We are the real estate experts, aren’t we?
I know that I have a pretty strong mix of consumers and Realtors® reading this blog and this is an issue that really matters to both. What is the value of a Realtor®, what are the basic levels of experience you expect, and should standards be raised? I read a blog for agents several times a week called Agent Genius and today a blogger, Benn Rosales, posted “Ending Right to Practice” which brings up an argument that I have touched on in the past but is very important. There are over 8,000 Realtors® under the Austin Board of Realtors®. Keep in mind that Williamson County has its own board, although some are members of both. 8,000 Realtors® in Austin, not counting those licensed real estate agents who are not members. No wonder we all receive so many post cards and emails!
The perception of value of Realtors® is not good right now. There are plenty of really good Realtors in town. And there are just as many under-qualified, under-trained Realtors and real estate agents. This makes my job so much harder! I work my tail off using the experience that I’ve gained through a lifetime in the real estate industry. I honestly don’t know how hard it is to learn this business, but some are suited for it and some are not. I hope that these “turbulent times” help to weed out those who are in it for the joy of the job and those who heard there is money to be made in real estate.
What should the requirements be? In Texas, those seeking a real estate license must complete a few hundred classroom hours of courses followed by 15 classroom hours each year. Those seeking Broker’s licenses must be an agent for two years and complete an additional load of courses. I won’t bore you with everything here, visit TREC’s Education section if you’d like to know more. Is more education needed? I did not find the courses difficult and completed my initial hours in two months. I had the advantage of a strong background in real estate and found that many of the items covered are not practically used and that I felt I needed more transaction-specific education. I found this with the Texas Association of Realtors® GRI Courses. Still, nothing beats good old-fashioned experience! Many, many agents don’t pass the licensing exam the first time. You’d be amazed at how many don’t! I’m proud to say that I aced it, but again, I had experience before education so I was at an advantage.
I find that all of the odd transactions find me. I mean that seriously. When I take a simple listing, I get complicated offers. When I take a complicated listing, contracts don’t often lead to a closing the first time. Luckily, I have the support of my experience and my Broker’s encyclopedia of experience and knowledge (thanks, Michelle!). Without the support of my Broker, I wouldn’t be nearly as successful. All of these new brokerages around town can be scary. I was in class with a girl younger than myself (and I consider myself a youngin’) at the tail end of getting her broker’s license who already had part ownership in a brand new brokerage with other new brokers. Scary! Who do the agents call when they have a funny item on a contract?
Agents need more education! And more practical education! Brokers need more experience. The two-year time limit wouldn’t bother me if the Broker-to-Be had closed 40 transactions, but there is no transaction requirement currently.
What are your feelings? I’d love to hear more on both the agent and consumer side. We are the experts, aren’t we?
Related posts:
We consider ourselves professionals, but neither TREC nor the Board of Realtors require a truly professional education program. You can complete course requirements online within 2 weeks.
We consider ourselves professionals like Doctors or attorneys but there is little professional training or barrier to entry.
An appraiser has to practice as an “apprentice appraiser” for a time before he can be licensed. to work on his own. Agents have to do little more than fog up a mirror.
I don’t know where the answer lies. But I do wish that there was more of a barrier to entry.
I am surprised by how many homeowners are willing to list with someone they know from church, or little league or their “friend” instead of someone who proves themselves to be a true professional. For most people, their home is their largest investment…. the marketing is important. Yet the most realtors marketing is just not that good. Negotiating skills are very, very important– yet they sign up with a realtor who can’t even negotiate a decent deal on their own commission.
(one more thing)
With this blog and your site– you are doing what you can to impart knowledge to potential clients. You are demonstrating your knowledge as a professional. I don’t know why homeowners or buyers would sign up to work with someone who doesn’t do this. But it happens ….all the time.
Thank you, Dena! And everyone else who has called and emailed!
Unfortunately this is a nation wide problem. The requirements in Montana are 60 Pre-License hours & pass a test. Get a briefcase and some business cards and “BAM”! You “R” One! Quick to represent that you are completely professional, (via subscribing to a code of ethics), and prepared to deal with a persons, (many times), largest single investment.
Then only 12 CE Credits a year and of those only 4 are Mandatory, and 8 elective (feel-good) credits. Which we just had a C.E. class yesterday and we learned way more about the life and times of the speaker than the subject on the flyer!
Even the new agents at the class, hungry for information, felt slighted. The class was more of a pitch to sell the speakers DVD’s and private coaching than information on latest trends in the represented educational subject. (What a complete waste of time and money).
All this general lack of education does, is facilitate a feeling, (to a Seller), of “Geez, if this is the quality of competence and knowledge I can expect from my agent; perhaps I can go it alone or use a flat fee FSBO program…”
If you have little or nothing; what more can you bring to the table?
I think NAR and the State Associations simply want lots of warm bodies to paying dues so they can maintain nice offices and enjoy good paychecks, (and if we’re not too smart – all the better). What is 1.3 Million Realtors times 60 bucks?