Recently I have heard several Realtors commenting on the influx of newbie and part time Realtors and why Brokers should not hire them as they are cutting into the seasoned professional‘s business. The general consensus seems to be to concentrate on our own business and let the market sort itself out. I agree with this. However I think we are missing the real issue. In my opinion the real issue is not how these inexperienced Realtors are affecting our business but how they are jeopardizing the Sellers and Buyers that are hiring them. A Seller or Buyer hiring a Realtor to help them, with what may be the single largest financial transaction of their lives, should be able to assume that a licensed Realtor is qualified to handle their transaction. This as we all know is not the case. Being licensed and being a Realtor does not necessarily mean you have a clue to what you are doing. To me this is very scary. I agree that everyone was new to the business at one time and must start somewhere. I do not agree that learning the basics of Real Estate should be a trial and error affair.
Brokers are obligated by law to train and supervise their Realtors. This is not a choice, this is law. At a minimum, new and old Realtors should be able to properly complete a legible and binding purchase contract and listing agreement. They should be able to prepare an accurate Market Analysis and be able to justify market value to their Sellers and Buyers. They should know to who and when to provide the proper Agency Disclosure. They should be able to intelligently discuss financing, appraisals, inspections, repairs and the closing process. These things need to be taught and learned prior to conducting the services of Real Estate. It is the Broker’s responsibility to make sure all Realtors are receiving this very minimum amount of training prior to holding themselves out to the public as being a professional capable of handling their Real Estate transaction. To be any less qualified than this is probably illegal and definitely unethical.
To be an experienced Realtor comes later. This IS learned by trial and error. Learning how to handle closing issues, negotiating techniques, people skills, preparing marketing plans, having a feel for a deal, being able to confidently counsel your customer/clients and many other skills that can only come from being involved in transactions. Hopefully, the more deals you do the more experienced you will become. One thing for sure about this business is you will never know it all.
My advice to new Realtors is to take as many training classes as you can. Learn the basic skills required to conduct your business. Read everything you can related to Real Estate. Find a Mentor. Hook up with a great mortgage Broker. Take the GRI classes. Take a seasoned Realtor with you on your first listing or buyer appointment. Have your Broker review all your contracts prior to presenting them. Read and understand the purchase contact including the standards. Practice preparing a Market Analysis before your first listing. And most important find a Brokerage that offers training. You can always switch to a higher commission split office later once you know what you are doing. Treat this business as a profession and dedicate your time to learning and you will find this a very rewarding business to be in.
Any thoughts on this?
By the way the message title of this post is to get your attention and is in no way an attack on new Realtors. My comments apply to all Realtors who do not conduct their business in a professional manner