I haven't written this blog yet, but I suspect it might be unpopular by the time I'm finished with it. Darn. Oh well.
Here goes... There's one thing I feel pretty strongly about with regard to our beloved rookie agents. They don't know what they're doing. If they're fresh out of real estate school, I guarantee that they don't know any more about selling real estate than, well, than I did when I was fresh out of real estate school! And trust me, that's not much.
So, what's our solution? Tell ‘em to Fake it ‘til they make it! Get on that phone, drum up some business and fly by the seat of your pants, just like the rest of us did. Oh, and don't worry, your broker or mentor will be right there with you every step of the way.
And, that's what most of us did and what most of our newbies still do. Scary, isn't it? Sure, it might be reasonable to throw a brand new bartender on the floor and let him sink or swim... but allowing a brand new real estate agent to manage a $500,000 financial transaction? Or even a $50,000 one?
"But, Jennifer," you protest... "We all did it that way and the world didn't come to an end. Somehow, we survived." Well, maybe. Some of us did; most didn't. What's the recent drop-out rate? 80%? 90%? Think that might be partly due to the harsh reality of the rookie experience (or lack thereof)?
Anyway, here's my point. Rookies, take a few weeks or even a month to learn your stuff. I know you want to hit the phones and tell everyone on the planet that You Just Got Your License, but don't you think you owe it to your future fan club to know what the heck you're doing first? I'm not asking you to know it all, but at the very least.... you should:
- Know your contracts and disclosures backwards and forwards, inside and out. Every provision, every fill-in-the-blank, every place to initial and sign ... and why.
- Know your MLS system backwards and forwards, inside and out. Know how to search for active listings, sold comparables, pending sales. How to find tax assessor information.
- Know and understand the basics of buyer representation. Make sure you have an overall understanding of the buyer process - from pre-qualification to closing. While you can't know everything there is until you go through it once or twice or a hundred times, you should at least be aware of how it works.
- Have a familiarity with your local real estate market - this is so important! In a few weeks, if you bust your backside, you can learn a lot about your area and might even be able to become an expert, of sorts, in a neighborhood or two.
This list could go on and on and on, and if I had my way, all rookie agents would be required to undergo a six month internship before they could legally practice real estate. Alas, no one has asked me for my opinion yet, so I'll just do my little part here and beg our rookies (and their managing brokers) to commit to being competent real estate advisors before becoming competent real estate prospectors...
Thanks for reading!
Copyright Jennifer Allan 2007
Everytime I read another of your post I am convinced we are truly kindred souls. Every now and then a new agent approaches me and asks me if I will help them get started. We have a mentor program but all new agents are assigned to the assistant manager. The system calls for them to fork over 25% of their first three transactions or $1500, whichever is greater. I suggested that nobody should take a bite out of the first check and the system should be checks 2,4 and 6. It just seems pure folly to step on the first success, especially when the new agent needs all that money.
I was removed from the mentor team.
Those that come are not asked to pay me anything. They are required to hand write every document we use for buyers and sellers. I then require them to write what each line means in their own words. I explain that our profession in rooted in real estate law and you have to understand it to perform.
Then I go over the MLS and show them how to navigate the system and how to spot those manipulating the system. Their next project is to get on the phone and call me and role play until they are bored to tears and no longer find use of the phone daunting. The next step is for them to send me 10 listings, of which I will choose 5 and they will take me out and show me the homes. Little things like using the supra key for the first time can be flustering.
You see, J-Dawg, I agree with you 110%. My payment will come with the knowledge that at least one side of their future transactions will know what they are doing.
Thank you for another timely accurate post.
Great post, Thanks for sharing it with us. I agree you 100%!! When I had got started I had a mentor that was assigned to me... Let me say that mentors are great, but the one I had was ridiculous.
My principal broker told me that she didn't have time for me and assigned me to this agent that didn't even do anything but collect a fee from me!! I had to pay her 10% of my commission for her telling me "You did a great job." When I would ask her for help she didn't have time for me, and definitely didn't help with anything.
I truly believe in getting your education in every part of the business that you can and not going out making a fool of yourself. I think that all real estate professional rookies should have to have a QUALIFIED MENTOR so that they know what they are doing and can get the guidance that is needed!!
Thanks again for your post you made great points, and I look forward to reading more of them!!
Jennifer
If brokers would read this post and implement your suggestions we would all benefit from the increased public perception of our industry. Wishful thinking on my part.
I took 4 1/2 months before I tried my first sale and spent that initial interim period in graduate level coursework (primarily GRI courses). I now have CRS, GRI, ABR, and ePro and they really do make the difference.
Rob
Wow - not one negative comment - I figured I'd get bombarded with indignant rookies and brokers telling me I was living in a dream world... cool!
Rob - I'm really impressed. That's the way it ought to be.
Roberta - You're a lot like me - I hate to do anything until I'm really good at it. Faking it just isn't an option. Rookies complain when experienced agents are "mean" to them, but when the rookie doesn't know how to write a contract, they're just asking for abuse (and for their client to be taken advantage of).
Terry - maybe, maybe not. We can always hope (or make it happen, I s'pose)
Nicole - I've yet to hear a good story about an in-office mentor. That's too bad because it's such an ideal situation.
Rolando - how does your broker feel about your approach? (I love it, of course)
J-Mac, Yes indeed, we were twins separated at birth (along with Susan Haughton in your part of the world). So, I guess we were separates triplets. I love your story of being removed from the mentoring team! Susan has a similar story that's hilarious... If I had the time, I'd love to start a brokerage with these ideals, but I've been told that it would crash and burn and fail miserably. And that may be true - I wonder if there are enough "get me competent"-minded rookies in one place to make it viable...
Jon - EXACTLY. Everyone wins... EVERYONE!
I agree with you 100%...there are too many uneducated and inexperienced agents running around out there, doing damage to their profession, their clients and our reputation in general.
Further, there are many agents out there running around who have never even gone through the process of buying and selling property for themselves; couple that with a lack of education and a lack of training and wow, I just cannot even imagine what they are doing out there. I remember cringing in disbelief when I heard a new agent ask, "what is an earnest money deposit?" as she went out the door to do a listing presentation.
Huh?
On the other hand, while it is popular to blame the brokers and their lack of involvement in their agents' business, I will say I also blame the agents themselves ... you know the ones ... they like to post on boards with questions like "who has the best split?" "where can I get 100% commission?" and when it is sugggested to them perhaps they should look for the best brokerage in terms of training, they respond with statements such as "I can train myself with books and seminars."
Hopefully many of them will wash out and those agents who take this profession seriously and who will devote themselves to their craft will emerge as tomorrow's top producers.
I think the idea of a truly supportive brokerage with high standards and high expectations is a great idea; naysayers are just those folks who are threatened by the concept, I suspect....
Susan - You are on target. I just disagree a little bit with the negative tone wrapped around those that are seeking the best split. I agree that there is more to consider regarding affiliation with a broker than the split that is offered. I also think that the "big dogs" that bring in any warm body that is willing to don the "red, white and blue", "the big yellow" , or any of the other team colors, is to blame for part of the problem. In our area, every associate broker views new agents as spaghetti cooking. They grab as much from the pot as they can and toss it against the wall. They don't care which sticks and which slides away. They know that a certain percentage will stick. Some of those that stick will remain longer than two years. Their focus is on recruiting and tossing the spaghetti against the wall.
New agents are usually given rediculous splits. If they survive, they demand more or they move to another broker that will gladly pay them more. Their money is being made on the one or two sales the new agents generate before getting better or quiting. They don't care.
Along the same lines, wouldn't it be marvelous if all the relocation companies understood that the majority of the agents handling their referrals are new agents willing to work for what is left after the broker takes a 35%fee and splits the remainder 50-50. I am sure the relocation firms think they are buying the best and the brightest, when in reality they are getting the desparate and inexperienced.
I take my profession seriously and have no time to bother with VP's that are so out of touch with the real world that they react to our current market with a letter asking me to contact agents that haven't been in the office in a while and ask them to get busy.
Training beyond what is required to get a license will only be effective when it is required and subject to testing.
Ah, well, J Mac, although it breaks my heart to disagree with you in any possible way (because you are my L&F hero, of course), I am an anti-big brother, independent minded libertarian, so I believe the spaghetti has to take responsibility for allowing itself to be thrown against the wall. If I go down the street and open a bagel shop, well, isn't it my responsibility to know what is entailed in running a bagel shop? I don't blame the licensing authority for handing me a business license. Presumably if I'm opening a bagel shop, I know how to make bagels.
I struggle with the idea new agents are even worth a 50% split, HOWEVER, with that said, sadly, most of them probably are NOT getting anything in the way of guidance or training, which they should be. In a perfect world, the split would be irrelevant when an agent is new because the company would be offering so much training and support, it would be worthwhile because when they were turned loose on an unsuspecting public, they couldn't help but succeed.
And I admit I am undoubtedly looking through a lens colored by the fact I have an awesome managing broker who is hands on, does one on one mentoring himself, offers so many classes your head would spin and who is always available to us. Despite all that, I see many, many new agents who are struggling and not producing, yet they are NEVER in class. Who is in class? Mostly those of us who don't need it, but who rarely miss an opportunity to perhaps pick up a new idea or learn something new.
My attitude is, if those new agents don't avail themselves of all the opportunities available (I'm speaking of those in my office), then perhaps they are lacking what it takes to run a business.
I do NOT want to see the business model change insofar as being an independent contractor vs employee, and that is my greatest fear when we talk about what brokerages ought to be doing for their agents. I would like to see a much greater barrier to entry into the field with more difficult testing, more education and certainly more stringent continuing education.
Where we disagree is in whose responsibility it is to ensure that competency; I believe it falls on the back of the independent contractor. We all have the same landscape to survey and the same decisions to make. If we don't want to be spaghetti, we should choose to be meatballs instead.
I agree with you - however, finding an experienced broker or agent willing to train you as an apprentice is hard - not many folks want to equip their competition!
My old broker had no interest at all in training people. Now, my current office is VERY BIG on training and you know what - our brand new office (less than a year old) is one of the top three offices in the MLS for production.
Things that make you go HMMM. If you invest in your people, it will return with satisfying payback.
I LOVE the commentary on this post - thanks guy! I thought I'd get blasted for implying that our rookies are kinda clueless and should actually learn their stuff before "practicing" on the unsuspecting public, so all your support was a pleasant surprise!
Mary - I'm glad you found this post and maybe it will help you do things in an order that makes sense to you... and therefore give you that extra confidence that will get you past your slump. And, I'm ahead of you - I do have a competency-based training program for rookies - both in book form and online. Maybe I'll hit the road in 2008....!
Susan - (and you know Jennifer will kill us for hijacking her follow up comments) I agree that the spaghetti is in part responsible for sliding down the wall. You thoughtful types always make me dig deeper. I suppose the underlying issue is the fact that they do hire anyone that walks through the door. Yes, new agents will have a better chance of succeeding if they are trained. There will also be less failures if candidates were screened a little better.
As you well know in the DC area, there are minimal requirements to get a license. The only challenge to keeping a license is the ability to show up and sit through "continuing education" for about 15 hours every two years. You are also aware that going through and graduating from "realtor" school is not that difficult. Has anyone noticed that the largest schools are run by the brokers that are seeking new blood? I digress.
So I do agree that the ultimate responsibility for learning is on the shoulder of the new agent. I just happen to think that maybe, just maybe, some of them should never have been in that position. I like being a self employed contractor and would not change that element.
p.s. - Jennifer, I spoke with the coach and there should be news from him any day now.
I think mentoring is a valuable service for new agents. Some smaller companies may not be able to do this adequately, and for sure, what we learn in pre-licensing doesn't prepare us for the 'real', customer service part of the industry. And nobody in their right mind will just throw a fresh agent out there without some sort of guidance or check system. And some Brokerages do have very good 'orientation' or skill-building classes for new agents. But I have to disagree about the phone.
This is the toughest part of the business for many agents - even those with years of experience. The sooner you get over it (i.e., get shot down a few dozen, hundred, thousand times), the better. Unless you're in a *really* small town, this does you no damage and it provides you with valuable experience. A good substitute is to have dialogue sessions with co-workers (or your mentor) to prepare you for what you will encounter when you're prospecting expireds, for sale by owners, and even your own sphere of influence! There are very few 'naturals' out there. We need to practice all of our skills constantly - phone, CMA, market research, marketing and so much more.
John and Susan - please continue to hijack. I'm enjoying it.
Robert - I see your point, but I disagree in principle. I don't think it's the public's responsibility to train us or let us practice our skills on them. Real estate agents constantly compare themselves to doctors and lawyers, and I'd hate to think that the medical or legal community encourages their rookies to practice on us to get over their nervousness. That's what cadavers are for...
The whole idea of fake it til you make it -- especially in the first month of a new career -- almost makes me ill. At the very least, it's very unprofessional.
It's not as if rookies won't have opportunities to "practice" during their normal business day while they're training. These opportunities will happen naturally. I just don't think they oughta be encouraged to pursue them until they have a clue what they're doing.
Yes, I think we do agree on most points, Jennifer. My company (formerly a national franchise, now independent) has a great training program, which is why I landed with them. We often have veteran agents that sit in on these as 'refersher' courses, if you will. Many others have such programs, too. KW comes to mind immediately, and I don't mean to exlcude others, it's just that I remember that off the top of my head.
Many agents do themselves a disservice by not interviewing around or asking the important questions about training, orientation, and support. All too often we concentrate on the payment plan and little perks instead of the really important things. Kind of like those for sale by owners that get hung up on open houses rather than the rest of the work we do! :-)
Again, a good mentor will be able to help with questions on contracts (I had them for the first 5 or 6 deals). Every deal is different and in the beginning we are learning by leaps and bounds on a daily basis.
Where to start?
I raised my hand five days into my "real estate training" and asked what was the protecting the public from me? How in the world could we in good conscience allow a brand new agent to simply walk in and begin business as usual? That was the beginning of my plan to not fake til I made it rule. If I was going to be in this business for any time than it had to be that I could actually perform so I made it my mission to learn, go deep and learn. The dichotomy is that we need to have experience to learn but there's no real system in place to get the experience other than to practice on an unsuspecting public, who as no idea how to choose someone to handle the most expensive transaction of their lives.
I agree wholeheartedly with the notion that we need apprenticeship programs in place to get new agents to a level of competence that allows them to have a basic understanding of their jobs:
From what I've seen of mentoring so far it's a question of who signed up to be a mentor. Not what qualifications you had to impart your wisdom on the world, but as mentioned above who can take their cut. True mentoring requires a time commitment that should be valued in terms of dollars paid back to the mentor as well as the knowledge gained by the mentee that will give them years of return. ROI on education received in any form should be factored in.
Spaghetti on the wall is so perfect! Such a good way to look at how the brokerages run their models and why we end up here commenting on what should have been a perfectly obvious lesson from the start. I'm constantly hearing managers say they don't know when they'll get sued next and this is with extensive training programs in place.
I hadn't thought before that new agents aren't worth their 50% cut even but there is another discussion point that we could take to a different level. Interns in many other professions pay to be part of the program or receive a minimal stipend. If they wash out they don't get invited to be part of the company for the long term. While I don't want to change the 1099 model there does need to be some barrier to entry that makes it more expensive to be in this business unless you can plan to be successful at what you do.
Sorry for the length. If I was asked to rule the world, I'd do it differently :)
Jennifer, I've been in the industry for 3 1/2 years, licensed just over 1 and I'm still learning....it takes time to know and understand everything. Plus, forms change, stats change, inventory changes. It's our job to stay on top of it all!
My "other" career is teaching and I was required to go through a 5 month UNPAID internship in order to getting my teaching credentials. Most teachers have had to do this to enter the profession - and how many teachers are there in the U.S.????? Over 6.2 million. Now I realize not all of these teachers are properly credentialed, or they might have gone through alternative certification programs (requiring no unpaid internship) but I would say it is safe to say at least HALF did - and that is over double the number of realtors in this country (approx). In other words, a number of other respected professions require it, so it seems logical that real estate should too. I mean, student teachers don't want to be without an income for 5 months (or exsisting on a part time/other job in the meantime) - but it was required...
I plan to continue courses at the Grad school level after finishing my licensing courses and already have an excellent mentor that has "signed on" to help me. I can't wait to learn! I am prepared to 'be properly prepared' and confident before I guide someone through what may be their biggest financial transaction of their life.
As good old Ben Franklin said....."By failing to prepare, you are preparing to fail."
Another excellent, well thought out and well written blog Jennifer! Thank goodness for YOU!
(let me try this post again - with GRAMMAR and SPELLING corrections!!! Sorry!!!!! I'm a good teacher, honest! It's hard to type anything of any length with my 3 and 4 year old kiddos nipping at my heels!)
My "other" career is teaching and I was required to go through a 5 month UNPAID internship in order to receive my teaching credentials. Most teachers have had to do this to enter the profession - and how many teachers are there in the U.S.????? Over 6.2 million. Now I realize not all of these teachers are properly credentialed, or they might have gone through alternative certification programs (requiring no unpaid internship) but I think it is safe to say at least HALF did - and that is over double the number of realtors in this country (approx). In other words, a number of other respected professions require it, so it seems logical that real estate should too. Student teachers don't want to be without an income for 5 months (or exist on a part time/other job in the meantime) - but it was required for many.
I plan to continue courses at the Graduate level after finishing my licensing courses and already have an excellent mentor that has "signed on" to help me. I can't wait to learn! I want to be properly prepared and confident before I guide someone through what may be the biggest financial transaction of their life.
As good old Ben Franklin said....."By failing to prepare, you are preparing to fail."
Another excellent, well thought out and well written blog Jennifer! Thank goodness for YOU!
Interesting thoughts, for sure. Here are some more. In Michigan, a Cosmetology student has to attend 2000 hrs of school to get their State license. Real Estate pre-licensing requires 40! Of course, it covers nothing but Real Estate Law. So the 'practical' experience is left to the Brokers. Cosmetology students get the 'advantage' of many, many hours doing the various things they'll have to know when they graduate and get into the workforce. RE licensees have to learn 'on the job'.
Most new licensees are 'unconciously incompetent', that is they don't even know what they don't know yet (I was there in the beginning, too!). Many think they'll get a desk, make some personal brochures, get business cards and be on their way to high incomes. Of course, it doesn't work that way. Choose a Brokerage that doesn't invest in training and mentoring and you're out of luck. It's very difficult for a new licensee to learn and progress if they're trying to retain the 'other' job and do Real Estate on the side, too.
And then there's the fact that not everyone is cut out for the learning curve, interpersonal skills required of, and demands of a direct sales occupation. It's still about getting in front of people that have a strong motivation to transact business. Sitting around taking floor time or waiting for your phone to ring won't cut it. Lack of in-office training won't cut it. And lack of mentoring won't cut it, either. Sure, some agents buck the odds and become successful 'on their own', but they are a minority.
I still think that newbies should get on the phone sooner rather than later, however they should be coached in how to evaluate and qualify prospects (which would include frequent dialogue sessions in the office), be made to honor the do not call list, and how to be polite under duress. They need to start learning and honing phone skills early in their careers. The quickest way to learn your MLS and contracts and disclosures is to be USING THEM. Likewise with phone skills.
Of course, no new agent should work unsupervised until they have proven themselves able to conduct business in an ethical and honest manner. There's no shame in telling a client or a prospective client, "I don't know the answer to that question, but I'll find the answer and get back to you." That's called honesty. Like Joddie, above, I'm still learning new things constantly, and I have 10 years experience. Learning should never stop.
I have 10 years teaching experience and feel like a "new" teacher every school year! And it's amazing how much has changed since I started. So I think with any real profession, you must constantly train to stay on top of things. I expect that of my doctor, lawyer, cpa, etc....
I like the words Robert used: "have a strong motivation to transact business" but I think that is something every REALTOR should innately have, whatever their style is (introvert or extrovert). I want to be out there in front of as many people as possible, regardless of their current level of motivation. (although it is agreeable that it is better to have more people who have a strong motivation right NOW LOL)
And I agree with saying "I don't know the answer...." I cannot stand it when someone tells me something (probably the WRONG thing) just because they think they might look bad for not "knowing" everything. But the key to all of this is to ACTUALLY get back to them!
Jennifer,
Great post. The only thing I learned while studying to take my real estate exam, was how to pass the exam. It really didnt teach me anything about selling real estate.
The reason I chose the broker I am still with (since March 04) was because of the training they offered. We spent one month in the class room and the majority of it was learing contracts. Part of our homework was to write offers on homes that the teacher had selected for us each day. We went over the purchase contract and the listing contract line by line.
Once I started at my office my sales manager had me write about a half dozen more practice purchase contracts. I dont think I would have made it without the training that was offered by my broker.
Makes sense to me! !
Bonner
This is just the straight up truth! I love everything you post.
Jennifer - Amen to that. I know this is an older post, but still very relevant today. I would have been more than happy to have a 6 month training course. I think that should be the direction all brokers should be taking. They should be more concerned about their new agents success than just hiring a ton of agents and hoping a few are successful on their own.
Troy - I owned my own brokerage for awhile and our office policy was that new agents would do their first three deals for no pay - we required that to ensure that our agents cared more about being competent than about getting a paycheck. I SO wish our industry would require agents to go thru an internship...