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Part-Time Agents - Whadaya Gonna Do?

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Real Estate Technology with Anywhere Real Estate

Half of a clock sticking out of a wall"This is my mom's house" the agent said proudly.  "I grew up in this house, so I can tell you anything you want to know."

Perplexed, I asked, "Oh, I'm sorry but I didn't see that you were related to the seller on the MLS sheet."

"Well, I didn't want people the people in my office to know it is my moms home" she unwittingly retorted.

"You should ask your broker about that.  You are required to disclose that relationship," I said. 

After a couple of seconds of silence, the agent asked, "So, what time to do you want to come by and see it."

Later, after speaking with the listing agent's broker, I found out that the agent has been licensed for two years, and this is her first transaction.  She works full time in a local office, but keeps her RE license on the side.

 

The Problem:
This is common.  In my market, 60% of all of the transactions in the past 12 months were done by agents who sold 3 homes or less in the same time period.  That is wrong on so many levels, but I would like to point out two.

First, this business does not enjoy the best of reputations.  I was a used car salesman prior to entering this line of work, and I believe I was though of better then than now.  I think a big reason for this is because the majority of transactions are performed by amateurs who simply do not have the experience, and have not dedicated the time and effort to practice this craft effectively.  Clients suffer because they are entrusting the largest investment of their lifetime to a part timer who barely understands the business.

The second big problem is that this scenario takes food out of our mouths - the full-time agents who dedicate the biggest chunk of our lives to helping people buy and sell homes.  I have no problem paying a referral fee, but if the biggest chunk of business is going to part timers, full-time dedicated professionals are being forced out of the business and we all suffer.

The Solution:
We need to demand that our local association stop accepting the applications of agents who do not work full-time.  Brokers should have to sign an affidavit for each individual agent in her office stating that agent performs 40 hours of real estate related work each week.

Also, if an agent has not sold at least 5 homes before the time their license is up for renewal, that agent should have to send in an affidavit stating the he is still working 40 hours per week toward the endeavor of selling real estate.

Closing:
If these changes are made, the industry will change.  Our reputation will improve when clients experience the difference that working with a full-time dedicated agent makes, instead of being quilted into working with their sister-in-law who has seldom performed the task of professional real estate.

I welcome your thoughts.

Comments(8)

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Ray Garrett, Jr.
Anywhere Real Estate - Raleigh, NC
Director of Productivity and Innovation

I forgot to mention that I have been lobbying my local board for changes.  As soon as I get information on the next steps, I will update this blog.

Apr 23, 2010 02:47 AM
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate

Hey, Ray. As a Full Time Agent, I understand your frustration, but I have have met many agents that need to resort to a "part-time" status in order to support their families. Does this mean that they should stop participating in real estate. I don't think so. The "Part-Time" Agent in not new to our industry and I feel that they offer a vital role. There are certainly exceptions on both sides of the fence with this one. There are many that will disagree and I welcome the remarks as well. All my best with his one, Jim

Apr 23, 2010 03:01 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

A part time agent usually means I am going to be working over time.

Apr 23, 2010 03:09 AM
Richard Strahm
American Foursquare Realty - Lansdale, PA
Lansdale and North Penn Real Estate

I've met some great part-time agents.  I've seen some horrible full-time ones.  But I really like the idea of minimum sales standards for license renewal.  We have minimum gross commission standards at our office.  If you don't produce, you're kindly informed that another agency might be a better fit.

Apr 23, 2010 03:45 AM
Ray Garrett, Jr.
Anywhere Real Estate - Raleigh, NC
Director of Productivity and Innovation

Jim, to answer your question, I think it all depends.

If the agent is still productive and doing real estate on a regular bases, then I think that is fine provided they are spending the time in Real Estate necessary to keep current.  My opinion is that this requires 30 - 40 hours per week.

For the vast majority though, they should put their license on inactive status or at best, simply refer clients to agents who are working full time.  I've never seen an effective agent who works a full time job do real estate on the side effectively.  They should refer, make a little money, and stick to their day job once they leave the industry.

I would support making it easier to get reinstated should they decide to return full time.

Apr 23, 2010 03:49 AM
Ray Garrett, Jr.
Anywhere Real Estate - Raleigh, NC
Director of Productivity and Innovation

Doug, that line is great.  I'm stealing it :)

Apr 23, 2010 03:50 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

FSBOs are EASIER to deal with than part-time agents * with FSBOs you KNOW you have to do everything and with PT agents, they say they will do something and it will not get done and you won't know until it is too late!

Apr 23, 2010 11:19 PM
Ray Garrett, Jr.
Anywhere Real Estate - Raleigh, NC
Director of Productivity and Innovation

@Wallace,

I've actual;ly asked FSBOs for 4% before because of the level of work I was going to have to do on both ends.  Finally, I convinced them to give the extra 1% and had another Realtor friend handle their side.

Apr 27, 2010 05:32 AM