I travel Interstate 64 between Charlottesville and Richmond at least once a month. It is a fairly lightly traveled highway (compared to 95 and 81), so it is justifiably only two lanes wide in either direction. It is also a fairly boring drive because the scenery (which is nice) does not change for 50 miles. The road is straight, flat, and requires a stop at Starbucks before you brave the monotony.
The lack of interesting scenery or road challenges allows my mind to wander and think up Blog posts like this one. On a recent trek back from Richmond, I experienced a common source of frustration – a legitimate pet peeve of mine – when I found myself going 5 miles UNDER the speed limit while driving in the “fast lane.” As you can guess, there was an otherwise “normal” person merrily cruising down the left lane and ignoring the signs that say “Slower Traffic Keep Right.” Cars had stacked up behind this slowpoke as they attempted to negotiate passing the vehicle on the right.
There was a law on the books in Virginia that made it illegal to pass on the right, but that was removed several years ago because more than one member of the General Assembly shares my pet peeve. I would have preferred that we stiffen the penalty for driving slow in the left lane (perhaps jail time) instead of justifying cars weaving through traffic, but then again, how much sympathy can you have for drivers like me who believe a State Trooper’s mantra is “eight you’re great, nine you’re mine?”
For many agents, the same frustration occurs in the real estate business. I often hear complaints about less “professional” agents slowing up a transaction. In essence, the complaint is that one agent involved in the transaction is hurting the efficiency of information flow needed to get the deal done, much like a slow driver in the left lane hurts the efficiency of traffic flow. This analogy, however, breaks down when you compare the root cause of the problem. The driver in the left lane is simply rude or inconsiderate of other drivers, but less-than-professional agents are generally the ones not delivering top-notch customer service.
Make sure you do not confuse “unethical” and “unprofessional.” In my 18 years of fielding complaints about the behavior of REALTORS®, only a very few have been actual ethical issues. Generally, complaints result from poor service, bad communications, or bad information. In other words, bad customer service is what generally causes a REALTOR®, or the public, to complain about the “professionalism” of an agent.
There is a perception that there is a lack of quality customer service in the real estate profession, but I’m not sure how much reality is in this perception. Recent market research by the National Association of REALTORS® (sorry, I couldn’t find a link) showed that the public loved their personal agent, but did not think highly of the profession as a whole. To put it a different way, the public loves the way their agent drives, but thinks most other agents are driving too slow and in the left lane.
Since perception IS reality, it does not matter if most agents or just a few are driving slowly in the fast lane. It really only takes a few bad drivers to mess up the efficiency of the traffic, and it only takes a few agents delivering bad customer service to mess up the entire industry. If we are unwilling to cull out inconsiderate drivers or bad service providers, then we should not be surprised by the results.
When the Virginia General Assembly changed the law to allow drivers to pass on the right, they were, in effect, saying that there was nothing they can do about slow drivers in the fast lane. The REALTOR® organization, to its credit, has not given up on the industry’s customer service problem (real or perceived). There have been a few attempts to change both the perception and the reality of the industry. The perception of REALTORS®, thanks to millions of dollars of ads, has improved, but is still low compared to other professions (2000 Gallup Survey, 2005 Gallup Survey). There have also been a lot of efforts to raise the education requirements for real estate licensees in many states. Unfortunately, very few of these education requirements include anything to do with customer service. There is no evidence (at least that I’m aware of) that any of these increased requirements has decreased the number of slow drivers in the fast lane. Perhaps we have created smarter drivers, but we have not caused them to change lanes.
So if more education and millions of dollars in ads is not the answer, what will cause under-performing REALTORS® to either drive faster or move over and let others pass? We don’t know for sure that this is the answer, but my local association in Charlottesville (CAAR) is getting ready to take a bold step and go where no other association has gone before. Recently, the CAAR Board of Directors approved a first-of-its-kind partnership with QSC to improve customer service among local agents. The partnership includes opportunities for customer service training and an on-line consumer rating system (coming this fall) that will tie in directly to the local MLS.
CAAR believes that improving customer service across the board is good for both the public and REALTORS®. The results that QSC has achieved with select agents around the country are impressive and we believe that expanding this system to all agents in our local area will raise the bar for both agent performance and consumer expectations. We’ll have to wait and see if this program moves low performers out of the fast lane, but at least we will raise the speed limit and see who can keep up.
Brian Brady says:
An outstanding initiative, Dave.
June 9, 2008 — 10:26 am
Chris says:
I cure left lane bandits in the following manner.
1. First flash lights and see if they will move, if that doesn’t work back off.
2. Speed up to about 110-120mph with high beams on. You cannot go to fast, I have done it at 140 in an S600.
3. Get as close as you dear before hitting the brakes.
4. The idea is to come up on them fast, they will be watching. If done right they will make a bonzi dash to the right hand lane fearing for their lives.
Note: you need a good car to do this, I prefer an S class, but any high end European car should do.
I hate left lane bandits.
June 9, 2008 — 10:36 am
Dave Phillips says:
Chris, that is very funny. You have more guts than me (and a better car). Do you have any similar solutions for REALTORS who drive in the left lane?
June 9, 2008 — 10:40 am
Dylan Darling says:
Great analogy. When I started reading it I thought the whole post was going to be on Driving behaviors. I can’t stand when people drive slow in the fast lane, both in driving and in real estate. I think if you work with an agent on the other end of a deal that you believe isn’t doing his/her job properly, you should contact their principal broker and let them know.
June 9, 2008 — 11:05 am
Greg Swann says:
This is great post, Dave, but this:
is a rockin’ idea. Of all the chicken guano I’ve heard out of the NAR about latching onto Web 2.0, this is the first actual Web 2.0 initiative I’ve heard. My hat is off to you, sir.
June 9, 2008 — 11:42 am
Jim Rake says:
Dave – did you have to go there? My days (thankfully, I don’t have to commute to the Pentagon anymore.) are spent off and on driving up and down I95…talk about no scenery!
Whether practicing real estate, or behind the wheel, many of us will do what is required, and not much more, UNLESS, encouraged to do otherwise. More road signs saying “Slower traffic move to right lane” might help on the highways, not to mention a ticket or two for those driving unsafely. Similarly, greater accountability in our profession wouldn’t hurt, for the offenders and the enablers (brokers). For brokers, hefty fines might work (if, of course, they knew, or should have known), for those found guity of unprofessional behavior, fines should do the trick as well. As far as NAR’s research, just remember, we say the same of our local Representative, despite the fact that Congress’ rating is in the tank!
June 9, 2008 — 12:12 pm
Dave Phillips says:
Jim, I95 has scenery? I guess I’m too scared for my life when I’m on that road to notice. Great point about congress, although it should be pointed out that they rate even lower than REALTORS in the Gallup surveys.
Fines won’t work to change behavior because it would be up to us to fine ourselves. Then we’d have to set up a committee and develop all kinds of rules and we’d end up getting sued by the DOJ. Did I just have a flashback?
Anyway, the only way I see to truly change behavior in humans is to change the expectations for that behavior. Fear (fines) only causes a temporary change until we can figure out a way to avoid the negative consequences.
June 9, 2008 — 12:27 pm
Jim Rake says:
You have a point. So, are you going to draw up that enhanced Realtor Code of Conduct?
June 9, 2008 — 12:51 pm
Dave Phillips says:
Jim, no, CAAR will not be creating any new standards. We are partnering with QSC to conduct the evaluations. Only a 3rd party will have credibility with the public. QSC has this down to a science and is doing this for firms and agents all around the country. We are taking their program to a new level by tying it to the MLS.
June 9, 2008 — 1:12 pm
Jim Rake says:
Dave – believe it or not, I was kidding. Hopefully their “down to a science” will reap benefits. Understand the optimism – “The results that QSC has achieved with select agents around the country are impressive and we believe that expanding this system to all agents in our local area will raise the bar for both agent performance and consumer expectations.”
There is, as they say, “miles to go”, and look forward to enlisting in the effort.
June 9, 2008 — 1:41 pm
Dave Phillips says:
Sorry I missed the humor Jim. Sometimes I forget that I’m not the only one who likes to kid-around on Blogs.
June 9, 2008 — 2:31 pm
Teri Lussier says:
I’m a skeptic.
I’m not following how this is different from current licensing, except that the emphasis is on customer service. And before someone makes assumptions, let me say here that by asking this question, I’m not saying improved customer service is not a worthwhile goal.
When I click the QSC link in your post I find this:
“Join thousands of other dedicated service professionals who have obtained the Quality Service Certified® designation by:
completing a training program
passing an examination
signing a commitment
participating in a survey process ”
Sounds like “more education and millions of dollars” to me. Can you give details on what exactly we might learn? What makes this program better/different/improved/the answer to our prayers? Is it the rating system?
June 11, 2008 — 6:19 am
Dave Phillips says:
Terri, great question and thanks for being a skeptic. The rating system is what makes this better/different/improved/the answer to our prayers. The cherry on top is that this rating system will work with the local MLS so it will essencially be live data. When a property is maked “sold” in the MLS, the surveys will be generated. Other survey sites either operate with old member data or don’t include ALL agents.
Our system will show all agents, but the agents get to decide what level of involvement they wish:
Level 1 – Name listed, but no survey data is collected (opt out)
Level 2 – Name listed, surveys collected, but no results shared on web site.
Level 3 – Name listed, survey collected, results available to the public
Level 4 – QSC Certified – trained and approved by QSC with the 4 steps you mention.
Only level 4 has an extra fee involved and with our partnership, I hope that it will be less than joining QSC individually.
The beauty of this is that customer service standards will be set and they will be transparent. QSC only allows your clients to rate you, so fears of your competitor gaming the system is off the table.
This may not be THE answer – time will tell – but what we are currently doing isn’t working. Hopefully the power of web 2.0 can raise the standards of customer service.
June 11, 2008 — 6:51 am
Teri L says:
If I sign up for only Level 1 or Level 2 nothing is really transparent. Or are you assuming that agents will feel the heat to skip ahead to level 3 & 4?
And Is participation from all agents, at some level, mandatory or automatic?
My next question: Hypothetically of course, let’s say in working with another agent, my clients become frustrated with the other agent.
>Recent market research by the National Association of REALTORS® (sorry, I couldn’t find a link) showed that the public loved their personal agent, but did not think highly of the profession as a whole. To put it a different way, the public loves the way their agent drives, but thinks most other agents are driving too slow and in the left lane.
Unless my clients get to rate the other agent, doesn’t this sound a wee bit like a glorified way to get testimonials?
Am I being obtuse? 🙂
June 11, 2008 — 3:16 pm
Dave Phillips says:
Teri, even if an agent does not particiapte in the on-line survey process, they will show up on the site with a label of “non-participant.” This is transparent to the public because it will show that the agent has decided NOT to allow such public scrutiny of their performance. That is a statement that says a lot to the public. We are assuming that the level 1 & 2 agents will feel the pressure to step up and participate fully.
The system only allows clients to rate their realtor at this point. While it would be nice to have opinions from the consumer on the other side of the transaction, there are problems. Since real estate has become more of an adversary transaction with agents representing clients on opposite sides of the deal, it is reasonable to assume that the other agent’s client may have a few problems with you. The system may evolve to include ratings from the other side of deals, but for now it will not.
June 12, 2008 — 6:02 am
Teri Lussier says:
Thanks Dave-
I do appreciate this. I’m still skeptical about it, but thank you for answering my questions.
I agree this is a step in the right direction, forcing agents to at least consider customer service… My concern is that if everyone loves their own Realtor, but not the industry, this doesn’t really address that.
OTOH, I could be missing the big picture here. I’ll keep my skeptical but open mind tuned in to see how it plays out. 😉
June 12, 2008 — 6:25 am