Real estate training is some of the worse training in the world when you really think about it. Whatever the state's minimal licensing requirements for licensure are, they do not prepare a newly licensed agent for the real world solutions. Yes there are 43,560 square foot in an acre and of course you remember the definitions of riparian, alluvial and littoral rights...don't you? What real knowledge can a newly licensed agent use to assist a home buyer or a home seller? The answer is none of the above! A real estate license is a state's permission to engage in the practice of real estate under the supervision of a broker. That's all. A newly licensed piolet does not take over the helm of a jumbo 747 and start flying hundreds of passengers to and fro across the country. A new doctor graduate of medical schools does not immediately start performing brain surgeries. The real world does not work that way. All these professionals seek addition knowledge and training to become proficient enough to eventually work on their own, unsupervised.
In Real estate, a deal can be $50,000 dollars or 5 Million dollars. A deal may represent a persons entire lifetime of savings, or a corporations total cash assets. So what does the broker do to train the new agents about correctly taking listings at the right price only? How do you know the potential client you are working with is motivated, and loyal? Who tells the new agent never to put a person into the car to show a home without qualifying their ability to purchase? Does anyone advise a new agent it isn't wise to cut a commission? Does an agent know how to perform a very accurate Comparative Market Analysis? Would you list a home that you feel is worth 150K, and the seller want to list the home at 275K? Well the sad reality, is no one sits down and really goes over all the possible scenarios with a new agent!
When you really stop and ponder this point it gets very scary! Most of the advice an agent will receive is from other agents in the office. Since most of the agents in an office will be out of the real estate business within the first few years, and the average agent only sells a few homes a year, what advice is the new agent actually getting? The answer is none! "It is the classic case of the blind leading the blind!" It is quite scary when you know this is the scenario that takes place in every city, across the country every day of the year. How unproductive. This is the primary reason for real estate listings expire. Overpriced homes that should never have been listed, are listed by someone that never even gave it a thought, A listing is not a feather in the cap unless it sells. This is a recipe for disaster for the new agent. It ensures their own failure in real estate.
Brokers need to take a much more pro-active part in making sure the new agents that are listed in their office have real training that ensures they are successful, and that their clients receive the best possible assistance and service. Part of this plan would be to hook new agents up with agents that have closed lots of deals. This could be one of the smartest things a broker can do to ensure new agent success. Set up a mandatory mentoring program, or shadow training for all new agents. How would this translate into our everyday life in real estate? Less listings expiring or withdrawing, less days on market, less termination an releases for clients trying to get out of contracts for not being able to perform, and so much more. Love to hear your thoughts!
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I've seen many agents experience just what you mentioned. I was actually speaking with someone who came to our office, and they described their last offices training as "here's the desk and the phone...go to it".
I was fortunate to join Keller Williams from the start. Their training was integral to my success. They have free ongoing training, mentoring programs (although they're not mandatory), regular sales meetings, 2 annual conferences and even a Keller Willliams University with a ton of online training programs and paid programs you can attend throughout the year.
Everything is of course optional, and I've seen that those who take advantage of available training, and stay plugged into their office and the support it has to offer...those are the ones who succeed. Those who never show up are also the ones who never write a deal.
Preach on, brother. We need an apprenticeship period in real estate badly. Won't solve all of the problems but would really help weed people out faster and help the good ones get better faster.
David thanks! I agree about hte licensure it probably takes more education by state licensure to cut hair for a $10 haircut than it does to sell homes!
Marchel Thanks! I had several mentors! Seasoned prefessionals that are not afraid to share their insights! Gold bless them!
I'm not certain a college degree means much anymore. I meet people every day with college degrees who cannot spell, add a column of numbers or construct a sentence!
Do away with CE courses that are "open book" exams (or have no exam at all). Require some regular supplementary education in addition to Continuing Education. Create an apprenticeship period of a year (or more) where the agent is teamed with someone experienced.
Jim, I agree with your mandatory mentoring idea. There isn't adequate broker supervision in many offices, unfortunately.
Five stars for a great post. I am in my first year in the business and my broker hired me on the condition that I would meet with him twice a week for one on one training. I appreciate the time and that he did not pass me off to another agent for training. I also have been grateful that he checks with me on a regular basis to see how I am doing.
I think it would be helpful if new agents were assigned a mentor for one year and we were required to complete a heavier load of CE classes for the first year.
As a new agent I think this would have helped me and all agents. I also think this type of program would lower the first year attrition rate the runs too high in our industry.
Just a rookies thoughts.
Brad Snyder
Jim,
Right on the money. Some companies do offer training for their new, and old, agents, but for the most part newcomers are on their own. Same thing is going on in the mortgage business. They give you a business card, a stack of rate sheets and a cubicle with a computer and a phone. Where is the sales training? You have to do it on your own.
Jim - You always seem to have your pulse on what people think. This is a pet peeve of mine! I think Brad has a great broker! He's fortunate indeed.
I'm a new agent and never had support from my previous broker or the other "veteran" agents...they were too busy to help. I think it's a shame when the listing agent of an offer you were attempting to write has to walk you through it. That's what happened with me and I will be forever grateful to her. What a blemish to have on the office I left.
Esko thanks! comers are the life blood of real estate, yet 80% leave real estate every few years.
Linda thanks! More often than not, the scenario that seasoned agents deal with is a badly written contract...then the agents need to get brokers, and lawyers involved to save the deal. It is too late for this! Confidence is already lost on all sides in the abilities of each other! The eventual scenario is that the deal usually falls apart as buyers, or sellers hit an impasse. It is a total waste of everyones productive time. When you are in the midst of a bad deal like this it is almost impossible to do any new business. You are consumed to correcting the wrongs. There is not reason for this whatsoever!
Geez I hated giving you those 5 points... again. It's going to be a serious task to unseat you as #1 in GA... but I digress.
I gave you those points (again) because you deserved them. I have been feeling for a while that agents need to apprentice into the business. In fact, I think that the NAR should take the lead on it. Let state licenses be easy to get, but make NAR membership really mean something.
Adam isn't that sad? Maybe some like to just play "Dress up real estate!"
Ron well said! "Find a broker who is willing to devote time to you, not just him/herself. "
It's a 5'er. Great post Jim. I stopped teaching agents because the Principle broker I worked for wanted me to teach them how to take a listing at any cost. And how to write more offers by convincing buyer's to write low ball offers.
I walked out of the office and quit. They were just moron's and were raising idiots that I would have to work with over the coming years untill they finaly went out of business.
Jim,
You are SO correct - our state licensure course contained very little information that applies to what we do day to day. Finding a broker who is approachable and actually interested in the success of their agents is a difficult task for a new agent. I finally found a broker who supports me and is interested in my success and it has made a big difference.
Randy Good point....a "..real estate license only gives them the right to become a student, nothing more."
Sharon I like that a lot! "The best thing that can happen to a new agent is to be able to have a great mentor."
Herb that is the key you are a man of high standards and principles! Toothers it is about crunching numbers,
Rita day to day in real estate is so different than a class that has nothing to do wiht the real world of real estate. Ethics, drafting a contract, taking a listing, negotiation skills etc...
Jim - great post and sadly true. I had the very good fortune of being mentored through my first three transactions (of course, this came with a price tag from Big Broker Brother). But, in my case, it was money well spent. My mentor ended up getting her broker's license and starting her own company. She was smart, funny, optimistic, honest, and all-in-all, a great person to learn from and aspire to become. I am still friends with her until this day.
I see your point, though. Most agents aren't that lucky and many of the brokerage houses out there don't adequately prepare them for the road ahead - either as agents or business owners. Even appraisers have to apprentice for 2000 hours before they can become licensed! Hopefully, this will change as the business model changes.
Jim - I wrote about this recently as a 2-part blog about the reasons that REALTORS leave the business. The training, for the most part, is a joke. Getting a real estate license is easier than getting a driver's license. For as long as the states keep using the same ridiculous test, we will have the blind coming into the industry and learning from the blind or worse. Much of the training revolves around FSBO's and Expireds. It's an easy thing to tell the new agents to go do. Of course, most won't be successful at all, and they'll leave the business just in time for a new agent to come in and keep the cycle going.