Ok, I guess I am on a roll this week when it comes to dealing with clueless Realtors. Not that this is anything new, it just seems that I have had a whole bunch of them this week. So, I’ve been thinking. Why is it that so many Realtors are clueless? They’ve all been through very intense (joke) Florida licensing requirements and passed a very difficult (more joking) 100 question multiple choice test. They’ve also jumped through all the bureaucracy at the Board of Realtors (wrote a check) and have had numerous training sessions with their Broker on how to complete purchase contracts, sales techniques, customer service and so forth (now I’m cracking myself up!).

So what is it that’s wrong? What’s missing? Could it be that the lure of big bucks and large commission splits is blinding Realtors and keeping them from seeing the importance of proper training? Should they be asking about training instead of money? I mean let’s face it, if you are not properly trained there will be no commissions to split. This business has always been difficult and in this changing market it is even more so. It would make much more sense to take 50% of something than 100% of nothing. But hey, the almighty dollar and the dream of getting it is a very alluring carrot. Dangle it and they will come.

I’m sure all of you have received solicitations from the new kid in town promising all the business you can handle for only a $295.00 transaction fee. Come one, come all get rich today!! It’s like a side show barker.

Or maybe it’s the popular Real Estate business model where the entire plan is to rent desk space. Got a license? Come on in. You can use our name for the low, low fee of $1,200 per month. We are world wide and you can’t help but to succeed. Step right up and sign on the dotted line and bring your friends. The more the merrier. We have more Realtors than anybody. Don’t pay now, pay later! And pay and pay and pay and pay and pay.

They forget to tell you that 6 months later you will be broke, beaten and spit out. But that’s OK they have a line of people waiting to rent your desk.

Now I am a firm believer in Real Estate companies having the freedom to work whatever business plan they choose. Freedom of choice is what makes this country the greatest country on the planet. However, in my opinion, these high split, low training companies are not for the novice Realtor. For a new Realtor training is everything. No training, no money. It’s as simple as that.

My biggest pet peeve is this: The consumer when hiring a Realtor should be able to assume, at a minimum, that their Realtor, is knowledgeable, professional, ethical, competent and able to guide them on what may be the single largest financial transaction of their lives. To be anything less than this, should be a crime.

What can we do about it? I just don’t know. It’s going to be very hard to tighten up Sate laws. People have the right to pursue a career. It’s hard to regulate incompetence. How about our Realtor associations? Could they require training? Could new Realtors be required to attend several weeks worth of contract law and ethics classes prior to becoming a Realtor? I think so. I truly think this would help. It would certainly be better than the current system of just writing a check. We are Realtors. We do not need laws to change to be able to step up to the plate and train our members. Let’s make being a Realtor really mean something to the consumer. The consumer should not have to assume anything. They should be able to know for a fact that their Realtor has at least the minimum requirements to perform their duties.

So step right up folks. Let’s get it right. Let’s turn our side show into the main attraction! Come one, come all to the greatest show on earth!

 

33 Comments on Come one, come all to the greatest show on earth!

OCT
26
2006
406,298 Points 72 Featured Posts Outside Blog

"The Lovely Wife Here"

Does this mean you want me to start paying for my desk...

Geez...You didn't have to go through all this...

I would have given you the 20 bucks back!

TLW "The Lovely Wife"...Boom La Ka Lakka...ROAR!

6:20pm • #1
204,677 Points 6 Featured Posts Outside Blog
Bryant thank you for your kind comment on the blog post today.  You are always so thoughtful. Did you go to the meeting I e-mailed you about this afternoon?
7:17pm • #2
610,620 Points 244 Featured Posts Localism Sponsor Outside Blog
Hi Teri, I didn't but thanks for the invite. I was curious to understand the KW biz plan but not for changing. Being solo for so many years I could never change. If it ain't broken don't fix it. 
7:38pm • #3
33 Featured Posts

LOL TLW.. THAT was funny! 

BB - You could not be more correct.  I think in the MINIUM standards that you have listed you should add - a tiny bit of common sense.  (I am working for your 20$ back and trying for TLW to throw in 10$ more - you know for your what nots)...

7:49pm • #4

RE; Ethics:

In NY Realtors had to take the Ethics Class by ebd of last year in order to renew their license. Unfortunately, many REALTORS STILL are unscrupulous and unethical and took the class only to fulfill the requirement. Too bad that whenever money is involved, some consider the ends justifying the means.

7:57pm • #5
406,298 Points 72 Featured Posts Outside Blog

Don't you get me started on what not's. LOL

7:59pm • #6
116,604 Points 9 Featured Posts Outside Blog

Can anyone say "S-P-E-L-L-I-N-G" and "G-R-A-M-M-E-R".  Those crazy folks at Microsoft even created a program that  does it for you.  Yes Sir.  For $29.95, you too can spell like a pro.

That and if I need to explain the difference between Advice and Advise one more time.........

8:05pm • #7
112,131 Points 6 Featured Posts Outside Blog
So true. And the worst part of it is that many consumers believe that we are all the same, going to do the same for them, all make the same amount of money, etc.....
8:06pm • #8
2 Featured Posts

Well, our training out in DuPage County, thru our Association, is certainly better than most. And, we really are better trained than many other agents.

That being said...Bryant, you are absolutely correct. New agents need to train, train and then train some more. They need a strong foundation; they need to report to someone; and they need to be shown and told what's legal and what's not.

You don't this stuff from a test. You get it from finding the right company to start with. Then after several year's experience you're able to make a solid choice.

When I started in the '70's our company had a SIX week required training program. And, we couldn't list or sell until we sat thru those classes. But, they really helped.

8:07pm • #9
354,150 Points 11 Featured Posts Outside Blog

That is why I am at Keller Williams...the splits are not bad until you prove yourself every year and then cap out at 100%.....

Not bad when you prove your worth...and there are trainign classes EVERY month...at least 25 of them..... free..... no charge...NADA....everything from using the MLS...to FSBOs...to negotiations, to fillling out various forms.....and much much more....

I am so glad I am there.....:-D

8:12pm • #10
190,014 Points 18 Featured Posts Outside Blog

I totally agree that their should be more training for new Realtor's and it should be in the form of "hands on" training.

An agent gets out of school and is basically on his own. The school didn't teach him

  • how to sell, how to get clients,
  • how to manage his business,
  • how much money to have aside to live out the first year
  • how to write up a P&S, Buyer Contract, Dual Agency,
  • how to enter the info in MLS
  • how to do a CMA

I can go on and on. The course that are mandatory do not teach Skills for the everyday transaction.

9:32pm • #11
212,147 Points 56 Featured Posts Outside Blog

Bryant, you don't know how much I appreciate this post.  When Rick and I decided to throw ourselves full-time into the real estate sales arena, it was a difficult decision and had a rough start.  Rick has a masters in accounting and I have a bachelors in Architecture, so the 1 week course and the multiple choice exam was a joke.  Our big mistake was to assume that as professionals we had an edge and decided to join KW.  Needless to say, with their awesome business model, we lasted 4 months and switched to Coldwell Banker for the training and the corportate backing.  It was the right fit for us and the training made a huge difference.  We're on our 3rd year of business and blowing away the competition that's been around for over 20 years.   New agents need to open their eyes to REAL TRAINING after they get their license.

Ines

9:44pm • #12
OCT
27
2006
259,131 Points 102 Featured Posts Outside Blog

I thought that GRAMMER was my father's mother.

Bubba:

I tend to agree with you about the huckster, quick buck mentality of certain shops/business models. However, to each his own.

I think licensing should be abolished.  It really doesn't protect the consumer.  An apprenticeship would be much more effective.  Absent an apprenticeship, let anyone do what they want to do. 

 

1:47am • #13
535,437 Points 45 Featured Posts Outside Blog
Contract law and ethics...hmmm. I like Brian's suggestion about an apprenticeship, and would add a journeyman stage also.
6:43am • #14
190,014 Points 18 Featured Posts Outside Blog

 Brian and Sharon

Excellent idea! Kind of like and Electrician! Go to School, do NOT get your license until you have interned with a Broker.

I guess the journeyman would be the Broker, just that it doesn't come with actual Training.

6:54am • #15
480,122 Points 151 Featured Posts Outside Blog

Bryant.... an excellent topic.... once again. And this is the same in the mortgage industry. I actually think it's worse, but how would I know since I am not a realtor.

One thing I wanted to point out. It's just not the new realtor or loan officer. It's that person with 3 years of experience or even 10 yrs. Some people just know how to skate through life and through their profession. That's even scarier.

And Brian and I have talked about this several times, about the apprenticeship thing. And someone mentioned that the board of realtors needs to step in. I agree 100%. The sad thing is that money is involved with the board and all the way up the ladder. They don't want to discourage people from trying either....because of those $$$$$.

Rich & Damion:

grammer \gram"mer\ (gr[a^]m"m[~e]r) n. {Grammar}; -- a common misspelling. [Misspelling]

Grammar \Gram"mar\, v. i. To discourse according to the rules of grammar; to use grammar   as a n.  the art concerned with the right use and application of the rules of a language, in speaking or writing.

8:00am • #16
406,298 Points 72 Featured Posts Outside Blog

"The Lovely Wife Here"

Well I find this all very interesting. As many of you know in the past I have served in many capacities at our Local Board including directorships. I have also served time as a Director of our Local MLS.

This topic has been beaten to death in our area. As a Director on one of these Boards five or six of us, myself included, wanted to add more training for Realtors on our to do list. This idea was slammed down after much debate and too many "Naysayers". Can you all guess why?

Yup. The almighty dollar...Now we wouldn't want to make it too hard to get our Realtor dues now would we? I mean really we need to decorate our building for Christmas!

TLW "The Lovely Wife"...Boom La Ka Lakka...ROAR!

8:49am • #17

Great blog! The REALTOR magazine cover celebrating 1 million+ members has to be one of the most idiotic things I've seen! 

 The VA Assn of REALTORS is now proposing an apprenticeship program to immediately follow receiving a real estate license. Licensees would be unable to handle a transaction on their own until this apprenticeship was completed.

It's a step in the right direction!

Julie Emery, www.JulieEmery.com

10:52am • #18
1 Featured Post
I have often said that we need to get some kind of internship to train new realtors. This is a very complicated business. And for someone to just go to school for a week and think they know anything is silly
12:53pm • #19
120,846 Points 7 Featured Posts Outside Blog
Great article and even though I'm a new realtor, I couldn't agree with you more.  Fortunately I was a loan officer for 5 years before I became a Realtor so I had a bit of a clue on some of the stuff BUT the classes we go thru and the test for licensing really do not have much to do with the real world.  I have been blessed with joining Carpenter Realtors which has an extensive training program when a person comes on board.  Yet, it's hard to retain all the material thrown at you and hands on is always more lasting in mind.  I wish it was set-up that we did an internship with a seasoned realtor.  I felt like a small fish in a big ocean when I first went out with buyers or listed a property.  Well anyway, thanks for your thoughts.
2:39pm • #20
610,620 Points 244 Featured Posts Localism Sponsor Outside Blog
The Godfather, I like it!!!!! I had zero training when I got into the business but took it upon my self to learn and to learn quickly. TLW and I participated at the board and had several seasoned veterans that we could call for advice. I sure wish we had ActiveRain back then. This network must be awesome for a new Realtor. The key is to never quit learning. I learn something new every day even after hundreds of transactions. 
3:17pm • #21
130,028 Points Outside Blog

The schools do just that train you for the test not the real world.

Contract law and ethics...on more training. NO. How about training of hands on. Get role modles from the firm and play act and have the newbie play the buying agent in different roles then have them be the seller's agent.

 

Being right in the middle is the best way to learn. But I know this takes time and we should be compensated all for the help we are passing on.

3:24pm • #22

Very good, Bryant. Good post.

Just the same situation in the Mortgage business...people need to understand that there is almost no connection between school (with all the respect) and real life... Training is a major issue. And to all of us, experienced professionals or not...there is something new to learn every day...

Eli

3:50pm • #23
2 Featured Posts
ha, ha, ha....I had to laugh.   I remember going to one of these 'top companies' too but thank god I can add and subtract fast....which I did, I subtracted myself from their office after hearing $1,200/month.  I did not believe in making myself their property for life.  And you are right, we all need training.  My brain is like a sponge and I often take advantage of any training or resource materials that are out there.
8:00pm • #24
263,472 Points 67 Featured Posts Localism Sponsor Outside Blog
  1. I, too am a big supporter of Keller Williams and their split/cap structure.. but most importantly... the training. I am biased, as I am a KW trainer (all my experience in Special Education sure DOES come in handy... tee hee!) New agents are not prepared for the world, and that means failure for both themselves and the people they try to help.
  2. Luckily, the Colorado Real Estate Commission makes it VERY hard to become a Realtor... many of the folks I know took several times to pass the exams. Even really good agents are not nec. good test takers... but the difficulty level does help weed out some of the schmucks. But, you know what? We (Coloradoans) STILL have some awful agents. Unfortunate, but true. I guess there is good and bad everywhere.

Thank you for, yet another, fabulous post. :)

9:44pm • #25
212,743 Points 39 Featured Posts Outside Blog
I hear you Bryant. You've commented on several of my postings and I can only agree with you on your posting. But, let me challenge my industry (the mortgage industry) as well: http://activerain.com/blogsview/17011/Ding-Dong-Multi-Level
10:30pm • #26
321,345 Points 64 Featured Posts Localism Sponsor Outside Blog
As an old school teacher, I hit on the idea of introducing my team members a la the student teacher method, and in stages. Stage One: "Field Coordinator" (who learns about all the running around research down at the courthouse, permits, research and yard signs stuff) getting feet wet BEFORE even starting their 69 hour real estate provisional broker class(NC). Unless they are seasoned professionals, in my mind, Stage Two is "Apprenticeship" (riding around with Broker team members and assisting in the day-to-day effort) and, because I think this is possibly one secret to success, I am not one bit opposed to would-be REALTORS inve$ting in this training.
11:51pm • #27
OCT
28
2006
110,135 Points 26 Featured Posts Localism Sponsor Outside Blog

Good afternoon Mr. T! I could not agree more. On the training part I even blogged about it this week. What really intrigues me about your post is the licensing part. Big discussion on RT listserv going on all week about the value of national licensing, too. Love to hear what the requirements are around the Country and your post tells me more. We have a 40 hour requirement when you get started (state law) and my company required Skill Builders and Masters Classes (strongly suggested, they were really helpful) and we have Company sponsored seminars all the time on various topics. When I started four years ago there were a few people in my classes who were going to go to very small brokerages (one gal said she would be one of three) and I remember thinking well I hope the other two can be mentors and know what they are doing. You are so right, I would have been out of business had I done that. And us full timers can't affod NOT to keep training.  We are required to do Ethics, Law and Civil Rights classes every three years....they are among my favorites but then I'm a bit of a geek lol.  And TLW oooh how rich you would be if you could go 'poof' and give everyone common sense  MMMM kumquats... ok I lie, I've never eaten one are they good? :-)

11:35am • #28
12 Featured Posts
Perhaps the real estate community should consider higher education requirements before licensing like some of the other professions.  Admittedly, we all know of various college athletes that somehow get a degree but have a 6th grade reading level.  But if we started demanding higher standards before entrance into the real estate field, not only would the general competence of all Realtors increase, but so would the public perception of the industry.
11:36am • #29
110,135 Points 26 Featured Posts Localism Sponsor Outside Blog
We had a whole check list of things we had to complete as newbies; including observing four open houses which seasoned agents were holding and we had to observe listing presentations; list of about 12 things I'm old so forgot some of them now. It aggravated me as a newbie; I kept saying ok I want to hit the ground running; but of course it was the best thing for me
5:07pm • #31
OCT
30
2006
279,442 Points 42 Featured Posts Localism Sponsor Outside Blog

Apparently A hot topic. Training is an essential element in the model for success. However, individual agents need to self-educate as well. Those eager and willing to learn shall and will regardless of whether or not training may or may not be available within the company.  Realtor Fit post addresses issues along these lines.  Thanks for the post!

9:09am • #32
DEC
15
2006
4 Featured Posts

Bryant,

Love your post and totally agree! I just had to walk a buyer's agent through how to correct all the mistakes and ommissions on the "offer" he prepared for his clients and submitted to me on one of my listings. The only reason why I did it is because my clients had to sell their house asap and this was the only offer on the table in 4 months. I actually asked him if he had gone over the offer with his manager or broker prior to submitting it. His response? Three seconds of silence and then "um...no, should I have?".

The barrier to entry is almost nonexistence. NAR's ad should be, "If you place a mirror under your nose and see fog, then you too can be a real estate agent!"

You may find this post on the subject amusing - http://realdiablog.typepad.com/weblog/agents/index.html

www.realdiablog.com

2:36pm • #33

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Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc

Poinciana, FL

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Bryant Tutas-Tutas Towne Realty, Inc

Address: P.O. Box 969, Dundee, Fl, 33838

Office Phone: (407) 870-9003

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