Home Selling in North Conway>Question Details

Bill Barbin…, Real Estate Pro in 03860

Should there be tiers of real estate license that reflect the number of transactions completed by the agent?

Asked by Bill Barbin Team, 03860 Mon Apr 8, 2013

It amazes me that there is no protection for consumers to inform them of how much of an "expert" they are working with. My license at 26 transactions in a year looks the same as someone that has only done 2 in 24 months! Not to mention that the buyers' chance of a successful purchase and the sellers' chance of a sale is impacted by the level of expertise they receive.

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BEST ANSWER
Well Bill, that's an interesting question!

I think first and foremost a buyer/seller should interview several Realtors to get a feel of how they may or may not work together. The consumer should be aware that not all licensee's are created equal! They definitely want a Realtor in there corner. Someone they feel comfortable with and can ask questions to without feeling embarrassed or uncomfortable. Someone who will be attentive and work hard on their behalf. Someone that gets it done.

When new agents are mentored throughout the process by an amazing broker, surrounded by an A-Team of Affiliates... success is inevitable!!
0 votes Thank Flag Link Wed Apr 10, 2013
I agree Nella! I also feel that constant education is key!
Flag Thu May 2, 2013
There you go. The BEST answer not to mention the most professional and least defensive answer. Spoken like a true negotiator and a respectable professional.
Flag Wed Apr 10, 2013
That's a slippery slope to go down. What if you're compared by the dollar volume of transactions as a more valid sign of expertise? 26 transactions at $100K each is very different than 26 at $1M each.

In the Bay Area, there are agents who do just 5-10 sales a year (a novice by your standards), but close $50-150M in sales.
Web Reference: http://www.archershomes.com
3 votes Thank Flag Link Mon Apr 8, 2013
Bill, I agree that some sort of independent validation of real estate agents would be useful for consumers. I've been working on something like that for a while and it's hard to implement. The NAR has tried and given up recently. But, my point is that selling a $4M home takes a level of expertise that you may never reach even if you sold 100 $40K homes. At some point, volume brings expertise, but we don't know exactly how to compare apples to oranges here.
Flag Tue Apr 9, 2013
I think it is a good point but it infers that one would gain more knowledge of the sales process and experience with the issues of selling property if they sell 1 property at $4million than the agent that sells 10 properties at $50K each. That just doesn't make sense. Winning 1 game of chess does not give the player as much experience as 100 games. Keep in mind that my point is not to say that there is no value in eager, inexperienced professionals. I just thinkt he consumer should know what skill level they are dealing with, just like I would want to know if an intern is going to try his first operation on me or if I am going to one of the best.
Flag Mon Apr 8, 2013
Well said Michael!
Flag Mon Apr 8, 2013
I think experience in the field is very important and maybe even checking past client references as well. It is weird how once licensed we are considered experts in our field. I think the word expert comes with time and experience. Plus if you aren't doing transactions, all that good stuff you learned in school goes right out the window. We need constant refreshers and reminders in this ever changing industry.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
1 vote Thank Flag Link Tue Apr 9, 2013
One option is to gain a position on your state's governing body and raise the standards for your state licensing.
1 vote Thank Flag Link Tue Apr 9, 2013
I wonder what the public (non-point accumulating users) would think of the somewhat angry dialogue going on here and how they would weigh in on the idea that doing something many times makes someone better at what they do (or the arguments that vehemently object to practice making one better).
0 votes Thank Flag Link Tue Apr 9, 2013
In my opinion this is exactly the type of dialog which is needed to bring about change in this industry. Hopefully sellers & buyers will read this link and learn from the diversity of opinions offered. This is a sensitive subject that the public has very little understanding of: aka licensed means expert professional??? Well not really! Ps this is about imposing a change on the system which will take money out of brokerages/franchises pockets this is not popular; hence the negative attitudes.
Flag Tue Apr 9, 2013
Apparently the questioner believes other agents are receiving an unfair advantage.
I agree. HOWEVER....
I suggest the OTHER agents set the rules for competency and much the same simplistic manner that 'transaction count' is inferred to have some meaning. (think teams)
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Like 'Momma' instructed, "Let your brother cut the cake, but you choose your piece first."
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They may choose that the one with the longest alphabet train will be superior.
Some may vote for those who have the longest signature line...
....of who can post with the most redundancy on aggregate websites
...or who is most proficient at begging for a best answer.
Others may simply be happy with whoever will buy lunch!
Some may choose the number of times your calls go to voice mail. (not a bad measure)
Still others will count only your Trulia recommends.
How do you measure confidence?
How will you assess the agents ability to find solutions to the myriad of home owner/buyer challenges?
How about the art of transaction architecture?
If an agent can not recite 15 ways to finance a home purchase, should they not be branded with the scarlet letter?
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What ever measure(s) would be selected, there will be a population who believes others are receiving an unfair advantage.
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The consumer has demanded choice. With choice comes complexity. The consumer has access to much more information, bogus information from sights like Zillow and Trulia. When you realize this is the disinformation from which consumers respond, do you really think transaction count will mean a thing EXCEPT to other agents....and we do have access to that data already..right?
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Besides, there is NOTHING preventing ANY agent from plastering their production numbers on every bill board, bus bench, postcard and place mat in the county. No, there is no benefit in tiered license. There is no benefit in 'raising' the entry bar. There is no benefit in imposing 'unbecoming of a professional' standards that so many wish to impose. It is all NONSENSE!
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What we have is a beautiful system that has proven to be efficient and effective in assisting home buyers and sellers. It is ironic we have this discussion in the heart of the problem. Right hear where agent intellectual data is not acknowledged, listing agent identification is deliberately obscured, homes for sale are fabricated, RealyTrac is held unaccountable, and where agents BUY expertise. Don't you find it ironic?
0 votes Thank Flag Link Tue Apr 9, 2013
I don’t think the licensing levels would solve the problem. But I do whole heartedly agree with the public needs to be honestly informed about the current problem and by you and others like continuing to answer questions & honestly post your thoughts on agents who are not accomplished at their trade due to lack of practice; you are on the right path. In addition just because agents perform a ton of transactions this may not make them accomplished at all areas of the market. For example I did 24 transactions last year on the buying side with investors with experience in mostly in estates, REO’s and several listings. On the other side of the coin I did 0 leases, 0 commercial, 1 multifamily & acted as a buyer’s agent only 3 times. I’m active & practicing at in several areas but in other areas I have little or no experience. The real problem is the industry and the greed which surrounds it. Solving the problem starts with education to the consumer closely followed by much higher education requirements (2 year real estate degree) on the part of Realtors®. Right now we have the Avon business model and the only way I see to change it is to inform the consumer that a referral is one of the worst ways to choose a Realtor®
0 votes Thank Flag Link Tue Apr 9, 2013
I would think that a variety of factors would come into play if I were assessing a professional to handle my heart surgery. Taking a year off may be a factor, for whatever reason, but education, honesty and integrity do make a difference and are often the factors that put an agent in a high volume position. Sharp whit and defensiveness would not be important factors for a positive assessment, but who knows, maybe after so many years of selling homes I should become a builder of homes. I must have learned something by osmosis, right?

This was never a discussion about penalties of any type. It is intended to be a dialogue about full disclosure to consumer to let the consumer know what level of experience and professional education the "expert" they have called upon actually has. Just like the consumer asking the agent "How many homes have you sold recently." Honesty, integrity and education would dictate that he professional real estate agent would answer that properly. So why not have to show a license that gives that info. up front? Please don't tell me that most agents are really just hoping that they don't ask.
0 votes Thank Flag Link Tue Apr 9, 2013
So, are we to assume, the more transactions you do, the better you are at Real Estate? That's funny!

Thanks for the comic relief!

Joe
0 votes Thank Flag Link Mon Apr 8, 2013
So, it is strictly a matter of deals:
Hard work, Integrity, Honesty and Education doesn't count!
And if a Realtor takes a year off because of fighting Cancer; then they should be penalized?
0 votes Thank Flag Link Mon Apr 8, 2013
So far it sounds like someone would learn more in a $4million transaction as someone that has completed 100 $40,000 transactions and building houses for years is good training for professional sales of houses. I assume that means that the house builder that hires someone that has worked at the Makita tool factory for decades would be hiring someone skilled at building a house for me.

I respect the dialogue but the logic in both seem flawed. I didn't intend to create dialogue that would generate such defensive answers. I am thinking more about the consumer protection just like I would want to know if the surgeon that will be operating on me is brand new at surgery or if he is a leader in his field.
0 votes Thank Flag Link Mon Apr 8, 2013
That's a very slippery slope! I've had my Real Estate license for 3 years and I suppose you would say I was a novice, now take into consideration my 30 years of building homes, 20 of those doing spec homes, I would say I have a lot more knowledge of homes than most.

I agree with Michael Cheng, volume doesn't necessarily mean inexperience. To add to that, Newer agents are, (In my opinion!) going to provide better service as they are trying to build themselves a client base. Further more, new agents typically have their Brokers check over all of their contracts to make sure they're doing it all correctly.

In any job, there is always going to be new people that might not be as seasoned as you but, try to remember, you were there once!

Joe McCarthy
0 votes Thank Flag Link Mon Apr 8, 2013
Totally disagree Joe, I build new homes & specs and I would never hire a rookie for a new home. The trades as you well know have levels such as journeyman, apprentice & master. The trades come up through the ranks and gain education & experience at each rank. A realtor® requires very little training, time & education. Maybe back in the 70’s & 80’s when we had a 2-3 page contract this was OK but today with 100 plus pages of BS paper it is not.
Flag Tue Apr 9, 2013
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