They had the big meet-up in the desert – where a ‘cohort of startup entrepreneurs; disruptive company founders; top-producing practitioners; owners of brokerages big and small; coaches; executives across new and old franchisors; MLS and association leaders; big data experts; and technology giants’ got together to discuss the future of real estate selling business.
These articles are typically behind a paywall, but here’s the link in case they excluded it and want to reach everyone:
The goals they set out are about what you would expect – simplify the home buying and selling process, be more transparent, enforce ethical standards, insist on diversity, etc.
What wasn’t mentioned was educating the consumer on how to hire the best agent for you. The associations of realtors, big brokerages and other industry types leave it up to the individual agents to do their own advertising, so all you hear about is how great we are just because we listed or sold another house.
Or maybe no one in the industry wants the truth to be told.
This is an excerpt from someone in the comment section:
My firm analyzes MLSs across the entire country, with coverage of 95% of all residential resale transactions and nearly 1.4 Million member agents. In calendar year 2017, these were the grim production statistics: Only 65.4% of MLS member agents closed 1 or more transactions annually. (About one-third of agents did not sell a home in 2017).
Of the active agents, consider that:
- The median count of closed transactions annually was only two.
- The average of closed transactions annually was 8.8.
- The top 1% of active agents (or teams) closed 13.4% of all sales volume.
- The bottom 50% of active agents closed only 11.1% of all sales volume.
The consumers get blamed for not investigating their choices more carefully when selecting an agent, but they aren’t getting much help. When was the last time you heard a realtor team or company suggest that you should review an agent’s sales history to learn more about their ability to help you? Or do anything to educate the consumer on how critical it is to Get Good Help?
It’s because every single person knows 1,2,3….7,8,9 realtors. They are everywhere. Too many. What’s the quote? “If 9/10 realtors quit we would still have too many realtors”
No one shops for one because they already know one and can’t offend a friend or facility member by not using them.
The single best moment in my real estate experience. All the interested principles were there over details. Buyer (me), seller and respective agents. At some point some niggly little detail about the age of the water heater or somesuch broke out between the three. I slapped my hand on the table. Pointing; “You, are walking away with a check, you are walking away with a check, and YOU are walking away with a big check. I’m the only person here bringing money to this table. [pregnant pause] So, here’s my opinion…
No one shops for one because they already know one and can’t offend a friend or facility member by not using them.
Yes, and because there isn’t any awareness to the differences between realtors – everyone thinks we’re all the same.
Now we have the disrupters taking advantage of it, and saying they do the same for less. But it’s not the same, and not close.
If realtors don’t start publicizing the differences, we might as well pack it up. If the consumers think we’re all the same, then they will just hire the cheapest.
I’m the only person here bringing money to this table. [pregnant pause] So, here’s my opinion…
Nice close. And a reminder of who should have a say in the outcome. Today, stuff like no termite clearance, free rentbacks, no cleaning prior to close, etc. gets dumped on the buyers without a thought of what they think about it.
Loved this part:
> 12. Stand up to climate change and prepare for natural disasters
The industry must stand up for sustainability and commit to disaster preparedness. The industry should equip their clients with the knowledge to be responsible in using natural resources wisely and supporting a sustainable community. We must make sure that our teams and their clients have taken the steps to be resilient in the face of extreme weather events and emergencies. We must be transparent with clients about the threats of nature, fully disclosing changes in the environment.
So never represent a beach or waterfront property. Riiiiight.
Loved this part:
> 12. Stand up to climate change and prepare for natural disasters
Me too. They also included this:
10. Make our communities better places to live and work
We should use our influence as real estate leaders to give back and advocate for and support education (even if it means higher taxes), marginalized communities and policy that will promote affordable housing and access to homeownership in the long term.
So after I equip clients with the knowledge to be responsible about natural resources and support a sustainable community, and give back/advocate/support/promote affordable housing, when do I have time to sell the houses?
“No one shops for one because they already know one and can’t offend a friend or facility member by not using them.”
It’s very hard working with a friend or family member as your RE agent. I tried it once. In the end, I lost a good long-term friendship.
I work in a similar broker-type business as Jim. Old friends and family members are off my client list.
No one shops for one because they already know one and can’t offend a friend or facility member by not using them.
I agree with Ty that this is probably the case, but we should still make the case that people should investigate thoroughly, just so they know what they are getting themselves into. And add gameagent’s testimony as the closing paragraph!