People are losing their trust in the real estate industry. The relatively small amount of required formal education, coupled with no ceiling makes it pretty easy to start your own real estate business. But not very many salespeople can stick with it. Many quit after only 2 years, or they don’t practice regularly but still maintain their license “just in case”. Add to that, not all brokers offer adequate training for their salespeople.
The public doesn’t see any value in hiring undertrained and non-practicing real estate agents. To protect the reputation of the industry and their company, brokers need to train their agents well and only hire those who are serious about their career.
- While it’s relatively easy to become a real estate salesperson at a brokerage, it is not as easy to continue practicing it, as many quit within their first 2 years.
- There are a large number of “non-practicing” agents that will maintain their license in the event that one of their family or friends needs to buy or sell a home.
- More and more agents,”non-practicing” and even practicing, are under-trained and under-qualified to handle real estate transactions and are adversely affecting the view their clients have of real estate agents and the industry.
- Real Estate brokers need to take drastic action to train agents who are committed to their career and let go of the ones who aren’t.
A shocking amount of new licensees fail and leave the business within the first two years.
In order to protect the public, a licensed broker is required to hold the license of the salesperson and supervise them for at least three years before they can become a broker themselves.
The broker gets a piece of the pie for supervising and overseeing this risk, in the form of either a monthly fee, a fee from their earned commissions or a combination of the two. Fees are all over the board, from zero to 50% of commissions earned or more. Broker services range from training and full mentorship to the bare legal minimum: supervision. It’s challenging for a new salesperson to learn the business, provide excellent service and establish their role in a transaction with the bare minimum.
Perception is reality. The majority of the licensed agents a typical consumer knows are non-practicing. Do you know any non-practicing doctors or attorneys? Do you want your surgery performed by a non-practicing doctor or for a non-practicing attorney to defend you in court? And so, our industry gets downgraded from a respectable profession to a pastime. Price is an issue in the absence of value. Consumers who deal with non-practicing agents think the only thing they’re good for is opening doors — and anyone can do that. They don’t understand the value of an agent because they haven’t experienced it.
The industry needs to focus on improving the existing agent population. Mentor and train the agents who are serious, and dump the agents who are not. Brokers need to stop hiring anyone with a heartbeat and be sure to qualify them first.
View the original article at Forbes