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Hard Decision? No, Not Really.

By
Managing Real Estate Broker with Howard Hanna Rand Realty License # 49FA1074963

Today was a first since I started my brokerage in mid 2005. I did something that I actually think more brokers and managers should do on occasion. 

I informed an agent that they would no longer be with our company. I fired someone. 

I'd love to say that it was difficult or that I was conflicted about the cut, but I was not. It was absolutely the right move, the company is better for it, and I haven't scintilla of a doubt about my decision. Frankly, I am glad I terminated the person before they did something that would harm the reputation of the company or, worse, harmed the best interests of a client.

Back in October, I wrote a post entitled How Salespeople Can Prevent Their Broker From Premature Gray HairI undertook that one because one of our part-time agents was, inexplicably and for reasons I'll never understand, unresponsive about fixing a relatively benign issue. If you ignore that small minor toothache it eventually becomes an abscess. And that is what happened.

The details are unimportant. What is important is that our firm has standards, and when Ann observed that we could never sleep at night if this person pulled this stunt on a client instead of with us, I knew I had to act. So I did.  Every opportunity was extended to make things right; it was to no avail. We are now a 25-member firm instead of 26. And I am completely at peace with that.  I have dealt with brokers and managers who demurred taking decisive action when their agent did something incredibly crappy. It's like they could never part with anyone who brought in a dollar, like you can't find someone to replace them who is better.  I will never be that milquetoast. 

I love growing my company and my brand. But only with good solid people. I'll never sell out. I'd never hire or retain someone just for numbers, or, worse, just for money. Anyone who doesn't share our values can do so from afar, but never under my roof. I am glad I did what had to be done before this person could let a client down. 

 

Comments(124)

Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

J. Philip:

You did the right thing. You would never stop worrying that the agent would do something that was not kosher in the future.  Go with your instincts.

Dec 19, 2011 10:36 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

I can only imagine the decision you had to make, but like you said, it's better to do that than to have the reputation of the company blemished.

Dec 19, 2011 11:08 AM
Jayne Esposito
Coldwell Banker - Morgan Hill, CA
SRES, GREEN

Good for you.  As a former manager of a brokerage in Westchester and Rockland, I used to clean up the "dead wood" at least once a year.  It always lightened things up!

Dec 19, 2011 11:25 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Phil - I was in a brokerage where they basically had an "anything goes" attitude especially for producers.  Some of those producers were an embarassment to us all....One time I had a client in a cubicle and one "top producer" went into a tirade with a client, screaming and yelling.  What a nightmare.  I had to EXPLAIN THIS to my client...It's never a good idea to let something like that fester.

Dec 19, 2011 11:53 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Phil, 

Having confidence in who you want to work with within your office as well as in terms of clients is key.  Not everyone is a good fit - even if there is money to be made.  Being smart about who you associate yourself with and work for makes life a whole lot sweeter knowing you control this!

We are a very small brokerage.  I never understood the concept of trying to grow huge, but with the wrong folks.

All the best, Michelle

Dec 19, 2011 11:56 AM
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

One of the reasons I dread November is it is the time our broker fires agents for production reasons but of course when you set your goals in January with him you already pretty much know unless there is a crisis like 2006. But he has 4 things posted in the Office lobby that will get you gone immediately and he doesn't play.

Dec 19, 2011 12:46 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

J. Philip - I think this makes a lot of sense, and now no sleep will be lost.

Dec 19, 2011 01:37 PM
Luis Iniguez
Option One Real Estate - Fontana, CA
Search Inland Empire Homes For Sale - Short Sale Agent

It's tough when you have to let someone go, but sometimes it's for the best.  You have to think of the big picture for company and clients.

Dec 19, 2011 02:04 PM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

It happens and should happen more often. I know many brokers (including myself) that kept a few agents on much longer than I should have.  They were good people just not so great agents. And then there was one that just had to go after what I heard they had done from a client - not on my watch.  Good call.

Dec 19, 2011 03:20 PM
Donald Reich
Madison Specs - New Rochelle, NY
Cost Segregation Specialist

Over the past 9 years I have worked for 3 different companies. Only twice have I seen someone fired. The first was unrelated to real estate - there was a warrant out for the agent's arrest! The second was known to be dishonest, and when she stole another agent's customer she was fired on the spot.

That said, I have come across many many more agents who should be fired, but most broker / owners don't want to lose a single agent, even if all they produce is one deal a year. They are being penny wise and pound foolish, because these 'bad' agents hurt their reputations and cost them more than they make.

So congratulations Phil on standing up and doing the right thing!

Dec 19, 2011 03:35 PM
Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers Designated Broker Leolinda Realty
Leolinda Realty - Surprise, AZ
Sun City Grand in Surprise Arizona

Philip, there are some things that should not be on a public blog and I feel that this is one. You may have put yourself and your organization in a litigious situation shoud the individual involved discovers what has been written. Even if the agent does not ever read your blog, other potential agents may; the negativity is not needed in any organization.

Dec 19, 2011 05:50 PM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Although you didn't do what you did for profit, it'll be profitable.  Your other agents will also have more pride in your office knowing they work with a broker who has integrity.

 

Dec 19, 2011 06:18 PM
J. Philip Faranda
Howard Hanna Rand Realty - Yorktown Heights, NY
Associate Broker / Office Manager

Erica- that is a very powerful way to put it into conext. 

Dec 19, 2011 11:48 PM
Mike Dobbins
Realty ONE Group - Cave Creek, AZ
Scottsdale, Cave Creek, Carefree

Good for you sure wish some of these big firms thought more along your lines, they want the numbers and dont care.

Dec 20, 2011 12:44 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Bravo Phil - Recently, I had to go to a broker about some egregious behavior.  The broker asked what I thought he should do.  I said he should terminate the agent.  He thought I lost my mind as the agent produces.  For the most part I don't bother going to a broker over an agent that produces.  Evidently the only agents they are willing to spank are the non-producing newbies.  This is a problem and the reason Realtors for the most part can't effectively self regulate.  

You stand apart from the crowd.

Dec 20, 2011 03:41 AM
Gabrielle Nemes
RE/MAX Realty South - Tumwater, WA
206.300.8421, S King & Pierce County RE Advocate

Phil, your brokerage is a reflection of yourself. You need to be proud of the work you do ... and of the work of your broker/agents. Sometimes further training is warranted, sometimes a formal reprimand is needed. And other times, it's time to let a broker/agent go. At least in Washington, agents are not employees, they're independent contractors. As such, the atmosphere and success of your business is an amalgam of the people with whom you choose to work.

Dec 20, 2011 04:31 PM
Valerie Duncan Stewart
(Metro First Realty) - Oklahoma City, OK
Real Estate Agent-Broker, OKC, OK

I think about all the money and bad press you have saved yourself in future law suits. Good call.

Dec 21, 2011 01:21 AM
C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

It s clear to me that you are very principled.  You will look back at this decision ten, twenty years from now and realize that it was crucial to building the culture of your organization. 

Dec 21, 2011 03:19 PM
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Great job, Phil - I am very impressed and glad you are showing me the way.   Proud of you!

Dec 21, 2011 03:28 PM
Carmela Jacobs
Carmela Realty - Westlake Village, CA
Ventura Co., Los Angeles Co., CA, & Global Realtor

Wise move,

If they were not following direction from you (being their employer) imagine what kind of service they were providing to their clients.   At least you'll get a good night sleep now.   New year-fresh start. :)

Dec 22, 2011 02:56 AM