How Many #1's Are There?

9-6 #1 again

I read a great article the other day on Inman News called ‘The Myth of the Million-Dollar Producer, Label Holds Little Value for Consumers’ by Scott Einbinder. It put me in mind of a discussion we had at the California Association of Realtors a few years back with mega-broker John L. Scott regarding the myths Realtors perpetuate on ourselves that actually hold little value for our customers. This includes things that we promote to consumers as valuable yet in our own private circles we know they are of limited or no value, things like open houses, ego ads, newspaper advertising and bragging about how many houses we sell without focusing on how we sell houses – the quantity vs quality argument.

I wrote about one of those silly facts several years ago (#1 in the #2 Business) how every real estate office in town claims to be  #1. Whether it’s the ubiquitous billboards, the newspaper headline trumpet or the simple business card boast, every office and most agents are #1. Do consumers believe us? No, they laugh about it, it’s damaging to our credibility as an industry yet we continue to do it – we can’t help ourselves. Out of 5,000 agents here, I’ll bet more than 4,000 of you are #1 at something – and if you’re not you’re with the #1 office until you get to be the #1 agent. Myself, I’m actually #2 overall but I'm trying harder.

So the questions raised by Mr. Einbinder regard the value of being a ‘million dollar producer’ and if it’s something we really want to promote? Does the consumer understand what a ‘million dollar’ producer is? Does it mean they’re working with the best? A top producer? Someone who brings a great deal of experience to the deal? Do they think you’ve produced $1 million in revenue? Income? Sales? Profit? And do they care?

Does it further perpetuate the myth of the high-living real estate agent making tons of money off the few paltry services they provide? The public already believes we make too much for doing too little – why keep perpetuating that myth. You and I know how hard we really work to earn a decent living and we also know what happens to the ones that don’t work hard. Why give the public the impression we’re all making millions while they’re struggling to hang onto their homes? Is that smart?

Of course customers in the know realize that a ‘million dollar producer’ may be an agent on the edge of dissolution. In California you can sell one house and be a ‘million dollar producer’. But if that one house is all you sell you’ve just made $30,000 of which your broker took 30% or 40% leaving you with… Well, nothing to brag about that’s for sure.

Of course the market is making some adjustments right now so some former high-flyers are struggling to find a niche while others who jumped on the bank band-wagon are reaping the benefits. Does that make Realtors who were top producers for years in a customer-driven market suddenly less qualified? Do the vagaries of the market confer instant credibility on agents who have a contact at the bank? Can anybody recall for me who the top three REO agents were here in 1994? I remember they carted home lots of awards before disappearing quietly under the waves when the market turned around. 

The final shot across the bow from Mr. Einbinder regards credentials. Not to take anything away from them but does that smorgasbord of alphabets really mean anything to the consumer? How many agents do you know who spend their lives in pursuit of credentials but still cannot sell a house or provide an exceptional service experience for the consumer? It’s another one of those things that means more to us than it does to the consumer who’s just looking for a simple, successful real estate experience.

Mr. Einbinder goes on to pose a series of questions that consumers should ask a prospective agent – things that would make many of us uncomfortable. Are you a full time agent? May I see your resume? (Not your brag book or your canned listing presentation, your resume – like for a real job). What is your price reduction history? (Do you buy listings to pressure future price reductions). What is your consumer risk-mitigation protocol? What is your negotiation strategy? Good stuff. Real stuff.

I don’t necessarily agree with Mr. Einbinder across the board but he points out a number of interesting facets of our business that we might want to re-evaluate during this period in our market. What emerges from the detritus of the current housing market will be different technologically and practically from the previous market and way different from what it is today. Use this time to evaluate your business, your professional practices and your positioning for the future. After all, this beast won’t run forever and the agent of tomorrow will have learned from today, built on today for tomorrows business. And it won’t necessarily be today's  ‘million dollar producer’, I think we can all agree on that. I believe I'll go have an 'Old Number 7', thank you very much.

Gene Wunderlich - Selling Southwest California Homes including Temecula, Murrieta & The Southern California Wine Country
                   

Remember, Don't wait to buy real estate - Buy real estate and wait.

' How Many #1's Are There?'

THE OPINIONS IN THIS COMMENTARY ARE STRICTLY GENE WUNDERLICH's PERSONAL OPINION. WHILE ANY REASONABLE &/or RATIONAL PERSON SHOULD AGREE, THESE VIEWS MAY NOT REFLECT THOSE OF ACTIVERAIN, COLDWELL BANKER RESIDENTIAL BROKERAGE OR ANY  LOCAL, STATE OR NATIONAL ASSOCIATIONS.

 

 

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