Is it me or has it been an interesting and entertaining last few years for our industry? Everything from the banks, discount pricing issues, the Justice Department, surveys ranking us extremely low as a profession, etc…
Is anyone stepping back and looking at the writing on the wall? The messaging is significant, but is anyone paying attention? Is the leadership in the industry prepared to step up and make the necessary changes? Can our industry take a less traveled path…a path of principle? Who will lead us to the Promised Land? I don’t have the answers. Wish I did. I do believe it is critical that someone ask the questions.
Let us set aside the leadership issues and examine why we might be in this situation. The answer is simple. Our value proposition just does not work. Our fee for what we do is quite significant for what we provide. I say this as a generality. There are agents out there that are worth the price they charge and then some.
Our current situation is plain and simple. Most of our industries’ production is provided by agents who are attached to the commission. Heck, each year we gather as companies to praise the top earners in a black tie ritual. Name another industry on the planet that has this ritual? Those are the ones you want to be associated with?
Let me ask you a simple question. How many agents do you know right now that are on a series of one night stands? They move from commission check to commission check without true regard to their clients? What does leadership do to correct and train this agent?
Another question… (Gee I have so many!) The one time an agent verbalizes their value proposition is at the listing presentation. This is the one time the agent interviews for the job and the commission. The majority of broker/owners have not a clue what their agents are saying. The broker has no expectation and does not inspect. I find this quite interesting since the agent represents the broker. Am I off base here?
I could go on, but then it would take forever. Let me offer some steps we could take as an industry that could move us in the right direction.
1. Brokers should start training and inspecting expectations. Your clients deserve this. Train your agents on the truthful value proposition. Advertising does not sell homes. So get your agents skilled and educated. Then inspect it! They will appreciate you for this. You can turn your agents from prospecting for business to attracting business.
2. Gravitate away from training that is based solely on just creating more money. Real Estate training needs a majority of skill based training. Agents need to be more competent…period. Clients want agents that can negotiate, home enhance, communicate and have a true understanding of real estate macro and micro economics.
3. Let us all quit operating from scarcity and operate from abundance. When a business model challenges us like the banks or discount companies let us embrace them. They will only make us better. Our clients tell us every year in polling that we must get better. How long are we going to ignore them?
