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Real Estate Brokers Need to Be Invloved with New Agents | Have Real Estate Brokers Become Recruiters Only? | Real Estate Training

I had an Interview with www.Bankrate.com and a topic came up during the course of the interview that really gets me going! In the last few years the numbers of real estate agents that have come into the real estate industry are nothing short of incredible! Most of the new agentys even in good times would be doomed to failure, since there is an 80% turnover every two years. In the Atlanta real estate market there has been a 300% increase in the numbers of real estate agents in the just the last few years, and sales have not grown. The problem is that the agents that are out there right now in real estate have little, if no experience, and no one is guiding them! Real estate brokers, have take the training wheels off of the new agents, and pushed them out to play in traffic! This totally wrong! I remember when I first came into real estate, the real estate broker, would sit down , and explain contracts with you! It did not end there! The broker had an interest in you surviving and doing well..in turn so would the broker! That entailed assisting you on your first presentation for a listing, review of contracts, contract negotiations, walk through and first real estate closing! The broker was only a phone call away!

Today, the brokers are letting these new agents on the streets without any hands on assistance! No it isn't just me, loads of agent friends of mine in Atlanta, and across the country are sharing the same stories with me! They all feel the brokers have turned into a recruiting machine, and no sooner get one agent to come on board, than they start to recruit the next! The brokers are delivering a lot of promises, but not fulfilling them! This hurts the industry in many ways!

First of all service! If you have no experience, good intentions aren't going to be a major plus! It is all about knowledge, the application of, and the execution of it to accomplish a task! Right now, experienced agents are doing both sides of the deal because the other inexperienced agent has been pushed out on an ice flow! Contracts come in with loads of blanks, and the new agents are not understanding the contract verbiage. A recent example was a story I heard about an agent that rushed to write a deal, then found out the home may have some issues! They never included any provisions or contingencies in the contract to protect their client. The state views all agents the same with 45 hours of licensure, but when it comes to writing a contract on a 300K home (which is not our money) yes, attention does need to be paid to details! The brokers should be reviewing the first contracts of new agents before they are submitted! It is too late for everyone if the contract ends up in a termination, that is just because the agent,a nd broker are unprofessional! What about the buyer or seller? What about the unfair burden placed on the other agents because the new agent has no clue what is going on, and confides in you that they cannot reach their broker? The brokers deserve everything they get when they treat new agents like this! If they end up in a lawsuit, or no one wants to work with their agency because of repeated bad experiences...we have to scratch our head and ask what were the brokers thinking? Or have they recruited only as a means to earn more income from training courses etc? It is not making sense to anyone! In my own opinion, the brokers should come in from the golf courses and take care of the agents they already have on board! Agents that cannot get assistance from their brokers, need to move on and find a broker that cares, and will assist the new agents all the way to closing, and not just give lip service about it! After all, help should only be a phone call away!

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Posted by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO on 08/03/2007 08:17 PM

Comments (87)

new real estate agents, real estate brokers, real estate agents, recruiting new agents, recruiting, recruit new agents, broker responsibilities

Originally posted at: Atlanta Real Estate | Atlanta Housing News for Real Estate: Real Estate Brokers Need to Be Invloved with New Agents | Have Real Estate Brokers Become Recruiters Only? | Real Estate Training

This post has been included in Georgia Information Fulton County, GA Information Atlanta, GA Information
Post is included in group: Realtors®

87 Comments on Real Estate Brokers Need to Be Invloved with New Agents | Have Real Estate Brokers Become Recruiters Only? | Real Estate Training

AUG

2007

In my office, all new agents are required to take buyer and seller paperwork classes AND agency classes, as well as have a mentor for their first 5 transactions.

I know that many newer agents aren't as fortunate. When I worked part time ( short-lived). I was at another brokerage as a new agent and didnt' get any training at all. Just go call the classified ads under "apartments for rent" and see if they want to sell" was my only instruction. Needless to say, I don't usually list multi-families.

As a new agent, I must say my broker is attentive and great. I feel very fortunate to have joined the firm that I joined!!

I started off at a small brokerage with no training. I look back at my first few transactions and its pretty scary and it is amazing I'm still in real estate. I made it because of another agent in our office and a few good agents that I had transactions with. It was even scarier since I felt I could not go to my broker for help - another story.

The experience did entice me to further my education and go for my brokers license. I think it is amazing that there is so little education required when we are working with a major financial undertaking of our clients. The coaching and mentoring programs are a start but there can be problems here as well (I did coach for a while).

Jim - you hit a raw nerve on this one! I am a new agent, October '06, and the office I joined had a goal of recruit, recruit, recruit! They wanted numbers to look good, but they forgot about the agents and clients.

I received no help from the management in my office on my first buyer's contract. My team leader either was never in the office (out recruiting!) or had a sign on her door "Do Not Disturb". The listing agent with the other company explained to me how to fill out a contract and protect my buyers! She did this after I totally messed up the offer I submitted. I was embarrassed for not only me, but my office as well.

I am thankful every day that I changed companies two weeks ago!

Lon that is an excellent policy!

Dawn that is excellent!

Judi we work with big dollars! People work their entire life to buy or sell one proerty, and I really lose it when the other agent doesn't havea clue, the broker won't take the time to work with the new agent to explain what is going on etc...! It is a royal pain in the butt!

Linda thank you so much! When it comes to on the job training, there are better places to learn at others expense than in real estate. The mistakes could be real high and cost others. The time to catch things are before they are issues. Proper training, and a hands on broker can assist! It is not a recuiting game!

AUG

2007

Jim you hit on a big problem in the industry. The brokers are responsible for all of the contracts and should be reviewing them. When I was a new agent I was fortunate to have two great brokers and a really helpful top agent in my office that would help and share openly. I also knew what I did not know and would ask for help.

Since growing in the business, I continually to help new agents. Something we all should do within our own offices. Remember what they do reflects on the company and may also effect your E&O insurance.

Jim

I couldn't agree with you more. My very first day on the job was in Sept. I went into the office ready for some type of training. I had dressed nicely and the jacket I had on was a ruffed-out leather. It was 103 degrees outside. My broker said, Roberta I have something you can do. Take these cards and put them in the doors on this street XXXXX. Remember I live where the houses sit on 1/2 acre. So I got out and walked this area in a leather jacket. THAT WAS IT! My training. Period. What I have learned I have gotten by listening, reading, taking courses and hoping I'm doing what is right. So far so good. But the Broker didn't see to it I was trained nor did she train me. She is busy selling/taking listing.

Before RE I have owned my own businesses. I would put the agent through at least 6 months of a mentor type training. More if needed. Their success is my success.

Great post.

Randy I could not agree more! I would be too afriad to write an offer it I had not dotted all the "i.s" and crosssed all the "t's"?

Roberta...Mentor training is good too! However, the brokers are not doing their job!

OK.....I hear you... I am a Broker, tell me what more I can do and I will do it.

I only recruited 2 agents-the other 3 came to me and wanted to hang their license (all experienced with 4 to 25 years each).

I review contracts (make notes, and go over it in person with the agent) and all paperwork......I have monthly meetings that are just for training....and weekly one-on-ones when needed. Almost daily phone conversations, updates by e-Mail, and have quarterly evals (even of my performance as a Broker to fit their needs). I check ads, Internet Marketing, etc.

No, I am not available 24/7, but pretty close to it......and everyone knows they can call me no matter what day or time. Currently I am sponsoring one agent at a time to take the e-Pro course to update their technology skills.

I would never dream of throwing someone out into the streets to sink or swim......yet if they say yea, I know all that, what are you to do? Use Diplomacy, and keep teaching......now if you tell me what more I can do, I will look at it with an open mind, and a true desire to better our profession.

Jim, 300 new agents !! That's amazing, we lost over a 100 in Ann Arbor last year. I agree, for new agents they need lots of mentoring and training. That's why at my company it is better to work as a buyer agents or assistant for a few years. Their is just too much to learn to be turned out on the streets.

I have had to go help new agents use a key pad that were showing my listings. That was unbelievable to me that their broker had not trained them. Yikkes.

Good advice, Jim. Now let's hope someone out there listens! In my experience, brokers have good intentions but get busy and don't deliver. Even if they delegate to a training person or department, I believe in "managing by walking around."

Kathy you are already doing the right thing! Some firms are major recuitment machines, and learning needs to be more than classroom, it has to be done on a deal to deal basis. Those brokers are not available, and the teams do not give training! They are too busy churning more deals. Real estate is not a production factory. We deal with families, and an an individuals life time savings, and dreams!

Missy you may have read it wrong, that is a 300% increase of agents in Atlanta. In 3 years we've moved from 12000 agents to over 45000 agents.

Margaret it is hand's on training that counts!

Jim,

Whew....I was waiting for my feedback, and with you I never know what to expect.....:) You tell it like it is. OK, now you made a comment, "They are too busy churning more deals" that hit home.

Yesterday I was going over files with 2 agents, experienced ones....and there were some errors on Counters, missing communication, etc. Anyway, we discussed the proper way to do a file, etc. One of the agents stated, I have to go list...I hate paperwork.

MY reply........If you don't get your paperwork right on these you will be banned from anymore listings.....I don't know why I even had to say that......I am not into Churning out the most listings or Sales if we don't give the service!

Jim,

Jim being new to the industry, I couldn't agree with you more! I as well as other agents need support and training from the broker. I personally am a hands on learner. No one tells you what to look for in a broker or company fresh out of school. Most new agents are left to figure it out on their own. GREAT BLOG!

Kathy, should have told her....you can't list if your license gets revoked! Martha Stewart had something going for herself once she got out of jail! LOL! Paper work and real estate go together! I guess it really is more than service also. The fiduciary comes in...because the financial stake to the principles are so high!

Jim,

You stated: you can't list if your license gets revoked! so true, and a good come back, I'll remember this one. And Yes, I meant to say that, but wrote the word service instead......we also are having many many trainings on how to protect your client......

Contingency removals, when to transfer the property (at COE or 3 days after) and the legal ramifications of what they put on their contracts.....The biggest thing I have learned while being a Broker is never ASSUME anything. Even the experienced agents don't necessarily do the paperwork correctly.

We recently had a contingent-upon-sale deal on one of our listings where a new agent showed up with their cleints at closing without any money, and when the attorneys asked if they had closed ...a "Pre-liminary HUD" was presented! It had not closed! I am not kidding! The brokers need to be thrown in jail if this is what they refer to as their agent! I blame the broker only in this case.

Oh my.....now that is scary.......and very unsettling to say the least.

My broker spent almost 100% of her time recruiting when Long & Foster opened our Lancaster Office a few years back. Now, we have 80+ agents and she is still in recruiting mode. I have encouraged her to get more involved with the existing agents - building them up, holding them accountable, being their advocate. There's a big need in our office for that.

If carpenters, plumbers and electricians have to go through an apprenticeship, why can't Realtors do the same? You could work side by side with a veteran for awhile and get familiar with contracts, negotiating and other real estate stuff. After agents have had on the job training, turn em loose. That's what I vote for.

Kathy Beyond scary!

Jeff, I think retention is smarter.

Paul the system is broke and no one wants to fix it! No one wants to reinvent real estate to a model that really does work!

Brokers need to be involved with all agents -- new or old. I've got a great broker. I'm an experienced agent so I have little contact with him except in our general meetings, but when we do meet one-on-one, it's always productive for me.

I think part of the problem is the huge learning curve. Even when new agents have a broker who is willing to help, they're still going to have to learn from many mistakes. I feel sorry for new agents. Even with lots of help and contracts being renewed, if they're not paired up with a seasoned agent, they're going to experience a lot of setbacks.

Lisa Hill

After reading these comments, I am SOOO relieved that my office seems to be getting it (somewhat) right. Once a newbie signs on, they must work with an experienced Mentor in the office for at least the first five transactions. That means both they and the Mentor complete the first few sales contracts and listing contracts, go through the buying or selling process together, and attend the closing together. On-the-job training is the BEST for what we do. Plus, our broker is pretty much available 24-7 and our company has the best initial training and continuing training, office trainings, mastermind meetings, best suggestions at to what books to read, etc. Our broker has even started working with each agent in our office individually to mentor those of us who either want to or need to do so, which is a tall order, given we have almost 40 agents at our office.

Ann I agree fully! But a lot of the new agents are totally unsupervised! That creates major headaches for all!

Lisa Hii I agree. Many of my articles and posts are designed for the new agent. I am a big fan of hands on training, and mentoring. However, much of this is at the expense of others. Think about it also, that ethically the agent representing the other party should not be advising the other agent how to do everything because they cannot reach their broker. Legally we are representing opposing parties!

Lisa Spalding That is excellent! That is the way it should be! Sounds like you are in a great office wiht a great broker!

Training isn't going to produce quality agents. It takes years of experience to learn enough to be able to operate independently.

There have been a thousand programs tried to train, supervise, etc. Never works. Brokers have to recruit and agents have to list and sell.

I'm of the opinion that high entry standards are absolutely necessary if we are to raise the bar in agent performance.

Many brokers are playing a numbers game. There are many brokers now offering 100% commission split in exchange for a transaction fee of say $400.

Many agents new and experienced are attracted to this type of arrangement. Unfortunately the brokers provide very little in terms of services to the agent.

Lenn I agree. College base, more education required etc... However, if brokers could recuit train, and retain the agents it woudl be a lot better. I see a lot of spinning wheels here going nowhere.

Armondo I think there are a lot of business models that will not work in the current market. Builind a base of expereinced agents will be a key to survival! New agents that are unsupervised will eventually get into serious trouble! No one needs that!

There is an interesting Keller Williams ad in this month's REALTOR magazine. It says, "More than 73,000 real estate professionals across North America are Keller Williams Realty Agents. Find out why more than 42,000 agents joined the Keller Williams Realty family last year alone."

Let's see. Does that mean they are having a complete turnover every 18 months? Did they just have 31,000 two years ago, and they more than doubled their size last year? Surely it's some hybrid of the explanations, but they shouldn't be bragging about it because it doesn't speak well of their franchises.

But in truth what it means to me isn't specific to Keller Williams. It means that those of us who are serious about our business, and because of that, are well-trained, educated, devoted and ethical are watching this bunch of in and outers churn our profession. And that, dear friends, is why "60 Minutes" got away with their piece about us.

This post is really so close to home. I actually chose my first office because there was a Training Broker. That was part of her job. Training agents. And can I say THANK YOU loudly enough? No.

But... Many agents I have met were actually recruited INTO real estate with promises of riches and whatever.
Recruited?!?
That was such a surprise to me the first time I heard it I almost fell over. I couldn't imagine people who had left lucrative, stable, fulfilling jobs just because of a good recruiter. And not because they were craving that on-the-edge feeling of controlling your own destiny, or will I eat tomorrow. Whatever it is that we all are seeking. (Any analysts want to help?)
People not really suited to being the independent contractors we all are. And who didn't take a long hard look then jump.

On the what-to-do front...
I know that my state legislature have dropped the ball on a Superb chance to increase the education standards for agents entering the field, as well as require higher standards for those in here already. And to strengthen the responsibilities of the Brokers (or whoever is responsible in tiered-Broker states).

I think the National Association of REALTORS should lead the leaders in this. Again.
Waiting on someone outside our profession isn't going to get us the results we want. And it won't happen in the time that is necessary.
Why not say that REALTORS have to have a higher level to remain REALTORS? We could start the apprenticeship push ourselves. (That would certainly help us stand apart.)

Or is REALTORS just a recruiting engine now too?

I have a small brokerage just outside of Calgary Alberta. When I decided to open a brokerage I bought a MaxWell Realty franchise. This is an Alberta born company that has two of the greatest guys in the industry as founders. They have created an intensive training program that every new agent can take. They pay back the company for the training off of their first sales. The company makes an investment in their agents. They have a professional trainer. It is not up to the Broker to teach the agent everything he needs to survive. It is a policy in our brokerage that every new agent take the training. They also have on-going training sessions for new and experienced agents every week. This company has become one of the leading real estate companies in Calgary in just a few years.

www.maxwellrealty.ca

I'm surprised at the 80% turnover rate.....didn't realize it was that high. Without good training, new agents will never flourish. I saw it in my former office....the broker was a good recruiter but couldn't/wouldn't do any meaningful training for agents. It was sad to see them floundering so much.

Marjorie

In my humble opinion I disagree with you. I do believe it is up to the Broker who hires an agent that has just gotten their license, to train them, or to have in place a training program. That's not to say the agent shouldn't take seminars and continuing Ed. I believe every agent should avail themselves to all types of training, however, that having been said, taking the Principals courses and passing your boards doesn't begin to prepare you for the experience of being an agent. Maybe one of the reasons there is such a high drop out rate among new agents is for that reason, they are expected to just know what to do. What other profession can you think of that doesn't have OJT?

I believe in the mentoring programs. If you want to charge the agent for it out of their first sale fine, but I still think there should be something in place that helps show them the ropes.

I sooooo want to say something about this topic, but I am not going to. I will keep reading and taking it all in. Very interesting post!

Jim,

I started working in real estate as an agent a year ago this week. I will try and remain positive by saying I am glad I am NOW at an office where the broker takes an interest in what I am doing. She reviews my contracts and checks in to see how I am doing. I agree that many brokers need to get off the golf course and park their private planes and get back to the business of being brokers in charge. Many other brokers are too busy trying to COMPETE with their new agents to actually train and mentor them. I would flag this to be featured but I see someone already has.

Bill thank you for sharing! Too bad the ad does not say how many stayed, how many produced...

Sarah there are big bucks in recruitment! Some companies have schools that actually fund the brokerage. Think about it...perhaps $500 a head tuition for real estate school?

Marjorie The Canadian agents that I've met and that I've held seminars for are some of the most serious, and dedicated professionals I've ever met! I was most impressed last year with the quality of agents I met from across Canada! Technically you are correct about brokerage, but I don't view it that way. Since in the states the broker is the principles, every agent underneath the broker are a direct reflection on that broker. They are the brokers agents first. What I am seeing in Atlanta is really not very flattering for any company to have agents with little or no experience or guidance running about on self will run riot! That is not good. The broker needs to be directly involved in my opinion. Professionalism is not practiced in the classrooms, but in dealings with other agents, clients and brokerages.

Diane it is always that high. That is even before this current down turn. You are about to see a fairly big turn over. This one even the NAR has talked about. The current numbers of agents cannot be sustained with falling sales.

Roberta thank you, and I agree with you.

Rita you have a very good broker! It is all about you, and your success. If you succeed you, and your company will automatically attract other agents that want to join! "Build a better mousetrap and the world will beat a path to your door!" Conversely if other agents that do a coop deal with you see that you do not know what you're doing, they will not want to work with you. They've been there, and done that before...it wasn't a pleasant experience. Why should the other agent, and not your broker tell you you filled out a contract totally wrong? Why should the other agent tell you how you screwed up on your inspection counter? Or that you are giving a home away? Inexperience is a loser from many different angles!

AUG

2007

Real estate is very much a team effort in the beginning. Broker recruits, broker trains and coaches, broker benefits with a long-term, loyal agent. It does not work without the commitment from both sides.

I keep reading that more education is needed and higher standards. I don't necessarily agree. What is needed, is for the broker to take an interest in the investment he made to hire the agent. Let's face it. How much is the broker going to make off an agent that doesn't know how to make a listing presentation, write a buyers contract, negotiate, and see the transaction through to the close?

Most brokers take a split of the commission. Regardless of what it is, 0% of 0 is still 0. It is to the brokers benefit to train the agent or see to it that they are trained in the field. More education won't do that.

It is time the brokers stop competing with their agents, taking vacations every other month, going to the hair dressers and all of the other things they do besides seeing to business. If I had run my businesses like some brokers do I would have been out of business in a hurry.

Jim - Great Post! The impact a Career Development Director has on the future of a Brokerage is very, very important and can be a pretty low paying job from our actual experience. (Train new agents, answer questions all day, help write out contracts - or return to being a top producer and make 10x the amount of money?)

Some Brokers just don't get it.

I totally agree. It makes it easier for us to get clients because we shine, but it already predisposes the public after they have dealt with one of these agents to not believe that this is a PROFESSION.

It's also the responsibility of the new agents to seek out training. With all the new brokerage options out there (100%, Low Fee Options), I think it's a great change to traditional brokerages. Joining a brokerage with little support should always come with a requirement of minimum transactions completed.

Here's to more ContEd requirements for new agents.

Jim,

Great thought...when I was with another company..they st-rived on training and the broker really worked with each new Realtor(R)..even myself being in the business before she was able to give me some extra guidance while letting someone else in the office recruit. Well they fired her and brought in some corporate person and she never helped anyone..she spent her time running cocktail parties and soliciting us to use their bundle of other services. She spent the rest of her time terminating agents that would not go with her program or coming into the office everyday or go to meetings that were just a wast of time. She has gone through many others that would recruit..all they were looking for was to hire as many new agents to capitalize on the 50% splits they were getting. I'm much happier at Remax...at least we can work for ourselves and they do separate recruiting and the broker will assist you if need be.

Jim, Training agents is "old school". Today's biz model is more of a desk rental/transaction fee set up. It's all about quantity. And our industry is suffering big time because of this attitude. I remember when ReMax used to mean something. Not anymore. Hire, hire, hire and keep hiring. It's foolishness in my opinion. You do not have to deal in real estate to have a successful brokerage. Give me 200 agents paying $1,000 a month and I don't give crap if they sell property. I get mine whether they sell or not.

Doug, well said!

Roberta Thanks! It should be very hands on.

Paul and Michelle... I think a lot of broekers do not want to get it.

Joshua Continuing ed is great, but really they need more supervision and instruction and support directly from broker.

Neal I fully agree. I've been wiht others that really were not bad, and as you know I just returend to REMAX. I am very happy with the model. And Yes, the broker will assist us whenever we ask.

Great post, Jim.

Back when I was new, I had an amazing, very hands on broker. She launched a whole class of new agents, many of whom are still successful and in the business 25 years later. Her type has been replaced, it seems, with brokers who are just delegating the training process to "mentors", some of whom are good and some who are not. At any rate, there seems to be little accountability.

In our area, we have the largest independently owned real estate company on the planet. Their brokers typically cover 2 or 3 offices, and when one of their rookies comes in with an offer, it can be scarey.

Great Post.

I do believe that new agents need more training. I think it should be a requirement from the brokerages to provide new agents with training, for the public sake, as well as for the reputation of the brokerage. It is unfair for the experienced agent in that brokerage to get stigmatized in the community due to poor service and/or lack of training on behalf of new agents.

I agree with this blog and it is an excellent subject to push. Thanks for the info. I have had it both ways, some brokers are all about making sure agents are trained and some just go on about their business and let the agent do the same. This holds true in both real estate and loan officers.

Having to find out everything on your own is no picnic nor is it safe.

Jim - This is a HUGE problem in our industry! I am so very tired of all of the recruiting efforts of brokers out there. It's all about the annual dues and/or desk fees for most real estate companies, it's a shame. They talk people into getting/staing in the business when they don't belong there. When everybody and their brother has a real estate license, the average number of sales per agent goes down. Not too mention the general reputation of real estate practitioners. Heck, if there's one undereducated, unprofessional agent for every 5 good ones, the reputation of our profession is shot! Wake up recruiting focused brokers, this is a real problem!

Of course, we cannot forget to place some of the blame on state licensing standards. If everybody and their brother's cousin weren't able to obtain a license to practice real estate, brokers wouldn't be able to add them to their "team."

Great post!

Thanks Jim and very good post my friend. All Brokers should be aware that new agents are putting their whole life in their hands. I remember my first day in February of 1980 and the fear and uncertainty I felt. Having a Broker that cares and has ones best interest in mind is a secure and wonderful environment to work in. Have a great day my friend.

Patricia thanks! It is very different today, and you do not come across that broker too often! Most of the offices say they are very much into education, but the meetsings are really pep rally's! The mean streets are much different!

Rebecca Thanks!

Michelle I think more than training is needed. On the job training one one one is needed!

Rosemary, finding it out by trial and error does not benefit anyone! Thanks!

Joe Interesting point you brought up...fewer sales per agent means less experience... which leads to a more dysfunctional industry, wrong pricing, more trouble deals, more fraud, and a lot less real service for all! How bad is bad?

George we've all been there, but the difference is that we had real help if we are still doing well in real estate. Have a great day!

This is a problem in some firms. We have had cross sales where the agent was not available and the broker was not either!

Bryant

I totally aagree with what you said. Unfourtantly it's the agents that pay the big price. Just think how faster their start up could be with OJT.

Jim -- I am so glad you wrote this post. I would love to copy and force every broker in my area to read it! I'm sure some are doing their jobs, but the vast majority do seem to send agents out unprepared. I have only been licensed a year and a half so I know I still have tons to learn, but the level of incompetence and lack of understanding in agents amazed me. In one particular situation I received an offer on one of my listings that had no dates for contingencies, riders marked but not included, information on wrong lines. . . it was TERRIBLE. I had to have the other agent rewrite before I could present to my seller. Long story short, I checked out the managing broker of the other agent's office and found that she had only closed seven deals in her entire career! How on earth could she manage an office of 36 agents!?! Unbelievable!

Bill Cherry- Keller Williams has grown so much in 1 year because they have acquired many smaller agencies around the US. In my area they purchased 3 small, family owned brokerages in the last year. They are using this business model across the US to grow so quickly.

Thanks all for the comments!

Lori Glad you enjoyed it! A broker I worked with recently only closed maybe 4 deals in his career! It could be the situation of the blind leading the blind. What could this broker share with his agents?

You can't make eagles out of ducks.
Eagles need the proper training, tools and support to soar.

Real estate firms/brokerages who have embraced this philosophy are the hallmark of the real estate industry.

John... Well stated!

Thanks Jim. You post on this subject is what makes Active Rain Shine!

John you are very kind. I feel we all have a part to play in making this the best possible job you will ever have! It is too bad most will never really get it. We need to demand help from a broker. After all the years I've been in real estate, I still do not have al the answers, so a new agent cannot expect to go out ans just start writing incomplete contracts, that may be voidable, or flawed, and expect other agents to do the work for them. It is their broker that needs to be helping them out! Thanks again!

Oh how you hit a nerve. My first office was strictly "here's a desk, go for it" type operation. I was fortunate to team up with another new agent from my class. The two of us decided we would figure out how to make it by helping each other and that was how we made it work. We both agree we wouldn't have stayed in the business if we hadn't found each other. Even sadder, our broker was the pre license teacher we thought would do so much. After nearly three years we decided to go our own ways. We each wanted to get closer to home than the old office. My partner is Managing Broker of a new branch office and knew just where she wanted to be. I wasn't as sure and have spent the summer interviewing the major players in my area and finally found a good one. My new office has training, even for those of us with a little experience, and a strong belief in continuing education. (The old Broker called me in every week to ask what I was going to do until I just left!) I'm excited to get going again and know that help is wherever and whenever I need it. Such a comforting feeling.

The old office keeps people about three years and then they leave--just when they are starting to really be productive! Sad sad sad.

Wyla, sad but very true in this industry! The brokers are really asleep at the wheel!

AUG

2007

If only...then the world would be such a better place.

Unfortunately, you are so correct on this one. It seems so easy to just say, oh well, it's not my problem. But it is! It not only affects the new Realtor's income who is unable to succeed. It affects my income when I am put in a position of being involved in a transaction with him/her.

I started out a Real Estate One. This was 10 years ago, but I would imagine they still have some type of training program. After I received my license, I went to a training office specifically designed for newbies. The manager there was available any time of the day for my questions. Each morning, they trained the group of us on purchase agreements, negotiating, prospecting, etc. After 3 months or 3 transactions, you were allowed to transfer to the office you intended to work at.

I am now at RE/MAX, but that training process was crucial to my early success.

Jim - I couldn't agree more and frankly, I just don't understand why they wouldn't be more involved - you can't just leave success to chance. As a broker, you spend tons of resources to get someone in the door - so why drop it there? In our market where cost cutting is rampant - many brokers are cutting out training altogether - I just scratch my head, i just don't get it.

Deb thanks for sharing! There is so much to learn, and it is better you learn it when you are new in the business. Once you get set in the wrong ways it is hard to break those habits. Sort of like the saying "You can't teach an old dog new tricks!"

Beth I think a lot of the brokers do not get it either. That is their loss, and that is why other agents that have worked with their untrained agents, are gun shy from past bad expereince with their company, and do not want to do repeat business with them. Most agents are not masochistic.

AUG

2007

Jim, I find when an office is really sketchy in its training, the newbies start looking for training amongst the more experienced agents there, which is unfair to both the new agent, who must be on the lookout for a friendly advocate and the experienced agent, who is pulled away from their own business. While many of us try to be supportive to anyone in our office, this is an unfair burden.

That said, I'm in a brokerage that really emphasizes training and has in an in-house contracts admininistrator, 3 office staff members, a transaction coordinator and 2 brokers, neither of whom sell real estate but are just there to train, recruit and work with agents. Our franchise, John L. Scott, also has a boot camp for new agents or experienced agents.

Irene that makes a lot of sense. Ialso like the concept of non competing broker.

Jim...

Whoa. You have struck a chord with me. Our market has been hit hard with the 'rent-a-desk' business model. You can only imagine the kind of crap we go through because of this. I have always been of the belief that just throwing an agent in the street without supervision is a lose lose situation. Many Broker's either don't see or they don't want to see it. That almighty dollar has blinded sided them. I also take issue with Broker's competing with their agents. That is so uncool. But geesh...What do I know? I've only owned a real estate company for 13 years.

Would you like to hear the story about an agent asking us to switch out the rest-a-desk company name on a contract to another rent-a-desk company on day of closing? Yah. She thought there was nothing wrong with that. What? :)

TLW...ROAR!

You descrobed the situation well! I am seein g this almost everyday! Sad! Many brokers have sold out for the buck!

This post was needed! I see it all the time, new agents that need a mentor! In our office many of the agents have formed teams. This works really well. We also have a broker that can usually be reached if we have a question. The office I was in originally did not offer any type of training, but it was a small office.

Bill & Barbara thanks for your comments! One caveat, I think teams work well, but a real experienced broker I believe is a lot better. All too often in teams they want the new agent to be a producer.

AUG

2007

The industry as a whole has a lot of issues with new agent training. Part of the problem is the fact that, as you mentioned, 45 hours and a test later, and you are authorized to do what people that have been in the business for years have done. I am actually in the process of writing a book geared towards helping new agents get started in the proper way. New York is finally making it more difficult to get a license by requiring 75 hours of training. I don't necessarily think that the extra 30 hours will make people ready to hit the ground running, but I'm hoping that the extra time requirement will make people that want to "try" real estate, think twice about that decision. This is the only profession that people "try" and talk about what else they do, or where they come from. I take pride in what I do, and don't feel the need to disclaim my previous experience unless it is relevant to a conversation. Hopefully, this buyer's market will weed out all of the people that do not treat this as what it is - owning a business. Brokers should definitely be more mindful of taking on new agents and training them. One of the reasons that I joined RE/MAX is to be around only serious agents. For as long as anyone that can "fog a mirror" is given a place to hang their license, there will unfortunately always be a stain on our profession.

Adam Thank you for your comments. I think there is no replacement for experience. YOu have some great comments!

Thank you, Jim. I look forward to your blogs. In fact, it was your article in Realty Times that made me aware of Active Rain. It's been a great experience so far, and it's only been 5 days. I'm looking forward to getting much more out of my Active Rain affiliation.

Adam welcome to ActiveRain! You are going to love it!

AUG

2007

This is a great point. I am struggling with this right now. I do not have anyone to lead and train my agents so I do that because it is what I enjoy. It is then impossible for me to recruit constantly or properly which is constantly. I am and want to be a very hands on broker, but then I need to hire a full time recruiter I guess.

JR great point! I've recently come across annew office policy that if an agent in your office gets another expereinced agent to come on board, the recruiter,,,gets 1% of whatever the other agent brings in in earnings for the life of that new agent stays with the company. So here is the way I view this:

It allows the broker to concentrate on assisting new agents build a career
The broker can step back from active recuiting efforts
The new recuitied agents are experienced producers and need no hands on management
The 1% recuiting bonus to the existing agent in your office is a major incentive to grow your business. The agents that are already on board have it in their best interest to recuit producers only.
Your office market share shuld increase becuase you are only interested in the creme de la creme

AUG

2007

Jim-This is a great blog, but a situation I've really been frustrated about. We will have a new broker soon, which is a very positive thing for our office. We have some great things going, but somewhere along the way the previous broker dropped the ball on the agents. I personally, took the GRI and would attend as many classes at the board as I could because I felt my broker just wasn't there for me when I was working on a deal and had a question.(Just finished my first year) My clients are very important to me and I couldn't stand it if I messed up their file in some way. So I went seeking answers on my own. I have felt for the new agents coming in because they seem so lost. There have been a few that have turned to me for help and I've gone to them as well to offer assistance. Do you think I'm gong to turn them away? No way! Although, I don't try to answer broker questions, I do get them in the right direction. This ia an amazing business we're in. I feel truly blessed to have a profession I love so much.

This is a great post. Yes there are some brokers who just recruit and let the agent learn on their own. On the job training is important.

I couldn't agree more. Some real estate offices give you a desk and tell you go out and sell. Its baptism by fire or flying by the seat of your pants. Either way its not how to get an agent started in this business. Just the forms alone can be inundating and then all the stuff at the closing. Its a shame that we have to learn from our mistakes especially in this business it can be costly both for you and your clients.

Jim, you are so right! I recently changed brokers! The previous broker was wonderful as far as assisting the rookies and the manager came into the office on a Saturday to assist me in writing up my first offer! I could call any time / any where! The problem came when the market became so bad I was about ready to give up. I had to take a part-time job and was away from the office for six months. The manager never called to ask what I was up to -- some words of encouragement was about all I needed. Maybe this was not his role. But, I felt I couldn't go into the office any more since I was gone for so long and this broker only wants full-time agents. Now with the new broker, I am on my own completely! Need to send docs to corporate? Instructions are on the wall. Need to submit listing to MLS? Here's where you start just follow the questions in the field. Any marketing materials for agents - no way! AND, when I called for help on completing a listing agreement, the manager was "with a recruit" and would call me back in 5 minutes. No call. I called again. The manager was with another "recruit." I had to wing it -- it went great -- thankfully! Oh, I did receive a call a couple hours later!

AUG

2007

Julie Thanks! Sometimes a broker has just the right answers!

Steven "...go out and sell. Its baptism by fire or flying by the seat of your pants. Either way its not how to get an agent started in this business." I agree fully!

Gita thanks!

Joyce when you need answers immediatley, 3 hours later does not work! How about Monday for a question you have on a Friday evening ?

Jim,

Precisely. Agree. I've changed where I hang my license several times as a result of complete and total nothingness from brokers. No help, no training, no contributions, no leads.

In our office, all new agents have to be mentored by our broker manger for, at the very least, the first 3 deals. They are all also required to take the Brian Buffini's 100 Days to Greatness or so we have been told. We do agree....there is very little if any guidence for these agents. Years ago, you had to hold a real estate sales persons license for 2 years before you could become a broker. 4 years ago they changed that and you could get your brokers license right away. What a big mistake!!! You had people getting their brokers license and opening up an office right away and managing other agents! What a mess!! I do believe they are trying to change that back. If a broker/owner wants to keep quality agents...a little time has to be invested in them!! Great post as always Jim!!

AUG

2007

Chuck isn't it sad? Did I hear desk fee? Transaction fee? Technology fees? In office fee, or out of office fee, splits and a 100%. In my humble opinion, nothing from nothing - nothing!

Rick I kniw Atlanta that are managing brokers that haven't sold really much of anything. However they have awards for recruiting! Is that sick or what?

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