioned either makes or breaks you and continuing education (beyond what's required for continued Licensure) is, of course, very important as well.

And don't bash other agents in the industry!!!!!!!! We all need to work together and get the negative persona out..... anytime I have a client that bashes an agent I try to take up for the agent because nine out of ten are mad at them for the wrong reasons. The agent did the right thing the client just didn't know it. If I have to try to make other agents look bad to stay in the business-----its time I found another job.

Randy~

In-NC we have Provisional Brokers and Brokers...we encourage training and more training and more training...and require continuing education..because...as you so eloquently pointed out...this is a profession that requires focused attention and dedication...and there is always, always , always a new story and something new to learn.

Randy.... sorry, late to the party. Very good job at putting this together. Very positive input.... the key word being 'commitment'....

jeff belonger

Robert - I will have to remember that line: "They fake it till they make it".

Debbie - The people with the schools should have an information sheet they give out. I was thinking of opening a real estate school for those with licenses who would like to learn how to actually sell homes.

Lucky - There may be fewer, but there will still be a lot of them.

MAY

2007

Bettina - I had a plan and goals when I entered the business.

Liz - That is the part of the business that kept me from starting my own company years ago. I hate the accounting.

Peggy - I like the idea of mentoring. I have helped several new agents and am working with another right now. When I got in the business a really good agent in my office helped me a lot.

Julie - Not paying until the file is complete should be a standard.

George - Well said

Vickie - Choosing a broker is very important. I see many agents going from company to company.

Candice - There is a difference between bashing and studying bad behavior. I am not one for bashing other agents, but on the other hand I will not defend unprofessional agents. There are many of them out there making us all look bad.

janeAnne - We also encourage training and more training. I think we should require it.

Jeff - The word of the hour commitment.

Randy-You must have some of the worst luck running into poorly trained agents than anyone I know. Hopefully Monday is the beginning of a new week and you will only run into professionals that are seeking higher education in real estate. Probably not gonna happen huh?

David - I deal with a lot of agents. A large majority are good professionals, but I run into a fair number of those who need to find another line of work.

Randy, your posts are great...and i totally agree!

Dave - Thank you

Everyone used to think that Real Estate and Mortgage Sales was easy money - and for a while it was!

but as the market drops, the weeds thin and the pros that created a good foundation will be around regardless of a few thin years.

John D - I am sorry, but I needed to delete that message. You were not logged in a member of Active rain and I do not want a link to that site on my blog.

David - The pros will do well in every market. The others will come and go with the tides.

Wonderful post. I was naive when I first started doing this. I had a friend that was in the business and it looked easy. I came to find out, she made it look easy!

Christy - That is true really good agents sometimes make it look easy.

MAY

2007

Thanks for writing what I've been preaching for the last 18 years! Great blog! I will print out and pas out to anyone thinking about how easy this business is.

Siha - Thank you. I see it all the time. Maybe it is because some of us are so good that we make it look easy. The public doesn't see how many hours we spend behind the scenes.

Randy - What a statement! I whole heartedly agree. I remember my first year, I was considered successful for a rookie by those in my office. I, on the other hand, knew what I didn't know and have made it my mission to educate myself and stay on top of what is happening in the industry. I believe we need stricter guidelines for entry or mandatory mentoring. I think the recent explosion of anti-realtor campaigns is probably a result of too many agents who do not know what they are doing. My opinion only!

Would you all just like our profession to die? New agents are the heart throb of the future. There needs to be better accountability for Broker/Owners to Recruit, Train, Mentor Coach, and Lead. We were all new licensees at one time. Get off your soap boxes and go mentor a neebie!

Paula - I agree, the large number of inexperienced agents has hurt our industry as it has the lending industry.

Chris - I have mentored many newbies and am currently working with some more. I have earned the right to be on the soap box.

I was a newbie at one time also, but I did not go out and hurt clients. I worked closely with experienced agents and my brokers. I also went to school, which I continue to do to this day. New agents are the future or the death of our industry depending on how they are brought in.

MAY

2007

Thanks for your post! As a 4 year "veteran" I have learned that this is a business that requires much education. It is not an easy profesion to just jump into and do a great job. I had decided the best path for me was going to be a slow and deliberate one. I have a background in Nursing and Engineering which makes me careful about my responsibilites towards my clients. This appraoch has made it possible for all my clients to have been more than satisfied and most have become new friends. First of all: this is a people business and I wouldn't dare than to give them my very best!

Dawn - Thank you, we must always remember this is a people business.

MAY

2007

It's interesting to see agents response to those entering the real estate field. The mentoring program is a great idea and those agents who accept this responsibility demonstrate they are truly interested in the betterment of real estate profession. I commend those who were instrumental in helping me starting out, I am happy to share with new agents in the hopes they will continue to do the same.

MAY

2007

Renae - Nicely said

Well written and right on the money. You have to work and learn this profession. Now that the easy money is gone, it takes hard work to find clients and complete transactions. Thanks.

Great post. This is not a job for people who think it's easy money. It is if you love what you do and do it well and put in the time. Otherwise, it will just be another sales job you tried like the Amway kit that's getting dusty under the bed.

Wayne - That may not be a bad thing. The good agents will do well the others will go back to whatever they are qualified for.

Marlene - I wonder how many real estate agents tried Amway or something similar. That would be an interesting poll.

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