Real Estate Radio USA Episode 56

2 Responses to “Real Estate Radio USA Episode 56”

1. Andy Werschky on February 9th, 2008 11:46 am

   Dear Barry,

   Firstly, I’d like to thank you again for your time and continued efforts. I recently attended one of your short-sale seminars. It was a very insightful 2-day class. As is customary in our society, I, and several of my colleagues who were also in attendance compensated you for your time, effort, and sharing of expertise. We all felt thankful for having benefited from the time and money spent and, for the most part, I‘ve been enjoying your blogs as well. That is why I write you today.

   The information gathered in your seminar, and the many other seminars and classes I attend (and have attended over the years,) has helped me to become more effective in serving my clients and protecting their interests. I have, since it’s inception a month or two ago, been sporadically following your new blog and Real Estate Radio USA as time permits. As you may have guessed, I am by trade, a real estate sales professional, and by association, a Realtor.

   I write to you because, reading your blog (especially the headlines,) IT APPEARS YOU HAVE A BONE TO PICK WITH ME or at least with people in “my association.” It seems that every time I open one of your emails lately, the “evils” of realtors are being touted, and resultantly, the “viability” of the service I, and the roughly one million other people formally associated with me, provide is being publicly challenged. The challenge isn’t what bothers me - it’s something else…

   A few weeks back - you posed the question: “How would I justify my commission?” That was an interesting article, and question, with good insights at it’s heart. At first, I really just read the headline, and found it a bit annoying (for reasons you will likely see later.) Anyway, I skimmed forward a bit, but, frankly, my work is time consuming, and my clients deserve my time, so I have to pick and choose what I focus on. Therefore, I didn’t give that section much attention for the moment. Still, in the back of my mind, it gnawed at me.

   It wasn’t so much the thought that it implied, “that I might not be worth my commission” (I have no doubt about that fact) but the fact that it illustrated. I am constantly being asked to “JUSTIFY” my compensation, and I wonder why that is. Thanks to you, and your comments, I now know.

   (BTW - While I don’t think the headline painted a very concise picture of Realtors on the surface, it certainly was effective at achieving it’s objective. I basically “had” to go back and read the full article. So good for you in that regard. Nevertheless, I must take issue with the tone. It may be doing as much of a disservice to my/our profession as the fly-by-nights it aims to address.)

   As you can probably guess by now, I’ve been saddened in observing your apparent distaste for Realtor’s (in general,) in your blogging, and I feel a bit offended by it. Especially as we directly support you. Upon making this observation, initially, I considered just “unsubscribing” from the blog altogether. (As a general rule, I don’t make a habit of spending much time with people who “tear me down” or who continually focus on “only negative” aspects of people of a particular group.) HOWEVER, as I am interested in introspection, and am acutely aware that examination of self leads to excellence - AND - given your knowledge of short sales and the industry in general conveyed in your class, I’m giving you the benefit of the doubt, and continuing to consider your perspectives.

   (Okay, in actuality, the reason I’m still reading is a combination of THAT, and the fact that I had basically written your headlines off as being either “simply a ploy to annoy the reader in an attempt to grab attention through “SHOCK VALUE”, or the “not very well thought out ramblings of a temporarily emotionally discontented blogger” who was looking for a quick outlet for some unrelated emotional angst. Both of which, interestingly enough, I understand quite well.)

   Anyway - because I stuck with you - I see now that you are actually trying to solve a viable problem in our industry. But I‘m hoping I might sway you to go about it from a different angle. There is definitely an element of “unprofessionalism” in the NAR ranks, and everybody is aware of it. (As you point out: Ours is now the “least respected” of professions.) What bothers me is that you, while you must see that this is not the standard, seem to be promoting “throwing the baby out with the bath water.” YOU APPEAR TO BE JUDGING THE WHOLE ON THE PRACTICE OF THE FEW, and sadly, this appears to be an ongoing theme in your blog… “NAR is destined to be disbanded… Attacks from all fronts… Legal action by individuals… government agency inquiries… blah, blah, blah, etc. etc.” Just FYI - I suspect this “tone” is also why you reported “getting some nasty emails from some NAR members.” As you should know Barry, when people perceive an “attack” they often retaliate in irrational and ineffective ways. Especially if they feel cornered. Realtors are likely taking offense because of the resounding fact that, a year’s end, when it’s all down on paper, most of them aren’t making any profit. (Probably because there are nearly as many realtors as annual real estate deals…) Sadly, many of them are backed into a corner.

   So, anyway, I am hoping to change your mind about US, and help you see that the system DOES work, and that the problem IS being worked out.

   On that note, I’m happy to report I really don’t need to “justify” my commission to you or anyone else. If you don’t want to hire me… That’s okay, DON’T. But for the sake of understanding, and in a spirit of good will, I‘ll provide my two cents for you to consider:

   I am a professional who provides a service on an as needed, voluntary basis, and I charge a fee for SUCCESSFULLY achieving that end. I work mostly by referral, which should tell you something about my service, and as I mentioned before, if I don’t achieve “success” for my client - that client pays me NOTHING. I take on risk. If my efforts don‘t succeed: I am out my time, effort, and my own personal money. When they do: I get compensated. That’s a great deal. I defy you to show me another trained professional who will provide their service under those terms! (I wish I could get MY advertisers to work on this premise!) Also - my profession has been around, in a free market, for over 100 years. This fact alone lends credibility and is evidence of it’s value. I PAY to associate with the NAR in order to better serve my clients. The system in place, while it’s not perfect, STILL assists me in reaching the LARGEST number of potential buyers, and because of it’s design, STILL provides the MOST LIKELY venue for a successful sale for my client. Two other organizations I PAY to associate with are FAR, and ECAR. They provide organization for the local team of professionals, a framework to present the product effectively, and a fairly safe venue for doing so. They also provide a plethora of training and marketing tools. I also PAY to belong to another team: RE/MAX. That provides me with even more tools and more exposure for the client. Global marketing, design tools, hardware sharing, software availability, more training, a professional office with staff, and perhaps most importantly “leads.” FINALLY, my sales, local marketing, and negotiating skills (which I also PAY for and have paid to develop) help me with the rest. I work very hard to hone my skills. I spend a lot of time and money on “positioning” as well (as THAT is another crucial ingredient in selling anything) - and there is plenty more I didn’t mention (but still pay for), so that I can ACTUALLY SERVE those who are gainfully employed in other ways in our community. (BTW - attending your seminar should be further evidence of that fact) and is yet another way I “justify” my commission - not that I need to… as I mentioned. So, if you REALLY didn’t understand, I hope that helps.

   FYI - I DO like your addendum. It is a step in the right direction toward SOLVING the actual problem. And as part of the “free market system” that is in place, in the end will do just that.

   It’s interesting to me: You, and the other Barry, are obviously well versed in the art of the real estate sales transaction. You are adept at marketing, and apparently quite skilled in negotiation. I would suggest that you are (among other things) real estate professionals. (That is: You make a profit as a result of your real estate dealings, by design. Just like me.) I know this because of what was presented to me in your seminar - which, as we discussed earlier, you were also compensated for. Apparently you like to participate in R/E transactions on a regular basis, as they have been of benefit to you financially. SO - you’re a pro. I think that’s great, and am glad to have you in the ranks. (It leads me to a curiosity about your apparent loathing of people in “my” line of work, but…)

   IF YOU ARE SIMPLY ANNOYED WITH AMATEURS - KEEP IN MIND - SO ARE THE REST OF US. REALTORS, for the most part, are NOT incompetent, or greedy, or ner-do-wells out to fleece the community at large. If this is your perception I feel bad for you, and hope this email will change that perception. It is simply inaccurate. I’m simply hoping you will stop judging the whole on the inappropriate and incompetent practices of the few. I DO agree with you that there is a problem within NAR. There IS unprofessionalism in the ranks, and it needs to be dealt with. I personally, would substantially increase the dues, triple the education requirement, and require an apprentice program of at least 2 years. That would likely solve it, but LUCKILY, this continues to be a free market, and people are getting even more well informed. There are over a million Realtors today. But, I suspect, this “down market” will drive out the amateurs very soon, and be a benefit to us all in the end.

   Sorry to be critical. I hope you’ll understand.

   It’s a good Life,

   Andy Werschky
   Broker Associate
   RE/MAX Coastal Properties
   Destin, FL

2. Barry Cunningham on February 9th, 2008 1:17 pm

   Thank you for your comment here and what is obvious a spirited discussion we are about to have.

   I think I am one who is misunderstood. When I say things about the incompetence of Realtors, I mean that in the most general of terms.

   I direct my comments to those who are stinking up the profession to get out and for those who are stalwarts to step up and do something about the malaise in the industry.

   I would think those who are indeed professionals, would themselves want to rid them business of the vermin who are casting a dark shadow on those who are getting it right and doing it right.

   I have had nothing to do with the image that the general public has about real estate agents. That opinion was formed and is continued to be supported and underscored by the growing number of lawsuits and evidience of incompetence that is being exhibited by a lot of Realtors.

   Our show and our blog is meant to be a trumpet of change. If you are offended by what I say, are you not offended by what is going on in the industry? Have you written the NAR and voiced your concern ove the BS that Lawrence Yun spews on an almost daily basis.

   Have you written Marti Ummel and let her know you were offended as to the statements her agent made in public AFTER he received his commission? Did you write Harris Interactive and tell them you were offended by their latest polling numbers?

   We only comment about what we see happening in the industry. Hopefully enough people are outraged at what is going on and not at the messenger to realize that your business model is heading very quickly to its demise.

   As for the headlines..I can only ask if you have a blog, or have read a news story regarding the real estate industry as of late. Here’s one for you from Advertising Age Magazine:

   “Pay Heed to What Realtors Don’t Say in Their Latest Pitch. These Agents Will Wallow in Conflict Like Pigs in a Sty for Their 7% Cut.”

   Less than 10% of all agents do more than 90% of the business. That means there are a lot more non-performers than performers. That means that non-performance is indeed the standard and stellar professionalsim is an exception to the rule.

   Not my numbers, they are the industry’s numbers.

   Yes..I think the NAR is useless. Change my mind. Combat the press, historial experience, public perception and cold hard fact. I’m listening.

   In a web 2.0 world where so many agents have not a clue as to what to do, when so many agents are deceptive in their practice, when basically nothing is being done to market a listing creatively, what do you think people are going to think?

   The public does not feel that the agent’s worth is measurable or quantifiable.
   You wrote a very long post and you chose not to support your claim of worth with any substantive fact either.

   Why can’t Realtors understand that this substantiation beyond party line talking points would actually ENHANCE the prestige of a real estate agent. Don’t get mad at me…instead stand up collectively and explain yourselves.

   NAR just spent $40 Million dollars of your money and instead of meeting the problems in the industry head on…they blew the money on a DOA advertising campaign that has been panned by economists and Ivy league professors as being worthless. In fact a Columbia professor said that they would have failed a student if they issued such a statement.

   Did you email him?

   I am sorry Andy..while your “justification” of your commission does now satisfy my claim that no one has ever answered me, it is filled with unsubstantiated rhetoric.customers want facts. Not dreams.

   You ask me ..no you defy me to tell you about any other profession who would do as you stated…there are too many to list.

   As for your profession being around for 100 years,
   There used to be great typewriter companies as well.
   I remember cloth diapers being around for many years.
   I also remember gas stations having people pump your gas.
   I remember jalousie window companies.
   I remember the Hula Hoop,
   I remember there only being 3 TV networks.
   I remember football before instant replay.
   I remember home delivery of milk.
   I remember doctors who made house calls.
   I remember glam rock and hair bands.
   I remember Joe Namath changing another hundred year old profession forever on one night in 1969.
   and I have learned about the buggywhip. All of these industries were quite viable until time, economic necessity, consumer preference and technological advancements made these items go away.

   You stated that you “PAY to associate with the NAR in order to better serve my clients” That’s not what NAR is for?

   At least not what they state they are for. How does NAR help you serve your clients? Would love to know and I am sure so would a lot of other people.

   How does being a member of the NAR help you reach the largest pool of available buyers.

   Do they have some national network of buyers? Are you intimating that the realtor.com website is your nirvana?

   If the alphabet soup of organizations you belong to supplies you with marketing tools, are you saying they are free?

   Does everybody else have access to the same “tools”?

   You see, now you are getting into the meat of the argument. If you and every other agent have all these tools at their disposal, then why don’t you give an inventory of them at a listing sit and GUARANTEE the homeowner you will use each of them.

   Why not stand solidly behind an enforeceable document that obligates you to utilize each and everyone of these tools and do what it takes to move the inventory.

   That to me would go along way in justifying a commission. I understand you may so that you do, then great..you are one of the good ones and you are to be commended.

   What about the other 90% of realtor hacks out there?

   My “loathing” of people in the industry is that inefficient, unprofessional, incompetent real estate agents are costing the rest of us tons of money.

   There’s no suspense or curiosity there. Posturing, not returning phone calls, not understanding documents, procedures, strategies..etc..this is the genesis of my loathing attitude towards the bulk of real estate agents.

   I would gladly see a cleansing wherein we can just work with the agents who get it..like you say you do.

   In closing, then we agree…we are most assuredly annoyed with incompetence. I am doing my part ot get them out of the business and to have them exposed by the general public as not having any reason to be in the business. What exactly are you doing to efect the same?

   You need to listen to more episodes. I got into this business because of some very knowledgeable and professional real estate professionals who guided my advancement and took the time to show me who to succeed in this business.

   I have worked with and continue to work with many seasoned professionals. I respect them as INDIVIDUALS and for what they offer their clients.

   There is no reason to attempt to change my miond. I enjoy and welcome the opportunity to work with true professional real estate agents.

   It’s the others..those 90% that are stinking up the joint that really need eradication. Why don’t you and the other 10% join me and the general public in hastening their exit from the business.

   The alternative, as I have voiced quite loudly, is that it will mean the demise of your business model.

   I encourage debate and lively discussion and as such you should never feel a need to apologize.

   I do not take offense personally and I look at this as two professionals discussing a heated topic that is relevant in our business.

   Prosper this week!

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