How To Hold Your Leverage As A Real Estate Agent In A Changing World

By
Real Estate Broker/Owner with Maui Life Homes / Metro Life Homes RS-78439 / BRE #01708344
https://activerain.com/droplet/4lDF

How To Hold Your Leverage As A Real Estate Agent In A Changing World

Real estate agents wear many hats.  Those of us who have been in the business for a while can certainly attest to having played such roles of broker, stager, psychologist, friend, designer, accountant, attorney, babysitter, petsitter, housekeeper, counselor, chauffeur, and on occasion - chief bottle washer.

The traditional role of a real estate agent used to hold much more "mystery" behind it.  Mostly stemming from what properties are on the market as well as what properties are coming up soon.  Those agents who have been in the business for approximately 15 or more years can remember when the MLS listings would come out in print once a week which provided all the new inventory and price reductions.

I can't tell you how many times I've heard the phrase "back in the day when we used to write an offer on the hood of our cars".  We certainly were a paper "full" society back then.

But the main point is that the most important information about the inventory on the market was at OUR fingertips.  WE were the gatekeepers.  WE were the all mighty and powerful Oz that held the magic behind the curtain.  In order for buyers and sellers to be able to know what was going on in the market in order to buy or sell, it was pretty much a given that you had to hire an agent at that point.

Well, as most all other industries, technology has changed the playing field.  And in our case of the real estate industry, it has changed the playing field dramatically. 

Empowerment has been a concept in the human resources field of  business for decades.  It was one of the concepts I studied in college during my pursuance of a degree in Business Administration.  The premise being that when you provide empowerment to an employee, i.e., the ability for the employee to take full control, responsibility and input for their goals, it not only creates much higher job satisfaction, but the overall quality of their work improves as opposed to the traditional role of an employee given a singular task and being told what to do, when to do it and how to do it.

The concept of empowerment has been infused into our industry in probably the biggest way.  With the advance of the internet, buyers and sellers have everything they need (and in some cases what they don't need) right at their fingertips.  So much, that in many cases they have the ability to become aware of new listings and price changes before we as agents do!

How did this transpire?  What is the core of this huge transformation in our industry?  Three simple little letters:  I - D - X.

IDX stands for Internet Data ExchangeIDX was the original "kernal" of our MLS (Multiple Listing Service) system in that it was, and still is, the system that allows brokers to load new listings for other brokers to be able to subscribe to and view.  Most of us have local board associations that supervise this in conjunction with those technological firms that provide the platform or "interface" for the entry of data into the local MLS system.

So the first technological advance we made was the conversion from the paper catalogs to the online MLS.  And what an advance that was!  We had the world at our fingertips, and search capabilities went through the roof with the ability to sort via select criteria.  It allowed us to provide laser-like and lightning-fast search capability to our clients of equal value to both buyers looking to purchase with specific goals as well as sellers wanting to know what the activity, comparable sales ("comps") and competition was like.

Well, that empowerment went through a major shift in availability.  It went from being exclusive to the MLS, to being channeled out to the public via the major websites - Zillow, Trulia, Redfin, Realtor.com, etc.  Not only that, but these websites became so rich with technological features in the form of search capability that they became the #1 place where buyers begin their search.  The traffic to those sites is so high now that the websites have now begun selling advertising space to agents for exposure to buyers and sellers.

How ironic is that?  Those listings that you've worked so hard for are now used to generate leads that are being sold back to you! (But I'm not bitter, oh no, not I - that's another blog in itself!)

Not to sound cliche', but - It Is What It Is.  Unless N.A.R. does something to change it (and soon), the major consumer real estate sites are here to stay, in a big-ass way.  In fact, they may end up becoming the "New MLS".  So, unless you want the world to pass you by, you'd better learn how to work that fact into maintaining your leverage as a professional in your industry.

It certainly can be done - IF you focus on the actual requirements of a real estate transaction, the flow of information available for residential real estate, and how to utilize your leverage.  I've come up with a concept so that your clients continue to "like" what you have to say, enough so that you hold enough leverage in your profession to continue to add value to your clients and justify your commissions.  I've actually dubbed it the "LIKE" concept:  Law, Information, Knowledge, and Experience

 

"L-I-K-E"

1. Law - Know the legalities of your industry and those surrounding a real estate transaction.  Contractual law.  Take a course.  Litigation is at an all-time high.  More so in certain states than others.  When you begin working with a new client, SHOW them how thick of a stack of paperwork a complete file is for a real estate transaction with all parts of the contract, addendums, disclosures, inspections and reports.  Once they see the legalities behind a real estate transaction and why it must be brokered, they understand the need for a professional.  Remind them that the level of legalities requires not only your expertise, but that of your affiliates - escrow, title, your broker, and also those you consult with such as preferred lenders and inspectors.

2. Information Technology - Stay ahead of the curve.  Take advantage of any and all that provide with faster or time-saving techniques.  Use tools to "subsidize" the powerful internet sites that are currently at your clients disposal.  BE CAREFUL, however.   Don't subscribe to everything but the kitchen sink just because you think having more technology is better.  BE SELECTIVE.  Burnout is a VERY dangerous element.  I've learned that first-hand. Invest in technology that not only acheives your goals, but that is a right fit for your own capacity and logistics.  Don't subscribe to technology merely because you hear it's the "IT" thing right now.  Kick the tires.  Make sure the investment will have the right return for you in the form of long or short-term results and/or time-saving capability.  Blogging is even more powerful these days.  I can't tell you how many referrals and dozens of deals that I've completed as a result of agent referrals AND consumer inquiries from my blogging on ActiveRain over the past 8 years.  Not only that, but reading other blogs has provided me with MUCH inside information that builds my arsenal of informational leverage.

3. Knowledge - Know your inventory! Get out to those broker caravans and open houses as well as staying on MLS alert.  Find out what's actually INSIDE those homes and WHY.  Participate in neighborhood activities.  Become part of the local organizations.  Know what's going on with the business and political climates of your areas.  When a client sees clearly that you "know the neighborhood", there will be a natural gravitation to you. YOU CANNOT FIND THIS INFORMATION about the residential/geographical areas on the major consumer real estate sites.  It is UNIQUE to you, through your own legwork.
Very important - Know the affiliate information surrounding a real estate transaction.  Finding a home is one thing, but a real estate transaction involves in most cases a loan, insurance, property taxes, maintenance that is unique to certain kinds of properties.  Become an expert in ALL of those fields.  Take your affiliates out to lunch - Loan Officers, Escrow Officers, Title Reps, Real Estate Attorneys, Inspectors, etc..  Pick their brain.  Ask them to teach you about their jobs so that you have that knowledge.  For example, understanding the different kinds of loans, their requirements, and how that affects a real estate transaction.  I cannot tell you HOW MUCH power that gives you as a real estate agent.  I guarantee it is the key to your profession in the future.

4. Experience - What transpires during a real estate transaction is something NO ONE can teach.  It only comes with experience.  We all know that real estate transactions can be problematic.  Why?  Because it involves a lot of elements coming together in a short amount of time - real estate, finance, contractual law, construction, horticulture, taxation, accounting, etc.  Problem solving is probably one of the largest tasks you complete during a transaction.  Once again, this information is not available on any website.  It comes from your own experience.  Your client may be able to find a home online, but how do they craft an offer that will get accepted?  How do they get through an escrow successfully?  How do they negotiate through a transaction with all the elements at hand?  What happens when you hit a lender guideline obstacle?  Your experience is gold.

And if you want to take it up a notch, there is a 5th element I will dub as "anticipation".  I've been a tennis player since I was 12 years old and still play competitively.  Some of the greatest tennis players ever possess an extremely high level of anticipation.  And what that means is they have an uncanny ability to predict their opponents next shot and where it's going, and why, according to patterns they've observed.  As an agent, you must develop that same sense of anticipation.  Stay on top of trends - technological trends, economic trends, sociological trends.  Read as much as possible. Also, know when to go against the grain - when everyone else is running in one direction, chances are it's probably time to think about running in another direction.

Of course, demographically, there are going to be exceptions in which some (not all) of the "baby boomer" and older generations do not delve heavily into technology and will rely upon you to take the more traditional role which will involve the property search element, and will want you to do it all.  Those will be few and far between, but you are certainly prepared for that.  But for the most part, the bulk of buyers and sellers are plugged into the technological matrix.  And your fluency with that matrix is critical to your career.

The playing field is shifting, peeps.  Who knows?  Commissions may become a thing of the past.  Perhaps a real estate agent will become a salaried position?  Don't laugh.  Whatever the case, be prepared.  Your experience and expertise, just like any other job, is the key to your marketability.

 

Ralph Gorgoglione


Los Angeles Homes For Sale

Los Angeles Condos For Sale

Los Angeles Townhomes For Sale

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
California Los Angeles County Los Angeles
Groups:
Realtors®
The Lounge at Active Rain
EcoBrokers
"Whacked"!!!
LA Connection
Tags:
trulia
zillow
realtorcom
redfin
maui real estate agents
ralph gorgoglione
los angeles real estate agents

Spam prevention
Show All Comments
Rainmaker
1,523,605
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

I remember when I first started in 1999 and the listings and the MLS systems was still DOS based.  A few years prior to when I started the listings came out in print once a month!

Aug 06, 2014 03:24 AM #3
Rainmaker
1,078,834
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

You are well ahead of the pack!  I love your thoughts on this subject - particularly becoming as educated as we can on ALL subjects related to the deal. I find myself lately reading articles very carefully that I used to just skim - I really need to know this stuff.

Aug 06, 2014 03:40 AM #4
Ambassador
942,052
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

As usual, this isn't a slap dash post but is one written as a professional article.  I expect no less from you, Ralph.  Excellent!

Aug 06, 2014 03:53 AM #5
Rainmaker
1,026,990
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Exellent post and full of good ideas, as usual.   I am holding my breath waiting for NAR to o anything, of course. 

Aug 06, 2014 04:14 AM #6
Rainmaker
4,440,331
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Ralph,

Excellent thoughts and tips, as Suzanne said, you put a lot of thought into this post, Bravo.  A

Aug 06, 2014 04:31 AM #7
Rainmaker
456,036
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

Fantastic post on how to navigate the new real estate waters we are in. Just today I received a new listing because they said I know the neighborhood and I care about it. Truth! And, I am previewing the heck out of properties, which some agents are getting upset about. (That boggles my mind)

Thanks for sharing the LIKE!

Aug 06, 2014 06:12 AM #8
Rainmaker
1,560,731
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

There is nothing the NAR can do about it Ralph.  The DOJ vs. NAR law suit in 2005, which no one seems to remember, brought this beast into the forefront.  Yes, it's much more difficult to earn a living, get clients, but your superior sense of optimism is refreashing!

Aug 06, 2014 06:38 AM #9
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Ralph, I like how you mentioned the fifth element, anticipation, and it's what I'm currently paying attention to. 

Aug 06, 2014 07:27 AM #10
Rainmaker
280,079
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

We are fortunate that our Houston Association of Realtors had great foresight to embrace the internet and create a fabulous MLS system.  Gone are the days when I had to lift a toilet tank lid to find the year the house was built.  This information, funneled to the buyer, has made my job much easier.  We no longer drive up to a home only to have the buyer say "I don't like the exterior and I'm not going in".  For the most part, the buyers know what they want to see and have "seen" the inside online.  Yes, they have the information, but they still need the guidance, experience and personal service of a good realtor.

Aug 06, 2014 07:34 AM #11
Rainmaker
1,302,648
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Charles Darwin would have said that the members of the species that is most adaptable to change is the most likely to survive. Realtors must maintain their adaptability because the only thing we can be sure of is change.

Aug 06, 2014 08:49 AM #12
Rainmaker
2,189,769
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

I'm basically a lazy person who prefers to lounge about in a bathrobe in front of her computer and make a bazillion bucks by letting my fingers do the walking and my mouth do the talking. It's worked out great so far! Beats driving all over the city pounding the pavement.

Aug 06, 2014 10:17 AM #13
Rainmaker
1,317,551
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Real estate certainly has changed.  It will continue to change.  Too bad NAR was not on top of things... you would think with their large membership and the dues they collect, they could have protected agents from the recent trends where we have to buy back out own listings.

Aug 06, 2014 01:20 PM #14
Ambassador
4,300,186
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Ralph Gorgoglione - now that's a real KEY to success! loved (or should I say L-I-K-E-D) you acronym game!

Aug 06, 2014 02:38 PM #15
Rainmaker
537,136
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

Great, thorough, post, Ralph.  I'm glad you bring knowledge and experience into focus --- those are very important and something even the savviest of online researchers cannot develop in the time frame of their search.  Also, "law."  In mortgage lending, this is exceptionally vital too.  Yes, you can shop anywhere for rates and quotes, but can/will the lender you select navigate the rough, unforgiving seas of our current regulation and bring you to the safe harbor of successful close?  There are many changes at play, I think the pros among us recognize and are taking the necessary steps to keep the leverage we've earned and deserve.  Again, great post.

 

Aug 06, 2014 10:12 PM #16
Rainer
26,862
Jesse Poll
KELLER WILLIAMS Realty, St. George - Saint George, UT
Keller Williams Realty, St. George Utah

Thanks Ralph. Great read and educational.

Aug 06, 2014 10:43 PM #17
Rainmaker
2,454,054
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Call Ralph and then decide what to do from there...Tell em Richie says hello

Aug 06, 2014 11:47 PM #18
Ambassador
1,583,961
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Ralph - An intelligent post for the current real estate times.  Yes, things are changing and not be too Darwinian, but adapt or fade away.

Aug 07, 2014 06:13 AM #20
Rainmaker
599,904
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

Nice thinking Ralph.

Surely, things will change.  Agreed that realtors don't disappear.  Likewise, just as the 1950's agent wouldn't fit in today's world for today's consumers, surely the 2014 agent won't fit in the 2024 world without significant change.  

Be ready.

Aug 08, 2014 12:35 PM #21
Rainmaker
2,372,540
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

Very good post about change I am sick of change for change sake can't wait for that post

Aug 08, 2014 01:17 PM #22
Rainmaker
1,043,650
Christopher Lotte
Red 1 Realty - Lithopolis, OH
Central Ohio Realtor, 614-390-9243

,

hey there, how are you? well, it does came from a great man. words of wisdom! thanks for sharing.

Aug 14, 2014 12:49 AM #23
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
1,193,794

Ralph Gorgoglione

Hawaii and California Real Estate (310) 497-9407
Ask me a question
*
*
*
*
Spam prevention