Time for a Change

I think a very key component of this model is that it gives the agent/consultant a real opportunity to dialogue with the consumer about the "real world" of our business. In the 25 years I've been in this business, there have always been "disconnects" in my mind as to how our business works. For example, how can agents be fully unbiased when evaluating a property for a prospective seller when, what we tell them impacts whether we even have the opportunity to get paid for our knowledge and expertise. We are supposed to be able sell something and simultaneously provide fiduciary level service (even when it conflicts with our own best interest), and, by the way, we won't get paid anything at all until we do sell something and it completes to closing!!!

Many of the agents in our industry who are "successful" are so because they are good at selling. But how many of those people provide the callibre of fiduciary that they are supposed to? And by the same token, how many really great "agents", expert at providing outstanding fiduciary counsel to the client, leave the business because the advice that's in the best interest of the client is NOT advise that will pay their (the agent's) bills. I think that's a huge flaw in the system.

The way I look at it, if companies offered this sort of venue to the consumer, the public, who doesn't really understand our business, would be far less inclined to fall prey to all those online FSBO sites that charge them up the yingyang for an admiinstrative package because the consumer doesn't really understand what they are NOT getting. They would further be less inclined to look to venues like HouseValues, Z, HomeGain, etc., because we, as Realtors®, could fill that gap. Those online businesses were able to get a foothold because, at least in some part, they offered things that we have not! A FSBO, because they don't know what they don't know, believes we charge the huge fees we do because of TASKS.

I must admit, that though I've felt the inadequacies of how our business works, I've not been able to really encapsulate and wrap my brain around a few things until taking the ACRE® course and getting involved in the program. Unlike another programs, this one is designed by Realtors® for Realtors®. So many other courses are headed by writers and speakers but not agents and therefore they don't understand the business like we do.

One of the founders, Mollie Wasserman, wrote a book for the consumer this year entitled Ripping the Roof off Real Estate. (By the way, though the title sounds provocative, I suggest agents get themselves a copy...excellent read, designed for the consumer, and hugely respectful of our industry and the hard working professionals that are in it!), The ACRE® program, and coaching is very much pro-agent, pro our business, pro elevating the public perception of Realtors® as having real value to them.

That's no easy task when we, ourselves, put no value on ourselves! How many free CMAs have you done? How many times have you put a buyer prospect in your car with no retainer, no contract requiring you be paid, how many times have you gone to a prospective seller's home and offered guidance as to what needed to be done to get their home ready for market? And what did you charge for those services? I will tell you that I've done the same thing! Why do we do it? Because we hope they'll pick us. (yes, I know, we pick them, too, but I'm trying to make a point here!) And if we don't value our services...why should anyone else?

And what about all those times when the consumer needs us, but because of specifics of what's going on in their world, but they don't hire us because they don't know we can help...don't know how they can pay us!!!! For example, a couple plans to put their home on the market and begin chatting with neighbors about it, and the neighbor says "I love your house, how much do you want?" I don't know about you, but that's certainly happened to me. What IF that seller knew they could hire an agent JUST to help them write the contract, negotiate for them, and troubleshoot the transaction? And, by the way, so could the neighbor! Each could have representation, which is one of the principle areas where our value lies, and we could have the income from those services. Or how about the FSBO, who needs help but doesn't call an agent because, from a historical perspective, they know that agents want them to fail so they could list their home for our "big fees"? What it, instead, the FSBO could hire us just for those specific areas where they need help...and we could get paid for those services? This could be by the hour...by the task/s...up front, monthly, by commission at the close of the transaction. The difference here is not in pushing a specific option down the throat of the consumer...but in offering them options, and helping them to determine which options work the best for their needs and yours!

And what about the person who feels they're being over assessed by the tax assessor; or the couple going through a divorce where they need an objective market analyses? Now they might hire a fee appraiser....but appraisers don't do what we do! What about the family who's growing and is trying to decide whether to add on their current home or upgrade to a new home? And before you say "but we can do that now?" But the consumer generally, unless they have a longstanding, comfortable relationship with an agent, doesn't know that...and....how would they pay us?

The reality is it is very difficult for us to be totally objective when what we tell them directly impacts whether we enven have the potential for getting paid!!!! If we say "improve", we've just worked for free...and we know it. But guess what....so does the consumer. So more often than not, they don't ask because they know we can't give them totally objective advice!

I hope Mollie will forgive me here, but I'm going to tell one of her stories (I had the privilege of hosting her here in Chicago for a couple of days while she was in town to present her model to local agents and boards). But she gives this terrific example of the "Tale of Two Seafood Shops". Shop A puts in their window and on their shelves only their premium, most expensive, seafoods...say lobster and shrimp. Now they do have other types of seafood, but nobody know it because they keep these other items behind the counter and not on their shelves. A shopper walks up to the counter who wants lobster or shrimp, and the store clerk happily fills their order. Once in a great while, somone might aks if they have any other fish, and the clerk reluctantly pulls out their less expensive fish. They have it....but nobody knows about it. Why do they only market the lobster or shrimp? Shop A is afraid that if the customer knew they had less expensive fish, they'd never buy lobster or shrimp! Worse, Shop A never sees the customers who are in the market for less expensive fish, but not seeing it in the window, keep walking to Shop B.

Now, right down the street is Shop B. In their window they have displayed their wide assortment of fish...each well priced, including an appropriate profit margin. Now when customers walk by the shop they see this great selection of seafood. Customers can get pretty much anything they want there and pay accordingly. Funny thing happens though...often someone will come into the shop planning to buy a less expensive fish, but when they start looking at all the great alternatives, and seeing the differences among them, they decide to upgrade. In addition...the customers who decide on the more expensive seafood feel good about their decision, because they see the difference...they know they are getting good value for their dollar, and, moreover, they know exactly what they are paying for!

Historically, we've only offered the lobster and shrimp, for fear that, if we offered scrod, that's all the consumer would buy. In the process, not only have we lost the income that we would have gotten from all those scrod or perch sales....but many of the people who thought they wanted scrod or perch would have upgraded...if they understood the difference!

One thing I've believed for years now is that our traditional way of doing business, offered to the consumer as basically their only option, is no longer sustainable for the long term. The world has changed ... and there are other changes out in the wings that we haven't yet conceived of! Folks, if we don't adapt and give the consumer what they are looking for, you might as well rename the NAR, the National Association of Realtors® to the NAE ....NATIONAL ASSOCIATION OF EDSELS!!!

Just my opinion...

Judi Bryan
RE/MAX Accord
Bloomingdale, IL
Judi@HomesLady.com