Why we don’t need more professionalism among REALTORS

by Daniel Rothamel on February 10, 2010 · View Comments

in Industry Issues, NAR

If you want to start a debate among baseball purists, bring up the designated hitter.

If you want to start a debate among Realtors, bring up professionalism.

Frankly, I’m sick to death of both discussions.

I really think that, as an industry, we need to move past the whole “we need a higher degree of professionalism in real estate.” It’s a pointless argument that will never be resolved. The only thing that it does is allow us to pat ourselves on the collective back. The discussion certainly doesn’t do anything to improve professionalism. The reality is that the ones even participating in the discussion don’t need to improve their professionalism, anyway.

Don’t even get me started on “increasing the barrier to entry.” That’s another pointless argument. Basically, it is elitism. It screams of– “I didn’t have a high barrier to entry, but I feel really cheated by all the educational/professional training I did undergo that I feel is being wasted in real estate, so we should really make people go through a bunch of training so that I can feel better about myself.”

I know what I’m talking about, because this is exactly how I used to feel.

Then I got over myself and moved on to more important things.

Professionalism doesn’t matter nearly as much as you think

Clients don’t care about your professionalism. Well at least, not in the way that you think they do. Sure, they want you to be honest, truthful, respectful, dependable, etc. They want you to be all of those things. They also assume that you are going to be all of those things. They are going to assume, and then demand, a certain level of competence. Your responsibility is simply to meet and (hopefully) exceed their expectations.

The professionalism of your colleagues has very little bearing on whether or not you are professional and meeting your clients’ expectations. Sure, you might have clients that were burned by a bad apple or two, but hey, welcome to the real world.

I’ve got news for you, not everyone takes their profession as seriously as you do. So what? Screw ‘em. You worrying and complaining about them isn’t suddenly going to transform them into conscientious professionals.

You can talk about increasing the perceived level of professionalism all you want, you can raise the barriers to entry as high as you want, but there is always going to be someone at the bottom of the ladder. If you’re not careful, you might find out that it’s you someday.

We don’t need increased professionalism among Realtors. There are tons of extremely competent, extremely professional, Realtors out there who treat their profession as a career, not just a job. They hold their clients interests above everything else, every time. I know this. I meet them all the time.

Let’s concentrate on things that really matter

Stop worrying about professionalism. It’s a distraction from what really matters.

If you really want to increase professionalism in the industry, it starts with you.

If you do what you do to the best of your abilities, and do it better than your competition, all the “unprofessional” Realtors out there won’t be able to compete with you, and natural selection will take care of the rest.

The few unprofessional Realtors out there really don’t matter to you. Unless they somehow become a majority of the profession, which I don’t see happening, they are simply irrelevant. They obviously don’t care, which means you have no obligation to care about them.

I can’t speak for you, but I’d much rather spend my time talking with and about the vast majority– the really awesome Realtors that I meet all the time who totally rock the real estate industry. It’s time to start talking about them.

We don’t need more professionalism among Realtors. What we need to do is spend more time with the real professionals.

  • amandacluett
    I have been updating with this Real Estate blog for sometime and its a great blog and very informative.
  • Aaron McManus
    The word "profession" is defined as a paid occupation, especially one that involves prolonged training and formal qualification.

    The desire to create standards for the sale of real estate - and by doing so to make this business into a profession - began the National Association of Realtors in 1908. NAR is now the largest trade union and lobby in North America.

    Currently, there are more requirements to cut hair than to sell houses. That is a travesty. Our actions as real estate agents shape our communities - locally and nationally. Our economic crisis has a lot to do with the actions of real estate agents and mortgage brokers. Too many of us were well aware that the loans that were going through were not stable - and if you weren't, that is itself a prime example of why more training is needed.

    I do not believe that real estate practitioners are "competent and skillful" (a definition of professional) as an industry. I believe that there are many effective agents out there, but most do not understand the historic context in which they operate.

    Did you know that in the 1960s many real estate agents fought the creation of the Fair Housing Act? The role of the realtor was seen as being the "gateway to the community", and it was thought (and part of the Code of Ethics at the time) that introducing new ethnicities to an area was an action that violated the role of the agent as the gatekeeper.

    Since then, urban planning circles have learned that diverse communities are more sustainable - the wider the range of diversity within a geographic area, the greater the mobility within the community for the individual. This mobility is influenced by a number of factors, including housing stock, proximity to urban centers, education, etc that are well beyond the scope of influence of the agent... or are they?

    I believe that the role of the real estate agent can evolve to a much higher degree of professionalism that is currently conceived of in most discussions within the industry. This goes far beyond the simple idea of a broker of goods, which equates housing with commodities. The role of housing has evolved exponentially within the past ten years - the access to purchasing and social/economic mobility that the technology/information revolution has created has just begun to make its impact.

    We are in the middle of a giant social shift within this country that will continue to dramatically influence the world. As real estate agents educate themselves about the ways in which they can benefit their communities and become promoters of higher values and goals within their communities, they will elevate their social status and reap the rewards of involvement - although commissions are a part of those rewards, the chance to build and leave a cultural legacy is far more redeeming.

    Being a professional - when you remove it from the context of simply real estate, which has yet to fully define itself in that capacity - means a lot more than those tacky little letters people pop on business cards - we're in full agreement there. I also completely agree with you that it all starts here - with me, and you. How we define ourselves will shape our clients' perception of what it means to be a real estate professional, and they will know the difference.

    Where we disagree is at that idea that the unprofessional real estate folks don't matter to me. Two huge words: "Housing Crisis". The actions of other people have actually had a dramatic impact on the choices that I have made, the options that have been available, and the way that I have lived my life as a consequence.

    Natural selection will not take care of anything when it comes to economics, which is the game that we all play. Economics is determined by policy, which is created by people like you and me. NAR influences housing policy in a huge way, and as a member you can choose to contribute to that discussion in a positive way. When the laws and policy structures are set up to favor the predators rather than protect the victims, only the predators benefit. As a member of NAR and an informed citizen of this country, you have the right to fight for a change in policy and law.

    That's part of what it means to be a part of a community. Your actions influence me, and vice versa. Wherever I find a discussion about elevating the level of real estate agent to a higher professional standard, I will be for it.
  • Bob Stahl
    I like to think of it this way: If other real estate agents aren't giving home buyers and sellers the kind of service they demand and deserve, then more business for those of us who do put our clients first!
  • Eric
    I think your artical is very interesting. However, I must say that as a "professional" we take on somewhat of a role on "self police". Having said this, like other professions we need to call the "un-professionals" to the carpet because afterall, they do affect the overall preception that our industry receives.
  • Joe Manausa
    Well done Daniel. So much talk these days ....
  • Matt Stigliano - @rerockstar
    Daniel,

    I hadn't quite thought of the issue from your angle. I do think there could be some moves made to make real estate a bit more "professional" (education being the huge one in my mind) and even recognize that I am a beneficiary of the lesser-requirements to getting licensed. I education requirements changed today and they grandfathered those of us with licenses in, what would be said about us by the newer, more educated agents? I'm sure no one in real estate today would enjoy that. I'd be willing to go back and get more education to satisfy the new requirements, but at what cost? How much would be enough? Would I have to put my business on hold while I re-learn? We know it would remove some agents from the industry altogether, but would it remove too many of the "good" ones because of the new barrier?

    Dean mentioned designations and I find that many people that I speak to with them could care less about them. They're like trading cards or Foursquare badges. You collect them because you can. To this day, I've never heard one positive review of the e-Pro designation (even from members), yet I see that one hooked onto every name around me. I also have never really seen many compelling arguments for the more famous designations that many seem to think they've learned from (GRI and ABR come to mind). The arguments? A new network of referrals, consumers will see you're the expert, and that only x% of agents have it. I can build a decent network of referrals pretty fast thanks to the internet, consumers most likely don't know or care what the initials are all about, and just because I belong to a small percentage of a larger group doesn't make me smarter, better, or more ethical than the other percentage.

    I do think we need to expect more out of ourselves as an industry, but you might be right...we might be just puffing our chests and giving an air of elitism when we argue about raising the bar.
  • Jay Thompson
    The largest component missing (from what I've seen) in the "RTB" discussion is the responsibility of the broker.

    I'm not talking about broker supervision. Yes, that's important, but it's not the be-all-to-end-all component.

    It's the wide-spread practice of a brokerage model that I call "hire anyone with a license and a pulse". This is done by countless (the vast majority from what I can see) brokers across the country. It's a flawed model. Yes, it's quite possible that Suzy Q. Ineptagent will sell a home to Aunt Sally. Mr. Broker can then take a 50% split and/or charge exorbitant fees for desks and E&O.

    You could change the law and require a PhD for licensing, and it's not going to help. Believe me, I came out of the ultra high-tech semiconductor manufacturing industry and worked with PhD's that could barely function. You know what happened to those non-functional PhD's? They got fired as soon as the manager got tired of their crap and tired of hearing people whine about taking up their slack.

    If we could ever get to a point where a broker would terminate non/under performing agents, the bar would be elevated to stratospheric heights compared to where it lies today. How about not even hiring these agents in the first place? Sure, agent's are "independent contractors" not "employees". I've heard brokers use that lame excuse far too often. They are still working in YOUR company and YOU are responsible for them. Hiring agents like most company hire employees seems painfully obvious, yet few are doing it in real estate.

    I don't get it.
  • DougFrancis
    Kris Berg took up this topic too (taking a cue from you), and I commented:

    In December I worked with an agent who spoke to me like “he was handling both sides of the transaction”, and I feel that it really caused his client a lot of heartache and tears. He did not trust my client nor me… luckily I knew the settlement attorney who vouched for me as a long-time professional. Yes, we closed on time.

    The key to building trust in a working relationship is frequent communication, and that skill has not been a part of any training class that I have ever taken in my 19 years in the real estate business.
  • BawldGuy
    Superb recognition of reality. What our clients want is integrity, expertise, and results. I imagine that has been since the first goat was traded for wheat.
  • realestatezebra
    Exactly. It is simply our job to show them that all of those qualities reside in us.
  • Stefan Swanepoel
    Daniel,

    Hard to change, yes, but impossible, no you are wrong. Numerous states have over the last decades affected many changes to the licensing requirements for agents.

    Sick to death of the discussion, yes, but does that mean we should stop striving to improve the industry we all say we care about. I don't think so.

    If the industry leaders before us did not care, did not discuss, did not strive to improve, etc. we would not have a National Association of Realtors, or a Code of Ethics, or a MLS, etc.

    And although I of course acknowledge that not all change is good, it is the very essence of life. As you so eloquently stated "I can't speak for you but I'd much rather spend my time talking with the really awesome Realtors who totally rock." You bet. To the tens of thousands of incredible real estate professionals we salute you!

    Thanks for all you do too Daniel.

    Stefan
    PS: I still believe making the industry better for those in it and for those we serve is not wrong.
  • realestatezebra
    I COMPLETELY agree with you, Stefan. Wanting to improve the industry is NEVER a bad thing. I just think that our focus is misplaced. I don't think that raising the standards for getting a real estate license will do much to improve the quality of the professional who holds the license.

    To me, the one big piece in all of this are the brokers. Brokers don't always do a good job of training their new agents with the skills and knowledge that they need to get started on the right foot. They let agents develop bad habits, or operate with inadequate supervision, which hurts everyone. No one gets a license and sets a goal of being an incompetent agent. Supervising brokers let them get that way.

    The other thing that I think could go a long way to improving the industry is to open up the Code of Ethics hearing process. Right now, everything is done behind closed doors. I understand the reasons for this, I just think that the good that could be done for the industry by an open process outweighs any other concerns. Right now, I have no idea who has violated the CoE, or what they have done in violation. There are no examples of what NOT to do. There is no record of what happens when you someone does do something wrong. There is no way to learn from the mistakes of others. Sure CoE training is required every 2 years, and there are examples given during the class, but they don't have the same impact that they would if you were hearing about such CoE violations on a regular basis. Not to mention, public shame is a serious deterrent to bad behavior. I just don't understand what we are trying to hide by having a closed process.

    I also think that the commission-based pay structure that most of the industry uses lends itself to lack of oversight of licensees, and lack of commitment on the part of those licensees. Because agents are independent contractors, they often feel no responsibility to their brokerage, and vice versa. That is one of the reasons that agents change firms so often.

    Their are a lot of factors to improving our industry, I just think that pointing to some anonymous group of "unprofessional" Realtors isn't the most productive use of brainpower and time. No matter how high the bar is raised, there will always be those who will fail to reach it.

    As I've often said, if there is someone in my market with whom I compete that is unethical, unprofessional, or an otherwise scourge upon the profession, and this person is still getting business, beating me out for clients, etc., that is MY fault.

    Thanks for the kind words, by the way. I also appreciate all that you do for our industry. I wish we could have spent more time together in San Diego. It seems we are always ships passing in the night. . .
  • deanouellette
    Daniel, I made a point in replying to someones RTB post a few weeks ago that mirrored a lot of what you are saying... that I dont care there are part-timers and people that do a shitty job, it helps me out int he long run when I strive for higher. But knowing what I know now, the point of entry, what they taught you in school to get your license really should have been higher. During my first few deals I should not have been practicing real estate.

    One of my biggest compaints in this RTB discussion is I hate all these freaking designations. IF they are that important to know then why are they not being taught before you get your license. Why can we not call them what they are, money making schemes for a few people and organizations. Of course there is the exception, but mostly they are either a waste OR something that should have been taught to the agent before they were let loose on the public.

    But mostly I agree with what you say, there will always be those who do not take take pride in what they do, that is no different in any profession
  • realestatezebra
    I forgot to mention that after your initial fee for taking the class and getting a designation, they are basically extortion schemes. You are not alone in your disdain for them.
  • realestatezebra
    I think that we have all the tools we need to make new agents better and more competent from the get-go, but we aren't applying them properly.

    To me, much of the responsibility falls to the brokers. They should be training their new agents in all of those areas that real estate school doesn't (and shouldn't) cover. It's like any profession, you learn basic stuff in school, and then you learn what you really need on the job. Problem is, brokers have little incentive to train because an agent who isn't closing deals isn't making them any money, and new agents can ill-afford to wait months to get their first compensation check. The system is messed up that way.

    There are a lot of responsible parties in this whole thing, I think that we just need to start taking that responsibility seriously.
  • evethompson
    I agree I was being a little flip. I agree the discussion of professional agents is tiresome. It seems so simple, add value, do your best, think of the client first. I think the snow is making me cranky.
  • realestatezebra
    Heheh. I know that snow-cranky feeling all too well. I was finally able to get out of my driveway today. LAME.

    You are absolutely right-- "add value, do your best, think of client first."
  • Halfdeck
    If you're sick of discussing professionalism why the fuck did you write this? :)
  • realestatezebra
    Well-played.

    I wrote it because people keep asking me what I think. Ignoring it wasn't really an option, so now I can just point to this as my final say on the matter. ;-)

    Also, let's try to keep the language for the kids. I'm willing to let you go with a warning this time, but next one is a Flagrant Technical Foul, resulting in ejection. :-)
  • Halfdeck
    Hey I usually avoid foul language like a plague - but considering your stance on people complaining about lack of professionalism I just couldn't resist. My bad :)
  • realestatezebra
    In that case, I appreciate your wit. ;-)
  • mbowlersr
    Daniel, you have some great points. I always spent more time with my movers and shakers than the dead beats. If we're not careful these people can suck up all your time. I do believe new people are the life blood of our industry and deserve more attention then they normally get. Maybe it's all about balance?
  • realestatezebra
    Balance is definitely part of the issue, but I think that the balance needs to swing in the direction of those who are doing what they are supposed to be doing so that others can follow.
  • evethompson
    I agree it's a little like teaching "business ethics" what is that? Are there different kinds of ethics? Can you teach ethics to adults?
  • realestatezebra
    "Ethics" is another topic all unto itself. I do think there is a difference between personal ethics and Realtor Ethics. Hopefully, are personal ethics are of the more rigorous variety.

    As to whether or not ethics can be taught, I think that they can. They are most certainly learned. We aren't born with them. That leads me to believe they can be taught.
  • Fred Glick
    If you figure out how to get rid of all the sleazy morons, then I would agree, but, in fact, there are too many sleazy morons in the biz.
  • realestatezebra
    How many is too many? How many are we talking about? What, exactly, is a "sleazy moron?" This is a weak argument.

    The fact of the matter is that if the "sleazy morons" are still in business, it is because folks like you and me haven't done our jobs well enough for the public to know the difference. That's our fault. We need to do better.
  • Laura Rubinchuk
    Daniel,
    I think you make a lot of great points. I think in any profession there are bad apples, and real estate is not exempt from that. A lot of time is spent talking about more education, more training, and higher barriers into the industry, but frankly, being an overeducated Realtor doesn't make me a better one. I'm sure there are plenty of great agents who don't need 17 designations to prove they're great.
    While the discussion gets heated and some see it as having merit, I think it's mostly wasted time and breath - the discussion will continue as long as the industry exists, but few changes will ever be made.
    Just my 2 cents.
    Laura
  • realestatezebra
    Very insightful comment, Laura, as I would expect.

    If you want, I can open an account with your 2 cents. That way, it will gain interest, and next time you leave a comment, you can cash-in for a much longer one. :-)
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