A short time ago, I was reading an article about a RE/Max office in Arizona with 350 agents that just closed its doors before Christmas. What really got to me was the awful comments that were allowed to be posted regarding the article. One person wrote "Excellent! Maybe they (the displaced agents) can go back to their former professions: hair dressers, ditch diggers and Mary Kay sales." Another blamed President Bush and his "cronies." Others cheered on the demise and mocked those displaced agents saying things like "they were the ones claiming the market was so good and yet they didn't see this coming?"
The internet is definately filled with people with way too much time on their hands however the internet does provide anomymity to those who wish to express their personal thoughts and feelings...no matter how illogical (thank God for blogs). So it got me to thinking is there any industry that has undergone a major market correction without some introspection? Inevitably, when everyone was making money through real estate hand over fist, no one needed a real estate agent. Now, today when those same people are suffering in a declining markets, we and the mortgage lenders are now their favorite red-headed step children.
Just as an aside, I started blogging because I think that the real estate industry doesn't get a fair shake in the media and I hope to make a difference somehow.
I believe that there are some changes that can be made to bring respect back to the real estate industry and here are just a few changes I came up with.
For new real estate licensees, the education requirement should be A lot more in depth. One thing that has always suprised me about becoming a real estate agent is how little education is required to obtain a license. While attorneys spend years in college and grad school, most states require that agents only take few hours of class and most can be paid for on a credit card.
Here in North Carolina, the state real estate commission has added a post licensure requirement that all new licensees must fulfill to obtain a brokers license, not just a salespersons. While these classes are great, its not enough. I would like to see the requirement expanded to include the classes required to get a designation, like the GRI, ABR, CRS, etc. Real estate designations are a great way learn more about real estate and how to perform the functions of a real estate agent better. The differnce - I would require this to be completed BEFORE a license could be acquired from the state.
Eliminate part-time brokers. This is one of my largest pet peaves, the part time broker. The only reason why these people are on brokerages rosters are to inflate company numbers. Has anyone had a part-time surgeon or part-time attorney? If you have, don't hire them because when you need them, they may be working their other job. While not all fall under this generalization, many do not possess the skills or knowledge required to handle ordinary real estate issues that arise in a transaction. Part timers (those working less than 35 hours a week in real estate) should be put into referral only status and not allowed to operate until they are committed to working full-time.
NAR needs to establish corporate standards. No, I'm not talking about colluding on real estate commissions or anything like that. However, tying into the previous idea, NAR should work to establish a basis by which all brokerages should seek to operate by. A few years back when NAR's membership was just reaching the million mark, real estate agents incomes were averaging just $30,000 a year. That's really lousy and driven down by those not working. So my idea here would be to increase the number of years a newer or returning agent would have to work under a broker-in-charge and to bring the real estate profession from the home office back to the real estate office. There, brokerages can properly train agents to meet their expections and how to be successful going forward.
NAR should be the sole source of real estate data. I'm amazed at how out quickly NAR was out manuvered by a little upstart like Realty Trac in the acquistion and dispersal of home sales and foreclosure data. Realty Trac is becoming a go to place to get quick information regarding foreclosure, sales data, and real estate rankings while NAR has remained virtually silent. They have the MLS's, they have the agents, they should be the ones dispersing the information and making it easy for all to read and understand. While I'm sure NAR would never want to engage in publicly ranking foreclosure data by states and cities, they could show both sides of the coin better along with providing reasons for rises and falls. Don't leave it up to the nightly news to butcher data they can't understand, become the face of real estate again.
Agents should attempt to refer a lot more business to other great professionals. When we go to the doctor, we routinely ask for referrals with the thought that the doctor would know of the best person do handle our medical need would be. I believe that many agents are missing the boat not referring more business to other agents in other parts of the country, other parts of the state, or even outside their area of specialty. I'm continuously amazed that the agent who has barely sold one home taking on a commercial transaction. What in their right mind makes them think they have any idea how to get through a far more complicated transaction. I would like to see a clear demarcation line between those two, but I'll save that for another day.
I believe that we will be back to our record highs here in a decade or so and homeowners will, once again, forget who we are and blame us when their investments hit rock bottom. However, I think we can all learn from this latest go-round and take some steps now to make sure our industry is stonger and better than ever in the future.
Sincerely;
Jonathan Osman
The Charlotte House Hunter
Charlotte NC Homes, Charlotte Real Estate
Comments(8)