Real Estate Blog - HOW TO SUCCEED IN REAL ESTATE SALES. GET REINTERMEDIATED

Home : Blogs : Lenn Harley, Real Estate Broker, Maryland & Virginia : Lenn Harley, Broker, Homefinders.com in Maryland and Virginia

HOW TO SUCCEED IN REAL ESTATE SALES. GET REINTERMEDIATED

* * * * WARNING!! H A R D C O R E R E A L E S T A T E T A L K * * * *

MANY REAL ESTATE AGENT HAVE BECOME DISINTERMEDIATED!

Forces worked against us to help bring about this situational disaster and some we brought on ourselves.

HISTORY OF THE DISINTERMEDIATION OF REAL ESTATE SERVICES

1988. BUYER AGENCY and the promulgation of statutory agency laws.
Prior to the statutory agency laws, real estate laws in most states operated under common law. This was truly the period of caveat emptor. Most agents and brokers represented the seller and the licensee helping a home buyer also represented the seller as a sub-agent. Agents and brokers worked hard to obtain property listings and the goal of every agent was to find the buyer and manage the real estate transaction in-house. Yard signs, open house, magazine and newspaper advertising were popular ways of attracting home buyers to their own listings.

In about 1989, by statute, agents and brokers were required to disclose to prospective home buyers that they represented the owner/seller. This was a tumultuous time for many agents and brokers and started the trend towards buyer representation for agents working with home buyers.

1992. MLS dissemination on the PC.
Prior to the Multiple Listing Services delivery of their listing information by PC, brokers offices provided listing Homes for Sale information to their agents through the use of computer terminals connected by telephone line to a main frame data resource. These systems were cumbersome and slow and were apt to disconnect about 1/2 hour into entering an listing, but that's all there was. Enter the PC and agents were faced with the necessity of using a computer to access listing information. What this also did was permit agents the freedom of having access to listing information from their homes and started a trend of agents working from home. Having listing information on a PC with color property photos helped buyers and seller agents make listing agents available to prospective home buyers.

1994. Property Condition Disclosure.
Real estate commissions promulgated Property Condition Disclosure laws and required forms whereby sellers disclosed known defects to prospective buyers. These disclosures, while not always accurate, encouraged sellers to make needed repairs to properties prior to offering the property for sale. While sellers can "disclaim" any knowledge property condition, most states require disclosure of known defects.

1995. THE INTERNET and the introduction of agent and broker Internet advertising.
The Internet provided a cost effective advertising resource for agents and brokers that permitted agents and brokers to advertise their services to any one interested in real estate services around the world. With a web site, an agent could advertise local services to relocating home buyers anywhere and their listing services to local home owners. The Internet has largely replaced newspaper, magazine and other media as an advertising resource for real estate agents and brokers. The majority of home buyers start their home search on the Internet and that number has grown from 10% to about 80% in a short 12 years.
Search Listings
1997 - IDX and consumer access to active listing of homes for sale on the Internet.
Following implementation of the Internet Data Exchange guidance from the National Association of Realtors, local MLSs provided agentsand brokers with web sites whereby the consumer could search for and observe local listings of homes for sale. With the introduction of IDX came the "Internet Empowered Consumer". Home buyers believed that, since they could see homes listed for sale on the Internet, that an agent was either no longer needed or wasn't entitled to the real estate broker's real estate commission or fee. The fact that finding a home is not buying a home was lost on the consumer and the industry focused on "search" as a substitute for real estate services.

1998 - GOOGLE and the professionalism of "search" for Internet advertising success.
The introduction of Google produced a revolution in the "search" industry. Rather than arbitrary decisions by search engine or directory editors for inclusion in their database, a well designed web site would be included in the Google database based on patented processes to crawl the World Wide Web and indexing web sites based on Google's unique standards.

1998 - Template web sites.   Real estate web site design companies began to proliferate about the time in response to obvious agent and broker demand. Prior to this time, web sites were created by skilled web design techs using html language read by web browsers, along with popular "bells and whistles" such as Flash and Javascript that created interactive or "action" web sites, which were very attractive and popular but not indexed by Google. As Google grew, the popularity of template web sites grew because they gave the agent or broker the
ability to "create" and maintain their own web site. The template companies also provided hosting services for site owners further simplifying access to a web presence by agents and brokers.

1998 - PPC Advertising. Major search engines include Pay Per Click in general search results.
Internet site owners purchased banner advertising or preferred placement on the Search Engine Result Pages by paying for clicks rather than monthly or site charges. PPC is a major source of advertising for search engines and is a way for agents and brokers to gain Internet consumer leads without the expense and risk of relying on "organic" search or Search Engine Optimization necessary to rank well in search engines.

1999 - LEAD AGGREGATORS and the struggle of agents and brokers for search engine placement.
During this time, several companies realized the uniqueness of the Internet to attract consumers of real estate services and designed web sites that offered real estate services but provided none of the services directly, but sold the consumer "leads" to agents and brokers. Many of these companies were able to gain superior placement in Google and the other search engines through high dollar Pay Per Click advertising funded by Venture Capital and Initial Public Offerings which provided these companies with resources far beyond the average agent or broker.

BRING BACK THE INTERMEDIARY
With the years 1989 through 2000 behind us, real estate agents and brokers are working hard to "take back their business". No longer are agents able or willing to pay for leads that are not worth the fee. No longer are agents able or willing to pay ever escalating cost of PPC for Internet advertising. New agents find it difficult to start their new business because the competition for buyer and seller business is very still with about 2,000,000 licensees competing for a diminishing number of buyers and sellers.

ENTER THE SUPER AGENT
What sets the Super Agent apart from the average agent?   SERVICE. There has been a trend in the past few years for agents and brokers to offer diminishing levels of services. A real estate transaction is a complicated process. The contract alone can be up to 35 pages more or less and covers matters of location, price, negotiation, financing, fair housing, environmental disclosures and testing, home inspections and negotiating repairs and concessions, title work, appraisals, surveys, settlement and recordation. The average agent spends from 3-5 years learning to represent buyers and sellers with any degree of confidence and knowledge.

FOR SALE BY OWNER TRANSACTIONS ALWAYS HAVE BEEN,
ARE NOW AND SHOULD REMAIN "FRINGE" TRANSACTIONS.

Experienced agents and brokers know that a buyer or seller without representation is risky to deal with because the unrepresented buyer or seller either relies on free advice from family, friends, or agents who are willing to risk their license by giving agency level advice to consumers whom they do not represent. So, the FSBO seller remains a small percentage of real estate transactions simply because, while the seller has the absolute right to sell their home without a listing broker, the consumer simply does not understand the complex real estate
transaction and cannot get to settlement without the help of a real estate broker/agent.

BUYERS AND SELLERS SEEK HELP BUT RECEIVE LESS QUALITY SERVICES
The trend of agents and brokers to avoid certain duties or tasks in the name of "risk reduction" has been taken to the extreme. While some states permit agents and brokers to manage a transaction without fiduciary to either party, more and more "agency level" duties are being relegated to assistants, inexperienced agents or left for the buyer or seller to handle themselves with the theory that "if I'm not there, I'm not at risk". This trend defies logic since one of the reasons buyers and sellers hire agents and brokers is because the transaction is complicated and when agents begin to avoid certain duties, the risk is likely to increase rather than decrease. This trend lends credence to the consumer's belief that, if they can find the house they want to buy on the Internet without an agent, that they don't need and agent for the rest of the transaction. The consumer is left to their own counsel in matters as important as home inspections, termite inspections, loan approval
processes and other matters where an agent's experienced counsel can save their buyer or seller client $Thousands of Dollars and in many cases, save the contract.

THE REAL ESTATE AGENTS HAS BECOME DISINTERMEDIATED and serves to write the contract and collect a check at settlement. Many duties from contract to commission check are either neglected, avoided or handled without true representation.  Brokers should know that something is wrong when an agent has a high percentage of cancelled contracts. Agents should know that someting is wrong when they lose listings and buyers.

IT'S TIME FOR THE REAL ESTATE AGENT TO BECOME REINTERMEDIATED and manage a real estate listing or contract of sale from search to settlement.

AGENT IN CHARGE

Only then will we be entitled to our fee.
Only then will we stop the slow but sure diminution of real estate fees.
Only then will we stop the inexorable loss of reputation.
Only when real estate brokers demand quality representation will we retain the respect of the consumer. It's really up to us. The public do not know good representation, they merely take it for granted. Brokers know and agents know.

IT'S UP TO US TO TAKE OUR BUSINESS BACK.

Courtesy, Lenn Harley, Homefinders.com, 800-711-7988, E-Mail.

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 02/20/2008 08:47 PM

Comments (117)

real estate brokerage, real estate agency

117 Comments on HOW TO SUCCEED IN REAL ESTATE SALES. GET REINTERMEDIATED

FEB

2008

Lenn.... good history of what has happened in real estate as we have moved forward, which with technology, it has made many lazy and rely on it or others. Therefor between technology and those less experienced, it has made for many transactions to close with a bad experience or not close at all. Overall, we can sometimes be our worst enemies, depending on who we rely on. And most of all, your last sentence sums it up, something that I preach about often.

Wow Lenn, I have to be honest....I have only perused this post. I am going to bookmark it and return later when I have the time to properly read & re-read this. My off the cuff reaction....you are darn right on! Your last sentence is the answer to pretty much any reoccurring problem in the Real Estate Industry.

Jeff. I have the luxury of "being there". Many agents weren't even in the business some years ago.

Jason. Take your time. It'll be around.

I believe this is why I love referal business so much. It reinforces "You've done a great job, they not only remembered you but recommended you". I can't imagine not handling a transaction from search (or should I say "first meeting") to closing and beyond. Those that do take care of their clients and treat things with kid gloves will be able to ride out the highs and lows of this wonderful industry.

Lenn, once again, awesome post.

Kris. Thanks. Too many agents are not giving buyers and sellers good "hands on" service. That trend has to stop if we, as an industry, are going to survive.

Lenn, this is a great post. Thanks for the history lesson and great outline.

I teach real estate licensing and continuing education. This time around for renewal of licenses I have seen a drop off in class attendance (online may be booming). Illinois now requires Brokers (this is their renewaql year) to take a 6 hour course in broker management in addition to their regular requirement of CE classes.

Some brokers are giving up their licenses and going back to salesperson. Proves that their are many out there who don't know what they are doing.

Hi Harley,

Good post. It is my opinion that the agents that are not providing "good service" will not be around much longer. The market is too difficult now.

Wow. Heavy reading. Yet quite educational. I have been in the business since Oct 2005 so the history lesson was interesting. I will do my best to help take back our business!

Ken

Jonathan. Thanks. My pleasure. I can't even recall what inspired it now.

David. Maryland requires "face to face" classroom attendance for CE. Virginia can be on the Internet.

Leslie. That wouldn't necessarily be a bad thing.

Ken. Hurray. My work here is done. Good luck.

Another great post Lenn, and oh so true. Thanks for the wakeup call.

Hank. Thanks and welcome to the army of agents taking our business back.

Lenn - this is a great post. I came into the business in 1998 and have experienced all that you write from then forward, and through education classes have heard of the rest. You put it together with a great thought -- until we bring up the standard for the typical agent, we'll not be considered a profession. I hope that Leslie is right, but I've been hearing for two years that the number of agents would fall and it hasn't happened yet.

Lenn,

Excellent!

Dates may vary from state to state, but not by much.

Other thing that happened:

Paging

Cell Phones

Continuing eduction

The huge drop in mortgage rates.

DU/LP Meaningful pre-approvals

Laptops

Sub-prime lending

Wireless Internet access.

Thanks Lenn!

Bill

Lenn, Been there done that. I got my first website in 1998. I was also co-chair of the MLS committee with TLW back when we switched from the old MLS books to an online system. We had to pry those books from the hands of the old REALTORS(R) while they were kicking and screaming!!! It was quite the ordeal. At that time we had a new DOS MLS system. I still have nightmares of the old green screens! All we had to look at were lines and lines of numbers and addresses. How the heck did we sell anything back then? No pictures, no video tours.

I never was a fan of IDX. I felt releasing control of our data would pose problems. And of course it did as the lead "aggravaters" came along shortly there after. And here we are today placing listings anywhere that will have them. Go figure.

BUT......it still all boils down to providing service. That's the one thing that hasn't changed and the one reason why you and others like you will always be successful. We KNOW people and we KNOW real estate.

Ann. That won't happen until the entry requirements are harder.

William. This wasn't long enough for you huh??

Dates may vary from state to state, but not by much.

Other thing that happened:

Paging - I had my first pager in the mid 1980s.

Cell Phones - Got my first cell phone in 1990.

Continuing eduction - Requires less and less in MD

The huge drop in mortgage rates. Up and down. Up and down, but you're right.

DU/LP Meaningful pre-approvals. Hah!! I had a buyer with a 64 back ratio approved by DU. What does that say???

Laptops - Indeed.

Sub-prime lending - Always been around with different names.

Wireless Internet access. - Depends on where you sit.

Thanks William.

Bryant. I'm torn about IDX. I've been a buyer's agent since 1994 so I never had listing to put on the Internet. My web sites worked with lots of community photos. but IDX changed things dramatically. However, I do NOT believe that companies not actively engaged in real estate brokerage should have access to IDX.

Thanks for you thoughtful post. You're right, of course, to survive in this business, hard work and good service will set us apart.

Lenn, Hallelujah!! Excellent read! I quite enjoyed the history because it's brought to mind at where this industry has come over the past 20 years. This was very timely for me. I was asked earlier today if I wanted to start a team and my first reaction was that I work alone. The main reason is that I am not going to be responsible for another's actions. I had a person who I shared offices with and I couldn't believe the amount of contracts that were lost. I've lost less than a handful in the 9 years that I've been in this business and I'm very proud of that. I learned that early on to know what's going on in my transactions. I have to admit that I enjoyed BB & your discussion of IDX. I must admit that I am also not a fan of it. Granted, I want my listings on the internet, but I place them there.

Lenn- I smell a feature here! This was an excellent post and I have been through all of these stages. I Would love to have more single agent here than Transaction broker but with the litigious society we live in, no matter how good you are as an agent, Stuff happens. We had an agent who got sued by a buyer here because at the date of the closing the house was in one elementary school and 3 months after the closing the school boundaries were changed. Because of that, our MLS took out all matter of school information and our FAR attorneys told us to only lead the buyer to the school district website for boundary information. The judge said that she should never have allowed her buyers to rely on her information.

I do not think that companies who are not brokerages should be able to have IDX. We work hard to get our listings and they are not public property. We are the ones paying to get those listings and then bottom feeders come along to try to make money off of our hard work.

Great post Lenn. The politics of real estate is a difficult one with many varying opinions. I know Oregon has some of the most difficult standards for entry, and we have a lot of average agents, and not a lot of really bad ones. That really helps us on this end.

Lenn - The reason I only practice buyer brokerage is to give my clients a higher level of service. It means dedication, education and a lot of hours. However, they know they have hired a professional to represent them. I have seen an on-going trend for companies and agents limit their services because they want to limit their liability. However, they don't want to limit their fees. Many simply say it is too difficult for agents to learn how to act as a fiduciary so fiduciary services are not available to the consumer (however, the consumer may not be aware of this). As usual a timely and important message.

Marc. Thanks very much. If you've followed my adventures for the past year, you'll recall that I ceased holding any agent's licenses Jan 1, 2007. I just couldn't stand the risk and the constant unnecessary mistakes and problems. I was constantly trouble shooting agents' contracts. No more. Now, I only sell new myself and refer everything else out. My agents got their broker's licenses and now they can take the risk themselves without Lenn to lean on.

Listing agents never did like IDX because they want to sell their own listings.

Katerina. You are right. Publishing school boundaries is risky. It's an optional features in our MLS, but most agents leave it blank, unless, of course, they happen to be in one of the highly ranked school clusters. The premium for well ranked public schools around here is somewhere between $25K and $100K.

I agree, aggregators, newspapers, etc., should not have access to our IDX. Many of the aggregators have real estate licenses, but do not engage in real estate brokerage. They use our own information to compete with us.

Melina. Getting a real estate licenses in MD and VA is very, very easy. Reciprocity in VA is even easier.

Lenn -Wonder synopsis of recent history. The brokers who have survived the good times and bad still understand their success is predicated on the delivery of good 'ol fashioned service. Anyone can fall into a transaction now and again, but to have lasting success requires dedication to our clients best interests... no matter what side of the agency isle we fall on. As you say, IT'S UP TO US TO TAKE OUR BUSINESS BACK. I couldn't agree with you more.

Lenn: Thanks for the history lesson. I agree with you that what has not changed is service. I would like for our MLS service to get rid of the school districting.

Jessee. Thanks. It's going to be tough, but it can be done. I'm afraid one of the problams is poor broker supervision.

Jan. Thanks. I would too. Anything that has caused litigation against agents like square feet and school districts shouldn't be in the MLS.

Lenn, As we take back the business, we will probably have to deal with our pricing for our services. Technology allows a "Super Agent" to handle many more clients than the old ways in the old days. Competition should drive the price of services down.

WOW Lenn- Well said and well written. We have all seen the "fly by night" agent and I cringe at the level of service they are delivering their clients.

I may be (newer) in this business - but I work my butt off to not only serve my clients from start to finish (and beyond); but educating myself.

I remember when I first got my license; I started taking CE classes right away. I WANTED knowledge - learning and representing our clients should not be a chore - its our job.

Lenn - I look forward to benefiting from your wisdom each day, and this is no different. Thank you. I have only been licensed since early 2002, so I didn't experience the days of the MLS books and people having to come into Real Estate offices, but I embrace IDX. I picked-up a new client today who is relocating here from Canada. This individual and their spouse really like how the IDX is integrated and how our brokerage displays it. I can see your point about IDX, as well. But getting back to your entire point ... yes, Agents need to get back in the driver seat! I have had buyers call me and say, "I found a house and I want to come in and write an offer." To which my answer is and always will be ... "No ... not until we go see it together and I familiarize myself with all there is to know about it..."

I think our titles should be changed from sales people to "Real Estate Transaction Managers"

It adds more validation to ALL we do!

Hi Lenn-

Great post. Glad I came over to AR. So good to be reading your pearls of wisdom, again.

Lenn,
Great post & thanks for the great history lesson! You did say it best, service is the key & I think we are starting to see the beginning of the agents who don't truly offer service leaving the business for it takes more than most believe, as you well know!

so when do you sleep.

There is no other way but what Lenn describes as the professional way. So what more is there to say? Bark bark bark!

Lenn - it's more than poor broker supervision... in my opinion... it's a entry barrier that's so low a tunnel is often required to get under it. More stringent entrance requirements, more punitive measures for brokers who fail to supervise (i.e. teeth for existing statutes) not to mention a streamlined, confidential avenue for reporting violations

Lenn, this is such a good post on the history of our industry. The Realtors who provide a service will reign. You put this together so well. Don't ya know agents that don't even know what IDX is?

Amen and Hallelujah, Lenn. Let the professionalism begin!

Lenn -

Very profound post!

A few years ago, especially during boom times, many were dismissing the need for a Real Estate Practitioner. All sellers had to do was find a discount company that would place their property on the MLS - it will sell, easily!

All buyers had to do was look on the internet - they can do all the rest!

What folks didn't realize it the experience, judgement, and timely advice we bring to the transaction will always be important - now, or 100 years from now.

How come WebMD hasn't shut down the medical profession - or online legal document generation websites have not been the death knell for attorneys? Because the intermediation of the EXPERIENCED PRO will always be the conduit from THEORY into PRACTICE. You agree?

Thanks for the very thorough history and analysis. Come over anytime!

DEAN & DEAN'S TEAM CHICAGO

Goodness gracious, Lenn. This is one knocked out information piece you did here. From Agent in Charge on, that is hard core real estate talk indeed. Really superb work here. And don't want to minimize it by saying it's usual and customary for you.

With a bow, our best...

I am amazed by how many agents, not just the new ones, who do not go to the closing. I was told by one agent "that is the Title Co's job". I know one successful agent who does not even look at the settlement sheet.

Lenn,

I agree with you about a lot of this... but there is one thing I have trouble with... it splits into two things. I know it almost reeks of impossibility because of the current power structures, but here it (they) is (are):

Licensing. It is almost a joke today. It is amazingly easy to get a license. In fact, the license is really only a small tax to the state. Almost anyone that can breathe and puts their mind to it can get a state license in a few weeks. I am coming to the belief that it isn't worth it to have a license requirement. Lord knows that having a license doesn't serve to protect consumers by making agents even adequate to the task. The options are stricter requirements, or...
Make the designation, REALTOR(R), mean something. We are supposed to more trained, more ethical, better prepared, and not just adequate but competent. Instead of being more of a joke that the actual license (all it takes is a couple of hours and a check), make it mean something.

Now, there is no way that the states are going to cut loose of the power they get through licensing and maintaining their state real estate commissions. As long as they make lip-service to protecting consumers, they get to keep the power.

The NAR isn't so much a member driven organization as a membership driven organization... or to be blunt, a dues driven organization. They get two things... money and power. 1.3 million members nets a lot of political power. And they net a lot of money... and jobs. Making the NAR a difficult to join organization would reduce that. Imagine an organization with 300k members instead. The best 25%.

As an example, let me offer up auto mechanics. There is no state licensing requirement. There is, however, a trade organization that rates their skills. The ASE.

Now, if a mechanic makes a mistake on a fuel system or a brake system, accidents can happen, people can die (I know, it is dramatic, but it happens all of the time). There is no state license to rebuild a brake system, or work on a car. Sure, the systems are complicated... but they aren't impossible. Heck, some owners work on their own cars.

The ASE (National Institute of Automotive Service Excellence) test mechanics. The tests are not easy. It takes training. It takes continuing education. There are dealer trained mechanics that are good... and they can't pass the ASE. Of course, there are some people that have passed the ASE that can't solve a particular problem, they aren't wizards.

So, maybe the NAR should be the ASE of the real estate industry. Maybe they should make NAR really mean something. Maybe the designations should mean more than a continuing income stream.

Just a thought.

Lenn,

Nice history of the business! You hit the nail right on the head when you assert that agents have to take back their business...too many chose to 'remain outside the loop' of the transaction instead of 'becoming an integral part' of it!!! Thanks, Fran

This is a great history lesson. I'm always amazed how barely competent people can make it in this business. Professionalism needs to improve in this industry to gain prestige in the consumers mind.

Wow! Lenn! What a great read! The one trend that made me nuts was the rise of the superstar agent who heads a huge teams providing "virtual service", with bragging rights to say they sell a gazzilion dollars a year in real estate. I think that it's less important how much business an agent does, but that their transactions are done professionally.

And one development I love is the lockbox! As a new agent, we had to run around and pick up keys for each house we were selling! I'm dating myself.

Hi Lenn,

GREAT POST. You are right on target.

Just yesterday I got an email from someone who purchased a home last summer (100% financing) from a "I'll Rebate You" type agent. The buyer (now homeowner) did not understand that it would take years before she could afford to sell.

Seeing the market's declining prices, this gal emailed me to see if it might be possible to sell her condo and buy a single family home. I didn't know, initially, it was 100% financing but did tell her that it was unlikely that she could unless she brought money to closing. Even without the falling prices, she had NO clue that it would take her a lot of months to be able to afford to sell and break even.

Her agent (the "I rebated you 1/3 of my commission" agent) never explained to her any of that. The client really was not educated or served.

Makes me crazy.

Sorry for the rant!

Great post.

Lenn, yet once again a great post. Truly something for all of us in the real estate industry to think about. Thanks for sharing.

Hi Lenn...Talk about Flashbacks, You brought a lot of Memories to the table..Thanks for educating the New agents on our changes and growth to were we are today and how we got here.

He still have limited Dual Agency, and in most cases Sellers and Buyers are well served, no agency is just that, no advice or obligations to one another. There has to be a better way, Lawyers would like to see us only represent one side and maybe that's where we're going, it's only the commission that is holding it back.

Service has always been my position with my clients and at my point in life I do not plan of changing, for the Buyer or Seller, I just feel I should disclose everything and give my advice when needed to help clients and it's becoming difficult to do this with limited dual agency and soon no agency...which some are already doing. The Market will dictate the way we go and what the consumer wants, so you're correct we should take the lead.

I have bookmarked this so I can come back and re-read this at a later date as well. You are right on the money with this post ! Somewhere along the ling GOOD Customer Service has gone bye bye and I for one am tired of combating what other Agents do or don't do ! Just tonight I had another Homeowner tell me she was scared of Realtors because she has had 2 Realtors that didn't advertise as they said and never called her. She would leave endless messages and they wouldn't even call her back ! I am combating this now so I can help sell this poor woman's home ! It's a shame !

This is a lot to read and must come back to really read it well. But on the surface seems you are right on. Thanks for taking the time to pull this all together.

Lane - I couldn't agree more...

I'm a very new real estate agent, and I found the current licensing process to be extremely easy in terms of course work / bar to jump over. I am also a licensed pilot at the Airline Transport Pilot level (pretty much the highest grade certificate a civilian can earn), along with holding all of my flight instructor ratings, so I have a point of comparison.

There is a saying in aviation that promotes the concept of when you earn your Private Pilot certificate (the initial full certification above Student Pilot), you have acquired a "license to learn". You have very, very little experience, but you have met the minimum standards of qualification. Now you must go out and get that experience unsupervised. This leads me to another thought concept...You have two buckets, one for experience and one for luck. When you first get your Private grade certificate, your bucket of experience is empty and your bucket of luck is full. Simply, as your bucket of experience is filling, your bucket of luck is running out. Your goal is then to fill your bucket of experience before your bucket of luck finally runs out because that experience will trump luck any day.

Replace the pilot certificates with RE licensing and I think we have a fair analogy. The difference is aviation has an underlying life and death theme that forces you to focus clearly and constantly, or give it up for safer means. RE doesn't have such a force, and therefore relies ultimately on the individual's drive to improve themselves and embrace the classroom instruction. It builds a case for raising the instruction bar and incorporating more practical experience into the licensing process as a way to improve industry standards.

FEB

2008

Nice summary of how we have got here, but I don't agree with your conclusions.

It is time to see new ways of providing "value" to home buyers and sellers in real $$$'s.

Lenn- I knew I was smelling that feature, just came back to congratulate you on a very well deserved featured post. :)

OK , first why the big words :) I feel like I need a dictionary, but nice timeline. Good trends. Now it's the cyber superservice agent. That's what I'm working on. Niche marketing with service that makes you feel a difference. It's like a guy once told me, look at what everyone is doing and do the opposite.

Lenn- maybe some of the problem in the industry is because "Home buyers believed that, since they could see homes listed for sale on the Internet, that an agent was either no longer needed" and maybe some AGENTS have grown to believe it as well, therefore now we "are working hard to "take back their business". I think this is actually your point, I guess I am just reitterating! Anyway, it was interesting to see how it all happened- why people think are services/skills are worth less.

This was a terrific post. I am going to share it with my office. And, you are right...that we have to empower ourselves and educate the public and not wait for others to do so... Thanks.... Pam

Bill Roberts. You wrote:

"Technology allows a "Super Agent" to handle many more clients than the old ways in the old days"

What technology is going to permit agents to handle more clients???

Where can I buy a robot that is licensed to drive buyers around from house to house. What robot will attend the home inspection? What robot is going to review the GFE and HUD-1 for the Super Agent??

Technology permits the Super Agent to communicate with more prospects, but once the agent/buyer/seller relationship exists, it's the "hands on" transaction management that makes for good business.

Technology helps with record keeping but that's about all.

James. Good for you. You cannot attend too many CE classes. I still believe that we
learn more by seeing a sale from start to finish. You'll learn through evey transaction.

Derek. Thank you, thank you. I do not understand how an agent can write an offer on
a property for sale without touring the property and performing due diligence. A "super agent"
wouldn't do that. I can just hear the judge in the lawsuit by the buyer against the agent.

Judge: Ms. Agent, was this basement wall buckling when you showed the house to your
client??

Your Honor. I didn't see the property.

You've done a great job writing this post. It highlights some very good points.

Vanessa. Managing a purchase transaction is what a salesperson does. I have no problem with the title.
The easiest way to get rid of that title is exchange it for Broker.
Marilyn. So nice to see your name here. Welcome to ActiveRain. Yes, I gave up on the RealTalk system
many months ago. You'll love this place. You can really express and exchange views and knowledge
and get good Google juice.

Josh. Any agent who wants to collect a fee for representing a buyer or seller should attend to every facet

of a transaction. Sure it's hard work. That's why we get paid the big bucks.

Michael. Hey, you won't see any of those middle of the night posts from me. I sleep well and long.
However, I work from home and have more time on my computer than many AR folk.

Sally. There is really no way to honorably do this business, be a Super Agent.

Jesse. Thanks. I've been advocating for higher entry standards for many years.
Folks think I'm afraid of the competition. I'm more afraid of the harm incompetent
agents do to our repupation.

Reporting violations is a waste of time. There's no enforcement.

Missy. Yes, I do know agents who don't know what IDX is. They call me screaming
and threatening to put me in jail because I put their listing on my web site.

You gotta love it.

I invite them to make a complaint. I send them to their broker. Let their broker know how ignorant they are.

Stefan Yes. More Super Agents.

Dean. I agree completely. Finding a property to buy is the easiest thing in the world. What do you do then??
That's why the "discount" and "FSBO" entities have always been, are now and will remain on the fringe.

Gary. Thanks very much. That means a lot from you. Shucks. I could have written 10 times that much
content. But, enough is enough. The too-long post is always lingering.

Virginia. Fine. Can you imagine how insecure and frightened that agent's buyers or sellers are sitting at
the settlement table?? At the settlement table. The specter of that image is more than I want to contemplate.
I know agent who don't go to settlement, or home inspections or much of anything else.

Lane. Eliminate licensing for real estate brokerage?? I'm not sure you mean brokerage or just sales persons. I believe that a real estate transaction is sufficiently complicated and presents sufficient risk to the tax payer and opportunity to the dishonest that we have to have some system to manage the herd of agents.

Fran. I know many agent who brag about what they "don't" do. They need to get our of
our way and get a job.

Wayne. Absolutely. Let the "fringe" companies stay on the fringe and let the Super Agent
excell.

Patricia. Funny story. I got a call from a consumer a week ago asking me for the name of
the "highest producer" in a county. I told him it wouldn't mean anything. He could grasp the
fact that many "team" agent leaders have the members of their team put transactions in their
name to gain the production stats for awards.

Mary. Rant on. Ranting helps. I have no problem with rebates. That superficial and unprofessional
treatment could have come from one of many agents who don't rebate. Rebating is merely for
advertising. Just because an agent rebates doesn't make them a poor agent. There are, of course,
the "limited service" companies that advertise rebates and also provide very little to no service.
They don't even find or show the properties to the buyer. That's insane. They are commission
warehouses.

That said, your story reminds me of why I only sold new homes last year. They were the only
thing that folks could buy an not be in a hold with falling prices. It's why I still don't sell to VA
buyers. They'll lose their shirts when they get transferred. That's changing because the foreclosures
and short sales are bringing prices down.

Lenn,

IT'S UP TO US TO TAKE OUR BUSINESS BACK. That must be the focus of both real estate agents and lenders in this postdisintermediated world. And for the complainers who don't like long words, let them eat a confection based on an intermixture of flour, sugar, eggs, and an edible emulsion of bovine adipose globules.

Mike in Tucson

Joseph. Thanks for commenting. My pleasure.

Fred. We won't get rid of the dual agency plague until we move to "buyers only" brokerage and "sellers only" brokerage. It won't happen in my lifetime. Consumers sometimes believe that they get a better deal from the listing agent. Or, consumers don't know the difference. In both cases, the consumer deserves the service they don't get.

Melissa. Be careful. Many consumers use the "I've been mistreated by Realtors" just go get a pricing advantage out of the one they're speaking to. I'm sure you'll give her good service. Of course, if her house is overpriced, it still isn't going to sell.

Bob & Carolin. I could have gone ten times as long. Shucks, I could have gone about 220 pages. Enjoy this short piece!

Joe. You hit a good point. Agent takes pre-licensing course of instruction. Agent takes licensing exam. Agent gets license. Agent is hired by a broker. Then agent must generate business, manage transactions and learn their business. This is not easy. The bar does need to be higher. Many of us have advocated that for years.

Paul. Thanks for commenting but I don't understand what you mean. "Value" for home buyers and seller for what???

Katerina. Indeed. I love to wake up to a Gold Star.

Rick. My approach is a bit difference. "Look at what the consumer is seeking and provide that with good service". That said, I do have a niche and it's families looking for a place to live. We don't do commercial, investors, land, multi-family, etc., etc. Very limited niche.

The general public believes all we do is find them the home and as you explained, through the internet, they believe they can find the home now!! We do have to change that perception, one transaction and one or two agents at a time.

Love hard core real estate talk Lenn!

Latonia. Thanks for dropping by.

Mike. Thanks very much. I love words and my words are the best words for me. I'm the writer. I love your description of what they can do. What has the length of a word have to do with substance, anyway???

Kim. Thanks. The so called "Internet empowered consumer" is one of the trends that
have made buyers think that agents offer no value.

What I keep reminding folks is that "finding the home" is the easy part.

Pamela. Thanks very much. I'm flattered. Get some ActiveRain subscriptions out of it.

Lenn: I was there too and appreciate your great outline of our history. I have been stubborn throughout these years and have not given in to any of the tools or market pressures that would affect my standard of care. I only practice fiduciary representation and have never and will never represent both sides of a transaction even though everyone around me does it all the time. It is so disturbing to listen to agents in meetings and hear how they see their role as a Realtor. Thanks for this exceptional post.

Lenn, I think you missed my point.

The real estate transaction IS fairly complicated, but the requirements for licensing do almost NOTHING to insure that an agent is competent. I haven't taken the broker test yet, so I can't comment on its difficulty. But, the easiness of the real estate salesperson requirements actually has a negative backlash.

The public assumes that someone that can pass the test IS competent. So, instead of looking at the actual qualifications of a real estate salesperson, we are commoditized, and all equal. So, instead of assuring quality, or a minimum level of competence (sufficient to actually be able to handle the job), it doesn't, and then makes the consumer feel that it has.

But, just as with a mechanic (since they aren't licensed) finding a good one becomes part of the psyche of the consumer. They will understand that the license doesn't really mean anything.

That is also the failing of the NAR. Instead of insuring that their members actually were better than the state mandated minimum, they just collect the dues and make them sit through a class hoping that honesty will stick...

I smell a post about this from me later today.

BTW, Lenn, I have a LOT of respect for you.

Lenn...This is great! I'm teaching a 4 day class next week and cover some of this...mind if I use some of your words? Great stuff! It is time to take back our business!!!!

Diane. Thank you for your comments. Fiduciary is almost a lost art. But, it's what we are hired to provide. No secret where I stand.

Lane. It is because real estate transactions are so complicated that agents need a lot of experience before they can even sit for the broker's exam in my area. The presumption, of course, is that the agent, by the time they site for the broker's exam will have gained sufficient experience, tranining and knowledge to be ready to practice without broker supervision and are now ready to supervise agents, if they so desire.

I don't believe that the public presumes that having a license is evidence of competence. I do not believe that the public have sufficient knowledge about a real estate transaction to understand the difference in a good or not so good agent. Sad but true. Often, the agent or broker with better marketing or advertising skills gains the confidence of more consumers.

For our business, agents and brokers need to take control of our business back from non fiduciary service providers. Consumers who gravitate to fringe providors for a lower fee will always be around. However, the vast majority of consumers still want full service, full fiduciary representation and THAT is what I want to see.

Monika. Thanks for the kind words and be my guest. I just gave these few words to 72,883 members. You can spread them around to a few more interested folks.

Renee. I could not have said it better. Thanks.

I loved your history of the real estate business! Thanks for sharing ~ a really enjoyable read.

Lenn, Time after time your posts are spot on and really hit the core of the biggest issues and concerns we're facing in today's market! Our industry is particularly difficult to unify on issues such as this, and I think that it's imperative that we overcome these challenges!

Lenn,

Incredible. Thanks for sharing all this information.

Helps a stager like me understand things from an agent's perspective much better.

All the best,

Audrey

Kelly. Thanks very much. I didn't really scratch the surface, but I'll save some for another day.

Johathan. Thanks. Yes, we need more Super Agents.

Audrey. Thanks. Things can be very complicated from an agent's perspective.

I still say that Lenn Harley should be president of NAR!

Lenn, you are freakin' brilliant. You cover our profession so well. I really appreciate the history lesson, too. Thanks for being hard-core.

Tamara. It would never work. I don't support dual agency of any permutation.

Elaine. Thanks for commenting. This is really a lot of fun. I do want us to take our business back. In that, I'm deadly serious.

Great post! Very interest to see the progression of it all!

Bravo Lenn! Well written and deserving of the Gold Star! I agree with your last sentence in particular. It is up to us as a profession to take back our profession by offering superior service and knowledge. Good job!

Emily. Thanks. Those of us that were there through the years really hate the ease with which good service is ignored these days.

Allison. Thanks. It is, indeed, up to each and every one of us.

Great Post

Incredibllle! you are the sage voice of the profession, always on top of it. Thanks

Great great summary of the recent past years! As a new agent I pride myself on being focused on service and professionlism. I also have become a sponge on reading and seeking knowledge from those who have been there and done that.

Thank you for keeping us up to date on what is real!

Rick. Thanks.

Michael. How nice. Thank you for the kind words.

Dondra. Keep reading. There's a wealth of information here on ActiveRain.

BRAVO !!!!! This should be required reading for anyone starting out in the real estate business and anyone who started in the last five years.

>What technology is going to permit agents to handle more clients???

1. Integrated transaction management systems that automate time-consuming manual taks, e.g. data entry

2. Decision analysis tools that improve strategic planning that help create effecitve marketing, cross-selling, up-selling opportunities

3. Secure extranet systems that enable clients to check on their status without the need for phone calls and telephone messages. Secure intranet systems that enable teams to communicate efficiently.

4. Robust marketing systems that allow the syndication of real estate listings. For example, once an agent enters the details for a listing in a system, they should be able to publish to print vendors, newpapers, websites, and various MLS systems.

Technology is a critical part of a business today. Understanding how it can be applied to your business process and how to make it work for you is a critical human element.

Christian.

1. I have a proprietary transaction management system second to none. I had it programmed for me about 8 years ago. Fabulous. I can track any sale anywhere in the process. One keystroke gives me 1099s.

2. Sales

3. Helpful for large companies. However, when the agents starts sending a buyer or seller to a computer for status, trouble may ensue. When it comes to the consumer, personal contact is very much needed, IMO.

4. Sales

Technology is wonderful. Unfortunately too many companies have substituted robust systems that try to reduce agent/consumer contact and that leads to poor service.

I want more and better quality SERVICE, not less.

Cameron. Thanks. I appreciate the compliment.

> 1. I have a proprietary transaction management system second to none. I had it programmed for me about 8 years ago. Fabulous. I can track any sale anywhere in the process. One keystroke gives me 1099s.

Does your TMS have a web-based client view that will enable a client to see how things are going with their contract? This would help reduce the number of phone calls from a client, and also, help build a sense of trust in your services. A client should not be able to see all the information in the TMS, but an informative view that includes details, e.g marketing steps completed, where they are in the loan process, etc.

It might be time for an upgrade of enhancements.

> 2. Sales

Having a CRM system that enables decision support analytics integrated with the TMS data mentioned above would be helpful.

> 3. Helpful for large companies. However, when the agents starts sending a buyer or seller to a computer for status, trouble may insue. When it comes to the consumer, personal contact is very much needed, IMO.

I agree. Personal contact is an important aspect in building trust and providing great customer service. This personal contact, in today's times, should be augmented by effective usage of technology, tools and processes. All of the interaction points between client and agent do not require personal contact. Sharing information on the Internet is a simple concept. The difficulties that you state may surface stem from the design of such systems. A poorly designed system will cause problems. The key to using technology for information sharing is to design systems that work well, without error, and adapt over time. The problems stem from the humans that design systems rather that the technology tools used to create the systems.

1. Sure. The client has password protect access to their transaction. That doesn't substitute for agent communication.

> 2. Sales

Having a CRM system that enables decision support analytics integrated with the TMS data mentioned above would be helpful.

That's gobbledygook.

3. An agent who relies on systems for case management is soon to find a buyer who won't answer their phone or a seller signing with someone else.

We are a service sector. Systems help in business management, but can't be detrimental to case management.

Leen, I really enjoyed reading this post. Brokers and agents need to get the message. I am know wnd always be the AGENT IN CHARGE.

> 3. An agent who relies on systems for case management is soon to find a buyer who won't answer their phone or a seller signing with someone else.

It is not about "relying" upon a system. It is about using technology where appropriate for your business process. Technology does not replace people, it is only a tool to be used effectively. Organizations that shy away from using technology in certain ways are at a disadvantage. You understood this point very well when you had a transaction management system designed for your business process.

If an agent "relies" upon technology to do their work and does not follow through with the personal aspects of managing a client, i.e. in-person meetings, phone calls, then the scenario you state above is highly possible.

If an agent uses technology effectively to manage workflow, streamline operations, and for efficiently communicating/sharing information with their clients, AND, also follows through with personal contact, then the scenario you state above is unlikely.

Organizations such as Trulia and Redfin are effectively using technology to support their business models. They are providing strong services to potential homebuyers by allowing them to search listings and perform comparative analysis from a simple web browser. These "technical" services certainly do not replace the role of a real estate agent. However, they do present a form of competition that should be considered during business planning.

Trulia and Redfin are MLS systems that are not constrained by association policies, association rules and regulations. Their business models are concisely focused on the consumer and are adaptive and flexible. MLS systems that are owned by real estate associations generate revenue for the association. The clients of these systems are real estate brokers. The real estate broker is the client to these systems. This business model may have worked well twenty years ago, but the real estate market has changed much. Brokers that embrace technology and work towards updating their business models will be better off. Brokers need more control of the listing data which is generated from their clients. Clients hire real estate brokers, not real estate associations.

Excellence post. This is something that always worried me when I become busy with a lot of buyers and listings. Am I doing a great job for all of my clients when I'm juggling a lot of transactions? I hope so. And my clients think so, but I'm still concerned sometimes.

Lenn, This post is awesome! Like you, I remember the old days, too. Remember when the MLS was a service for the agents? When they started listing fsbo's, I couldn't believe it. We have lost ground, with our systems. Revenue has brought new customers into our once, private world. You are correct, sales and service go together, hand in hand. As my Coach says, real estate is a contact sport!

It's a Good Life!

Fran

Scott. Good for you. That's what we are paid for, to manage transactions for the benefit of our buyer or seller client.

Christian. Trulia and Redfin are advertising sites. They use technology to generate traffic so they can sell advertising
space. They are in no way related to real estate brokerage. They are Internet networks. They are not agents or brokers.

I'm a broker who uses technology to generate business. However, once the buyer has hired us, the agent is paramount.
The agent uses technology to save time. But, in no way does it replace the agent who uses it.

I can operate with or without my technology. my technology cannot operate without me.

Larry. What I've found is that busy agents benefit by relegating non-agency level duties to non-agents or systems.
Face time with clients is what makes us successful. What I've also found is that experience counts and
when things are done correctly from the beginning, transactions become rather routine.
I love routine.

Fran. Thanks for dropping by. The lost of our propriety access to the MLS was a serious loss indeed. Opening
that system to the public and aggregators was very harmful to our industry, indeed. However, the MLS serves only
to help locate homes for sale and provide statistics. Transaction management is still very important. The MLS doesn't
negotiate for a buyer or seller. It doesn't make sure the contract complies with the law. It doesn't move things
along for the benefit of our clients. Inert systems will never replace a living, breathing, caring agent.

Lenn. First, I appreciate your comments and our "conversation". I disagree a bit with your last comment about Trulia and Redfin. I never stated that they are a real estate brokerage. I do not know if the owners are real estate brokers. I have a real estate salesperson's license. I do not sell real estate. I could if I wanted to. I stated that they are a type of MLS system.

Redfin and Trulia are much more than advertising sites. They provide the service of searching multiple real estate listings. The software that consumers use to search the multiple listings is a MLS. A MLS is a software system. The fact that they can use a MLS system to sell advertising does not mean that the searching software is not a MLS. They do not need to be brokers or associations to own and manage a MLS. The notion that a MLS system can only be owned by a real estate association is not true. The fact that this type of MLS might not have existed 20 years ago is not relevant.

>I can operate with or without my technology.

As I mentioned, technology should not be looked as a replacement for humans. You certainly can operate without technology. But, would you be able to compete with your competitors for any length of time. How would you attract agents to work at your brokerage if you did not use technology? How would you market a client's real estate without technology and a MLS? Would your business be able to survive without the Homefinders.com website?

These are just ideas to think about. By no means am I challenging your perspective. Thank you for your attention.

* * * * WARNING!! H A R D C O R E R E A L E S T A T E T A L K * * * *

Lenn, thanks for your time and effort in putting together a very insightful post. I agree totally with your premise on taking our business back. I would like to associate myself with the comments regarding the fact that the barriers to entry are too easy for new agents. It would be logical to suggest that the greater the educational requirements and training necessary to become a licensed agent the more competent agents would be. It is sad to say that many times we are judged by the weakest link among us.

Additionally, I have not read much about the role of the broker. I work as an office manager and on the business development committee of my firm and we have rigorous training and oversight procedures to ensure a high level of consumer/client satisfaction. However, this is not the norm among brokerages in my market. I have progressively seen over recent years purchase and sales agreement from agents that the numbers do not add up and mortgage contingencies do not match the the offer terms and clients are signing off on these offers.

The low quality of agents I believe is due to brokers not being more discerning or even caring about the agents they hire. I have seen brokers hiring new agents with absolutely no prior sales history and giving them 80-90% splits, just to hire as many agents possible with the hope that the more agents they hire the more money they will make, with no regard to quality of service. Finally, the brokers have to help and be a leader in the process of taking are business back and only hiring agents that will uphold high levels of integrity and industry standards.

Service should be at the forefront. It's not just Realtors who are guilty of poor service. Have you been out to eat lately????????????

Lenn,

Interesting perspective. I just thought that the word "manager" gave more acclaim to our responsiblities.

The public doesn't generally comprehend industry titles.

Just an observation.

Vanessa.

Lenn - I am with you on this. I haven't been in the business that long, but I feel we are giving away far too much! Strange irony that your post appears as a feature right next to Zillow landing huge deals with automatic feeds from Sotheby's , Century 21, and CB among others! Not the trend you would want to see!

FEB

2008

I enjoyed this article. I read it last night and was too tired to comment. I'm online again tonight and came back and read it again, along with the responses. I started working in the real estate biz in 1985 and I remember those days in real estate. To make a flyer,it was cut and paste, literally... then to the copy machine. MLS books stacked everywhere. Microfiche (did I spell that correctly?)

Ahhh, how far we have come. <g>

Wow, great post, I haven't really thought about it until I read your post.

Great post, and it does put things in prospective!!!! I really enjoyed reading it.

Gary Love

When I posted last night I didn't have time to read all the comments. I think where you and I would differ from Christian Velez is that THE MOST TIME CONSUMING part of real estate is working face to face with clients. Places like Redfin and Zillow are doing the "easy stuff" they are working the technology up to the state of the art - but where they are falling short is direct contact with buyers and sellers and getting from finding homes on-line TO THE CLOSING TABLE....To be a "super agent" and not just a discount agent charging for full service, there are NO SHORT CUTS and this is where these huge sites which eat us alive mooch off of our legwork and then blandly say that if we "worked the system right" we could somehow magically quadruple our volume. Have these people ever dealt with buyers and sellers one on one without mooching off of a full-service agent's legwork? I kind of doubt it.

Ruthmarie. I agree completely. As I've said many times, finding the home is the easy part. Christian believes that technology is imperative. It really isn't. It merely helps. Of course, he's selling CM programs so I would expect him to focus on that aspect of the transaction.

Gary. Thank you very much.

Kevin and Monica. Thanks. Stick around. There's so much thoughtful "stuff" on ActiveRain, it's amazing.

Crystina. Thanks. Microfiche. Yes. THAT was high tech. I remember it well.

Ruthmarie. Sooner or later, the industry will realize that the agent is central to quality transactions with minimal risk and angst for the consumer. The thing folks seem to have a problem is our fee. Too bad.

Christian. On a level playing field, sure, my business could survive with out Homefinders.com. If I didn't have Homefinders, no one else would have web sites either. I've been on the Internet since 1995. But, I generated a lot of business before that.

Maryann. You hit a nerve. Brokers who hire inexperienced licensees with 80-90% split and then throw them into the deep end.

Vanessa. In many ways you are right. However, I love the word "agent" because it has a very high meaning as that of providing valued services to your client. Of course "contract management" is what we do when we get a contract. But, I just love the word agent. Consumers to do. It means, "I'll take care of you."

Thanks for the history of real estate? Yeah, Duh. I feel totally in control over my business & in order to survive without going insane I don't have time to the police others. How about we tighten up the standards & start removing licenses from people who don't deserve to have them. My board office rarely brings up any type of fines, etc. from the unprofessional. They also make it tough for others to report unprofessionalism with high grievance fees ($400) that make good agents not want to take the time to weed out the "bad apples". It's always like trudging uphill .......

Lyn. I agree completely.

I believe that brokers need to take control. I would never keep an agent who clearly could not get the job done efficiently and with minimum risk.

Brokers could do it but they are looking for market share not quality.

However, I do NOT believe that companies not actively engaged in real estate brokerage should have access to IDX.

I am also struggling with this. As we allow more and more sites access to this info, where does it leave "our" sites.... being pushed further and further down in rankings. Is it too late to get the horse back in the barn and close the door?

I loved it. It was a great timeline. I remember when my mom was looking for houses, the agent brought the latest MLS book to search through......boy, we have come along way. Sometimes, change isn't good!

FEB

2008

Lenn, I hope you are still here because we have unfinished business. I said technology will allow the "Super Agent" to handle a lot more clients. You disputed that.

Well, I too have been around for a while. I remember spending lots of time doing open houses, door knocking, and driving "suspects" around in my car for days on end.

After I finally sold them something (maybe even one of my listings because I did double end deals back then) I had to manually manage the transaction starting with going to the escrow company to open the escrow, calling the title company to order the pre-lim, and everything else I had to do.

I could only handle so many deals.

Now the buyers usually do their homework before they contact an agent. They know the neighborhood they want, the schools involved, the price range, etc. When they contact you, the Super Agent, you will "qualify them" and then show them three houses, write an offer which you will get accepted (maybe with one or two counters) and then hand off the deal to your transaction coordinator who will utilize a Transaction Management System to open escrow, open title, order insurance, order inspections, order disclosures. In short do all the scut work the agent used to have to do.

In the mean time, you (the Super Agent) have moved on to the next client who is ready to buy, having done all their homework.

This Super Agent (you) can handle many more transactions than in the old days doing it the old way.

Bill Roberts

BTW Don't be surprised if this comment turns into a full-blown post. For that I thank you.

Hi Bill. Well, I didn't abandon you, I needed to visit a builder and go over a floor plan.

Before I became an employing broker, I sold 25-40 homes a year, as a buyers agent. My secret to having the time to sell and handle the transactions meainging contract, inspections, schedule title and settlement was that I didn't list. So, no open houses. Door knockings, never did them. My business has always come from magazines & direct mail and then since 1995, the Internet.

In the years when I was an employing broker, I used a proprietary transaction management system that was programmed for me. It permitted me to track the agents' transaction from contract to disbursement. The agents did everything else from home search to settlement. I generated all of the business and gave the buyer referrals to my agents.

Since those transactions were in Maryland, there was little that was turned over to any entity except the title work which, once the agent delivered or faxed a contract to the title company, that was automatic. Agents do the inspections and all scheduling because things have to be cordinated between buyer/seller and two agents.

We don't rely on buyers to do the home search because we know the market better than the average buyer. Unless a buyer is moving in to a neighborhood they really know, their searches usually do little more than waste a day, then the agent figures out what the buyer is looking for and takes over the search. The agent also makes sure the buyer is qualified for their price range and soon gets the lender letter so they're ready to buy when the house is found.

It works very smoothly, primarily because it's very hands on. The agent can answer a buyer's question at any time because they supervise every facet of the transaction. Unless there is a title problem, the agent handles everything because they are involved in everything.

That's what a "Super Agent" does and that is what I would love to see more. More agent transaction management and more contracts closing.

Agents have often given up responsibility for qualifying, contract presentation, home inspections, settlement, etc. Super Agents do their job and do it well and generate more referral business because the buyer or seller will say to friends and relatives, "Call Lenn, she'll help. She takes care of EVERYTHING". Lenn is a Super Agent.

Lenn, Thank you for coming back. I appreciate that you are a Super Agent.

Bill Roberts

Lenn,

Super agents don't make more money by selling more units...they've made more money because of rising sale prices and commissions and having more contacts!!! JMHO, Thanks, Fran

FEB

2008

Fran. Sorry, I can't agree with your comment.

Rising saleprices caused more competition for good homes. The Super Agents still got more of them to settlement. It was hard even getting contracts presented in 2004-2005. My agents and I got ours presented and accepted because we know contract, addenda and work hard on presenting our offers correctly.

Commissions didn't go up. They went down.

Super agents make more money than agents who neglect duties because we get them to settlement. There's no money in showing homes. There's no money in writing contracts. There are about 10 obstacles to settlement between finding a home to buy and closing on the contract. Super agents know how to avoid the pitfalls.

You're not giving any credit for experience and hard working agents. The thought that we make more money because prices went up doesn't wash because prices went up for the lazy agents too. Making more money means more than the average agent.

Where do you think the super agents get the contacts, from the "contact tree in the back yard"?

Super agents know their business and "speak real estate" to prospects. We don't take anything for granted and we focus our practice. We're not all over the board chasing a $$$. We know ourselves, our business, our market, our target consumer.

We're not an accident.

Lenn,

I told you it was my humble opinion. I don't deny a hierarchy of agents where some are more productive than others...some work harder than others...that's human nature...but In my opinion what makes an agent a 'Super Agent' is the degree of service he/she provides to their clients...not how much money they earned!!! Again, JMHO Thanks, Fran

Fran. I appreciate your opinions. However, I'm very much an advocate of agents learning their business and setting themselves apart from the average agent.

Our Super Agents don't make money just because prices when up. Any fool can fall into a sale from time to time. Relatives and friends keep those agents in business.

However, agents who take our business seriously work hard to set ourselves apart. We make more money in any market, not just when prices are high.

Lenn,

I agree!!! 'Super Agents'...I don't care for the term...every agent should strive to be a 'super agent' :) Thanks, Fran

This blog does not allow anonymous comments