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2009: New Year, New Industry Standards?

By Michelle Flaherty

Real Estate Agent with Prudential Northeast Properties

January 02, 2009 08:05 AM

The police officer asks for the motorist's registration, proof of insurance and real estate license.

"Excuse me, officer. Don't you mean driver's license?"

"No sir," the cop says. "Not everyone has a driver's license."

If jokes like this first make you laugh, then make you mad, you're NOT alone!!

RISMedia published the results today of a reader survey, in which they found that consumers were really looking for real estate brokerage as a whole to be "smaller and more professional." Desired changes included a higher barrier of entry and improved financial savvy.

The conversation about the New Real Estate Agent has been a long time coming, and amidst a thinning of the herd this year, it has come to the forefront. In his presentation at the NAR conference in Orlando this fall, Stephen Swanepoel suggested that our job description needs to change. No longer do consumers need access to the listings - that's what the internet is for. Rather, in this complicated market people need the level of service and guidance they get from their financial advisors, their accountants, and their attorneys. They need a trusted real estate advisor.

Could a smaller and more professional industry lift the "Real estate agent" brand to the general esteem of "lawyer," "financial advisor," and "accountant"? I hope so - and I hope we can pull the "lender" brand up with us.

Re-Blog

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Bill Gillhespy

16 Sunview Blvd - Fort Myers Beach, FL

Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Michelle, Excellent post and analysis of where our industry is headed. Love the joke, too ! Hope your 2009 is the best ever !

Jan 02, 2009 08:16 AM

Team Honeycutt

Allen Tate - Concord, NC

Michelle, this is a great post. Good insight into the future. Thanks for sharing.

Jan 02, 2009 08:22 AM

Golden Estate Management

Golden Estate Property Management - Los Angeles, CA

Thats a great post Michelle. Thank you for sharing that with us! I hope you have a great day and Happy New Years by the way!

Jan 02, 2009 08:30 AM

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

Michelle, you're right on your post, though I'm not sure if a smaller industry will be any wiser. Still, too easy to hang a part time shingle and not really know what's going on. Since this is really still sales, it's also a very personality driven business.

Jan 02, 2009 08:42 AM

Christopher Johnston

The Johnston Team - Metairie, LA

I reblogged this. I think that many people are not happy with the level of service given by their Realtors. Much of this could be eliminated by brokers eliminating their come one, come all hiring practices. I also think that NAR has tarnished the Realtor brand they worked so hard to build with many of the same practices.

I think that a higher barrier to entry would not necessarily eliminate the problem. You would just end up with many of the same problem only it is now being done by people with money. Education, meaning degrees, is not reliable either because I know many people with college degrees that I wouldn't even let wash my car let alone help me with a several hundred thousand dollar purchase.

You also have to remember that we work in a commission based business and many lawyers, doctors, and accountants are lured to those businesses because they perceived that those professions offered fat salaries and generous benefit packages. It would be very hard to get anyone to become a real estate agent with $50K - $100K of startup cost, long drawn out educational qualifications, and then tell them you have to go market yourself and earn a commission.

I have been a financial advisor and know personally that the barrier to entry is fairly low. Earning a CFP takes thousands of dollars, hundreds of hours of study, and requires actual experience to earn the designation. If NAR required this of Realtor designees it would be a much smaller but more respected group who earned designation. This would of course weaken NAR's political power and clout and sometimes I think that is what they are more concerned with.

Jan 02, 2009 08:43 AM

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Michelle Flaherty

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