Sadly, when I hear the word “trust” and “real estate” in the same question – my mind really turns to salad dressing. They just don’t seem to mix at all. We need look no further than YouTube to see evidence of the public mistrust of real estate “professionals”…and yes – that word is in quotations for a reason – and here is why?
Almost anyone with a pulse and half a brain can get a real estate license:
This was something of a shock to me. I came from a field that garnered a great deal of respect, but it took YEARS of post-graduate education to be considered a professional. Yet, in just 8 weeks – attending class twice a week – I was licensed to help the public purchase or sell what is generally their biggest financial asset. Does anyone see a disconnect here?
The result has been a cadre of agents – some with significant business – that appear to have nearly nothing between the ears. This is simply because the process is not selective. Many agents have indeed applied themselves to the process and have acquired a great deal of knowledge through their licensing classes, CE classes and designations – as well as on-the-job. The trouble is, since almost everyone passes, how is the consumer able to evaluate these agents.
Consumers are treated like shark chum:
If its easy to get started, why not try it? And thousands upon thousands of people do just that every year. If you can’t throw a rock without hitting an agent then there are simply waaaay too many agents for the amount of business available. Since agents are only paid when a transaction closes, that creates fierce competition for every qualified buyer or seller.
Desperation is a powerful motivator and it will induce many agents to do or say literally anything to secure the buyer or the listing. I always refer to the monthly list of expired listings as the “feeding frenzy.” There are agents that are all over hundreds of homeowners a month like a bad rash.
When buyers walk into open houses they often feel as though they are under assault by an army of agents all of them trying to convince buyers that they are the only buyers agent for them.
If agents have any doubts about how the buyers and sellers feel about the predatory behavior – the videos below pretty much sum up public sentiment:
Who benefits from all of this?
Does this in any way benefit the consumer? In a word, no! Although it gives buyers and sellers lots of choices, with no obvious means of discrimination, it turns the selection process into nothing more than a crap shoot. Meanwhile, agents pile on board plying any seller that will listen with their saying their “guru marketing package” that they promise will garner more than market value for their home. Its absolute nonsense – and when it doesn’t work as advertised it feeds into the seething level of mistrust and anger. No agent can beat the market because we don’t control the market. We can only respond to the realities of the market and get for our sellers the best price the market will bear.
Smoke and mirrors make navigating this minefield nearly impossible for consumers…
How on earth does the consumer know who to trust? Many resort to the lowest common denominator. Sales volume. Buyers and sellers look to the agent with the most signs in the ground or the largest sales volume. Or some move to their favorite “trusted sites such as Trulia and Zillow and give a shout out to one of their “preferred” neighborhood “experts.” The trouble with each of these methods is that they don’t tell you much of anything.
Many top producers are excellent. However, some are not. How did they get there? Many got there through their own merit and built their businesses brick by brick. Others not so much. Ethically challenged agents come in the form of low, medium and even top producers. If you have a name, they will have sales. But how did they come by that production? If the successes are hiding a carnage of cancelled and expired listings, then where does that leave the seller?
Trulia and Zillow? Forget about it. Consumers mistakenly trust these sites. Many seem to think that these “area experts” are carefully vetted and hand-picked for their competence and performance. Ah…..no…. Agents PAY for those spots. If your plastic is good, you have a license and are willing to pay to play, then you too can be a preferred agent – even if you have never sold a home in that area.
Then there is the banking industry….
Don’t get me even started here. Between the liar loans, the repackaged mortgages for whom the notes are missing, the unwillingness to proceed with short sales or loan modifications – it is small wonder that home buyers and sellers have had their sense of trust shaken to the core.
My point here is that our industry has come by much of the public contempt the old -fashioned way…we have earned it. The question is whether the industry has a whole is committed enough to make the changes necessary to restore the public trust. It begins with each indivdual agent taking responsibility for their own behavior. Agents have to work hard to differentiate themselves from the cadre of agents that do not serve their clients, but are self-serving. We need to offer true value, not smoke and mirrors with an extra helping of hype. When we prospect for business, we need to ask ourselves whether what we are doing is actually of any real value to the clinet. If it isn't then we have to admit that we are just trying to justify something that fulfills our need for a commission. We need to remember that we are a service industry, not a self-serving one. That is how we can once again earn the trust of an understandably cynical public.
© 2012 – Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.
This post is a submission to the ActiveRain / Adobe EchoSign Trust Contest. I could possibly win a prize. You can find out about the contest by clicking here
Why does "trust" and "real estate" mix about as well as oil and vinegar?
It is amazing how easy it is to get into this profession.
Hi Christine - Its positively scary.
So is what it takes to stay in.
This won't change until the NAR stops being funded by price per head.
Ruth Marie -
Did I ever tell you how much I like the whole idea of your "with pets" niche?
Hi Jim, This is so true. I don't see it changing any time soon. But agents who don't push back and brokers that bring in anyone and everyone with a pulse and a license. Oh - and I'm glad you like the niche. Its a tough one around here. Westchester is very pet- un-friendly.
Ruthmarie - I sure do agree with you. Every time I hear agents comparing themselves to doctors and lawyers I wonder where they get off thinking that their 8 weeks of part-time schooling compares to 8 years of intensive schooling.
Yes, everyone should behave in a professional manner, but...
I didn't know Westchester was pet un-friendly. That's awful. What's wrong with those people?
People do business with people they know, like and trust. In some ways, social media sites are giving people an opportunity to find like-minded people to represent them in their real estate transaction. And yes we have a long way to go when getting a real estate license is the function of 50 states focusing on the lowest common denominator.
Hi Ruthmarie - Thank you. You have written a very thoughtful post that almost completely reflects my thoughts about this aspect of our industry - I have said, almost word for word, each of your sentences many times over the years. I believe the only way we're going to improve the situation is two-fold - make the capital R and little r thingy means something by making licensing more rigorous and, more importantly, get really serious about taking out the trash. Until then, we going to be fighting the same uphill battle.
Hi Marte - Thanks - sometimes I say things that are not popular. But there it is. Ask any agent why they go into the business and they generally say something lame like "I like people and houses!" Well....noooo....I will be the first to admit that I went into it to make a good income. Having been through the long indenture and major educational route - only to find myself outsourced... further extensive education and forking out more money had little appeal. However, this has gone off the deep end in the OTHER direction. Granted, much is learned on-the-job. But what needs to happen is that our profession has to take itself seriously before anyone else will.
Hi Emily - People can't put up an artificial persona on social media? This isn't the answer either. Stronger standards and CE that means something and eliminates the waste of space after the quick buck are in order. I see plenty of very successful agents that people trust, who I wouldn't trust as far as I could throw a grand piano.
Hi Dick - Thanks for the support. I obviously agree with you completely. One of the problems is that desperation breeds bad behavior and the ease of entry makes it easy for vultures to enter the business in the first place. If you aren't a vulture to begin with, you often become one. Desperation is a powerful motivator.
Wow Ruthmarie - I love reading honest and thoughtful material like this.
I have never been a "me too or me first" kind of guy, and have always tried to live and work with principals and values. There are similar issues in my industry - "Just another jerk with a camera." my associate and I always say, when we run into the type.
Perhaps we are at the end beginning of the end of this mayhem and mediocrity. It's easier these days to identify the bad apples - hopefully standards will be raised officially - for the benefit of all.
Taking responsibility for his own behavior is always a must and change is inevitable. We do have the chance to prove to ourselves and also to everyone, that we can make a difference. You have shared a good motivational piece here Ruthmarie. I know you still have more to share. Keep it up. Best of luck. Looking forward of reading more of you posts. Thanks for sharing.
Hi Andre - I would assume that things were similar in photography. I'm actually doing some photography for agents though I am sorely lacking in training. The reason - I've never seen such awful photos as are on the MLS. So I DO offer something of value and sales were so slow this year I had to do something. Problem is - agents don't want to pay for it, so it goes to the lowest bidder. But that's how it happens. People are not willing to pay for things - they want it for practically free -so the get what they pay for.
Hi Katerina - Thanks. I dont' know how motivational it is. But the world tends to see us a certain way. We need to be aware of how we are perceived. Because when widespread, perception is a form of reality.
Good morning, Ruthmarie.....I'm sorry I'm late here..... one problem with agents who shouldn't be agents is that they do not care how the public perceives them....they're here to make a buck and it usually doesn't matter how they conduct themselves..... and the public labels most of us according to how the unprofessional agents do business..... it's like swimming backwards....and we continue to make great strides doing that!!!
The nature of the industry has a lot to do with consumers' opinion of real estate agents. Most buyers want a custodian to unlock doors and someone to help them fill out the forms when they want to make an offer. Sellers want someone to stick a sign in their front yard and to list their home in the applicable MLS. That's what many media experts tell them, and that's about all the national association can come up with when they hawk their members in their advertisements. Even the commission structure makes us look like fools or scoundrels to consumers. I have been asked by a client, "If commission is an incentive to complete a transaction, and you work hard to negotiate a lower purchase price for me, why do you get paid less?" Fiduciary duties notwithstanding, asking someone for their trust and promising to do all possible to be compensated at the lowest possible amount is certain to raise a little doubt.
Take a lack of expectation from consumers, add entry requirements lower than those for a permit to carry a weapon in many states, and there is no possible outcome beyond used care salesman status. The best we can come up with is that "I am different from most of the others." Even if it's true, that's a sleezy appearing way to try to start a relationship.
thank you very much for the informative and interesting post. I get so much out of the active rain network.
Hi Ruth Marie,
How does such a cynical post come under the banner of trust?
I did read it and loved the video of the pest control versus the real estate agents!
Phil
WOW love the videos. Congrats for being in the top 11
Those videos are great and terrible at the same time! I hate laughing at things that make fun of our industry, but sometimes they are true. Your post is very honest. Thank you. -Kasey
Excellent post. Good luck in the final voting. Missed this one earlier, glad it is being spotlighted.
Hi Ruthmarie,
You really hit the nail on the head with a lot of the problems with our industry. It is no wonder consumers don't know who to trust. Funny videos!
Lisa
WOW! I didn't see all these comments....I totally forgot that this was a contest. Now I have to go and check out the other finalists!
Hi Barbara - Sadly the bulk of brokerages in our area are bent on recruiting a large VOLUME of agents. That's the problem. When you work on volume, you often lose quality. But in our area the quality seems to have gone out the window a long way back.
Hi Mike, Thank you for your comments, you very much hit the nail on the head. We are definitely on the same page.
Hi Paul - Glad you liked the post.
Hi Phil - Sadly cynicism is the flip side of trust. What we have to ask ourselves is whether the way our industry condcuts itself is conducive to trust. Sadly, it is not.
Hi Susan - I looked quite while to find the ones I liked best. Sadly, there was plenty to choose from.
Hi Kasey - I looked a while to pick those. Like I said to Susan, there was a lot to pick from..which is not a good thing.
Hi Gary - Boy am I lame. I didn't realize I was in the top 10 of anything..Go figure. Thanks, I'm surprised I'm here.
Hi Lisa- Thanks. I can't take credit for the videos except that I found them. Finding truly funny videos took some time. Sadly there were quite a few videos critical of agents. We don't have a good reputation as an industry.
Ruthmarie - WELL DONE! Congratulations on being in the top 10 for this cool contest! The agents you refer to should have never been in the business in the first place! The were in it for the money and once it becomes all about making money your trust factor goes way down.
Hi Barbara - That is so true. The difficulty is that the way the industry is currently structured, this type of agent is everywhere. Its so hard for the public to differentiate between good, bad or indifferent. This makes trust a very tough nut.
The video is so funny! Thank you for sharing!
Ruthmarie ~ Best of luck in the vote!! We voted for you!! Love all the honesty!!
Ruthmarie - Well said! Well said!! The barrier to entry has always been far too low for this industry. Thanks for your honest and forthright post. Congrats on being a finalist! This has been a great contest!
Hi Ruthmarie, there is no doubt a huge trust issue and we can't blame the consumers. How should they know. They trust that we are qualified to assist them. They trust that we are the neighborhood experts. They trust that the agent who's buying a whole page ad in every weekend paper is a well respected professional ... but they don't know that not all of them are. Money, not experience or professionalism, can put you in front of every consumer. I totally agree - the licensing requirements are a joke and so are some of the certification classes. I just passed one w/ 100%. I had 60 minutes to complete the test. I was done after less than 10 minutes and kept thinking this is it?? Seriously? This is it?? And now I'm qualified to help sellers in distress? I'm eyeing the MA in Real Estate ... unfortunately I don't have 20K hidden under my mattress.
Congrats on being in the Top 10 (or 11)!
Oooh, Ruthmarie, this post makes me uncomfortable because it is so true and there isn't much that could be done except to raise the BAR and NAR and the MLSs wouldn't like that because it would cut into their budgets. I do wish our industry had a better reputation to match the great agents I work with and are friends with here in the Rain.
Sharon
Ruthmarie, Love the "Did I Axe You" video . . .I saw that one a while back and thought I might try it with my buyers, but I would have to stand on a chair! lol I recently saw a survey result that said the most successful agents paid the most for marketing. Made me wonder whether they were successful as a result of their expertise so they had a lot of money to spend OR did they just throw a lot of money into marketing and become successful as a result? We can hope it is the first option!
Trust in the business diminished when small brokers who had their own name on the business and were paid commission, thus earned income, as a portion of their agents' transactions, were taken out of the picture by big organizations and franchises that made their income based on the number of breathing bodies they could hire and pay them to work there.
It used to be in the broker's best interest to mentor their agents to make them better, more successful salespeople. It was also in their best interest to have their salespeople deal honestly and truthfully in all their activities, as their name was on the banner and their salespeoples actions reflected back on them personally.
Now, current brokers' sole interest is in recruiting more licensed bodies who pay their desk fee; with no regard as to whether they learn to sell, or do sell any real estate, as long as they pay their tab at the end of the month.
This breeds desperate and unfettered reckless behavior, and it shows.
Love the You Tubes! A great post, too. Best of luck in the contest!
Ruthmarie,
Sad how a few bad apples can spoil the reputation of so many in our industry.....it only takes a few trustworthy ones to restore that confidence though, and I'm sure you're at the top of the pack in our helping our industry redeem itself.
Best of luck in the contest!
Jo
Ruthmarie, thank you for approaching a systemic issue.
Let's hope that the covenant of trust, integrity, accountability and loyalty to self, clients, our communities and towards universal principles of social justice will flow and 'vibrate' deeper and stronger as the universe unfolds.
Thank you for sharing an inspiring post. Best of luck in the contest. The truth shall set us free
☔ Ruthmarie, it is frightening how easy it was to get into RE. Thankfully here in our state things have tightened up albeit not enough. As in any profession there are those worth their weight in gold and then those not so much. I guess that oil and vinegar just need a really good shake! Good luck and Congrats on making it to the finals in this contest.
Pamela
Ruthmarie ~ I thoroughly enjoyed the videos. And I can see where some buyers/sellers may feel that way unfortunately. A good way to find a reputable agent is by doing one's research or having a friend refer them.
Ruth Marie, it took me 35 years and 60 hours to get into real estate, but along the way in my training mode, I learned the importance of service, respect for clients, and never promising more than I can deliver. It has served me well now that I have a real estate license.
Ruthmarie, I don't know where you found those videos, but they're priceless. I, too, am always amazed at the lack of requirements to become a Realtor.
WOW! I had a bunch of proxy errors and then no notification of comments. I'm sorry! Going to try to catch up a bit later!
The videos are great! Best wishes! congratulations on being named to the top ten!
Hi Lee and Pamela - It is way too easy to get a license. That's part of the problem. The other issue is that brokerages take on just about anyone with a pulse. The quality control is missing from both of these directions.
Hi Dawn - Its hard to find an agent. Reading blogs and FB pages also helps. The trick is to find someone who knows the area and really understands the market.
Hi Ed - This is so true. Its also very much on-the-job training. People don't realize that and newly licensed agents often have not developed the skills they need. But I also find a shocking lack of care at the top of the food chain.
Hi Connie - It wasn't hard to find videos mocking agents. That's what gave me the inspiration for the post. Sad but true. Finding the best ones - THAT took time. I think I picked two winners, but there is plenty to find!
Hi Lisa - Glad you liked them. I can't take credit for their content though.
Hi Shannon - Glad you liked the videos.
Hi Frank and Karen - thanks for the vote and yes, I tend to be almost brutally honest...sometimes that works against me.
Hi Chris - I enjoyed all the finalists posts. It was a great contest.
Hi Andrea - I find the CE and somd of the designations most disturbing. The testing is not rigorous enough. Almost anyone could pass. So now you are an "expert" because you sat in a class for a day?
Hi Sharon - The industry has become self-serving and not service oriented....thats really the crux of the problem.
Hi Valaire - Its form over substance and thats a real problem. I suppose that one could say the the public is culpable as welll because they DON'T do their homework on this issue. I suppose they think we are all the same - so counting signs or checking for ads is all they think they need to do to find an "expert." I could never pull off "Did I axe you?"
Hi Ken - It is part and parcel of the big brands with huge offices. The agent isn't mentored and is left to fend for themselves. Recipe for disaster.
Hi Jan - I guess I have a knack for picking videos! I'm glad people like them.
Hi Jo-Anne - Thanks so much for the kind words...
Thanks for sharing those videos. They were a hoot! Congrats on being one of the top 10.