Time for a little fun, and time to laugh a little at my own profession and at myself. Okay, I’m in a coffee shop. I’m doing some work on my laptop, checking and answering emails, and writing some articles. So imagine the humor in the following scenario. I’m a Sequim Real Estate agent writing on my real estate blog when a customer walks into the coffee shop. Now I rarely pay attention to what other people say, but if they speak loudly and the words catch my ear, I can’t help it.
I hear one of the employees serving coffee say to a customer, “Oh, you’re a Realtor?” The reply was from an older woman whose health did not look good, and carried little enthusiasm, “Yes, I work for [so and so broker],” to which the young female employee loudly and enthusiastically replied, “I’m a real estate agent too!”
I laugh to myself, because one of my observations is that every Tom, Jane, and Mary got a real estate license because it seemed like an easy way to make money. Does anyone not have a license?
I look around the coffee shop. There’s an old man with thick spectacles sitting two tables away, apparently reading the classifieds. He doesn’t move at all for minutes. Has he died? No, he turns to the next page. I wonder. Is he a Realtor?
A woman and a girl about 13 years old are sitting across the room at a little round table. Is the little girl a Realtor? No, I remember you have to be an adult to get a license. I think.
Two bicycle riders stagger into the shop, all sweaty and obviously hot and tired. Are they Realtors? Could be, but I hear no dialogue on real estate issues emanating from their mouths. But I do pick up some phrases, like “It’s hell out there,” and “a person could die in stuff like this,” and “I don’t know if I can make it.” Wait a minute, they are talking about real estate. Maybe.
Finally, I pack up my laptop and head out the door, and as I’m walking past the shaded tables in front of the coffee shop, I hear three ladies talking. I pause and listen. I know it’s impolite to listen to other people’s conversations, but this is a coffee shop and they’re talking about real estate. One is saying, “You should get your real estate license. It’s easy. Well the online course is no fun, and the test is a drag, but you can make easy money if someone writes an offer through you. I don’t have to work if I don’t want to, but when my husband and I want to do something, I start trying to sell a house or find a buyer. If I’m lucky, I pop a few thousand or even more. You could do this. It’s easy.”
Oh, how I seem to have gotten this whole life upside down. I went to college, worked real estate as a Realtor and then Associate Broker, and then went to law school to specialize in real estate, worked as a real estate lawyer for 20 years, and now I’m a real estate broker. All that when I could have just been a housewife and taken an exam. Silly me. Well, live and learn, right?
Jeff Brown says:
Reading this was like déjà vu for me. Been there, lived that. One of those women lives in my area. She’s a mom, married, and works enough to close about 10-12 deals yearly. In San Diego that’s a relatively solid income for no more than 10-30 hours monthly. Her average income the last decade or so? $80-100K.
She’s the anomaly though, as she actually knows what she’s doing. It’s funny to hear her complain about the folks about whom you’ve written. 🙂
August 1, 2009 — 2:10 pm
Doug Quance says:
When I lived in California, every third person had their license. Well, not really… but it might have been one out of ten. 🙂
In the last two weeks, I have heard from two previous clients who are studying to take their license exam. They wanted my opinion – but neither called me before they spent the money on going to school.
Apparently, with all the job losses and such, there is an abundance of folks that think they can strike it rich in real estate.
Kinda reminds me of the old saying: How do you make a million dollars in real estate? Start out with two million.
August 1, 2009 — 4:26 pm
Gary Frimann says:
Good post. I heard of a story where a woman was married to a heart surgeon. She had been licensed for 18 months, been through 3 Brokers, and spent $60,000 on advertising, all to no avail–did not sell one property.
Nada, Zippo, Goose Egg…
Her husband finally pulled the plug. I’m sure her Broker(s) liked the free publicity, and probably miss it.
One of the biggest obstacles we face as agents is trying to explain our value to clients. From the outside, it looks so easy. So does playing a 68 stroke round on the golf course.
Training in this business is appalling. I’ve spoken with tw o agents in the past two weeks who did not know the difference between a Realtor and a real estate agent(non-Realtor).
Try and stay motivated when all around you are failing.
Funny that this happened at a coffee shop. I had the nisfortune of running into a fellow roker from about 45 miles away working at the local Starbucks. I felt unconfortable, and diverted any eye contact, so as not to embarass him, or make him feel unconfortable.
I am trying to think of a term for that feeling when one runs into a former Realtor or a loan agent who is now doing something else…
I am thinking of a term for that…
August 1, 2009 — 4:44 pm
Marc Mawhinney says:
I’m a broker in Canada, and we have a policy of only hiring full-time agents. We get a lot of people coming in for interviews that want to work just a few hours a week, and we tell them that real estate isn’t a part-time job. When clients are going through an issue on closing day (not uncommon) and can’t reach their agent because he’s at his other job, that’s not good.
I wonder how many part-time agents tell their clients that they have other jobs? Every buyer or seller should question whether their potential agent has another job before signing on the dotted line!
August 2, 2009 — 6:29 am
Elaine Reese says:
I’ve had similar recent experiences. Went to a Verizon store. Parked outside was an SUV with a magnet advertising a real estate agent. When I went inside, the agent was one of the sales clerks.
On another occasion, I overheard a brand new agent (licensed in 2009) tell a potential seller that he “dabbles” in real estate. Why would a newbie tell a prospective seller – who he hopes to list – that he “dabbles” in real estate? Why would he think a seller would select an agent who “dabbles”? Why would anyone get their license in today’s market so they can only “dabble”?
Me-thinks this newbie will need to change his script or he will continue to be dabbling. 🙂
August 2, 2009 — 8:42 am
Tim Shepard says:
Your anecdote pretty much sums up our profession. Barriers to entry are non-existant allowing almost anyone with a pulse the opportunity to call themself a “Realtor”.
The public perception of our profession will only change once minimum licensing requirements are addressed.
August 2, 2009 — 11:47 am
Esko Kiuru says:
Chuck,
That’s funny. But anyway, it also used to be that every other person out there would be a mortgage broker or something like that. You don’t hear that so much any more as the entry rules are tightening, like here in Nevada, and more importantly, the market is just tough right now.
August 2, 2009 — 4:04 pm
Mike Taylor says:
Too funny and too true. It does point out that our barrier to entry is embarassingly low and absolutely needs to be raised. Obviously, people like this realize there is more to real estate than an online course and test once they get into it. Meanwhile they tarnish our reputation and drag down the reputation of good real estate agents.
August 3, 2009 — 4:28 am
Barry Bevis says:
Gary wrote “One of the biggest obstacles we face as agents is trying to explain our value to clients.”
Differentiating ourselves from the part time / side job folks is almost our hardest task. There are so many things that only experience can teach. I think of all the mistakes I made on my first few transactions and I’m embarrassed.
We need training that goes beyond the law to the practice. And I think we need a real apprentice program.
August 3, 2009 — 4:36 am
Sean Purcell says:
-training in this business is appalling…
-barriers to entry are non-existent…
-minimum licensing requirements are addressed…
-rules are tightening
-barrier to entry is … low … needs to be raised
-a real apprentice program
A sampling of the very common responses that come up when this topic is discussed. But I have to ask: do you really want more oversight by government bodies? Do you really want more regulations and the “unintended consequences” that always accompany them? Greg does this much better justice than I ever will, but regulations and licenses and barriers are the problem, not the solution.
If you are really interested in the quality of the real estate profession (and I’m not picking on those who have already commented – I am speaking in the general “you”), you are interested in shops that demand excellence and train to excellence in whatever way they define it. We don’t want minimums foisted upon us by an outside force, we must demand it of ourselves. The first step is to make sure each and every one of us supports the shops that spend time training and demanding… of course, they don’t usually pay out the top percentage because you cannot pour time and money into mentoring and training without decreasing the splits. So how many of us have opted for the non-existent broker with the super high split while decrying the drop in quality of our fellow agents? If we really want to see a change we must first start by being the change. Hang your license with the firms that treat their shop and their agents with high expectations. Dissuade your friends and keep yourself from chasing the highest payouts all the while bemoaning the lack of training. When our self-interests become so short sighted, we leave open the door for institutional meddling for “the greater good.”
August 3, 2009 — 7:41 am
Scott Cowan says:
Sean- Thank you for posting your comments. I think you have nailed it spot on. I know from my own personal experience that when I have been associated with an office with a high regard for training and professionalism that I performed at a higher level professionally than when I was with a discount office with little to no regard to expectations of the agents that hung their licenses on the wall there.
I know that it is up to me to set the bar for myself. If enough of us raise the bar for what we accept as professional standards the whole industry will rise with us.
August 3, 2009 — 8:49 am
Steve Hysinger says:
You made me laugh. Thank you. I live in a small Texas hill country town near Austin (Wimberley). Before the “dip” we had a little over 100 active Realtors. I can relate. Funny stuff.
August 3, 2009 — 10:45 am
Geno Petro says:
I’m thinking about becoming a housewife.
August 3, 2009 — 1:01 pm
Keahi Pelayo says:
I use many a coffee shop. Wifi, coffee and a cool place to work. No need to waste time heading back to the office. It is the future.
Aloha,
Keahi
August 3, 2009 — 1:08 pm
Greg Dallaire says:
Chuck,
I loved reading this post as I come across these similiar situations quite often.
I recently had a customer who became a client tell me that there cousin used to have there real estate license and told them to never sign a buyer agency agreement. After explaining the benefits to the customer and my prior personal experience from purchasing real estate they made their own decision to hire me as a buyers agent.
It’s sad to see the poor mis information that is given to people on the streets. I lived it first hand on the first property I purchased. I asked my real estate agent how to negotiate 3 times and never once even told me about buyer agency. You can imagine after I figured out how it really works that I felt completely taken advantage of.
Thankfully when I started selling real estate I made a pledge to always inform my potential customers about the two different ways I can represent someone. 95% of my buyers are represented through buyer agency.
How can an agent build a real relationship with their client and not explain how we really work. I see it happening all the time. Only thing I can do is seperate my self from the pack of Part-Time Realtors.
Great Post! 90% of the work is done by 10% percent of the people. The true professional’s will win the majority of the time.
August 3, 2009 — 2:11 pm
David Losh says:
The idea of the house wife Real Estate agent is a hold over from the 1950s, actually it’s true today. Woman are the buyers, the men are the followers. The woman in the neighborhood who knows every one, all the houses, and all of the community is a valuable resource.
A Real Estate lawyer is always questionable in a residential Real Estate transaction, or in Real Estate in general.
The threshold for getting a Real Estate license is low because you never know who will be good. The top producing agent in the third office I had my license at in the 1980s drove a pick up with a dog in the passenger seat. I’m not kidding, every body loved that guy, and he for sure knew what he was talking about.
Actually the most successful Real Estate Investor I ever knew was a chicken rancher with less than an eighth grade education.
You just never know.
August 3, 2009 — 6:04 pm
Joe Loomer says:
There where over 1,600 agents in the Augusta area in mid-2006. We’re now at the 900 level and still dropping. I love every minute of it.
It’s moved all the part-timers and house wives back to the sidelines. They’ll be back to catch the next wave, I’m sure. Meanwhile – those of us with a pulse and a work ethic are capturing market share.
I actually sent a list out to my Sphere about a year ago – “20 questions to ask your Realtor.” One of the questions? “Are you a full-time agent?”
Navy Chief, Navy Pride
August 4, 2009 — 4:30 am
Joe Dallorso says:
There are so many real estate agents because it’s the business plan for many franchise brokers to recruit as many agents as possible knowing some will sell something. Most agents either work from home or better yet rent an office or desk. The broker either has no over head invested or makes a few bucks off a desk rental. Most employment contracts have the agent agree to absorb most of the legal expenses should there be a law suit. Brokers have nothing to lose and everything to gain by flooding the market with agents.
August 4, 2009 — 5:58 am
David Losh says:
I’m always fascinated by the part time agent reference.
For over ten years I had six clients, seven counting myself. We would do maybe three to six transactions a year. Part time?
Real Estate is a twenty four hour a day, seven day a week job. If you are grinding the commission sales position then yes you need to be full time, very full time.
The Real Estate business is an over all experience. It needs to be diversified with multiple streams of income. The sales people are the ones who scare me the most and who, in my opinion, do the most damage to the reputation of the industry.
If you are in the business you have rental income, or a related income. The house wives or working agents with a spouse are in many cases a safer bet than the person constantly looking for the next “deal.”
It’s a hard business. It takes balance.
August 4, 2009 — 7:55 am
Michael Fisher says:
Age old requirements to become a licensed real estate agent:
1.) Fog a mirror.
2.) Pay State license fee.
Do to current bankruptcy of State, requirement 1 will no longer be enforced.
August 5, 2009 — 8:50 am
Teri L says:
>All that when I could have just been a housewife and taken an exam.
Gotta love those broad brushes. 😉
You could easily say that about me I suppose, and in many respects you would be right. But I know that I bring something to the table. I know that for those clients I do work with, they get everything I can offer. They get an agent who has balanced her life to allow room for them.
I recently represented a buyer in a transaction with a big dog producer in Dayton. We have round table closings here. Due to circumstances beyond any human control, the closing was delayed. Everyone else involved was willing to do whatever it took to get closed at 8:30pm on a Friday night, which was most important to his seller, but Mr. Top Producer said, “I’m not working at 8:30 on a Friday night.” Now, you can tell me that he is protecting his time, working smart not hard, fine. But what about this, “Look, Mr Top Producer, in 3 hours your seller can get this closed and finally move on with his life.” Oh. Yeah. The rest of us had a very cordial close and got the job done, without Mr Experience’s help.
More does not always equal better. Quality counts.
August 5, 2009 — 6:07 pm
Sue Zanzonico says:
>I’m thinking about becoming a housewife.
If only it were that easy!
This post is quite true and amusing. It happens all the time, doesn’t it… The other night I was out with a friend and the bartender was a Realtor. My friend didn’t seem to find it unusual in any way, I could tell. He thought it was acceptable to do it part-time. This is what I don’t get…how otherwise very intelligent people don’t understand that a part-time Realtor just doesn’t cut it. Kindof like…hmmm, maybe a part-time heart surgeon?!
I couldn’t help but overhear the conversation next to me over the course of the evening as they were discussing a subject near and dear to my heart ~ real estate. There was an opening, shameless of me, but I seized the opportunity and put my card on the bar while making a joke. The guy next to me was a Realtor. He got really mad too…grabbed the card and made a couple of sarcastic comments. When I was on the way out, his client said “I’ll give you a call tomorrow”! I thought it was cute.. 😉
August 6, 2009 — 7:45 pm
Leanne Finlay says:
I’m thinking of becoming a dog.
Chuck, how’s your market in Sequim these days? Ours is showing signs of life.
August 6, 2009 — 10:55 pm
Gary Frimann says:
I just saw a most interesting thing. I was previewing homes yesterday, and being nosey, I came across a business card left on the counter of an agent who I did not know. It was a rather unorthodox card, so I turned it over, and on the back (or was it the front?) was the woman’s Avon card, printed on the back. No wonder people think being a real estate agent is such an easy, part time job.
I can hear it now: “Looking to buy a home? Well, if you don’t need a home but need some facial products, turn my card over and I’d be glad to sell you those!
If you need neither, please tell a friend–as referrals are always welcomed!”
Personally, if it was one of my agents, I would have told them to knock it off.
This is one of the many, many, many reasons I became an independent broker and opened my own shop.
The level of professionalism, or lack thereof, just absolutely astounds me.
August 7, 2009 — 5:33 am
Chuck Marunde says:
Hey folks, great comments, and I loved your feedback on this whole issue. I see a lot of wisdom in your comments. I find one of my greatest challenges is trying to set myself apart from the crowd. Many buyers and sellers are not paying much attention to the knowledge or experience of their agent. I agree with one comment that it’s quality and not quantity. I don’t care how many transactions an agent does, but I love working with a professional on the other side of a transaction, and that professional can be a man or woman with any kind of background. Leanne, the market in Sequim, Washington has just heated up. I sold a house last week for $449,000 and last month for $475,000 and showed houses all day and suddenly had several showings on one of my hot listings. It’s all gooooooood! My Internet work is paying off. 250,000 page views on my one real estate blog last month alone. I’m blessed. Of course, I’m up at 6:00 a.m. and down at midnight, but what the heck! I’ve got no life anyway. [Insert laughter here. Hmmm. I live alone here and my dog is looking at me funny.]
August 7, 2009 — 9:28 pm
Milan Cole says:
It’s just too easy to get a real estate license, but it’s quite hard to turn it into a full-time job. We need to keep lobbying for stricter licensing laws with more education requirements if we want the quality of agents to go up.
August 10, 2009 — 6:27 pm
Frank Risalvato says:
I relived my own experiences through this excellent post. Rest assured, the non-career and non-professional practitioners reveal their true colors soon and enough and will never EVER get repeat business. I dealt with a housewife-realtor team in NJ (team because she was so dumb her friend had to follow along and help her). She had ZERO internet marketing skills. ZERO photography skills. OVERALL A ZERO. All she knew how to do is list on MLS and have endless open houses which we decided against after the 2nd request. After the 6 month contract expired I did lots of research (mainly as a consumer trying to see which realtor was best exposed in that area) and hired a mother-son team where the son had the whole internet marketing concept down pat. What a difference. The house sold in 3 months. From now on – I NEVER use a REALTOR UNLESS A) They support their family as a realtor (not as supplementary income, B)Pursue it as their sole passion/profession C) Demonstrate capabilities outside listing on the MLS and D) possess top=grade internet savvy
August 12, 2009 — 8:11 pm