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Perception = Reality: Real Estate Agents Suck

"...innovation comes from people who do things a little differently. Anyone who forgets that and clings to narrow minded ideologies will take their rightful place in a forgotten history." (2/17/00 Derek M. Powazek, We've Got Blog)

This is SO my new motto. I woke up this morning completely SICK of battling the stereotypes that are laid thick on real estate agents, Realtors®, whatever. I am SICK of the OLD business model and SICK of combating the consistent stereotypes that people say about agents. Honestly? I am also SICK of many agents. It is because of the standard business model that too many agents subscribe to, that I am looked at as a greedy, self-absorbed, in-it-for-myself, polyester, liar. ... that makes too much money.

I, personally, do not believe that I make too much money for the services that I provide. The clients that we help do not believe so either (from my experience). But that is not the point. The point is that the public, at large, believes this and that is what matters.

Perception = Reality

Which brings me to this... If I am so different from how the public stereotypes me, then why do I use the same systems and business models that everyone else does? I mean, sure, I am honest and have integrity and experience. Blah... Blah ... Blah ... But, that is not changing my playing field. People cannot seem to see through the BIG R (Realtor®) prejudice enough to understand the "core differences" between me and most of my competition. Why? Well, too much of what I DO ... is expected.

Something needs to change.

Me.

I will help people buy and sell houses. I will follow the Code of Ethics. I will use the state approved contract forms. I will take my 24 hours of mandatory continuing education a year. That is it. Something needs to change... The internet is already changing the playing field for Realtors®. How am I going to change with it?

I guess I need to really look at what that perception really is and work with that, yes? Yes.

The public believes that there is a commission "norm". I know that commissions are all negotiable, but somehow that notion got put into the heads of the masses. And, remember .... Perception = Reality. What am I going to do differently to set myself apart from this?
The public believes that real estate agents make too much money. As I said before, I do not agree with this personally, but ... Perception = Reality. What am I going to do differently to prove my worth?
The public believes that they could do what I do. Can they? ... Perception = Reality. What am I going to do to make the public understand that I do offer a value to a transaction?
The public thinks that real estate agents are some of the most pretentious, overpaid, conceited asses ever. And in too many cases, I agree, and. ... Perception = Reality. How far removed from the title of "stereotypical real estate agent" can I be to not be affiliated with that perception? (without leaving the business entirely)

So, since Perception = Reality ... I guess standing around being right, all by myself, has become rather archaic. Now, I need to adjust my reality to conform to others' perception. I need to find the perfect formula of EDUCATION and ADJUSTEMNT and GIVING PEOPLE WHAT THEY WANT, instead of clinging tightly to some real estate business model utopia, which really doesn't work anymore. Um, did it ever? Is it the "standard real estate business model" that has given the public the current perception that it holds onto so tightly? Maybe...

You know, I do not really have ANY specific answers to these dilemmas, but I DO have a fiercely ambitious desire to get these answers. I am stubborn enough to get them and apply them, too. I am SO motivated to break all previous real estate business models and jump, head first, into the wild blue yonder of (what some call) Real estate 2.0. ... transparency ... consumer empowerment ... CHANGE. What am I going to to to build Realtor® integrity? What are we (as Realtors®) going to do to change these stereotypes?

Something needs to change. Me.

What about you?

Posted by Mariana Wagner ~ Colorado Springs REALTOR® on 01/31/2007 09:41 AM

Comments (182)

colorado springs real estate, colorado, colorado springs, real estate rants

182 Comments on Perception = Reality: Real Estate Agents Suck

JAN

2007

WoW! You were really going for awhile! I was anxiously anticipating what Bold step you were going to take to push you in a new direction. Then in last paragraph you faded on me. How about realizing that you are already differant than most real estate agents, REALTOR®, whatever! You obviously have a very bold and gregarious personality that already sets you apart from the pack. With that in mind maybe you should ask how you can best use "Who" you are in changing your day to day patterns. Continue using the day in day out, same old, same old ways of doing business but learn to apply them in way that matches your personality!

example1: If you farm an area with postcards or flyers, do so with postcards or flyer that have an appearance (eye catching) that no other realtor has thought of before.

example2. Identify your self or "Brand" yourself. Make stationary buisness cards, logos, websites etc that always identify you. Never change these things.

YOU ARE A REALTOR® not a Realtor@ now how are you going to use this POWER?

I admire your zeal and desire to be the best. It is a daily work in process to become the best Realtor you can be. As you work through the processes you describe, you'll grasp what works best for you . I hope you'll keep us informed and let us know what you're doing. Thanks for sharing.

One tenet of consumer education says, Misconception = Unreality.

We are in the positon of educating the consumer. We will always have to build value vs. fee. Every salesperson in every sales field has the same issue.

Every consumer asks "What do I get for What I pay?"

Mariana, I'm glad you decided to leave this up this time:) You need to break out on your own and become an independent broker. Sounds like you are dealing with too many REALTORS(R) on a daily basis. The advantage of being an independent is that I do what I want, when I want. No corporate c...p no being around negative people. I have complete control to do business the way I choose. It will free you completely to be yourself.

Dye your hair pink, put those glasses back on, buy a convertible and go make your mark in the RE world. People will love you and search you out to do business with you. Oops! Almost forgot don't forget to take Derek with you. You'll definitely need him to keep you anchored.

Danny- Sorry for the fade... But it was exactly how I felt. I felt all rah-rah and then kind of ... now what? And that dilemma was what I needed to get across. I am working on redesigning every facet of what I do. I really appreciate your input, thank you. We are actively working ona logo and tagline, mission statement... Starting almost completely over, image-wise.

Diane- Thank you. I find this exciting and WILL keep you posted.

Mike- I know. You are right. Like I have heard time and time again, Price only matters when value isnt seen. My issue is that too many agents have, in my opinion, abused the commission issue and provided way less than the consumer paid for. That seems to be a hole that (we) I need to consistently dig out of.

Bryant- Thanks. I actually re-did this post a bit ('cause I sounded WAY to mad with the original one...) I really can see where you are going with the "independent" concept, but in actuality, the agents I work with (my office) are better than most that I work with outside of my office. I really DO love my company- and I believe that they are part of the reason I have such a fire under my, um, _ _ _. You know, back in 1993, I shaved my head and dyed my bangs pink... very liberating. I like that idea. There's GOT to be something. Derek and I have (over the past few days) completely re-vamped our Re-List program (expired) and are working on just doing everything different.

THIS is why I posted this- feedback and input from others out there. I realy appreciate it. Thank you!

Mariana,

It is good to step outside ourselves from time to time to find an honest assessment and a reality check. Unfortunately when we step back in, the forces of day to day pull us back into the same old same old.

Break your plan down then complete a goal at a time and the next time you step outside to assess, you will see the person you aspire to be today coming into her own.It sounds like the person you aspire to be is formed already you just have to figure out how to show her off more.

Mike- Very insightful! You are correct. A little background... We built a team a few years ago, and due to circumstances that are better left for another post, we gave the team over to to an unrelated partner and started from scratch about 6 months ago. We are in a perfect position to reposition ourselves, and I want to do it right. I wnat ot do it different and re-assessing on a regualr basis is exactly what I need to do. Thank you very much for you encouragement! :o)

Sounds like your on the right track. Check out my friends site. www.therealestatetwins.com They are outside the box and great agents.

David- I will, thank you.

Here's a novel idea. Do what you say you will, when you say you will. Treat others as you wish to be treated as a client. It works....

This is quite a post.. you have hit the nail on the head about public perception Vs reality..Constantly justifying our job and what we get paid is difficult.. the people we work with know our value and appreciate us for all the things we do... that's why we have repeat business from our clients. If we were one shot wonders no one would ever call us again... but they do because we are good at what we do.

One of the things that concerns me a lot at this time is that there seems to be a huge campaign going on against us in all forms of the media.I have a few theories about that and will leave them for the moment. Fees do change and are dictated by the consumer... in my area fees have declined over the years as prices go up and while they are more in terms of dollars so are all my expenses. Why is it while gas has increased from $1.25 a gallon to $2.75, my health insurance has quadrupled and the price of bread has shot up I'm still supposed to be making the same amount of money I did 15 years ago.

I need to think more on what you have written.. it is a great post! Thank you..

Marianna - a great post. You raise some rally good points, and we are ALL aware of hoe the public perception is, in many cases, negative, and that IS the reality.

I was going to make the same comment as Danny but then you commented yourself. I suspect this is a feeling many have - knowing we need to do something different, not knowing for sure that that might be, and possibly being fearful of making those changes. The comments this is generating are thoughtful. This sort of self-assessment, I think, is of value for all of us periodically, provided that it leads to appropriate change - whatever that means to the individual.

Jeff

Boy, this was an interesting blog! I too, am sick of the way the public (many) look at us. Like we're just sitting behind a fancy desk waiting for the big-fat commission check to roll in. HELLO! "Most" of us are just lic'd taxi drivers. And when the nice folks get out of our CAB, they don't bother dropping any change into the meter!

Why do you suppose the public's perception is negative?

Mariana~ This is a good post, and very thought provoking as well. I will be interested to see how that perception changes. Personally, from a consumer standpoint, I just think that public perception has it that homes have sold themselves during the market of the past 6 years or so. We all know of a lazy agent or two that made a big commission for doing very little...and the public thinks of that cash as leaving their hands into "1 week close" for an agent. Who wouldn't be resentlful? I think the tide will change with new lessons that consumers will be learning in a new market. Stick to your ethics and service and I think perception/reality will change.

Mariana-One of the best posts I have seen yet, a lot of things that happen in our own industry is our fault(I mean as a whole profession). We cannot control how other's see our profession but we can STRESS THE VALUE in our services, Talk the talk and walk the walk!!!!! I don't concern myself with the competion, I compete with myself, my personnal best. Thanks so much and I hope other's read and follow!!!!!

I love to hear other's passionate about this business and what they bring to it. The difference between a good agent and a great one is the passion they bring to the business. With your passion you'll probably keep revamping your re-list program too. Go get 'em girl.

Mariana...I'm glad you're leaving this one up.

This is a battle we've been fighting for a long-long time. As the market changes agents like you will make a difference...keep at it and keep thinking outside the box. Your passion is definitely in your favor.

Mariana - I'm the new kid on the block over here at The Harper Team, but I've been around the block. Your point is well taken, but it can go much deeper. We are all prisoners of our perceptions and belief systems. Taking a good look at ourselves is a difficult process. On to lighter things -

I was surprised to discover how much money the local Realtor marketing associations pump back into the communties. I was also surprised to learn that real estate agents were considered just one level up from lawyers on the social scale.

One thing I am doing - I took on some of the responsibilities for PR to help educate the community of what real estate agents do for the community. A nice side effect is that it is opening a lot of doors for me and helping me to meet members of the busniness community, the local gorvernements and the media.

Thank you for helping to educate us on blogs as well.

Mariana _ I love this Post !! I am so with you !! Other than the internet, the world of Real Estate seems to be the same as it was 50 years ago... It needs to be changed... I am tired of people feeling that we are over paid for what we do.... I am not going to work for free. I have two college degrees and both a Loan Officer License and a Real Estate License and working on both Broker licenses.... I have had Buyers ask me for a kickback on my commission... I've had Buyers go to the Sellers to make a deal after working with them for months....I've prepared for and have presented Listing presentations, prepared docs taken photos, blah blah blah... only to find out they just wanted a CMA. When I was originating Loans I had so many people just wanting their credit pulled and FICO scores for free...

Unfortunately it's like fighting a losing battle...Either everyone (all Real Estate Agents) needs to agree or it will be hard to change the system...

I'd like to spice it all up...The way Real Estate is today it's like "Grandma/Grandpa Style".... Even the signs that are on the front lawns are sooo uncreative and boring...

Mariana,

My best friend is married to a Dr and I would never be so presumptuous to even imply that he makes too much money. But, when I bought my new car she actually said, "If my real estate agent drove up in a new car, I would know I am paying too much." OHMIGOONESS!!! And she is truly a great friend. It just goes to show that it is a perception that is so ingrained in people that it is okay to verbalize it.

We have to change these perceptions. So we educate our clients! It is really the best thing we can do.

January 19, 2007 | Posted By Douglas Heddings | 4 Comments |

Real Estate Industry Has A Self Esteem Problem?

Brian Carter writes for the New York Press that the real estate industry not only has a bad reputation with the public, but some of the reputation may come from agents' self loathing.

I recently spoke with the manager of a very well known and respected real estate company. He was speaking specifically about agents when he said the business had a self-esteem problem. Apparently, real estate agents aren't very proud of what they do for a living. It was refreshing to hear, as overcompensation generally comes with the territory. Rarely does anyone inside the industry make such obvious or honest remarks. Most will tell you it's a difficult but rewarding job-the safe answer. Some admit to loving it. I try to avoid these types. While I imagine others aren't happy about it at all. But if agents overall are normally a little defensive, it's for good reason. Last summer a survey conducted by Harris Interactive measured the public's perception of the most prestigious occupations. Real estate agents ranked dead last.

Now this is one of the very reasons that True Gotham was born! To increase credibility and agent reputations in the industry. The single most distasteful part of the industry in my opinion is the lack of respect that so many have for it. In the not too distant past, I would often avoid conversations at cocktail parties that involved discussions about occupation and when all else failed I would often spin the fact that I'm a real estate agent to make it seem much more important than it is.

By the way, I do believe that assisting someone with often the largest asset in their portfolio is somewhat important. Here I go again, trying to convince myself that what I do is so incredibly important.

I will say that the reaction of some when they learned of my profession was anything but warm and frequently wreaked of disdain. That happens a lot less frequently as I no longer make apologies for what I do. Some days, I love what I do. Other days I hate it. And mostly I'm satisfied with how I spend my days assisting buyers and sellers with transactions that often bring quite a few headaches for all parties involved.

Brian says he isn't exactly sure where all of the hatred comes from and I would like to take an educated guess. First of all, the barrier to entry in the industry is exceedingly low, making it possible for anyone to get a license to sell real estate. Public perception of real estate agent income, particularly over the past 10 years, is that everyone is getting rich who sells real estate... not true as this business week online post points out. These two factors are definitely breeding grounds for resentment but as my regular readers know, I don't for one second believe that public distrust of the real estate industry comes from nowhere. That low barrier to entry and the fact that most never longed to sell real estate but rather chose it as a second or third career or even "fell into it" due to a lay off or failed first career, has resulted in a sleaze factor that continues to permeate the industry. The very structure of the industry (broker/agent relationships, commission structure, and in New York City, the lack of an MLS) results in unethical behavior by some who can't pay their mortgage, rent, car payment, or even dinner if they don't "close a transaction." Desperation in any industry makes people do crazy things that are often unethical and downright dishonest.

The good news... the industry seems to be changing for the better, albeit very slowly in New York City. Property information is becoming more accessible to the public via the creation of sophisticated, web based companies like Zillow and Trulia. The real estate boom of the past decade has brought some incredibly honest and intelligent people to the industry who are raising the bar for everyone. And perhaps most importantly, the more savvy consumer seems to have totally lost their patience for the "used car salesman" type agent who has everything but his/her customer's best interest in mind.

http://www.truegotham.com/archives/a-brokers-job-real-estate-industry-has-a-self-esteem-problem.html

My honest opinion is who cares! There will be those that appreciate what we do and not really know or care about the money I make. As long as I have done the job well for them is all they reall care about. There will always be those who will think it's an easy job and that all we do is go collect the check. I try not to waste my thoughts and time on negative thinking.What good would it do anyway, knowing I can't change those that think that way. When all is said and done, if I can put my head down on the pillow at night and know I did the best I could do for my clients is what really matters to me.

Don't waste your time worry ~~ it isn't worth it, really!

Patricia Aulson/REALTOR/Seacoast NH/ME & MA URL: www.patricia4realestate.com

Michael- Yes. If only MORE people would walk the walk and talk the talk...

Kaye- You are right. The media- in all of it's glory does a fine job at promoting the messed up image of REALTORS that the public- in all ITS glory eats up like home made cherry pie. Maybe I need to invent my OWN national media...

Jeff- Yep! Self assessment is crucial to any kind of growth and betterment.

Kat- There are SO many facets to our "jobs" - what about counselor and babysitter? What about courrier and mover? I could go on and on.

Rob- I believe that the perception is negative because there are too many agents who FIT the stereotype and then on top of it the media promotes it.

Laura- That is an excellent point. But there are serious value positions that agents can offer in ANY market. Maybe the value is more in the buy-side than the sell side during those times?

Midori- My theory is, I do not find myself alike enough to many other agents to really consider them as competition... Compete against yourself, is the BEST competition. Yes.

Lisa- Passion. It is exactly what is needed to overcome ANYTHING, right?

Monika- :o) Thanks for re-visiting! Box? I dont see no stinkin' box!

Harper Team- KW is one of the few brokerages that promote the "out of the box" mentality. You sound like you have a lot of great things going on. Yay!

Lauren- Spice it up!! I do not think it is a losing battle, but a hard battle, yet one that NEEDS to be faught. There will ALWAYS be downfalls to any profession, but things need to balance out on the positive side for us. THe only way that it is goig to happen is with BOLD moves by BOLD agents. Right?

I must be from Mars :^)...... I haven't seen much in the media 'trashing' Realtors. Is this truly happening, or is this the PERCEPTION from the realtors? Seriously.

Virgina- EXACTLY... "perception that is so ingrained in people that it is okay to verbalize it." THings have GOT to change....

Rob- Thank you for that article. There is A LOT said that makes such great sense, and is so true. Especially the barrier to entry, although some states (like Colorado) are a lot harder than others. Further, the last paragraph is very important, as times ARE changing, and those who change with it (move from the sleazy desperate image to the competent professional one...) will give the industry a whole new face.

Patricia- I see your point and also sleep well at night, knowing I did what is best for my clients. But, I guess in all of this, I feel a tie to the RE community and a need to be a part of making it a better place to be. I almost feel that it my obligation to myself and the public. I am not worried, just a bit mad... and motivated.

Hi, Mariana. I felt a need to respond and realized I had a rant of my own, so I made a blog entry of my thoughts. I think you're dead on right and I wanted to share -- you can read it here: http://activerain.com/blogsview/40267/How-I-Defend-My I work on change one client at a time. Thanks for your challenge!

I Love It!! This is what I have been dealing with this week! Not only do we have a bad rep in the public's eyes but agents further this by their behavior (I just did a post on this http://activerain.com/blogsview/39938/-You-Are-The)

Rob- First, I believe that RE agents are largely responsible for the image we all have, but the media definately has a pawn in this game. Have you ever seen a movie where a real estate agent was portayed as anything but a shallow anxious phony, or as a sleazy moral-less idiot? American Beauty, Jumangi, Haunted Mansion, Beetlejuice ... Oh, and

Here is a cell phone commercial that is the EPITOMY of media representation...

(I will address any additional comments this evening. Thank you.)

Sarah- Glad to know this sparked something! I will check out your post...

Jacqueline- I will read yours also..

Mariana - wow, so much to think about!! You're right, if we want change, we must be part of the change. I think in order for the industry to make changes, the industry needs to recognize that need and go from there. So, who is 'the industry'? It takes a 'village' to make change, but then all would be alike again. Each of us individually can make changes within ourselves that can affect the industry as a whole, and each of us can make changes that can 'one client at a time' change those misperceptions. But we have to WANT to make those changes.......therein lies the problem for many.

You are driven and passionate and you will do it! Steer clear of boxes...........

Ann

Ann- You are right on so many points... "make changes within ourselves that can affect the industry as a whole" AND "we have to WANT to make those changes" Well, I definately WANT to... SO I guess Im on the right path. Thank you for your input!

Mariana,

When I told my mom I wanted to go to real estate school, she said, "But aren't real estate agents a bit, you know, SMARMY?"

My own mother!

Now that I am one of course she thinks they're great.

Smarmy... My Mom said a very similar thing! She said, "Oh, no, Honey, You dont want to be one of THOSE people. You are too good of a person." (Um, we wont go into what I did as a teenager...) I have had to do some educating of my own family before I ever got to work w/ my first client... !

Mariana- I think you are right on about perception=reality. This is even the case with how the housing market or economy is doing, people say things and before you know it....it's perceived as a reality. I hate that! This is exactly what has occured with Realtors. I had a deal a while ago where the buyer I was working with requested I give him some of my commission; do people think we just make tons of money and have no bills to pay?! We just had a speaker come to our brokerage, yesterday as a matter of fact and she talked about this very same thing as you: why are real estate agents so negatively perceived and how can we change that stereotype? Maybe we can't change the public's view of Realtors as a whole but the clients you work with will have a different perception that will hopefully start to get the word out. We have to change the way we do things if we want to keep the business coming! Good Luck out there.

So parents think it's a slimy biz. Did most of you have parents that owned a home or did they rent? Did they have a bad experience with THEIR Realtor?

With so many people owning homes...many , many (most I assume) having used a Realtor....... is there more reality than some want to admit?

My PERSONAL theory - I've posted this before - People in general, do not think highly of professions where large sums of money (their money) are involved. THUS - LAWYERS, CAR SALESMAN and REALTORS get skinned by faux accusations of being people just 'rippining you off'. People do not want to part with large sums of money - or 'owe' large sums of money.....and it's easier to put the focus on the intermediate (Lawyer, Car Salesman, Realtor) then just accept that some things cost a lot and professionals get a piece of the pie.

As a consumer, I'll share my two cents worth.

First thing I've noticed on AR is the problem is always "someone else".....other agents, consumers, etc. Ever heard the old saying "If a person calls you a horse, ignore them. If two people call you a horse, find a saddle"?

Now, to be fair, I'm not directing my criticism towards anyone on this blog; author or comments, but it is a fact that a growing portion of your (real estate agents) clients (people like me) have bad experiences. I'm in the market to buy a house and are looking in several markets in a number of states. At first, I overlooked my poor experiences and wrote them off as I picked the wrong person to try and do business with. However, it's become the norm so maybe it's time to look for a saddle.......

So, my experience includes.....listing agents who don't return communication......buyer's agents who don't represent MY best interest.....misrepresentation of material facts......and the list grows.

I agree with the concept of people placing blame on who's closest and convenient and that is simply wrong. I also agree people tend to minimize another profession out of ignorance or misinformation. And lastly, perception does equal reality, but sometimes the perception is EARNED.

Oh, I'll find my house but it will be in spite of real estate agents; not due to working with one.

JMHO

Patricia, Good luck to you, too!

Rob, that is a great theory. I imagine that it is very true. (My Mom (homeowner) spoke from personal experience.)

Stan- Thank you. I agree. Many agents should be out saddle shopping. WE created our own image. Completely. I just do not want to be a part of that image. I, personally got into this business to be different. Why? I earnestly believe that a RE agent can offer a lot to such a major transaction like buying and selling a home. Unfortnately, too many RE agents do not do this. And THAT is what bothers me.
I am sorry that you have not had great experiences with agents. I rarely have good experiences with other agents either. I guess I want to go out and EARN a new external perception. No, I AM going out to earn a new external perception.

Mariana,

I think part of building the new perception is determining that you will work only with those agents, brokers, bankers, etc., who do live up to your expectations. My expectations are brutally high. Other people have told me that I expect too much of myself and of others. I have not wanted to lower that bar. Instead, I have determined to work with others on a Power Team basis where everyone involved brings something invaluable to the table AND everyone ALWAYS brings integrity.

In my non-work life (friends & family) I focus on relationships with positive people and not those with negative attitudes because negative people will affect your attitude about yourself and others.

It's too bad that in business, we most often learn "the hard way" about other's standards of business, but once we've learned the lesson, we should just use it to motivate ourselves to higher standards.

Look at it this way... if there's such a dearth of honorable agents out there, then the market is just waiting for those agents with integrity to come in and take over! And word does spread about honest agents who are dedicated to their clients -- I've seen it time and time again: the referral from homeowner to homeowner -- Who do you know who closes deals and follows through on what they say? And that homeowner's friend hires that agent and gets the results she wants.

Nicole, I love what you said, "the market is just waiting for those agents with integrity to come in and take over!" I am preparing to take it over. Yep! I also agree with surrounding yourself with positive people. It is crucial.

Mariana - Great post. I think you're zeal to break out of the mold should inspire a lot more of us in the real estate business to do the same. Unfortunately, the mold for Realtors, mortgage brokers, and more and mnore title folks is one none of us want to write to mom about. Too many other folks with the same job titles have messed up the mold for the rest of us. Keep us up to date on how the break out goes, and what does and doesn't work for you. Push your qualities of ethics and zeal out into the public eye, you'll be a good example to the customer base of what we can be. Make the competition live up to your example or get out of your way.

BTW - you gonna post one of the pictures of that 1993 hair. Pink bangs, huh?<)

Note to Stan - Every profession has bad "professionals" in it. It doesn't make all of it's members bad. Unlike apples in a barrel people don't have to rot because of the rotters around them. As a mortgage officer I have also seen a lot of people come into our offices who had preconceptions of what we do, what Realtors do, and What appraisers do. (Seems darn few have a clue what title agent do.)

Sorry for your bad experiences, though. Hopefully it was just bad luck in selecting the folks you worked with.

Terry, Thank you. It is a tough job, overcoming super-engrained stereotyped impressions, but it is well worth it!

Terry,

That's why I made note I wasn't speaking about anyone on this blog.....just relaying my personal experiences. I wonder about my "bad luck" as well. However, when you pull into a city and have no referral, you try and judge the agent based on their bio and what you can find out when you interview them. My "luck" must be running pretty bad when it is city after city with the similar lack of performance. Dallas, San Antonio, Austin, Little Rock, Las Cruces......to name a few. Would you not agree the law of averages SHOULD be working to my favor....by now!?

Stan, it is not a law of averages when the majority (IMHO) is not worth their salt. I would apologize on behalf of those agents, but I really do not want to affiliate myself w/ them either. There ARE good ones out there ... somewhere ...

I believe that the state that you do business in matters. Some states are easy-schmeezy to get a license in, leading to a high amount of incompetence, and many states have messed up representation laws, that are never in favor of a buyer. Some states (like COlorado) have super strict license laws and representation laws. No, this does not prohibit idiots from entering the field, but it would prob. make your averages a bit better.

I can completely understand your opinion, based off of your experiences. I have almost left the business because I share it in so many ways... but THAT is what makes me want to stay. I must be that "someone" out there bettering the averages for buyers and sellers like you.

Mariana, Happy Wednesday!

You have done an excellent of communicating your feelings and questions and most likely the same exact question that is on the mind of many other Realtors. I think that what Broker Bryant suggests would be a worthy consideration for you. It's a bi.....ch having to fall prey to the stereotyping that is commonplace. Sounds to me that you are well on your way toward a re-invention of yourself.....best wishes and good luck!

Mariana- I thought teaching a top producer class was a big task! I have past clients that still give me a hard time about being paid too much and I thought that I gave them awesome service and negotiated a great deal on their behalf. I consider myself a very pleasent person to deal with and work hard at what I do. I think peoples perceptions about us will never change until we educate them. 1.) its hard for the public to understand exactly what we do besides open doors and put properties on the MLS 2.) they see the commision check that goes to our brokerage firm and maybe do not realize that we have expenses (commision splits, marketing, taxes, or other dollars we use in our business).Sometimes I want to tell customers that if they think we get paid too much, why aren't they in the business? I admire your ambition.

Ron, I greatly appreciate your well wishing. Thank you!

Dan! Nice to see you in the blogospohere. Thank you and you are right, it is all about educating ... educating people that we are different than the stereotypes and educating people about our VALUE. You should check our Sarah's post... what she wrote and the comments that follow are well worth reading...

http://activerain.com/blogsview/40267/How-I-Defend-My

"If you aren't part of the solution, you're part of the problem." I have no idea who actually said that, but I've heard it for years, and I believe it's true.

We can all take turns bemoaning the fact that consumers don't understand where the fees go that they pay, that there are lousy agents in this business, that we don't do a better job selling our services, that perception is reality, etc., etc. But unless those bemoaning take a stand and actually do something about it, nothing will be done and things will stay the same. So, if one truly wants to change, change starts on the inside and will soon then be reflected on the outside.

In my opinion, all the bashing and bad-mouthing that seems to be taking place is doing none of us any good. Just as in "If real estate is your profession, politics is your business", it should be "If real estate is your profession, change should be/is part of your business" in cleaning up what seems to be perceived as something that needs changing.

JMHO.........Ann

You know Rob has a great point! REALTOR bashing REALTOR...seems to be running rampart on sites like AR...I think we create a lot of it ourselves. Perception is reality...look at what Stan said...he is waiting for the law of averages to turn in his favor. It sounds like he is expecting it not to happen...based on his experience and now look at us here...can you blame him for thinking it won't? I mean look at what we say about ourselves...our industry…

Stan…There are a lot of good ethical knowledge agents out there…many-many agents worthy of your business. I know Mariana said that she believes the majority is not worth their salt but I disagree…sorry Mariana :) there are a great many good agents and I hope you find one.

OMG..Ann you snuck that in...I agree with you.... "If real estate is your profession, change should be/is part of your business" in cleaning up what seems to be perceived as something that needs changing"...so very true.

Monika - I agree with you - there are MANY great agents out there. It's too bad Stan hasn't found any as yet, but they are out there and they're more than happy to do a fabulous job for you.

We all know that there are a number of not-so-great agents out there. There isn't a business around that doesn't have its share of less-than-desireable types. Please don't paint us all with the same brush. We all know there are great agents amongst us everywhere. I'm one, I know Monika is one, I know Mariana is one, and I'd bet a majority of the agents here in AR would fall into that category.

Ann

Monika- You have been in the business longer than I have been and thank goodness you have seen better than I have. You ARE right, there are a lot of good, ethical agents out there. But my dilemma is that there are too many that are not. The balance is way out of whack. If it wasnt so out of whack, our reputaion, as a whole would be better, IMHO. I really am not trying to Realtor bash, as much as I am trying to understand that there needs to be a change in our industry- especially with the internet weaving its way throughout all of our lives. I guess I see Stans frustration, as I have also had those same frustrations. What am I going to do about it? How am I going to make our reputation better? Perception = Reality. So, even if more agents than not were excellent, the negative reputation preceeds us and I feel the obligation to change that, in a big way. I really respect your input, Monika, Thank you.

Ann, I really, really want to be part of the solution - thus the reason for this post. Again, I was not trying to Realtor-bash, but make a point. There ARE many great agents out there... but not enough, IMHO. By nature I am not a whiner, so when I make a complaint, it is followed by action. If enough agents DO make the needed changes "within" then our reputation as a whole will change. Thank you, Ann. You made some really great points.

FYI- I HAVE noticed that the ratios are drastically flipped when dealing with AR agents. There is a much higher standard of professionalism (in most cases) here on Active Rain. I wish I could deal more with YOU guys day- to- day...

Mariana...Thanks so much. I want to let you know that I do not think you personally are REALTOR bashing...I know you were venting your frustration. You title might be a little bit inflammatory but it got attention.

There have been many REALTOR Bashing posts on AR...way to many. Some are just outright attacks...I know I've seen them.

We do need a change...small steps turn to large ones...nothing happens over night just keep trying and remember you're fighting a battle for all the good agents out there... many who don't even know places like this exist. You're fighting for all us Mariana!

I came into the real estate profession from the legal/mediation community. I think one of the things Realtors need to look at is their own inability to accept change. Recently, we held a leadership workshop. We were asked to think outside the box -- Realtors had a really difficult time with that task. The public is very confused -- for instance, it makes sense to the consumer to simply hire and pay for the services you want from the agent. The entire compensation structure needs to be looked into. It makes no sense to the consumer. If you hire someone to do something for you, you negotiate the scope of services and the cost -- Now that we have buyer agency and seller agency - the current system makes no sense to the consumer. The "procuring cause" doctrine makes no sense to the consumer. The consumer is totally ignorant of the fact they may search on the internet, contact an agent and go see a property -- then, when the want to have someone represent their interests, it may be very difficult without having to incure additional costs. I think we have to look at our industry from the consumer's point of view and brainstorm some new realities. Maybe it is the Realtor community not seeing or exploring the new reality or being willing to explore what the consumer wants. Buyers should be able to select and pay for services they view as valuable and seller shoudl be able to do the same. From the publics point of view, the procuring cause doctrine and the ways fees are split make not sense.

I'd love to get paid for what I do when I do it....thats one of the changes I'd advocate for.

Mediation...do you also do it within the REALTOR community? I mediate on a State level...not easy lately!

I tried to read all posts but decided to skip to the end and give my two cents. The fact of the matter is we are dealing with the public and lets face it, the public, as a whole, is naive and easily swayed. I saw a post about the car you drive, I drive a Lexus. Not a new one by any means, a 1999. But Perception=Reality. I dress nicely and have my shirts tailored to fit me and not the "beer bellied man" all mens shirts are designed to fit. It costs me a couple of extra bucks to have a professional appearance but then Perception=Reality. Having some of these things also allows one to carry their head high and be proud of what they do and the service one provides. Someone said "smarmy". I challenge that those who say that will flock to the well dressed, confidently commanding respect real estate agent who is not leaving oil in the driveway when they leave. I try to show prospective listing clients where I am spending my/their dollars in advertising therefore I command a full price commission. I get it, not because of the car or the clothes, they just get me in the door. I get it because Perception=Reality. I am not saying I agree with it, I am saying we made a decision to have a business of our own. We've taken this path and not spent the time and effort say, an attorney may have made. (Imagine how they feel.) We did it because we can serve the public in a capacity that more often than not, the public doesn't understand. To survive in this realm we must understand and embrace, Perception=Reality. I wish you the best of luck in your search for the true meaning as to why you abuse yourself in this way without getting some sort of satisfaction out of it. There are many other career choices that are not as difficult and don't involve the direct contact with the public. I'm afraid though, what you would find is your Perception=Reality.

Joan... I'm going to disagree with you and agree with you..

Disagree: Consumers want easy..Most do not want to try and figure out which agent charges less for showings but more for paperwork.. and equal fees for putting up signs and lockboxes..which is why the % fee has stayed. There is a push to reduce what we do to a Chinese lunch menu.. one from column A one from B .. Do I get more money because I graduated from UCLA but you went to Long Beach State? Second... there is competition... where this notion came from that real estate is not competitive is junk..Every other person in CA has a license.. I work in one of the highest priced areas in CA and I can tell you there haven't been 6% commissions around for 15+ years. There are no standard fees in my area.. fees are negotiated every day and they vary widely... Most of the agents I know wind up kicking in money on transactions.. and we provide great service while doing it.. I've bought so many stoves, washers/dryers and refrigerators that I often think that I should just open an appliance store, I've paid closing costs and lenders fees.

Agree: Procurring cause needs to go..If I have done my job my client is not going to have someone else write the contract. Most of the time buyers just don't get it... no matter how many times you tell them and how many cards you give them...they reallydon't think they are doing anything wrong by looking at a house..And they aren't... I've heard of agents who think anyone who walks in an open house is their client.Garbage.. get real.....On the other hand there are some who are working with a discount firm that encourages them to call the listing agent or get a tour with a local broker and Yes it pisses me off when I have shown a buyer one of my listings or property and suddenly the cousin shows up to write the contract... but that's my fault for not asking the right questions..

Besides , in a perfect world, the real estate goddess makes their transaction hell...

Mariana - when Rick and I decided to go into real estate, we made a pack to not fit into the "MOLD" - we talked about what bothered us about real estate agents that we had dealt with, we made a list of what not to do, we conciously made a promise to be ourselves and not to change. We were slapped in the face in the first couple of months in business by people who totally changed personalities once we became Realtors, they treated us differently, like they had lost respect for us. We did not let that bring us down and keep proving people wrong on a daily basis. For those around us that conduct themselves unethically, so be it.....we do not, we sleep at night and prove our stance. We can all make a difference, I think Active Rain has managed to compile a list of great real estate professionals that make our industry look great. Love your tone here.....don't change Mariana.....be yourself!

Mariana- I didn't get a chance to read all comments so I hope I don't repeat what someone else said.

You choose your own reality. If you think the public perception is negative, guess what? You'll choose to see and attract those negative people. Focus on what you want to become and pay no attention to all the rest.

How many sales do you need in a year? Do you think there are at least 50 people in your city who are desparately seeking an agent with the skills and personality that you possess? Who cares if there are a million people out there who think agents are jerks. Make it your mission to find those other 50 people who really need you. Otherwise they might end up working with an agent who actually is a jerk.

I went through a similar experience 5 years ago. What I found helpful was searching for property in another city. I put myself in the shoes of a buyer and monitored what attracted me the most. What made me stick on a website? What made me feel comfortable about an agent? What it boiled down to for me was someone who seemed to know his stuff and was willing to tell it like it is. I wanted honesty, experience, and helpfulness. I made a commitment to be the best I could with these three things no matter how others in the business were doing things. My biggest compliment is when a client tells me I'm not like most agents. I thank them and also thank all the other agents who make that distinction possible.

Be the agent of your dreams and you'll attract the people who enjoy working with you and you'll feel great in the process.

WooHoo!!! You go girl...and bring that tude with you! I'll be rooting for! Find you own comfort zone, and most importantly, make yourself happy! Tell people to get lost if you can't stand to be around them and have a passion for what you to do. Be choosey...choose really nice people. And don't listen to everything you hear. If they ain't saying it about you...don't worry about it.

People who went to school for many years just think no one else should make as much as they do. Especially someone without the same time and money invested. That's their problem...not yours.

I am going to address each of you in reverse order...

Tim, Thank you for your input. You are completely right. Here is my problem... I come from a background of highly stressful, yet highly appreciated and recognized work. Someone says, "WHat do You do?" I tell them. The end. I move into real estate and someone asks me what I do and I tell them there is an obvious disrespect, not for ME, but for the profession that I am in. THis disrespect comes from a stereotype that is burned into the public's mind. Instead of flopping back into my old career, I decided that I needed to STAY in real estate and try to fix the reputation... one misconception at a time. Kind of like the girl who always dates a jerk because she thinks she can "change" him... I am not saying that I do not want to be here, just that I am seeing more truth to the stereotypical truths than I thought there really would be. I am a believer of change and consumer empowerment. I get frustrated when I keep running into agents who fight to remain stagnant... fight to keep this "bad" reputation that agents have. Honestly, I DO surround myself with positive people and that is what keeps me motivated to do what I do and do it well.

Ines- Same here. I have never followed the crowd. I am on a mission to change the reputation of agents. Woah... Better start working out. I have a BIG job ahead of me.

Kaye- Sometimes it is hard to break through and truly educate clients- especially if they do not care that they are misinformed.

Andy- My frustration lies more with agents who perpetuate the sterotype than the consumers (by far!) who believe it. I love what I do. I DID make the decision to do what I do. It is all by choice. My desire to be different is also a choice. My frustration with certain elements has reached the tipping point and has made me CHOOSE to figure out a way to do things differently. And, looking nice IS a part of the business.

Joan- When you start menu-iteming things the fiduciary duty of an agent goes out the window. I believe in commission %'s not flat fees. But that is MY decision and my business plan. I believe that the consumer needs to be better educated, and in ways that have never been tried before.

Monika- Yes. Baby steps. If enough agents start baby stepping in the right direction, things WILL change. But MAN! It is gonna be a long hike!

Ardell- You make me smile! I appreciate what you said. I have never been called docile and complacent... I wonder why?

The 80+% of realtors that leave the business every year...they certainly don't make too much!

Kaushik- Ha! No kidding!

You are in the right place to adapt to our changing enviornment

Curt Swearengin:

www.icouldbeyours.com

I think you're right. We all have to change. Even those that created the perception of the industry as it is.

Ken

FEB

2007

Curt, the environment IS changing, but changing to where I beleive that consumers will NEED competent Real Esate representation.

Ken- Change is necessary - and long overdue in our industry.

Mariana...the winds of change start with each of us doing what we feel/know is the right thing to do! And YOU are feeling the change in pressure and are adapting/initiating changes to anticipate where you need to go. I think your questions and thinking are right on track. I know that I am restless with what I see/read about....and want to make a difference...I am with you!

Marianna,

Thanks for the post. I agree with Bryant, in that you have to concentrate on you and how you conduct your business. Word will spread and people will seek you out, based upon your reputation. In this way you will be a catalyst for change, not only for yourself, but for the industry.

Mariana,.. so tell us how you REALLY feel? :) This is a great post that screams personality!! I love your fire. I'm not going to comment further as I've read the others and I dont have anything else to add. Congrats on the feature Mariana! :)

I hope Stan finds the real deal and benefits from their knowledge.

From your mouth from my brain. I've struggled with the same issues for years now. I constantly feel i am explaining myself away from the stereotype of what i HATE in my industry. The cheesy, back stabbing, lying, cheating, sell their mother for a dollar agent. And we all know there are a ton in the industry.

I find myself starting conversations with people i've just met telling them how much I am hate saying i am in sales.... just because of the perception.....

So lets get onto some resolution.

I am different than most in my area, this i know for sure. I am honest, fair and CARE about the people involved. I do for others in ways that most would never even consider let alone give back constantly and i know my competition frowns on half of what i do and try and convince me otherwise. But i've finally figured out in the most recent years its all jealously of my success and thinking out of the box that has made me who and what i am... One of the top agents in my state with continues referrals and an income to match. I work hard and play even harder ... none of which i will make excuses for.

And I will continue to do so.... and continue to be successful and make my clients happy!!!

<sigh> Okay enough ranting... I think PMS is vastly approaching.

Have a great day!!!!!

Deborah- Thank you, I believe that I am on the right track...
William- We DO make "raving fans" out of our clients in almost every situation, but this industry DOES have a tarnished reputation, and it bothers me. I hope I can be a catalyst.
Nick! Fire! Yes! I beleive that if Stan really wants to find a good agent, he will. :o)
Desiree ... You Rock! Keep it going!! :o)

Reality - What a concept!

You are right on the money with the perception= reality. Yes there are too many average and below average agents out there. But, doing what you are doing here- that alone- sets you apart. We all have things we need to do, and you already realize the many things that do set you apart. Life is a journey and you will always discover new things that will set you apart

Adam and Sharon- Thank you! I believe that this internet- information age will really put the RE industry in a whirlwind. The so-so agents will wind up finding a new line of work and the really good agents, the ones that embrace CHANGE, will be more successful (and I do not nec. mean $$) than ever before.

Mariana - I beleive that if Stan really wants to find a good agent, he will.

My...my....my...quite an attitude you have there. I'll not stoop to your level with a comeback but your condesending attitude speaks volumes to your professionalism, or lack thereof.

Regards

Stan, I did not see my comment as an attitude, nor as unprofessional. That was not my intent. I believe that if anyone really wants to find anything they will. I do not understand how that was offensive, But, as I have alraeady said, again...

Perception = Reality, so you are right and I apologize.

Mariana,

In my remarks I went out of my way to make sure my comments would not be miscontrued towards anyone on this blog, but to honestly share my experiences. Your remark placed "wants" in italics for emphasis......therefor drawing deliberate attention as a question of my sincere desire. I might be opininated, but I'm not an idiot.

I bid you adieu

Stan

FEB

2007

Stan-

After going over it a few times in my mind, I completely understand how you read it. Of course you are not an idiot. Nor do I question your sincerity.
I am still working on effectively making the points that I want to make (without the benefit of hearing the true influx of my voice) and I obviously did not make my point the way I intended to. That IS my fault, and I can only hope that I can better express myself in the future. This has been an unintentional yet valuable lesson in on-line communication for me, so I thank you for bringing it to my attention. And again, Stan, I apologize. Enjoy your weekend.

Wow...it took me forever to get through all the posts. I made it though. I am a survivor. I was the opposite of Stan. Before I became a real estate agent, all the agents I had worked with were great. But that was about 6+ years ago. I have found that since I have become a real estate agent, some agents are not all that great. But it is just like everything else in life, there are good and bad people. Location, profession, gender, etc....they all have good and bad. It seems as though the bad is outweighing the good everywhere. However, just because I have had numerous bad experience in one place or another doesn't mean I think everyone is bad.

Christy, Thank you for your input and for sharing your experience. I am a believer in balance and cycles. Sometimes it takes more "bad" than "good" for things to get to the point where they have to change, and balance, or correct, themselves.

I really don't believe that the bad out weighs the good or that there are more bad agents than good ones...but more like the fact that bad news travels fast...while good new is boring. Bad news...bad behavior...gossip...everyone hears about it and talks about it...that perception then becomes a reality for many people. This is not directed at anyone so please don't take offense but I do believe we are our own worst enemy at times.

Monika- Honestly, you are probably right. Bad news DOES travel faster than good news.

But, the fact that the perception is mostly negative is what I have the biggest problem with. It really does not matter WHAT the reality is, unless the reality takes proactive steps to change the perception. I do not see that really happening, for the most part. And if someone is not part of the solution, they are part of the problem.

Mariana...Your right about the perception...I hate that as well!!!! My effort is to try and change that perception as much as I can...my baby steps to the effort is to promote the good and that good Agents do exist...just little baby steps..but thats part of my effort to being part of the solution...just a small part of it. Another part is that I really hope Stan finds a good agent and I wish I could help him with that ...not to do a referral and make money but so that he has a chance at seeing the good and benefiting from it. Another step at perception busting...every small step is an important step. Call me an idiot... but I hurt every time I hear of bad agents and of people being used and treated crappy by fellow REALTORS. I want that perception to change and never be a reality for anyone.

Monika- I am right there with you. I do what I can to change the perception. I just think that I should be doing MORE and that is what I plan on doing... MORE. I DO get very mad and sad, even, when I see agents acting selfish.

Good job Monika and Mariana - I think you're both going in the same direction and working for the same result. Like Monika, I don't believe, and never will, that there are more bad agents than good. As she said, unfortunately bad news makes news and that gets spread around and talked about and, pretty soon, that's all you're hearing. But all that "news" could be traced back to just a few. It's the boring GOOD news that rarely gets talked about, not in news fashion anyway. It doesn't make for good fodder for gossip or news.

I've been in the business for over 25 years, and I've seen far more good than bad. Sure, we need to change, and change we will, maybe even kicking and screaming all the way, but we will change. It takes time, and at times it seems like no change is taking place, or even like things are going backwards, but change is occurring, ever so slowly at times.

Baby steps and patience and each of us doing our part..........

AnnCummings.com

Thank you, Ann. It DOES take time, and Im not too patient, but I will keep moving forward and make all the changes I can.

FEB

2007

Wow. A lot of passion here. A good thing, overall. A thought-provoking post Mariana, you really stirred the pot.

We must all start with ourselves, especially as in a business where we operate as independant contractors we often must count on ourselves for motivation, education (above and beyond those required hours), and the standards we wish to uphold. You're kinda preaching to the choir here, though. The people who really care about excelling will always go the extra mile. And the rest will usually be left behind - in any business or life endeavor.

Beth- I like your "preaching to the choir" remark. It really makes sense. The ones who WANT to change, already are. Thank you.

FEB

2007

Ann, do you have a post on how you make that fancy name thingee. I love it!

Ardell - Nick the Appraiser made that for her... !

FEB

2007

As there are bad agents out there, more and more it seems, there are also bad clients as well. Personality conflicts can also spoil business relationships.

VegasRealtor - Thanks for stopping by! You are right in some respect, but is the "bad" client a reflection of our industry?

FEB

2007

Perhaps more a reflection of our society in general...where courtesy, respect and consideration seem to be in increasingly shorter supply. Our value system is in serious need of an overhaul, IMHO. When teachers, police and firemen are less valued-and less rewarded- than sports and entertainment "heros", what can we expect?

We can start by treating our clients and customers with respect. We can go one step farther by "firing" those individuals who disrespect or abuse our services. We set the tone, and have the right (and perhaps the obligation to ourselves and others) to move on when a business relationship isn't healthy.

Beth, You are so right. Ultimately? R-E-S-P-E-C-T.

OCT

2007

Congratulations!!

Enter "real estate agents suck" in Google and this post is #1...

And, for the record, the TrueGotham guy is right -- the root of your perception problem is the reality created by SUCH a low barrier to entry. I actually know a guy who was such a bad used car salesman that he became a real estate agent.

It also doesn't help that brokers have figured out a formula where they make money on the VOLUME of agents that get churned through the system. The broker see the agents, NOT the home buyers and sellers they allegedly "serve", as the TRUE cash cow.

JohnnyRock,

I nearly fell out of my chair with laughter and had to go see it for myself ...

Sure Enough! There it is! Nice ...

Thank you for your comment. RE Brokers (as in the ones who employ other agents) have a high standard that they do not always meet either. There are MANY agents getting out of the business right now - partially becasue some of them "suck" and partially because they had ZERO support from their employing brokers. I wonder how many GOOD Agents fell through the cracks due to greed on behalf of the employing broker?

I am still happy that it is harder to become an agent in Colorado than in other states, but even THAT is not saying much.

"The point is that the public, at large, believes this and that is what matters."

Just like with lawyers and politicians, the public believes it because it is true to an extent. When you have the sheer numbers of people in an industry with virtually no barrier to entry, it is inevitable.

Unfortunately, we can only change ourselves...but we can work on changing some of the Realtors who perpetuate the stereotype one agent at a time. Well, it seems one way you're working at doing just that can be seen in your efforts to become a KW coach. I'd love to hear about some of your other efforts.

Wow! Well said! I wish I could write that eloquently, that was like reading a story!

Mariana,

I was so happily stunned by your post, that I did not havethe patience to go through all the comments, so, I might be saying 10 other people have said.

I am new, and had 3 blogs posted, and was sort of irritated by the cheerful complains about disrespectful FSBOs, and other minor discomforts of the otherwise perfect real estate agents: knowledgeable, caring, highly trained, professional.... Total denial of the tell tell signs of the change, which are all over.

Here's the link to two of the blogs, just in case you are curious: http://activerain.com/blogsview/220893/Fighting-for-the-customer http://activerain.com/blogsview/221227/Happy-marriage-or-a

Unfortunately, I did not have the answers. Looks like you have. Thank you for that.

thanks for the blog. I will share with my Realtor partners

I forgot, wanted to ask you whether you are Russian?

Bob- It IS true to an extent. Very true.

Christopher - One agent at a time ... One agent at a time ... I will have a follow up soon.

Stefany- Thanks!

Jon- Thank you for the links. I will check them out.

Mariana - LOL. I read your blog, and it made me think of my recent posting, We're Not Just Online Prostitutes!

I agree with you - I'm not a cookie cutter old-business-model type either.

Here's to us "youngin'" girls, shakin' things up!

Nice post title, Joslyn

OCT

2007

OK, just checking to see if google still loves you!

They do!

The low barrier-to-entry comment is a real issue and one NAR needs to address. Thin the herd or the herd will die.

OCT

2007

I am having a little email conversation with a 'someone' at NAR about the problems and perceptions within and about our profession. I am going to send this link. I think a great many REALTORS are looking for real leadership to improve so many things in our profession. Like improving the professionalism.

I would love to see posts like this one, cc'd to NAR leadership.

OCT

2007

Chris - THe herd is thinning ...

Sarah - Leadership is an issue... no. PROFESSIONAL leadership is an issue that most industries are lacking.

JAN

2008

What a load of crap. Real Estate agents are the scum of the earth. They live up to every stereotype. You've brought this upon yourselves. Now quit your whining and live up to what you are. But you're such pathological liars, you even do that. You have to be scum and then lie about it. Typical. If it were up to me, all real estate agents would be tarred and feathered and set on fire.

Thank you for leaving your name and a way to respond to your brain dump.

You have obviously had less than stellar experiences with RE agents, but, regardless of that, there is a LEGAL reason why we are in existance. I am not going to read your comment as a threat and I hope that someday you meet a RE agent who defies your past experiences. They ARE out there.

113 comments -way to stir the pot!

Mariana, In my short 18 month career I have spoken with hundreds of people. I have only met one like "Brain Dump" I ignored him. I believe in "To change a mind against their will, they're of the same opinion still"

It's pointless and a waste of good time to address people who have no knowledge nor do they want to know what we do.

Guys - sorry to get in this, but the only reason anonymous feels the way he does is because of what Mariana states in this post. The industry, in general, is filled with inept agents who make it difficult for those of us who do our job. He's right to feel the way he does, wrong at the way he expressed it and offended.

Being defensive is not going to solve the issue - it's by changing one mind at a time and doing the best he can do. I totally agree with Marian, hopefully one day, Anonymous will be lucky enough to work with a real estate professional who not only defies his last experiences, but blows his mind away (figuratively of course).

JAN

2008

My father almost got con into a real estate deal by a real estate agent! It is not easy for me to believe the OP declaring that she was doing the right thing as everyone says the same about himself in whatever he does. My father is 69 but he has rental income every month. The agent told him when he had his eye on a property that he would have no problem at all in getting approved for the amount he needed to borrow. The agent rushed my father into putting down a deposit and to close the deal in 14 days. Then the nightmare started! My father went to the first bank, the bank won't won't even fill out the paperwork. He was too old! So what if he has rental income. Then my father found out that he needed a co-sign from someone who works(ME). The real estate agent told him it is very easy and that all he has to do is add my name once I flew over overseas to his location to personally sign! NOPE! The banks won't allow it!! We were told that because I work overseas, I couldn't be counted unless I already own properties at my father's country there. Our real estate agent never told us that. Now the closing date is very closed and I watch my father loosing sleep every night! We kept calling out real estate agent but he would answered and said he was too busy(he already got his commission). We were running all over trying to find a bank which would even fill out paperwork for us. Eventually, there was this one bank who would and that was because we knew someone who knew someone in the bank!! But it would take a week. We didn't have a week, so we asked out "busy" real estate agent to try and convince the seller to give us another week. The son of a b*tch never called the seller but instead told us not to worry and just close the deal because there was no way our co-sign won't be approved! He would tell us the seller would do it but only for a few days and then change his story again on us. The truth is, he was collecting money from both side and was more than agreed on. The agent wanted to close this deal so he could collect much more from the price of the property and not from the service/commission. Luckily, the bank approved and done it in time which normally would not. We almost lost $50,000 deposit because the agent lied to my father about how easy it was to get approve even for his age, and then he lied again as to how it was so easy to simply add my name knowing that I work overseas. Also, he rushed my father into closing the deal in too short a time of 2 weeks. It takes at least one week for bank to approve and for me to take my "emergency" leave from my job. I am leaving out a bunch of stuff that the agent could have done to help speed up the process but instead delayed even more. In the end, he had the nerve to tell my father that he was worrying too much! And guess what, banks were telling my father not to trust 2 types of people, lawyers and real estate agent!!

JAN

2008

Hi Frank,

Thank you for your comment and I am sorry that you and your father had such a confusing and stressful experience with your purchase.

Unfortunately, I do not have an answer for you, as there is too much missing from the story to get a real good ideas as to what actually happened. From what I can tell, the agent may have been more misinformed than out to lie to you - but I do not know for sure. Also, I find it odd that the agent could have gotten any of the commission before close of the deal. I have never seen that happen, as a commission is based off of a successful close of a property. But, again, I do not know emough of the details to offer any kind of truly valid opinion.

Regardless, I hope that your next real estate experience is with a competent real estate agent that meets your needs better than it appears this last one did. There ARE good ones out there, and I hope that it works better next time.

Mariana,

I wonder if people know of their recourse to go to the local Board of Realtors. If all is true as to what Frank claims it would be advisable for him to report such a person.

As one in my community of 19 agents I am the only Realtor. I maintain, I am not afraid to be upfront with people in telling them if they do not like what I do then they have the right to go before the Board of Realtors.

When I was in school both of my instructors claimed that joining the Board of Realtors is "just a club" and no one has to be a Realtor to sell real estate. Well, it isn't a club. I have seen our Board of Realtors take agents to task. They mean to keep out the bad apples and make all of us accountable for our actions.

The National Board of Realtors are doing their best to keep the scoundrels out of our industry. It needs cleaning up. Many of us are paying for just a few rotten apples.

You are absolutely right we need to educate people more all the time. I have a client who is clueless about the entire process of selling her property. Her comment to me today was, "I had no idea you did all that work" It was very very nice to be believed.

What a great post, thank you

JAN

2008

Mariana: This is an awesome blog! Took a while to read through it. AR is a great place to vent, and sometimes we are rewarded with good maybe even great feedback. Perception = Reality You are correct But we see it daily! Some agents just perpetuate it. The problem is we can't fix them! We can only try to be better. I don't try to be better at my job, my career is worth more to me, "I SUCCEED at being Better!" Stan: Believe me there are Great agents out there, you just have to find them. Frank:The local real Estate Board where your father carried out this transaction can help you file a grievance! If they won't.....File one with the State Real Estate Commission. It certainly sounds like you have more than enough grounds to win a case against the agent involved. Now, back to Mariana, I'm not exactly sure about this, maybe you just wanted to vent? But maybe you were asking for ways/suggestions? How to change Perception - Reality. My only suggestion, and I'll borrow a line from our armed forces "Be All You Can!, or Be All That You Can Be!" Set yourself aside from the maddening crowd, people wil see you as Different! Unique! "Out of The Box!" Let it be known that your standards for your self image are greater than your competition and it is reflected in how you deal with clients, and how you market properties!

Hi, the agent here in Hong Kong does get a huge commission once the deposit is given. So of course the agent was trying all he could to convinced my father to sign the contract and pay the deposit to the law office. In fact, as I mentioned in my last post, the agent was ignorant of our calls after the contract was signed. We also tried to extend the date to pay the 2nd part of deposit because banks were taking forever to approve(if they do approve). And the agent would play games and he pretended to "speak" on behalf of the seller and told us the seller won't give us a few extra days. And in the same breathe, the agent would say to my father that he was too paranoid and should just sign over the second part($$$)! But under the contract, if my father could not finish paying for the apartment(if bank won't approved), the seller could sell cheap to his *friend* buyer and sue us for the difference and also other problems later on and the contract said that there is no time limit. My father is 69, it would be crazy to be going to court dealing with this every couple of months?

To Andy Morrow, I disagree with you regarding the public being naive and easily swayed. And you really sound like the kind of agent I won't want to be introduced to as you thought of your customers as little kids with bank accounts. As a customer, I may not be as informed or knowledgable as you professionals in the field, but that is why part of the reason we customers have to pay for you professionals to give us your expert opinions. But when you professionals misinform your potential customers, that's on you and your integrity, not the profession. As far as I am concerned, in certain countries, real estate agents are the only way and medium to buy a property. And they want to control the whole process. There are lots of room for the agent to play foul games.

JAN

2008

"But when you professionals misinform your potential customers, that's on you and your integrity, not the profession."

Yes. I completely agree, but unfortunately one bad apple spoils the whole bunch for many people.

FEB

2008

How about a home inspectors perspective?

Someone wants to sell their $30,000 4 year old Mercedes. They decide the best way to sell it is through a dealership. What are the chances the dealer will have a mechanic check it out before the seller is given a price. About 100%

Someone wants to sell their $300,000 8 year old house. They decide the best way to sell it is through a realtor. What are the chances the realtor has a home inspector check it out before the seller is given a price. About 0%.

Nobody needs a mechanic to point out the scratches in the paint, or a home inspector to point out cracks in drywall. People do need a good mechanic to get under a car to look for signs of wear and leakage, and they do need a home inspector to go into crawlspaces, attics, and electrical panels.

Sellers expect to pay a mechanic. Sellers don't expect to pay a home inspector.

Realtors, a worse reputation than used car sales people? There is a good business model to shoot for. Carmax. When you look at their inventory, there is lot to choose from. A buyer can trust that any car on the lot has already been checked out, and is free from hidden surprises. Buyers apparently don't mind paying top price. Buyers don't have to bring their mechanic with them.

On the contrary, in someones real estate inventory, I found houses that were termite infested, moldy crawlspaces, rotten sub floors, bad roofs, unsafe decks, bad plumbing, caulked over door trim to disguise structural damage.

Realtors, until you educate your clients to include a standard home inspection in the selling price, and convince sellers that the old buyer beware days are OVER, and tell them they need to fix major defects, you will continue to suffer unnecessarily from a bad rap. You can give buyers what they want every time, which is a home that is safe, healthy and free from expensive hidden surprises. I usually charge $300 for a 4 hour inspection and nice report with photos. But sellers here in Georgia, make the buyer bring the inspector. One more statistic. Buyers 100% of the time negotiated at least my $300 fee, and were very unhappy with all the hassle.

MAR

2008

I have purchased two homes since 2001 and my experience with real estate agents has been nothing but horrible. I keep trying to give the profession the benefit of the doubt, but my view of it is that it is completely ethically bereft, and this is based on experience not perception. The fee based on sale price model is a total conflict of interest that leaves the home buyer without any objective counsel. With my most recent experience I paid for a home inspection (about $800) for the home I purchased two years ago. It was a joke and now I am facing a roof replacement, new heating system, on top of having to paint the entire place. It is an old Victorian with a large attached barn, not cheap. The piece de resistance was when the sellers agent wrote a letter to the asbestos contractor I had come and give an estimate for asbestos abatement. He lambasted him for recommending abatement because it could have ruined the sale. Thieves and whores, a pox on the lot of them!

Mr./Mrs. Inspector - We never negotiate our inspection fees and request that each of our buyers get an inspection. We do not let our sellers pay for the inspections, however - that is the Buyer's cost, and the inspector should be working for the buyer - not the seller. I hope that you have better experiences in th future.

Sean - Thank you for your comment. I do not completely understand your situation, but am sorry that you have had horrible experiences. I must say that the %co-op model does work in several situations and brings some order to this business, but is not always the best idea. More expensive homes can cost more to market, however some lesser priced homes can be more of a hassle. I work with a lot of foreclosure sales and I have to work harder than EVER on those deals and get paid just a fraction of a %.

You must also remember that commissions are 100% negotiable. If you think that the service you are receiving is less than par, you can always negotiate fees.

I think it is time for AR to put IP address back on comments. At least on anonymous comments. Sorry for the off topic comment, but I was just noticing all of the anonymous comments here.

I think Sean's experience is not at all out of the ordinary. I just closed two homes and neither of these (both sellers) had a good experience with their previous agents. I've dealt with this for many years and fully understand that it will continue and likely get worse.

In my opinion, our industry is more concerned about "numbers" than anything else. NAR sqawks that Realtors are 1.3 million strong. I can assure you its more like 875,000 weak. When was the last time your broker asked you about the quality of your transactions rather than the number of transactions you're involved in. We are our own worst enemy. We are willing to give everything away, including our services in many cases. Why? Subconciously, many agents know they are not worth what they charge so they continue to reduce their commissions and give away their services in order to compensate. I even heard one agent offer to clean their clients house and mow their yard in order to get and keep the listing. To each his own, but this mentality is part of the problem. The other part is that so many agents get a license and obtain only the minimum education credits to keep it thereafter. Therefore, average has become the new superior. A lack of desire is prevalent in our industry and it's become completely acceptable.

With all this said, I agree with you wholeheartedly. The same business model has been used for the last 50 years, with the exception of the changes in commission splits with the brokerages. This only benefits the agent and not the consumer, which is again why our industry is suffering. The only thing you can change is you. You will ultimately separate yourself not by what company you work for, what type of car you drive or what kind of house you live in, but only by your knowledge, your skills and your ability to provide more depth to a client's experience.

I've studied for about 6 years under real estate attorneys to learn everything I can learn about real estate. I want to know more about surveys, title commitments, contracts and contract law, liability reduction, etc. than any other agent in town. That is how I separate myself from other agents. I don't cut my commissons or agree to clean houses in order to gain a listing, I provide the most in-depth professional services available.

Don't seek to change the world...our industry is not interested in that. Change yourself and become so much better than your competition that sellers and buyers simply won't have a choice but to hire you.

You're already head and shoulders above most agents because you appear to have a very strong desire to be better and more knowledgeable. I wish you must success.

Maureen - That would be nice. However, I do like seeing what people are really thinking.

Guy - Thank you for your comment and your well wishes. You bring up some excellent points.

MAR

2008

You must also remember that commissions are 100% negotiable. If you think that the service you are receiving is less than par, you can always negotiate fees.

I don't know of any law or standard of practice that requires any particular Realtor or company to negotiate commissions. What we cannot do is to talk to others about setting a standard commission outside our own practice to the practice of our company. But, within our company or individual practice, we can set any commission we like.

Also, once a listing contract is signed, fee is only negotiable with the consent of both parties.

Yes, I am just stating that here is NO "standard" or "set" rate. If a company or individual does not wish to budge from a particular rate, then that is up to them.

MAR

2008

Hi Mariana,

No, I didn't mean that anyone negotiates my home inspection fees. I did mean that realtors can educate sellers that it is to their benefit to have their home inspected, and correct hidden major defects before it goes on the market, and that apparently does take some effort on a realtors part.

20 years ago there were few home inspectors. But there were so many people who were in their homes a short time and discovered problems that were not disclosed. I really would like to know, if the sellers chose to keep that information from the buyers, and you, their listing agent?

I'm saying, it makes you, the listing agent, look bad when a home is in bad shape, and you are listing it that way. Again, back to the Carmax model, the buyer shouldn't have to bring his mechanic along to buy a car. I think if I was the one who's job it is to sell a home, I would want the best product possible, and I could not, ethically try to sell a property in bad shape. If you don't know if it is or not by doing it yourself, hire a pro home inspector for a few hundred bucks to do it for you. Selling junk is probably one of the top reasons people percieve realtors as being less than honest sometimes.

Mariana,

P.S. I challenge you to be the innovator, to think outside the box. Demonstrate your desire to change the public perception of realtors, by encouraging all your sellers to pre-inspect their homes. It's all about what buyers get after the closing table dust settles. Put a gold star on your sign that you cared enough to do so. After awhile, all signs with your name on it, and say my gold star, would stand for honesty, integrity, and value. It means you didn't want any buyer to have any doubts, and cared enough to make the buying experience good, and that you only sell the best.

Okay, I'm ready for your objection that the public will percieve you paid off the home inspector. Sorry, wouldn't happen if I was the one doing the inspection for the buyer or the seller. In 10 years, I have never

"missed" anything, and I would take it very personally if an inspector paid by the buyer to inspect a home I had recently done, had a problem beyond a nail pop, which I saw too but didn't lower myself enough to write. I'm only getting a couple hundred bucks for my work, so pride is worth more to me than a fee.

Yes, I have my work cut out for me too to change the perception of listing agents, just as you fight the image realtors suck, but I will find an enlightened listing agent who is tired of the backwards way of renegotiations. I just did a home built in 1953 that was better than new, and sold for top dollar in less than a week. I can only hope, and work towards that goal, of finding listing agents who put the buyer first, and that starts with a pre-inspected home.

I am very interested in your feedback. Is it not done this way because of trying to convince the seller to do the right thing? I really don't get it. The few sellers inspections I have done have really helped them out. One time, a guy called for a second opinions on a water spot on his basement wall, and was going to spend 10K for a french drain, but it was only a missing downspout extension. The seller learns how to fix things right, how not to get screwed by a contractor, how to fix things right themselves, how to make the home show better, and saves hassle, rushing around to find a last minute contractor.

What do you think?

Ok. I haven't read all the comments here, but I have this to say.

I don't like the real estate broker business model. I am a home owner, and in my neck of the woods, brokers control the listings, as they do in many parts of the country. I guess brokers realize that information is power, and power=money.

By controling the MLS, or any variation, it requires sellers to pay the brokers money for providing a service that should be free. If I decide to sell my home without the services of a broker, why are they controlling the listings and require the SELLER to pay for the work they are doing for the buyer? As a seller, I can contract a lawyer, create marketing material, do research myself, and cover all the bases. After all, aren't there many books on selling and the process? It's not rocket science. This is why bored housewives do it.

Frankly, this sense of entitlement is slimey. If the listings were open to the general public brokers would be out of a job, or get paid by the buyer, as the work they do is for the buyer, not the seller. Also, 6% is outrageous and not worth the work that you do as a real estate broker. What is 6% of 3 mil? The work you do is not worth the level of pay of doctors or lawyers- and 6% of 500K is not worth it either because at an hourly rate of $60 hr you would have to work 8 hrs a day solid for a month. Honesty, do you do that? I am all for getting compensation for the work that you do, but if sell my home an you bring a buyer why should I co-broker with you? You've done nothing for me but sit in your office and wait for a potential buyer to see your listings or walk in the door. If I hire a broker to take care of everything then you should get paid, on a variable scale, based on the work you do and the value of the property, paid for by the seller. If you are providing buyers, then get paid by the buyer.

Quit your whining or get another job.

Paul - Thank you very much for your comment. I see how an undereducated Realtor(r) could look bad if the house has issues, but here are my thoughts:

In some cases a pre-inspection may be a good idea, but I cannot make my sellers get one. And the Buyers always get another one anyway, and we deal with the insection items as they arise. I refuse to let my Sellers pay for an inspector FOR the Buyers, as then the Inspector works for the Seller, not the Buyer and that it not acceptable in my business. And I work with 2 ofthe most reputable inspectors in the area - I know they are 100% honest, but "who writes the check" is almost a legal issue in some cases.

Ultimately, I cannot put the Buyer first when I am representing the Seller. That is their Buyer Agent's job.

We will never do away with a post contract inspection and it will always be a point of renegotiations. And unless I foresee major fixable issues - which does happen, it winds up just being a waste of time and money for my Sellers.

All that said, I do not live in a Historic City, nor a city that deals with termites, flooding, etc ... We are predominately rather new homes (post-1970's) with little natural defects and rather bland inspection reports as it stands. Were I to live in a more real estate diverse city, I definitely see a pre-inspection as a better benefit.

I hope this sheds a little light on where I am coming from.

The journey of a thousand miles begins with a single step.

You likely won't change the world, but should you really try? Change yourself and watch as others around you see that change and slowly change too. You are not happy right now. I'm not sure why except for the issues surrounding real estate sales that have been around since real estate was invented. I can not change the world, but I can change myself, change my attitude, change the way that I do business, change my outlook on life and family and faith and ?.

The old real estate models don't work for me either. I decided that 9 years ago. I don't chase the dollar anymore and and because I don't, my life and my business are much better for it. I don't desire new cars, bigger houses, fancier clothes and the like. It does not interest me because it only satisfies the ego for the short-term...oh, and it makes me poorer too. I pity those who think that making more money so they can spend more money so they can make more money so they can spend more money, is the way to go.

Decide what you want from your life, from your business and from your relationships. Don't start out trying to change the world. Change yourself and then lead others, one at a time, to change too. Remember, you can only eat an elephant one bite at a time.

Cheers my friend.

Guy, that is the most intelligent thing I've heard in a long time. One of the things on the Colorado Contact says (in brief) that all parties will work in good faith. In my mind the under laying statement is "stop trying to game the system - play nice." Play nice could have been Mariana's sub title here in my opinion. But we can't legislate morality, no matter hard anyone tries.

CMOD- Thank you for your input. Of course I disagree with you, but we are each entitled to our own opinions. And I respect the fact that you would rather do it yourself. I am not here to change your mind, just to give you another perspective. (You really should read the comment thread, though.)

Here are my thoughts:

First, all the MLS information IS free and listings ARE open to the general public. You can find them all over the internet.

My value is not the MLS info. or my listing sign in the front yard. My value is representing my Seller's highest and best interests and interpreting market data correctly and telling my clients how it affects their home's value. My value comes in the form of RESULTS, and I only get paid when my seller does - AT the closing table WHEN it sells at a price and terms that are acceptable to my Seller.

Perspective: There is no 6%. The national average is closer to about 5.5%, total, with an agent averaging close to only 2.7% per transaction. Honestly? What I charge my Sellers is an agreed upon rate that my Sellers are happy to pay, as they understand that I am THEIR agent, working FOR them and will do what I need to to represent their best interests. Once they know what I am doing for them, what I charge is not an issue. I can prove my value.

Did you know?On average, For Sale By Owner listings sell for an average of 16% less than homes listed with agents? That discrepancy more than justifies any commission paid to the cooperating agents in a deal. And, the seller is not legally liable for any errors on the contracts, disclosures and closing documents with an agent assisted sale.

If I represent the Buyer, I share in the success of the sale when the Listing agent "thanks" me for helping the home sell and shares his commission with me. And there have been times where the listing agent chose NOT to share the commission with me and I did the entire thing for FREE. It happens and is part of the business.

"As a seller, I can contract a lawyer, create marketing material, do research myself, and cover all the bases. After all, aren't there many books on selling and the process? It's not rocket science. This is why bored housewives do it. "

Yes. It is not rocket science, but it is not easy whatsoever. Real Estate Agents are held to major legal standards that most other professionals will NEVER have to be held to. It is WAY more complicated than TV likes to admit. And yes, some "bored housewives" become real estate agents ... and fail miserably. This is not a career for the bored, unmotivated and talent-less. Especially not in THIS market.

And yes, you alone COULD cover all the bases that you mentioned, but first, I would assume that you did not have another job as it is completely time consuming to do all of it correctly. Second, there are no books that will tell you how to price YOUR home correctly, compared to your competition, professionally negotiate prospective offers, market you home comprehensively to the right people, and yes, WORK more than 8 hours a day every day to make sure that YOUR home sells for the highest price in the shortest amount of time possible. No, not every agent is worth the paper their license is printed on, but that is not the case for ALL agents - not by a long shot.

Regarding a lawyer - that is a state to state issue. Colorado has strict license laws and lawyers are not used in the transactions.

People love to hate real estate agents and the media only propogates it further. Yes, there are some scoundrels and some lazy idiots prancing around with licenses, but, again, that is not the majority.

It is not about entitlement. It is about value. A real estate agent can bring boatloads of value to a transaction, and there is definitely a need for them in our world. We just need to get rid of the bad apples.

Finally, and most importantly, a real estate transaction is a major event in many people's lives. Some homeowners will want to do it on their own, for whatever reason. Even though, historically most will wind up hiring an agent (if only to handle all the paperwork and determine the correct asking price) - some will succeed in selling their homes - no agents involved.

There are options for everyone.

Guy - That was a great comment! Thank you... I, too, have HUGELY different business models than most other agents out there ... and I am successful because of them.

Dena - That could have been my subtitle ...

Mariana,

Actually, I'm talking about Atlanta, so mostly post 70's. Termites are bad here.

Course you can't make your sellers get one, but you could educate your sellers why it is a better idea.

1) You make a good point that all buyers are going to hire an inspector. The NAR says over 99% of agents do so. Wouldn't it make sense for a seller to know in advance what the report will say? and go ahead and fix the house. Buyer may still want a peace of mind buyers inspection, which it will be.

2) What happens the old fashioned way? Seller worries(hopes the inspector won't) find it-which they will. then has to squeeze repairs into a very, already stressed time period. Buyer is having second thoughts about the deal altogether, then has to deal with used car salesman- like haggling back and forth, buyer feels miffed something was "discovered" that was hidden, closing is possibly delayed another 5-10 days. If you are holding a PTI of 100k, that is costing the seller about $35 day, and the seller still has to fix it anyways. The only thing the seller loses is a couple hundred bucks for some very good advice on how to make the home show better, make it more accessible for the inevitable buyers inspection, learns how to fix it right, buys time to deal with contractors, and seller peace of mind about what the buyers inspector might find. Also, you have a third party professional report to give to the buyer, showing them the house is all ready to go.

What am I missing here? Is the issue the couple hundred bucks the seller pays out? I think they get more than their moneys worth, don't you?

I don't understand "I see how an undereducated realtor could look bad if the house had issues" Not sure what you mean. If the house has issues, that has nothing to do with a realtor being undereducated or educated, the house simply has issues. I hope that you are not implying that an educated realtor could look good if the house had issues.

Sellers are paying for the inspection for themselves, not for the buyer. I guess you are saying, that unless the sellers had their home on the market they wouldn't need an inspector right? But since they are selling their home, isn't it a good idea they get help like the buyers get from their agent?

I really am trying to understand. Thanks for your comments so far.

Hi Paul - I was addressing this comment: "I'm saying, it makes you, the listing agent, look bad when a home is in bad shape, and you are listing it that way." I am afraid that contract and negotiation law will be different from state to state, so soem of my responses will not make much sense to someone not from Colorado. But, here it is... Scenario #1: I take a listing. More times than not, the homeowner bought the home new or bought it resale recently (2-4 years ago). In either case, they had a home inspection at that time and resolved issues at that time. We go through the entire process in detail, from sign-in-the-yard to keys-on-the-closing-table-at-closing to include the fact that there morethanlikely will be an inspection, where anything that may be wrong WILL get brought up. "Is there anything that you think may come up?" This is when they tell us anything quirky that may be going on in their house. Based on our experiences, we advise them to either, a) get the issue resolved now (if it is major) or b) wait until the Buyers inspection (if it is minor) and see if it is a big enough issue for the Buyer to request it to be taken care of. If they have lived in the home for a long time and it looks like there may be several issues that the Sellers could be unaware of, we may talk to them about getting a pre-inspection, or we will prepare them for the fact that they may have a lot of issues to resolve at inspection time. Either way, they are prepared to do what needs to be done to include common requests of furnace filter, chimney sweep, screens (FHA) roof cert... . Honestly, if something may need fixing, some Sellers would rather wait to see how important it is to the Buyers before fixing it. At that time, maybe they will fix it, or maybe we negotiate a change in sales price to offset the Buyers cost to fix it - which is very popular for Sellers who are strapped for up-front cash - and this is very common in today's market. Scenario #2: I have a buyer client who is looking for a home. They are fully aware that they are going to get an inspection on the home before the inspection deadline and know that most people will not intentionally hide something, but an inspection will air out anyones dirty laundry = peace of mind. They do the inspection, and depending on the offer/competing offers/specific situation, they pick and choose which items from the inspection are important enough to have the Sellers resolve. My Buyers all know that NO home is perfect and are also prepared for some of the common requests, just like our Sellers are. However, if there is anything major, the Seller has the right to fix it, or my Buyer has the right to move onto another property. (Now, if during the inspection, a material defect is found (foundation issues), and the Seller refuses to fix it and the Buyer cancels the contract because of it, then the Seller/Realtor(r) MUST disclose it when the property is put back on the market.) I see how it could save a little bit of time, but because the Buyer Inspection is such a standard part of our contracts, I also see it as rather redundant in many situations. I hope that was a little useful.

MAR

2008

Mariana-

I appreciate your perspective. Let me counter with a few points.

The national average may be 5.5% but every broker begins with 6% and if you do not "negotiate" then they will gladly take your half percentage point without even discussing it. I guess you make as much money as you can. You are entitled to do that. Further, if you work for the seller who has no time or does not want to deal the process, then so be it. Get paid for the work you do for the seller when the arrangement is made. Fine. As far as other brokers not "sharing" the commission with you is not part of the "game" in NYC, which is where I am located. Most brokers won't even touch a FSBO unless they get 3%, and they barely list it on their website, never mind the NY Times. So I get limited exposure. What I get for 3% is a broker who sits at his/her desk and waits for a buyer to come to them.

<i>First, all the MLS information IS free and listings ARE open to the general public. You can find them all over the internet.</i>

I'm sure if you look on the internet for properties you are inundated with thousands of listing services, both brokers and fizzbows, and to sift through them as a buyer is tedious and futile. This is why buyers go through brokers. Again, fine. So why does the seller have to pay the broker for a service they are providing to the buyer? The mentality that providing a buyer to the seller for 3% is selfish and misplaced. My porperty is treated as a commodity, and brokers have a sense of entitlement because now I have brought that commodity to their market. Brokers are middlemen and requiring the seller to pay is unfair, and borderline extortion. The game is "rigged" The National Association of Realtors lobby's the state and federal government to adjust the laws so that the business of selling real estate must go through brokers, and have put people out of business in Texas and want to do this with Redfin(http://www.redfin.com/stingray/do/start). The Illinois legislature passed a law, at the NAR request that requires Brokers to provide minimum services for 6%, that way negating the possibility of sellers to negotiate and modify services(as well as commissions). Also, when brokers tell us that they can sell property faster and for more is a fallacy. The book "Freakonomics" on the NY Times bestseller list states that brokers keep their own property on the market longer on average for a month because they know they can get the asking price, whereas they push for lower asking, and a faster sale because they want "bulk" sales over the course of a year. A lower asking will sell more and brokers use the term "bidding war" as a carrot to get a contract for 6 months. When a broker requires the seller to raise the asking to include 3% places the property out of the value, in the end taking the money out to the sellers hands.

I tend to disagree with you When you say there are options for everyone, at least in NYC. FSBO is going upstream when brokers create the downstream current. Again, get hired by the seller, get paid by the seller. Provide a service to the buyer, get paid by the buyer. Period.

Thanks for you time. Maybe this will help you understand why brokers have a bad reputation, regardless if they are ethical and are decent human beings.

CMOD - I appreciate your comments as a non-agent consumer. State to State will differ exponentially, when it comes to how things are done, so I cannot accurately address some of what you mentioned.

I DO have to counter a couple things that you said, though:

"The national average may be 5.5% but every broker begins with 6% and if you do not "negotiate" then they will gladly take your half percentage point without even discussing it."

No. Less than half of ALL brokers that I have ever met or talked to "started" with 6%. That assumption is inaccurate.

"The Illinois legislature passed a law, at the NAR request that requires Brokers to provide minimum services for 6%" ... Which would be price-fixing and is illegal.

Ultimately, there are a few folks that are mentally, financially, emotionally and professionally prepared to take on a successful real estate sale or purchase on their own, without an agent. I respect that. However, the vast majority of people out there would rather pay someone to do it for them.

MAR

2008

Mariana-

Following is a link describing the way brokers want the traditional business model :

http://www.usatoday.com/money/economy/housing/2006-07-12-realtors-usat_x.htm

Apparently it's not illegal to require minimum services for 6%.

I've also had brokers try to squeeze 7% on an exclusive and 4-5% on a co-brokered deal-when I broker it myself!!

In regard to the vast majority of people would rather pay someone to sell for them : That is partly because of the ignorance of those who do not know that the system is set up for brokers. If there were a universal MLS accessible to all, and we could all choose to purchase services al a carte (attorney fees, appraisals, contract advice etc, etc.) for a fixed price, then there would probably be a lot more people selling it themselves. For those who NOT "mentally, financially, emotionally prepared" to sell themselves, great. Let them hire a broker.

Aside from all that, you haven't really addressed the main issue I raise. Also, I am not judging you as a person. I'm sure you are an ethical, perfectly genuine human being.

MAR

2008

Hi there,

Thank you for the link. I read through that article and it had nothing to do with requiring 6%, because requiring a specific % across the board IS illegal: Price Fixing.

It had to do with requiring full service. This is why: If I was representing a home buyer and they decided to purchase a home that was listed in teh MLS, but the owner was who I had to deal with directly, I am now legally liable for BOTH sides of the transaction. This is not a safe place for me to be. The home owner does not spend their career making sure that they do everything in a legal fashion, and so one fair housing violation, one ommission on THEIR part, can cost me MY license.

Now, I know I am being redundant, but I need to clarify something. Some states require attorney involvement. Mine does not. We have closed THOUSANDS of transactions in the past 7 years and never once was an attorney involved (except for the 2 clients of ours who WERE attornies). In a few of the states that DO require attorney involvement AND license laws are slacking, I definitely see where a pick list of services could be a better option for some people. Those are the cases where the value of a real estate agent, above some of the specific sevices that they provide could be an issue.

And, I believe that different business models are healthy for real estate. A la Carte real estate could be a viable option for some people in ANY state, but honestly, not the majority. There are too many details involved in a real estate transaction to create a truly comprehensive pick list for Sellers. At least here, in Colorado. Further, I am not comfortable leaving out anything.

When I represent a Seller, I have a fiduciary duty to do everything I can to sell their home for the most monsey in the shortest amount of time. I would have a very hard time leaving anything out just because they didn't check a box.

Regarding a National MLS, it will not work. We are the United States of America and most real estate contract law - to include listing contracts and disclosures is controlled at the state level. Some states have horrible contract laws. Some states have great contract laws. Many states involve an attorney. Some do not.

There is no way for a MLS to be national and have any type of consistency... Which will be bad for agents, but worse for consumers. Data will be a hodge podge mess from state to state and there will be WAY too much room for error. (Read More: A National MLS Will NOT Work and Here Are 3 Reasons Why... )

Now, I read through your comments again and I am not sure exactly what I missed. It was not intentional.

Perception = Reality, and if your perception is that real estate agents in your area are NOT worth it, I am sure you are not alone.

Finally, technology (among other things) is changing the face of many industries - to include real estate. How this will all look in even just 5 years is anyones guess.

I wish the post were numbered. Two post above talks about the al a carte. The problem with the al a carte business model is, it is not very profitable. There are plenty of brokers that offer limited services for the DIY crowd.

They pop up every up cycle and when the market shifts, they disappear faster than a box of donuts at team meeting.

Commissions go down in a sellers market and up in a buyer's market. It is the law of supply and demand.

As for the universal MLS who is supposed to finance it? The MLS is not a public utility it is system where brokers offer each other compensation for selling a listing. It is not the birthright of consumers. It is paid for and maintained by businesses. When you finance your own then you can decide what to do with it. I am not trying to be harsh there seems to be a misunderstanding of the rights of people's property i.e. inventory. Currently there doesn't seem to be an economically feasible public MLS. Then there is the issue of policing it, yes it needs to be policed unfortunately.

I think most people don't understand is that Agents aren't licensed to sell real estate, brokers are. Agents are licensed to work for brokers. That model is still better "so far". It allows the government to monitor the industry better. If you have an office of 300 agents and no one was responsible, that is a scary thought. So when a broker sets a price for their services they are not fixing the price of agents. The business belongs to the broker not the agent (by law).

There are possible alternatives. Increase the education and requirements. That could actually hurt the consumer, less people would control more.

There are other industries out there that have a wholesale type of systems where the average consumer cannot participate in the exchange of information.

A couple of post above that one someone mentioned IL legislation says that there needs to be a minimum service for 6%. Without reading it, I know they are requiring a minimum service for signing a contract with a broker. The reason is so that the government can a standard to police the industry.

What they are saying is when you enter into a contract with a broker we expect a basic set of services. The problems that were arising were brokers started offering a fee of (for example) $295 just to put it in the MLS. Then the seller was left to fend for themselves. So people know what they were doing, but most did not. They chased the discount and were thrown in a pool of people that buy and sell for a living. A lot of people were getting damaged because they had to negotiate on their own. That is not the fault of the buyer's agent. The seller hired a broker that did not represent them. The hole that was closed was the non-representation contract. You either hire a broker or you do not.

I find it amazing that the world cannot figure out that the percentage has not gone higher or lower inside a range for a time period. Could it be the market has set the price and not the brokers? If it could be done for less, businesses will compete and price will go down. The ones that do it for less seem to disappear because of the profitability.

I Love the guy that says, they tried to squeeze me. It is not a squeeze it was an offer and you have the right not to accept it.

I personally have a full service practice and I focus on a certain area. It is called a business model. If you went to a foot doctor with a tooth problem that model would not service you. Then when you went to the dentist they have a price for their services (outside insurance issues) you do not have to accept the offering of the dentist. If all the dentist offices in the area have a similar price. Is it rigged or has the market found the lowest and the highest price?