Are You A Typical White Person?

 

Last week presidential candidate Barack Obama fanned the flames on a continuing racial wildfire when he said his grandmother was a “typical white person”. So we wondered if you are a typical white person…or some reasonable facsimile thereof.

“…she is a typical white person, who, if she sees somebody on the street that she doesn’t know, you know, there’s a reaction that’s been bred in our experiences that don’t go away and that sometimes come out in the wrong way, and that’s just the nature of race in our society.”

Well, I am not going to touch that with a ten foot pole. What I do wonder though is how many Realtors act like typical white people.

No, this is not a racial argument. This is about ignorance. The statement Obama made and the controversy surrounding him is truly one of ignorance.

We’ll let Mr. Obama deal with his racial issues on his own. What we would like to ascertain is what Realtors are doing that has them acting just like “typical white persons”. Just like the person described in Obama’s statement.

His quote describes a person who upon meeting someone or even seeing someone they don’t know involuntarily reacts based upon historical experiences. The quote further describes a person whose instincts are basically environmentally influenced.

That person rather than seek to change or come to some understanding why they feel the way that they do, accepts their inadequacies, resists change and allows said reactions to become so inherently natural that it becomes a part of their persona.

I don’t think that these type of knee-jerk assumptions and reactions are necessarily unique to the racial aspect of our society.

This “typical” person can indeed be found in the business character of a lot of “typical”real estate agents. However, this attribute is not by any means found in all real estate agents. For those agents who are not inherently ignorant to proven business principles and have adapted and embraced change, would not be “typical”. They would be the exception to the norm. They would be atypical.

How do you know which agents are “typical” and which ones are atypical? Simply ask a real estate agent to quantify their value in a real estate transaction or justify the commission they charge in a real estate transaction.

The ones who answer you with rhetoric, mantras and non-measurable assertions of value are most assuredly “typical”.  The American Psychological Association has stated that ignorance and fear have been catalysts for racism. The same ignorance and fear causes many real estate agents to act in “typical” fashion.

In order for the real estate industry to progress and overcome it’s propensity for ignorance and fear, I believe the National Association of Realtors must act to instill a Culture of Change whereby the American consumer is protected and the rank and file members of the NAR are held to a mandate of atypical operation.

1. Universal Rating System:
The NAR needs to embrace transparency. A URS would go along way in re-establishing credibility and trust with the American consumer. Allowing the consumer to see a scorecard as to the recent successes of an agent would allow agents who are atypical to increase their market share and expose “typical” real estate agents for being the sub-par performers that they are.

As such, a “typical” agent would have to work hard to increase their rating or be forced out of the business, which in either case would be better for both the consumer and the industry.

2. Raise The Entry Requirements
The ability to enter the business is far too easy. No other “profession” has such a low threshold of entry. The new applicant should have at minimum two years of college education or similar education at an accredited real estate school.

Instead of a one-week class, the educational requirements should include a much higher curriculum base. I believe a 1 year educational program at the very least would be in order. The syllabus would cover a two semester program and include training on sales, marketing, real estate laws and principles, technology application and more.

Once the training is complete then and only then would someone be allowed to sit for a test to be licensed. If this is a profession, then training and education should prepare the applicant for the BUSINESS of real estate.

It has been estimated that nearly 85% of new real estate agents have no prior business management or sales experience. This is hardly worth the conveyance of professionalism upon a new real estate agent.

3. Compensation
The compensation model needs a complete overhaul. Should “typical” real estate agents be paid the same as atypical real estate agents? Should compensation be tied into the price of the item sold as the only barometer of efficiency? Should the listing agent who does not market the property and is not responsible for obtaining the buyer be entitled to a 50% share of commission on a transaction?

I think not. This type of compensation system does not reward performance and encourages the existence of the less than mediocre real estate agent.

Commission should be performance based and according to some factor of the URS. If an agent has a higher rating, then their compensation would be reflected as such. This would require that all agents work diligently towards raising their rating as their ability to make money would be based upon their ongoing level of performance.

There is no reason whatsoever that an unproven upstart should make the same amount of money as a proven veteran. It does not work that way in any other business.

4. Revision of the Code of Ethics:
The COE needs to be revised to be more of an enforceable document. As it is now it is a guideline. It is like a $2.00 lock on a $300.00 door. It’s only there to keep honest people honest. The unscrupulous know what they can get away with and they know how to get away with it with impunity. It’s a meaningless document with absolutely no provision or ability to be enforced. Simply put, it is not law. In fact in its present state it is inferior to the law which makes it wholly unenforceable.

There are too many ambiguities that a shrewd agent can exploit to their pecuniary advantage. The loopholes need to be closed and the local boards given more power and ability to punish offending agents. There also need s to be a better voice for the consumer to be heard. As trust and credibility are attributes of a successful agent, the NAR would be remiss in allowing the consumer to continue to have such a lowly perception of the atypical real estate agent.

5. Industry Standardization and Uniformity:
While real estate is local, there still needs to be some standardization of services and operational procedures. When you go to a McDonald’s anywhere in the country, you can pretty much expect there to be uniformity of presentation. If you visit a Home Depot anywhere in the Country you can expect to see a uniformity of presentation.

This standardization allows for businesses and franchisees to develop brand awareness and affinity with the consumer. The consumer knows what to expect when they frequent an establishment that has uniformity of presentation.

That is not to say that a local office can not express their office in a unique manner. They may obviously do so while incorporating uniform standards.

For instance, there should be certain mandates that tell an agent what items MUST be incorporated in all listing presentation. Individual customization would be naturally encouraged but certain data relative to the URS mentioned above should be a part of the listing presentation.

These are just some of the changes that could help the NAR regain the public’s trust for the good of the industry. It would also help separate the “typical” real estate agent from the atypical true professional.

I would imagine that the atypical real estate agent would embrace such change and foster the development of communication to tear down the walls of mistrust and incredulity that exists with the American consumer.

While one can also be reasonably sure that the  ”typical” real estate agent would fear such change and further display the ignorance to progressive thought that makes them so similar in nature to Mr. Obama’s “typical white person”.