The world of real estate is like an analogy I read in a book years ago where a group was asked what the difference was between a fact and an opinion. It went like this: An individual stated, “I have ten dollars in my pocket.” Is that a fact or an opinion? It’s a fact to the person stating it, because only he knows whether or not he has that money in his pocket. Everyone else can give their opinion on whether it’s true or not. Like a very loosely defined set of guidelines. In the world of real estate, every once in a while someone gets it right!
A couple of years ago, I was invited to a local NAR soirée. (I’m not sure how, because I don’t know the password or secret handshake) The local NAR presidents opening line while addressing a crowd of 350+ agents was: “We polled all our former clients from last year. Seventy eight percent said they would not work with the same agent again. We have to do better than that!” Gallop Polls, on trusted professions, going all the way back to 1976 substantiate that same belief, with very little change over all these years. Real estate is largely viewed by the public as a negative image industry. I believe that to be true because of how people are taught to work in real estate and my personal experiences dealing with those in real estate when I was building homes. I’ve found it’s not easy to establish a basis of trust with those whom you’ve just met, especially when they know you are in the business. Relationships with new people take time and not everyone will be a good fit with each other.
At the bottom of this blog is an Inman article posted in April 2017, Why The Best Real Estate Agents Are The Ones Than No One Hears About. An insightful, spot on article, which I relate to and identify with very much. It is an excellent read.
September 26th, 2017 was my four year anniversary since receiving my real estate brokers license. The two biggest challenges I’ve faced in the real estate industry are first, trying to put my 20 plus years of knowledge of working in the residential and commercial construction trades in a tidy little box under lock and key. The second is, having been a builder for so many years, it’s hard not to be critical of work I see that is substandard. Especially, when the price of properties are so high because of limited supply and large demand the last three years. I see my fair share of poor craftsmanship/construction in existing, remodeled and new construction. Then there are those rare moments when I see a property that has been built or remodeled well with a lot of care. I have to be careful being a “real estate professional”, when using my extensive knowledge of construction when giving opinions. Because as a real estate broker, I’m not supposed to know much about construction or make believe that I don’t. In one of Oliver and Katherine Frascona’s books, The Digital Paper Trail, there is an example of an actual case where the real estate broker, when cross examined in court, was asked if he would point out something a Home Inspector missed. He said “I would point it out of course!” He was taken down for being honest! For me, its a double edged sword. I’m grateful I have the ability to direct my clients, when on the listing side, to point out certain potential problem areas that will possibly need to be addressed and leave it up to them to make those decisions. If buyers I’m working with like a property, I can point out areas which will need improvements or issues which will potentially need to be addressed to highlight and pass on to the home inspector. I struggle a great deal with how much of my construction knowledge I should use or divulge. I can’t unsee what I see when looking at properties. I work with a couple of home inspectors I refer who were former construction trades people that I trust. My past experiences to a larger extent with those in the real estate world when I was buidling homes going back to 1978 were, how can I put it, less than stellar. There are however, a handful of people I know in real estate which I have a great amount of respect for. They are incredible individuals who work hard to shed positive light on a negative image industry. My hats off to all of you!
Pouring Floor of Fish Hatchery I was Awarded the Contract to Build in 1983. NW Wyoming
Custom Built Full Wall Desk, New York, 1987
Shortly after receiving my RE Broker license, I agreed to interview with a couple of the “Big Box” agencies on the direction of my Mrs. I knew I would not pursue those avenues based on prior experiences I had with those in real estate when I was a builder. Both “Big Box” agencies had IDENTICAL business models! Both used the same “Sales Pitch” to try and get “newbies” become a part of the “team”. “Our goal is to get 135 agents in our office…” (Transalation: Another warm body to pay desk fees make cold calls and door knock!) Everything that the public loves! The first agency was more of a soft sell, the second agency “team leader” reaked of cheap colonge and did the full court press line of B.S. It was more about volume and market share than helping clients. I constantly get emails from other agencies telling me how great I could have it at their office. They seem to be using the same accepted business model. I believe it’s a large part of why the public has very little trust of those in the real estate industry.
Hagen Remodel and Addition, Cody Wyoming 1985
I like being part of a small, boutique agency with just a handful of agents in our office. Because we focus more on helping our clients than doing volume. Plus my managing broker has all five qualities I was looking for when finding a place to hang my license. Honesty, integrity, morals, values and ethics. I’ve not set the real estate world on fire, not looking to be the next “mega agent”. My goal with each and every client and transaction is to reach a fair and equitable deal conveying a property in sound and safe condition.
I wish I would of come into this indusrty like most, with very little or no knowledge of construction and more of a “sales” mentality. Especially in the current seller’s market we have been experiencing over the last few years. It would make working in real estate much easier to digest. The challenges in real estate are many fold. Reason and logic are two things I find are seldom, if ever used. I work hard at making the process fair for ALL involved. To have a property convery in good condition with health and safety issues addressed and taken care of. Meanwhile, I fight the good fight. I’ve had more than my fair share of difficult and extremely challenging deals over the last four years. Especially in 2016. While doing some soul searching for several weeks in the fall of 2016 whether or not I should be in this industry, a Bible verse popped into my head. I grabbed my Bible and set it on the kitchen table. When the spine met the table, it opened to the exact page of the verse that popped into my head. Matthew 10:16: “I am sending you out like sheep among wolves. Therefore be as shrewd as snakes and as innocent as doves.” I received my answer.
I very much identify with this Inman Article written by Hank Miller which is a very good read. An excerpt:
“Having almost three decades of appraisal and sales experience allows me to offer the opinion that the number of agents filing the role of “counselor” are few and far between. They also happen to be the very small segment of true professionals.
Most agents who I have and continue to interact with are focused on getting the transaction closed and getting paid.
“Always be closing” is doctrine from the top down; if you’re not closing, you’re not eating. Good for the agents and industry, bad for the image and the clients.
Doubt that? Consider how low on the public respect scale real estate agents are.”
Full Hank Miller article published April 17, 2017: https://www.inman.com/2017/04/14/why-the-best-real-estate-agents-are-the-ones-no-one-hears-about/
