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Would you Allow Your Real Estate Agent to Do this to Your Head?

Oops...a bad day at the stylist! Several months ago, I conducted an unusual real estate agent interview. The request for the meeting to explore the possibility of working with my company had come in over the weekend. The prospective agent had been in the mortgage business and wanted to diversify and enhance his portfolio by becoming a Realtor.

After we settled down in the conference room, I asked him to fill in some of the details of his resume which he had forwarded via e-mail earlier. He had an impressive curriculum vitae which included work with governmental agencies, serving as a city manager & his current job as a mortgage lender. I admitted to being intrigued by his career choices and wondered aloud why he chose to enter mortgage lending & was now pursuing a real estate career.

After some hemming & hawing...he admitted to me that he was in mortgage lending by default. The broker he was working with had allowed him to come on board, although he wasn't really supposed to be doing anything which involved other people's money & he was becoming distressed by what he perceived to be inappropriate tactics at his current job.

"You see," he confessed, "I'm on probation for stealing funds from the government while I was managing a government lending program." He continued "I was wondering if I could work for you under your broker's license while I get an understanding of how the real estate industry works." I stared at him in disbelief & then asked him if he realized that being a convicted felon might impact his ability to get a real estate license in the state of Michigan? Apparently, the question had not crossed his mind.

This experience provokes many interesting questions. I was not dealing with an unintelligent individual; at least if his resume was to be believed. He had already interviewed other brokers, some of whom had offered him a job. He seemed confident that the issues he had just admitted to me were not going to preclude his entry into a career that would give him almost unlimited access to credit information & other financial data for unsuspecting consumers. Why would a convicted felon see a real estate career as a viable alternative after being convicted for fraud & financial theft? What does the general public perceive the qualifications to become a real estate agent are?

As the nation's spotlight remains on our industry, the answer to this question is becoming uncomfortably apparent. Yesterday, ABC News launched a series entitled "The Home Wreckers" in which they will be discussing the negative impact that certain types of real estate & mortgage transactions are having on communities across the nation. Charlotte, North Carolina was the location on last nights' segment about a subdivision in which 1 out of every 5 homes was in some stage of the foreclosure process. The reporter interviewed a couple who shared an increasingly familiar tale of victimization & loss. Of course the builder/developer, Realtor & loan officer were all lumped under same assumed header...Home Wrecker. A follow-up on-line by ABC network, this time set in Chicago, revealed the impact multiple foreclosures are having on the home values of entire neighborhoods.

Earlier today, another scenario juxtaposed itself,and in an unexpected way dramatized the difference in licensing requirements for various professions to serve consumers in the State of Michigan. In talking with one of my agents today, she informed me about the process that her daughter had just gone through to get a license to be a cosmetologist in the State of Michigan. Her one year don't let those sissors near my head if you don't know what you're doing! apprentice program had included: 1500 hours on the floor, practising different techniques on clients which included grading on each assignment, constant supervision while she did any transaction which involved a member of the public, 2-4 styles, cuts etc. every week, and multiple tests which she had to pass before she could take the 2 parts of the State Licensing Exam which included a Practical Exam & Theory. Whew, it makes one tired just to read this...

Contrast the following. In Michigan,an aspiring agent needs one 40 hour class & the ability to pass the real estate licensing exam within the maximum alloted time of 3 hours. Then he is free to find a wall in a broker's office of his choice on which he can hang his license before he is "let loose" on the general public. Let's look at what it would take if the requirements to handle the largest financial transaction that 97% of Americans will ever make was as stringent as the requirements to place a pair of scissors next to your head or hands!

Instead of a 40 hour class...try 40 WEEKS of class. This would be the equivalent of time required to be allowed to sit for the licensing exam. Instead of floor time prospecting for new clients, floor time would be mandated for new agent education!

Every new agent would submit to an apprenticeship in which they would be graded on the following basic skills: understanding the legal aspects of real estate paperwork & documentation, writing clear & concise contracts & addendums, classroom exposure to the different types of real estate services including title, mortgage, commercial, appraisal & property management, negotiation skills, prospecting, technology & on-line marketing, business administration, customer service, business communication, marketing, selling skills & time management. These are the skill set that successful professional agents excel in!

Every phase of training would be monitored by an experienced real estate professional who would give written & verbal documentation of the potential licensees progress. A passing grade would be required in all these basic skills to be allowed to take the in-house exam

Potential real estate agents would be required to have 2-3 client meetings a week to practise, under supervision of course, their listing or buying presentation, offer presentation & prospecting calls & contacts.

There would be a Comprehensive Practical & State Licensing Exam. After passing the in-house exam which would require a couple of days to complete, the State Exam would consist of the examinees demonstrating their skills with a prospective client in any number of potential real estate scenarios & a written exam.

Would this make the real estate license cost prohibitive for many. Perhaps, but most budding hairstylist aren't wealthy either. Would it make it more valuable for those who undergo the discipline, training & rigour necessary to become competent...Definitely! Yes, a poorly trained stylist could do some major damage with her scissors, but consider the damage potential of a poorly trained real estate agent with an improperly handled real estate transaction. Does it make sense that my hair stylist is more adequately trained at the start of her professional career than many real estate agents are after a couple of years in the business?

http://www.auduhomes.com/ Audu Real Estate provides a comprehensive 1-2 year Mentor training program for real estate agents. To learn more about this innovative approach to starting or building your real estate career contact us at info@auduhomes.com. Click on the picture or link to tour the facilities.

*Last note: During the commercial, I switched to Fox Broadcasting which was advertising America's latest Blockbuster TV program...."Are You Smarter than a 5th Grader" . I am left wondering...Is the training that many receive in real estate qualifying us to earn more than our barbers & hair dressers?

Posted by Lola Audu~Real Estate Broker/Owner Grand Rapids, Michigan Real Estate on 03/27/2007 08:40 PM

Comments (65)

real estate agent, real estate education, grand rapids, michigan, audu real estate

Originally posted at: Inspired Real Estate For Today: Would you Allow Your Real Estate Agent to Do this to Your Head?

65 Comments on Would you Allow Your Real Estate Agent to Do this to Your Head?

MAR

2007

Great post. The real estate industry is in deep need of a clean-up. These financial transactions are the largest ones in most borrower's lives. It is ridiculous that it is easier to gain access to this than it is to the average american's toenails!!

I agree so much - it is crazy how little value we put on the education you really must have to represnet your client.

Thanks for your comment Patricia. It is deeply disturbing that we continue to ignore the obvious...to be taken seriously as professionals, we must improve the training and education of our membership.

Thesa, Thanks for your comment. You're right in pointing out that it is about what we value. Increasingly, we seem to value knowledge & education less & less in every aspect of our society. I am reminded about some of the controversy Oprah experienced when she opened her academy in South Africa. One of the comments she made about the children oversees is that she felt they really valued the opportunity to receive an education. I wonder how our industry would change if real estate agents truly valued their license.

Lola, in these times of increased concerns about preserving and protecting people's personal information, there should be a lot more due diligence regarding who comes into our industry and who stays in it. With so a low entry point, it's no wonder that so many people treat a real estate license (and our training & professionalism) so casually. Greater oversight is called for to separate the wheat from the chaff.

Hi Irene, thanks for your comment. I think one of the results of this current crisis may be a call for more "over sight." Unfortunately, it is better to self correct than to be forced to correct. This is an issue that we have all been aware of for a long time & steadfastly refused to deal with. Increases in membership have come at a huge cost if we have along the way sold our integrity, respect & reputation as an industry.

Lola,

You are right on the money with your sentiments. What is even more shocking to me than the lack of preparation for most real estate agents is the almost complete lack of regulatory oversight. Higher standards are most certainly in order.

Hi Stefan, Thanks for your comment. The lack of oversight could be very easily remedied. If there was even a moderate increase in the cost for a license, this would more the cover the costs of increased oversight. The cost of refusing to invest in education & oversight may be much higher than we could have imagined.

People like the one you mentioned scare me. The worst part of the whole thing was that he apparently didn't think that what he did was anything that would raise an eyebrow. I don't think that this person has an active conscience. An apprentice program for those of us that could qualify would be OK.

Lola -

When I was jumping through hoops to get my license, I thought it was a terribly difficult experience -- no one should have to endure such a time

Now I look at a couple year's experience and wonder why the state of PA allows people to do such a difficult, detail-crucial job with only a couple of classes and an exam.

Let's go for the gold!

A colleague and I were actually speaking about this in the office today. A prospective agent called the office to talkabout our training program, but she hadn't gone to class yet, and didn't know she needed to do so. Needless to say, she had no desire to sit through 60 hours of course work in order to be able to help facilitate the largest transaction of most peoples' lives. Go figure! A comment was later made that the course doesn't really help you in your real estate career anyway. The best teacher is experience!

Hi Roger, Thanks for your comment. I'd have to agree with you about the conscience bit with this gentleman. I was struck by the fact that he seemed to think that this little "issue" would not preclude entry into a real estate career.

While I don't persume to know much about the standards to become a CPA, I think it would be safe to presume that if my accountant is advising me about financial issues, he is deemed to be of good moral character & not someone who has been convicted of misappropriating funds. I would hope the general public would think of Realtors in this fashion as well. We can do a lot to facilitate and enhance the public's perception by raising our standards.

Totally agree with you John. When you get into the business and realise how important what we are called to do is...it is sobering. That is why every year I have been in business, I've made sure I saved money to invest in yearly education which went far above my state's requirements. The mandatory 6 hours required in Michigan is simply not enough to really understand how to conduct business in the real estate industry professionally & with competence.

You know Jen, I hear that comment here in Michigan too. Many agents also indicate that they don't think they will use what they learned in class. In my training, I am continually refering my agents to what they learned in class...or should have learned.

I commend what you have posted about and fully support you and your thinking! You are not alone in wanting to see higher standards and education. This has been a popular subject in the blogs lately but in Michigan I think that it is in desperate need of being addressed by the State. I think that you have the right idea!

I seen the episode that you may be referring to and I could not believe what I was seeing.

Lola,

AMEN! I do agree the training standards must be improved for new hires. I also am an advocate of increased training for those who have licenses but are inactive or are used once in a blue moon. I feel these folks are just as dangerous as a new agent. I would propose increasing mandatory training classes relative to sales activity. As with most professionals the more you use your skill, the more proficient you are in your filed. If nothing else this would cull the number of novice licensee's attempting to make a few extra bucks in what they consider an easy profession.

Greg

Lola - good post. I agree that agents should have some kind of apprenticeship. I've been running across veteran agents the last month who are doing and asking things they should already know...very troubling.

I love the idea of the 1-2 year mentoring program! I wish every agent and brokerage believed in that. Instead a couple of deals are done and most think they are ready to move on to a 100% office.

MAR

2007

The books issued when I took my class last year (2006 mind you) were so outdated that the Teacher repeated himself every chapter, quote "Memorize it the way the book wants you to so you can pass the test but now-a-days it's like this". So of course alot of my classmates were so boggled because they had to memorize one way but not forget the other. It's no wonder so many failed the class. I mean I'd be willing to say that the classroom (and the books provided) should be accountable to the industry. I mean if they're going to teach it to you (and charge you $ to do so), it should be CURRENT.

I would whole heartedly support a mentoring program (that actually WAS a mentoring program), because I truly believe that the lack of training is a large reason why so many new agents fail. From personal experience, a new agent is confused and unsure of what they're even doing when they first start and they really want someone to step in and point them in the right direction. Their minds are full of "Outdated" Laws.

If I could voice one opinion it would be that 80% of the class should focus 100% on:

Agency

Antitrust

Americans With Disabilities Act

Employment

Ethics

Fair Housing

Property Condition Disclosure

Property Management

RESPA

Technology

Third-Party Liability

You know - the things that can land you in a lawsuit, Kicked out of Real Estate or Put In Jail!!! They need to focus less on 1,001 definitions and make sure these new agents know the laws Inside and Out!

I know that had I not found AR I would still have 100's of questions left unanswered. (And I'm no where near finished; never will be as far as I'm concerned).

Just my Rookie Humble OP.

I think those suggestions are great! I have blogged about similar items in the past. Lets do it!

the reason why I think it is so easy to get a licence is if you haven't noticed our industry takes advantage of the new agent.. The brokers get their fees they get free promotion for their company. The real estate board makes tons of money off the dues.. The CE classes fill up, the people that sell pens make money, sign companies.. on and on until the agent is broke.. Then we spit them out and say yeah it's hard to be in this business...

Shane, Thank you for your comment. I am not very familiar with the licensing requirements for other states, but I know that there are some states that do require more education than we currently do in Michigan. In view of the particular problems that our state is facing in regards to the economic crisis & significant increase in foreclosures, agents who are uninformed & uneducated are adding to the problem. As an industry, we must choose to change individually & collectively.

Paul & Greg, Thanks for your comments. You both bring attention to an issue which is not discussed very much...experienced or veteran agents who are no longer very active or are operating in areas out of their primary line of experience and/or training. In both of these situations, additional educational requirements would be appropriate & beneficial. After all most of us would not want to be operated on by a surgeon who "used to do a lot of a particular type of surgery" but hasn't done one for a couple of years. A refresher course linked to activity would benefit the agent & the consumer.

Renee, Thanks for your comments. It is interesting that a journeyman electrician is an apprentice for 5 years! Even the appraisers license in the state of Michigan requires a significant investment of time. It doesn't make sense that those writing the transactions, performing legal fiduciary duties on behalf of the members of the public can have less than 2 weeks invested in training and be free to represent themselves as qualified to do real estate transactions w/ very limited or no supervision.

The law in Michigan does require the broker to supervise, but as the actual nature of what the supervision entails is not clearly defined, it is not unusual for a broker to hold one meeting per quarter for all agents..new & experienced.

Boy, Jennifer..You hit the nail on the head! Thanks for you comment. We do well to be reminded that the issues that we are talking about are not insignificant...they can land uninformed, unsuspecting individuals in a lot of trouble.

I have noticed Mike...the parties who end up with the the "shortest end of the stick" within the current system are the clients/members of the general public and the rookie agent. This is very short sighted thinking. It is resulting in the destruction of the proverbial goose that laid the golden egg. An attitude amongst brokers that allows us to use an agent to put 2-3 more deals in our pipeline before they fizzle out is not just counter-productive, it is wrong. Brokers have a responsibility to train, motivate & educate agents who are assigned to their companies.

In Oregon you can't work as a loan officer if you have a felony conviction, let alone for mishandling govt funds! But, there are unscruupoulos mortgage brokers who will allow them to "bird-dog" loans and have the loans placed under their license. Technically, it's not even legal to compensate them for this unless they are hired as a processor. But even this scares me.

Lola,

About a year ago I was chatting with an agent from another brokerage. A Dept of RE attorney had just spoken at her company and told them that after taking the CA RE test applicants were waiting for very long periods of time to have their licenses actually issued - over 6 months. The reason: over 50% of the applicants who tested were found to have criminal records. The Dept of RE was buried in the paperwork.

Your article is a work of art.

Hi Larry, Thanks for your comment. I cannot even begin to explore how an agent with this history was working in mortgages...but he claimed he was & when I checked out the website, he was listed as an associate! You're right it is scary & if it's unsettling to us, you can imagine the raw after taste it must leave in the mouths of those who are outside our industry.

Hi Laurie, Thanks for your comment. I find it interesting to hear about the length of time that it is taking for verification of criminal histories with reference to licensees in CA. When I started in real estate in Michigan 12 years ago, it took between 2-4 weeks to find out if you had passed the test and then a couple more weeks to get your license. Now, the applicant takes the test, gets notified about if they passed instantly & usually has their license within a couple of weeks. We have had an unprecedented increase in applications to our local board. I sincerely hope that advances in technology have enabled the checking of criminal histories to be much faster, thus enabling more people to come on board more efficiently...Did I say...I hope...

Good job , Lola

Lola,

Unprecedented increase in applications here also. They had to start having the test at a massive auditorium in morning and afternoon sessions. I believe they were using the Duck Pond in Anaheim. They were buried in applications and paperwork, I am not certain if it is still as crazy. I hope not.

Can't compare a hair dresser with a real estate licensee. One is sales, yes sales. The other is mechanical and involves personal contact with customers.

Real estate brokerage is unique. I do believe that the bar for entry should be higher. But, I also believe that we focus on the negative far too much.

We manage to broker the transfer of $BILLIONS of Dollars of property each year and keep the U.S. economy fueled by the purchasing power of home owners and the value of the financial transaction.

We need to have more pride in the contribution that we, agents and brokers make and not be so preoccupied with the ones who don't meet our standards. Also, ignore the print media.

WOW! Your article is fantastic and I couldn't agree more. I am a loan officer and we have even less requirements. I wish the process was much tougher because our market is flooded with poorly trained originators that don't know an APR from a hole int he ground.

It is amazing to me that most mortgage companies don't have better training procedures if any at all. For most companies your training goes like this...

Here's your desk, there's the phone, good luck Joe, you're on your own!

My company only hires experienced loan officers so most of our guys do a great job, but I run into situations all the time where a loan officer at another company has completely messed up a deal, and the sad part is they have no idea how.

Hi Lenn, Thanks for your comment. Precisely my point...the bar should be higher. The impact of what we do has incredible implications for our nation & society. By refusing to address this issue, which most of us agree is important, we give the impression that "just anyone" can do this job as long as they have the money for a 40 hour class and can pass a test. (in Michigan) That's just not true.

Of all the individuals who started with me in my first real estate company, only 2 of us are still in the business. I chose the company I did because I was told they had the best education. At that time this consisted of a 1 week training session. (in addition to my 40 hour class) Fortunately, the broker had hired an office manager who was a former marine & put us through the "paces" as best as he could but I was determined to be very proactive about trying to learn as much as I could.

Professionals like yourself & others have much more invested than the "mandatory training" and it shows when you work with people. But all of us are marginalized when the public is exposed to agents who don't know what they are doing and are not supervised.

Thanks Penny for your comment!

Laurie, That's amazing in an odd sort of way...a packed auditorium for the real estate test!

Lola,

Excellent article. I think all new licensees should be licensed under a much more stringent set of requirements as well as some mandatory "apprentice time". And of course, an Active Rain membership-Great post : )

Hi Olan, Thanks for your comment. About 4 years ago, I decided to go through the training to become a loan officer....not because I wanted to originate loans on a full-time basis, but because I realised that it was important for me to have a more intimate understanding of the mortgage process.

The company I trained through did have some excellent training tools, but additional training was not mandatory. If I had not wanted to really be educated, I could still have done loans with very limited knowledge of what I was doing. Even after taking the training & processing some loans under close supervision, I was not comfortable holding myself out as a "loan originator".

I've handled transactions as a real estate agent in which I had to suggest to the loan officer what to do to get a deal closed! I'm thankful to have a great pool of loan originators that I refer transactions to. A good loan officer is a very valuable part of the real estate team!

Hi Kelli, Thanks for your comment. Amen to the Apprentice! & of course...Active Rain! :)

Fantastic post Lola. Mind boggling, but totally believable unfortunately.

Hi Sean, Thanks for your comment. This doesn't have to continue. Most people who enter into real estate don't enter to fail. They are simply not presented with the Tools, Truth & Training to succeed! As an industry & individuals, we have the power to change this!

Lola.... WOW.... no, make that a double wow. EXCELLENT post. You made a great point when using your daughter's friend as an analogy in regards to cosmetology. I might think 40 weeks would be awfully long, but your point is well taken. I think this should take place both in real estate and mortgages.

Overall... awesome post with some awesome points that we need to get across to those that want to be in this business and to the general public. This is more so for the consumer.... but needs to be addressed to everyone.
As PROFESSIONALS, we need to RAISE the bar & educate consumers.........

jeff belonger

Interesting blog.

MAR

2007

Lola,

You bring up some great and interesting points! My wife and I own and operate our real estate business in Texas. To become an agent in Texas, you must have 210 hours with real estate core hours to become an active agent and have a sponsered broker. Before the end of your first year as an agent you must have an additional 60 hours of SAE for a total of 270 classroom hours to stay current. Additionally, you are required to take an MCE Course (mandatory continuing education)every 2 years. As I understand it, California and Texas require the most but both still leave a lot to be desired. It really comes down to how good your broker is and how much does he or she thinks of their brokerage and fear lawsuits that can be devastating!

As someone has already stated,you learn what you need to know to pass the real estate exam and are equipped with just enough knowledge to make you dangerous! We have a 20 year old son that has just completed his 210 hours and we have informed him of just that. We have invited him to join our office and allow us to teach him what he will need to be equipped with to list, sell, negotiate, write contracts and above all else keep your fudiciary responsiblilities intact. All ethic's courses must be taken seriously and continue to develope your skills throughout your career. Times change and so does the rules and regulations of our business. WE MUST STAY ON TOP OF ALL EDUCATATION REQUIREMENTS AND NEVER LOSE OUR DESIRE TO KEEP LEARNING AND BEING REFRESHED.

Lola- you have touched on so many things that need to be seriously looked at in our industry. Great post

Amen!!!

I absolutely agree! 40 hours and the ability to fog a mirror. Hair grows faster than the possible hair cut an agent can do!

Hi Jeff, Thank you for your comment. I appreciated the link to your very informative article as well. The importance of education cannot be underestimated. Many other professional groups have recognized this & have taken steps to improve. We should too!

Thanks Dan & Douglas for reading & commenting, & Melissa for the...AMEN! My hope is that more of us will begin to take a look at things like this which need to be changed in our industry & proceed to do that!

Gary, Thanks for your comments! It's great to hear from a broker in Texas. Your state requirements seem so much more comprehensive with regards to training than many other states currently have mandated for new agents. I'd be very interested in knowing what is covered in the 270 hours! If your son chooses to join your company, he will have the added value of a broker who believes that a well informed, well educated agent is the only kind of truly prosperous & powerful agent. :)

Hi Marygrace, Thanks for your comment! It's nice to hear from a fellow Michigander! You know exactly what I mean & what I'm talking about. Michigan is a great state, we can & must do better for ourselves, our industry and the people we are called to serve!

APR

2007

Here's your desk, there's the phone, good luck Joe, you're on your own!

I apprciate your post, I recently graduated from a school of RE in Indiana. Although, I have 54 hours under my belt, I crave more. I plan to combine my RE with my Insurance career. I know it will be very tough to do, and very time consuming making sure all things are done correctly, however I am willing to do it. One of the problems that I am having is finding a broker that is of good reputation, that will allow me to work part time. I don't want to be shown the desk and phone, and told to do it yourself. I want a broker who will work with me, and teach me the ropes. I am completely a wreck because I have not found the perfect fit, and I am running out of options! As an indivdual with a undergraduate and graduate education, I value the learning processing and will be obtaining a degree in Personal Financial Management with an emphasis in insurance and real estate. I will have an additional 90 hours + of class time. But I also, value experience. I know I will not learn this business overnight, and want someone to teach me. But if I can't find one, I may just go get another job!

APR

2007

Lola, This subject is true and to the point. My daughter, Melanie who you referance in your article, is going through the process that all newbies, including myself go through, wether it be real estate or cosmetology, finding that correct working enviroment. Someone who will continue to show and teach the correct process and not feel we are just there to bring the $'s in. (Which will come with the correct knowledge and time)

We must never think we have all the answers and education needed. Just as new hair styles change, so do the economics, laws and standards of real estate and we must countinue to stay educated on them all!

As an insurance agent, it is my responsiblity to read for the recommended hour per day. I find this hour of self-education allows me to gain a brief look at all the changes in the insurance business; there are quite a few changes in this industry from day to day, that could keep a person in school forever! I expect I will be doing the similar education level in RE. Education is much or more so my responsibility than the brokers! JS

Wow this was the coolest blog so far. I love it and it was very in depth. Great job

Ben

Jodi, Thanks for your comment. I would encourage you to be persistent & continue to look for a broker who is a "good fit." Training an agent today involves far more knowledge than what was available or necessary 10 years ago. Brokers are responding & recognizing that this investment will yeild long term results by ensuring that agents on board are more productive & cause fewer problems due to inapproriate actions & negotiations.

Hi Renee, Thank you for the comment. I'm so pleased & proud of Melanie. As we talked about all she had to work through to become a licensed cosmetologist, I was struck by how much more training was required for her license as opposed to the real estate license. But even after the training, as you correctly note...it's important to be in an environment that allows you to practise your profession with good supervision & on-going exposure to the changes in the marketplace.

Hi Jodi, Thanks for your comment. I would totally agree that every agent needs to be involved in the discipline of pursuing knowledge and education. Even the best training program will only take you so far. At some point, we all have to determine to do what we know we need to do to advance and develop.

However, because of the peculiar nature of the real estate transaction and the economic implications that underly the process, the State of Michigan & all other states within the United States have mandated that agents be supervised. This is to ensure that the public good & interest are served appropriately. We do not expect budding surgeons to teach themselves the latest techniques...this is also not the most appropriate method for real estate practitioners. I applaud your efforts to continue learning & encourage all my agents to do the same.

Hi Benjamin, Thanks for your comment...glad you enjoyed the post.

JAN

2008

Lola, I enjoyed reading this post after being pointed to it in Lenn's Year in Review. I've always been an advocate for higher standards and higher bars to entry in real estate. The cream will always rise to the top and continue their education whether through classes or through their own learning and constant striving for achievement. Virginia requires 60 hours for licensees, and 180 hours of class for brokers. I thought this was low, but have been shocked to find out that many states' requirements are much much lower.

Brian, Thank you for your comment. Standards need to be reviewed across the nation when is comes to licensing issues. I'ts particularly glaring when you compare our requirements to some other professions. I think that our refusal to review this issues as an industry has really hurt the perception of our profession in the public forum.

We had a husband and wife team in our office that moved down to Tennessee (their original home state) they had planned on continuing to practice real estate in their new area. I heard from my Broker that their plans changed when they discovered that they would need to have a high school diploma or a GED which excluded them. I was shocked to to hear this because I had no idea that in Michigan you don't even need to be a high school graduate to be a Realtor. I'm not saying anything against my former co-workers, they were a lovely couple, but it just seems wrong that our educational requirements are this lax.

We can't seriously expect the public to compare us to other professionals if they discover we can be educated to a tenth grade level and still be licensed to sell their homes.

Beth, It's really amazing on so many different levels. The combination of such low entry level standards and such limited requirements for on-going training is a double whammy against true professionalism. Our standards for the mortgage industry in Michigan are not much higher. A lack of training really hurts agents. Thanks for sharing your insights and experiences.

FEB

2008

Amen amen amen!! We are taking steps in South Carolina (where our requirements sound similar to your states, Lola) to require more time and more relevant training to get your license in the first place, and then some kind of apprentiship or mentoring program for the first year or so. Also, some kind of minimum transaction level to keep your license out of probation or some similar status.

Would you fly with a pilot who only landed once or twice this year? Give your taxes to an accountant that had only prepared one or two returns? Your cvil or criminal legal business to someone on their first or second case?

Thanks for your article!

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