Realtors' jobs are on the line
Letters to the Editor
By Inman News, Monday, November 3, 2008.Re: 'Are Realtors as vital as bread or cereal?' (Oct. 23)
Dear Editor:
The author gets it wrong as many have over the past month or so. I hear every day that, as the real estate market spirals downward, the need for Realtors or the demand for Realtors is dropping too. I have survived through bad markets before and others like me know a secret: Bad real estate markets are GOOD for busy Realtors.
Here are some truths:
1. In a market where it is hard to sell a house, consumers will seek professional help to give them an edge.
2. Longer market times and a highly motivated seller make it easier to charge in the higher end of your commission spectrum, whatever that is.
3. Millions of people will move this year in the U.S. who have equity in their house and NEED to move (divorce, transfer, marriage, more kids, retirement, etc).
4. In a bad market, tens of thousands of Realtors will leave the business ... and that's good for those who stay.
This market is awful to so many BUT it is an opportunity for full-time, professional Realtors to solidify their base, reset their commissions and GROW their business.
I mentor and coach many U.S. agents and the advice I am giving is: Rethink the market and shift your perceptions -- your job is on the line.
Chris Hoare
Realtor
Royal LePage Performance Realty
Ottawa, Canada
***
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Submitted by Bill Lublin on November 3, 2008 - 3:14pm.
Bill Lublin CRB,CRS,GRI
CEO CENTURY 21 Advantage Gold
Visit me at MovePhilly & REreflections Click Here to
Find Homes in PA & NJ
Chris:
Your statements are filled with logic and common sense. Like you I have been through hard times before and found that it became easier to get hired and easier to meet commission objections when things are tough. Now is the time that we are more needed than ever before. Thanks for reminding our colleagues of their value in the transaction.
Submitted by Fred Doleac on November 3, 2008 - 3:39pm.
Any market is about taking market share. More agents get out or "mail it in" when times get tough. Tools, training, support and attitude will be the difference for agents that want to take market share. Move-ups, first timers and investors on the buying side is where you need to focus. Been there in 80-81 and 90-91 and we totally outperformed the market. Great post!!
Submitted by Chad Lariscy on November 3, 2008 - 4:06pm.
I have been taught that there are only two markets, a Buyer's Market and a Seller's Market. There is no Good or Bad Market. I believe that. I agree with Chris, there will always be those who can and need to buy or sell. Those Realtors that continue to work hard to Survive during this Shift in the Market, will do nothing but Thrive when it begins to Shift back. Hang in there!
Submitted by Stefan Swanepoel on November 3, 2008 - 4:22pm.
Ah, the debate of all debates, and one that has lingered for years, if not decades.
The short answer is of course that Realtors are not as vital as bread…but the longer answer is that a true real estate professional provides and can still in the future provide valuable and meaningful assistance and services during a home purchase transaction.
And, as the home purchase transaction changes – be it a buyers or a sellers market – be it a more technology enhanced real estate transaction, etc – a well qualified real estate professional that is willing to adapt and change with times, will find not only his or her services still being required by confused, uneducated or too busy buyers and sellers, but even most likely even experience an increase in new opportunities that he or she may be ideally positioned to serve.
The future of ethical, well qualified, technology savvy, real estate professionals is exciting.
Submitted by Bud Silcox on November 3, 2008 - 5:40pm.
I would agree with Chris, it is much easier to do business in this market. You don't have to prove your value to your clients. They all ready know that they need you and are much more likely to listen to your advice.
The only thing I disagree with is that the thousands of Realtors getting out of the business is a good thing. Reducing the competition is certainly good for those of us still in the business. But I think the wrong Agents are being eliminated. In my observation, the Realtors who leave the business are the ones that were doing it full time, but didn't have the reserves to weather the tough times and could no longer support themselves or their family. There are thousands of part-time Realtors that aren't going anywhere. They have full time jobs anyway. It makes no difference to them if they do six deals a year or two
I think it's too easy in most states to get a Real Estate license and too affordable to maintain it. I would like to see tougher requirements to getting a license (more education, etc). And I wouldn't even mind seeing a higher cost to renew your license. I'm sure the majority of professional Realtors who have made this a career would be more than willing to do the extra class time and pay a higher registration fee, if it were to eliminate the people who are practicing Real Estate as a hobby. They give us all a bad name and take business from the serious Agents.
Bud Silcox
Realtor, CRS, SRES
Keller Williams Real Estate
(215) 757-6100 ext 175
Submitted by Rob Aubrey on November 3, 2008 - 6:15pm.
The media is right the market is bad, hurry you better get out of the business and you must sell me your lock boxes for .25 cents on the dollar.
Submitted by Walter Boomsma on November 4, 2008 - 3:18am.
I just have to agree with Bud here... while it's true that a number of Realtors/agents are getting out, the hobbyists remain. There's also a whole category of what we might call "minimalists" -- the number of hours they work isn't the measure, how they perform is. These people do not make more effort in a down market; they simply get more desperate for commissions and drag the profession's reputation down even further.
It is "good news/bad news" though because the vast majority of consumers have at least some understanding that a "tough" market requires a "strong" agent. For such a heavily regulated and self-promoted industry you would think it would be easier for consumers to tell the difference. Our message as an industry is that consumers should just look for a realtor pin and everything will be wonderful.
As for making it through the tough times I have written elsewhere: I've never had a market attend a closing. People buy and sell property. Markets do not.
Submitted by Brian Langley on November 4, 2008 - 6:31am.
Great comment about stricter requirements for getting in to the business. The real estate profession has a thin filter. Rather than raise the fees or dues, why not require a certificate similar to an associate's degree? Force people to commit to the neccessary training. Lawyers need an extra 2 or 3 years of school. Why do realtors get their "button" in less than 2 weeks?
Submitted by Joseph Bridges on November 4, 2008 - 12:41pm.
I do agree that it should be more difficult to attain a real estate license than it is in many states. Stricter requirements would do several things in my opinion.
1. Raise the standard of the industry in the eyes of consumers. Doctors are respected not just because of what they do but the degree of difficulty of the education they attained.
2. Increase the quality of agents. Because people would have more training they would be better agents and easier to do transactions with.
While one comment suggested the good agents who didn't have reserves are exiting I disagree that they won't come back. We all make mistakes as far as what reserves we have in place to weather different markets. The good agents who have to get out temporarily will be back and it is in the best interest of the industry that they do come back.
Visit the blog at: http://www.InternetRealEstateSuccess.com
Real Estate Resources at: http://www.OnlineRealEstateSuccess.com
Submitted by Ruthmarie Hicks on November 4, 2008 - 8:56pm.
I have to agree with Bud. In our area full-time agents kept looking hopefully at the numbers of agents they EXPECTED to drop out. Surprise, surprise, the dabblers aren't going anywhere, but although each one individually only "dabbles" collectively they are sucking the livlihood away from the full timers. Its the full-timers that can't weather the storm because one or two deals are going to dabblers - when you've got 6000 dabblers - that's a lot of deals - roughly 9000 sides a year if you allow for 1.5 deals per agent/year.
It needs to be a DEGREE - even if only an associates degree. The designations are fuzzy in the education department. You need a course of study that has "teeth." Not everyone will pass. It's a true commitment to excellence and not just a piece of paper that lets you earn pin money.
Submitted by Carmen Multhauf on November 5, 2008 - 12:20pm.
I agree that there should be a commitment to excellence but there is an even greater need for a commitment of undivided loyalty to the client. At the risk of starting a fire storm, I think the client needs to be assured that the agent working for/with him is not also working with the other side. They can get all the "for sale" and comp information on their own. We need to convince them of our value in understanding those statistics (market), understanding their needs, negotiating for their best interests,and not splitting our loyalty. According to NAR, the GenXers are in their top buying years. But, this is also the generation that is very skeptical about unearned loyalty and they have grown up with corporate greed and scandal. We have to demonstrate that we are to be trusted.
Carmen Multhauf, CEO
Generational Housing Council
Submitted by Walter Boomsma on November 6, 2008 - 1:31pm.
I can't resist... given all the agreement... does anyone else wonder why NAR isn't lobbying for these higher standards?
Submitted by Lloyd Graves on November 12, 2008 - 2:53pm.
Why is it so many realtors think they have to "convince" clients they are worth the commission they are asking for?
Realtors feel challenged because consumers don't believe the "value" they have received in the past does not justify the fee being suggested by a listing agent.
Good agents will always prosper regardless of market conditions, but especially in a bad market. The natural selection process of capitalism will take care of the rest.
For all the "good agents" out there; keep up the good work!
Lloyd Graves, President
RealAlliance Consulting
Submitted by Marc Rasmussen on November 13, 2008 - 5:39am.
I have noticed a flight to quality in this tough real estate market. There are a lot of people who need the services of an expert, not a part timer. The purchase of a home is one of the largest investments a person will make. Some require little hand holding while others need quite a bit. There will always be a need for a full time, full service broker. Although, their need may fluctuate based on market conditions. Selling a home is a task that a lot of people don't want to do and will always be willing to pay a commission to a Realtor to handle it. Regardless of whether it is a buyers or sellers market.
Marc Rasmussen
Sarasota, FL real estate