Missing Million Dollar Listing

September 20, 2006 | 1 Comment

Due to attending the ballet at the Paramount, I missed "Million Dollar Listing" last night.  I will have to wait until the episode is available on iTunes.  Can’t wait to find out what I missed.   

Posted by Daniel | 1 Comment | Filed Under "Million Dollar Listing" 

“Million Dollar” Musings

September 6, 2006 | 1 Comment

Watched the latest episode of "Million Dollar Listing" last night.  In case you aren’t watching the show, you should be.  This episode brought to mind just a few thoughts:

1)  The fact that dual agency  is legal had to be the direct result of Satan himself lobbying real estate commissions all over the country.  The only person that EVER benefits from dual agency is the agent.  His wallet gets fatter, and the buyer and seller get less representation.  Only Satan would call that fair.   

2)  People buy and sell for all different types of reasons, and people don’t buy and sell for all different types of reasons, no matter how unreasonable they are.

3)  While emotional therapy isn’t specifically listed among the requirements of an agent’s duty, sometimes it sneaks in there. 

4)  Not every agent is a money-hungry, soulless, SOB– even if they may look that way. . .at least I hope not.

I’m sure I’ll have more such musing for you after the next episode.  The show has left me infuriated and entertained many times, so I can’t imagine that things are going to change very much. 

Posted by Daniel | 1 Comment | Filed Under "Million Dollar Listing", Dual Agency 

REALTORS Could Learn Something from Zebras

August 31, 2006 | 1 Comment

There are those among us that feel that the real estate industry has some real issues. There must be at least a grain of truth to this assertion, since Congress didn’t call industry leaders and government officials to Capitol Hill just to shoot the breeze. The concern of the federal government is the possible erosion of competition in the industry. The Justice Department has filed a few suits against an association or two for policies that they felt might be anti-competitive. Competition has always been an issue in real estate, and it isn’t likely to go away any time soon.

For me, however, the biggest issue isn’t industry competition, but the industry’s reputation. I’m not dumb, I know that REALTORS and agents don’t have the best reputation in the world. In case I needed proof, Harris Interactive is more than happy to provide some. Take a look at the following table:

Harris_job_poll_1

This poll was taken in May of this year, so the data is about as up-to-date as one can reasonably expect. I know that people are supposed to possess a healthy amount of skepticism, but these results say that 20% of the people with whom I might come in contact in my capacity as a REALTOR would completely distrust my advice. That’s bad, people– very bad.

I’m not naive enough to believe that all REALTORS and agents are good people that are always out for the best interests of their client, “Million Dollar Listing” blew that idea out of the water in a very public fashion. I am, however, concerned with the way in which my profession is perceived. This is because it affects, in turn, the way in which I am perceived. Obviously, the public trust in REALTORS and agents is not very high, so the logical questions are, “why?” and “what can we do to change this?”

First, addressing the why?–

Every state in the country has rules that cover the way in which real estate licensees are to conduct business. Those rules are different in every state. The only state with which I have any experience is Virginia. In Virginia, the focus of most of the rules governing real estate licensees is the protection of the consumer. In Virginia, those rules are enforced through the Virginia Real Estate Board, what we call the “REB.” When consumers and or other licensees feel that a rule has been violated, they can file a complaint with the REB. The REB investigates the complaint, and holds a hearing, if necessary. If the REB finds that a law has indeed been violated, then it has the power to levy appropriate sanctions, including the revocation of a license.

In our area, there is also a second layer of rules. That is because most of the licensees selling real estate in our area are REALTORS. As REALTORS, we agree to abide by the REALTOR Code of Ethics. The Code of Ethics sets forth the rules for REALTORS in dealing with the public, each other, and their clients and customers. It is adherence to the Code of Ethics that makes up the difference between REALTORS and real estate agents. The Code of Ethics is enforced internally by REALTORS in their given geographical areas, and by the National Association of REALTORS.

To me, the problem with the reputation of REALTORS and agents is not necessarily in their practice, but in their enforcement. I touched on this issue in a previous post:

One of the benefits of working in an industry that is subject to little
government regulation is that people are exposed for who they truly
are. They act the way they do because they don’t think anyone is
watching. You wanna know someone’s true character? Put them in a
situation in which they don’t think they have any responsibility to
anyone else, and see what happens.

As I mentioned, much of the enforcement of the rules and ethics that govern REALTORS and agents is handled internally, by REALTORS and agents themselves. The problem arises when someone does something that violates a rule or standard of practice, and then other agents ignore it. Because the enforcement is handled by peers, there is also a personal element that comes into play. There are those that would rather avoid confrontation with another agent or REALTOR because they know they may have to work with that person later on, and they want to remain “friendly.” To me, this is a very dangerous situation. It is dangerous because it needlessly proliferates bad behavior.

I would much rather work in a profession where the rules are over-enforced than under-enforced. When you allow rules to go unenforced, it makes them very difficult to enforce when you need to. To choose not to enforce a rule is to give approval to the violation. Even if this approval is tacit, it is still approval. Tacit approval is dangerous because it gives the appearance that no one cares. To me, this is how the public is perceiving our profession. They perceive agents and REALTORS as dishonest because they don’t see anyone standing up to the dishonesty. The profession is not inherently dishonest. In fact, when all the rules are followed, it is very fair. The reason the public doesn’t trust REALTORS and agents is because they are unaware of the rules, and even less aware of any enforcement– that’s the “Why?” So that leads to, “What can we do about this?”

Allow me to give a real-world example from another profession with which I have first hand experience. . .

When I am not practicing real estate, I am usually officiating basketball. I officiate at all levels, right up to Division III college men’s basketball. I like it. If everyone had to do it for one season, they would gain a whole new perspective on the game. One issue that is omnipresent in officiating basketball is managing coaches. Obviously, coaches and officials do not see eye to eye all the time. This can lead to confrontation. Sometimes, that confrontation leads to rules violations, which lead to technical fouls and even ejections. This is the nature of the beast. A good official can do his or her best to prevent these situations, but they are going to occur. When they do, the good official knows what to do, and takes decisive action.

The two best pieces of advice I have ever received with regard to managing coaches and technical fouls are: 1) Set a limit, and stick to it. 2) A technical foul is just another foul.

By setting limits, a coach knows how far he or she is permitted to go before a technical foul is coming. This is important. The rule book doesn’t say a whole lot about what is or is not worthy of a technical foul when it comes to unsportsmanlike conduct. It is up the official to let the coach know when the limit has been reached, and the line is being crossed. Once crossed, both parties know it, and the technical foul is just the next step.

Remembering that a technical foul is just another foul helps to ease the tension that usually occurs after issuing one. Technical fouls don’t occur all the time, and the penalty is severe. Because of this, officials don’t like to use them if they don’t have to. That is why technical fouls are a lot like rules and ethics violations. When they do occur, the penalty needs to be enforced quickly, efficiently, and without a whole lot of hub-bub. Believe me, everyone has already seen what caused the technical, now enforce it, try not to do it again, and move on.

REALTORS and agents could learn a lot from this advice. The limits have already been set. Simply enforce the limits. When enforcement is necessary, act decisively, don’t make a big production of it, and move on. Just like coaches who receive a technical foul, REALTORS and agents who commit violations are either going to change their behavior in the future, or face ejection. Either way, we are all better off for it.

Posted by Daniel | 1 Comment | Filed Under "Million Dollar Listing", Industry Issues, Officiating 

Wait. . .it gets even better!

August 30, 2006 | Leave a Comment

Okay, so after I made that post about the premier of "Million Dollar Listing," I discovered that there is a blog for the show. 

And if that isn’t enough for you, then you need to check out the message boards.  There are posts on there from agents around the country.  I wasn’t sure if I should laugh, cry, or just put my head in my hands. 

Posted by Daniel | Leave a Comment | Filed Under "Million Dollar Listing", Fun Stuff 

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