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There has been a lot of discussion on this thread about the minimal educational requirements to become a Realtor. I'm a Realtor and I believe that the minimal requirements contribute more to the poor reputation that Realtors have than anything else. Although individual states determine the educational requirements to get a license, the greatest majority, if not all, have standards that are embarrassingly low.
I posted the below information on Active Rain(a real estate agent community) regarding the discrepancy in minimal educational requirements of real estate agents compared to other non college degree professions in Tennessee:
I have made comments on numerous threads about what I perceive as a major problem with the real estate industry, that problem being the minimal requirements to become a licensed agent. I believe that this problem is a significant contributor to the poor reputation that real estate agents in general have. I also believe that this problem is a significant contributor to the plethora of under-educated and incompetent real estate agents.
I realize that each state makes it's own laws for real estate agent education requirements. Below are the current minimum education requirements in Tennessee to become licensed or certified in some selected professions:
Cosmetologist/Hair Stylist-must complete 1500 hours of education at an approved School of Cosmetology and pass a State written and practical exam.
Manicurist-Must complete 600 hours of education at an approved School of Cosmetology and pass a State written exam.
Shampoo Technician-Must complete 300 hours of education at an approved School of Cosmetology and pass a State exam.
Real Estate Agent-must complete 90 hours of education at a State approved school and pass the licensing exam.
It doesn't take a rocket scientist to see how low the bar is for someone to become a real estate agent. Additionally, once a person gets their license, all they have to do is send the NAR their annual dues, take a COE course, and they are a Realtor.
I realize that the NAR doesn't make State law. However, there are a number of things that the NAR could do that would raise the bar in order to become a Realtor. Some of these could be a required mentorship, minimum transactions, earning certain designations, etc. I believe that something along these lines would greatly improve the credibility and reputation of Realtors. I'd like to hear your comments on any of the above.
In my opinion, until something is done to make the minimum education requirements commensurate with the complexities of the job of a Realtor, the profession will continue to suffer from the poor reputation that it has.
I have no problem with making a 4 year degree a part of the requirement since I have one from a major school.
What this means for me would be fewer people getting into the business and with fewer agents I would have less competition. With less competition I could raise my fees that I charge clients. Works for me.
This should also apply to anyone who wants to be a discount broker and we should institute minimum representation requirements to a very high level so we can make sure all clients are well protected.
This would help get rid of all those bad agents who just want to take money for putting someone in the MLS without representing their interest.
Bentlebee, I fully agree with higher requirements to protect the client. It would help eliminate competition and allow me to make a whole lot more money. Good idea.
Sarcastic??
I have to believe based on your other posts here,that you would agree that we could 1/2 the amount of agents in the US and be just fine and dandy.
I think fees would stay about the same, but each agent would have more clients so they could spread the costs of doing business across more people. So yes, we would make more, but I don't think fees would go up.
I do agree that the limited representation model would go by the wayside. I also think the commission model would not be the norm. Just as many attorneys get paid hourly, agents would shift and do the same.
Yes, I should have added the little sarcastic smiley face. Sarcastic with a good hint of truth.
I do believe in well trained agents but also believe we should be fairly free to ply our trade freely. I've known some truly outstanding agents that have a high school diploma. Their experience and wisdom is more valuable than any 4 year degree.
If he wants to talk about high standards I think we should start with the limited representation brokers.
I still want to know why attorneys keep getting mentioned as the pinnacle of truth and honesty because of their education. I think more than anything attorneys are a great example of how more education does not equal more integrity or service for clients.
Yes there are amazing attorneys, but some of the worst thieves (and not just the ones that became politicians) in the US today are attorneys. Also doctors that cheat Medicare or take comped trips from pharmaceutical companies in exchange for pushing their products.
You can have a high school degree or a doctorate, if you are a thief you will be one no matter how many ethics classes you take.
I believe that mortgage brokers need to have higher education standards. At a minimum lenders should have to take courses in finance, business management, economics and ethics/service. If you think that Realtor standards are bad, you should take a look at what is required in the lending business.
There are too many people that can not do basic math selling mortgages to people. But beyond government regulation and mandated education, the consumer should demand more. The government has to do nothing! If the consumer took the time to ask their Realtor or lender about their education, training, experience and background instead of who can quote the lowest rate or price, we wouldn't need the government to do it for us.
As you can see by these posts, some Realtors continue to act as if they are licensed attorneys and licensed building inspectors. The reality check is that no matter how much you say you know about these subjects you are not licensed by the state to perform these services. A realtor should never replace an licensed attorney or licensed building inspector, these people are licensed to perform these services. Purchasing a home is the biggest investment you can make, hiring the right professionals is key. Never trust a realtor soley, you can have a realtor, but always hire an attorney and a building inspector to assist you.
It seems like many Realtors on this post are against higher standards of education? Why? Have you not seen the image of your profession go down the toilet? Realtors are seen no better then used car salesman by the majority of the public. Higher education standards would bring prestige back to the profession because not everyone would be able to be a part of it as it is today. The English standards that you mention bentlebee would be excellent if they were implemented in the US. 2 years of fulltime schooling would keep the people that are truly interested in the profession. I know that some realtors have bachelors degrees and more but when applied to being a realtor it is irrellavent, because a person with a GED could come and work right beside you.
You really a journalist? That profession must be slipping. Well I will give you a shot. What are the requirements for being a lawyer in the US?
You have not been remotely close so far.
Who told you RE Agent don't practice law? By eastern standards virtually any of the western state agents practice law. In fact we avoid the conflict by defining the practice of law differently.
But think about it. In much of the east you must have a lawyer involved to close a real estate transaction. But we use no lawyers in the west. How can that be? Somebody in the west must be doing what the lawyers are doing in the east. Or perhaps what the lawyers do in the east is not actually required to sell a home? Either way it would seem the lawyers are making out...
The qualifications of RE Agents are set by state legislation. They are way light from where they ought to be...after thinking about it a while I have hit on the problem...dopey citizens. Why on earth should we have such low requirements? Well because the legislators elected by the dopey citizens think it appropriate. Now it is likely they are beholden to various brokerages and stuff who provide financial support in elections and all that...but still it is clear that dopey citizens cause this problem.
My suggested cure is that we up the quality of the voting citizen. No more dopeys. If you don't have a BA or BS no more vote. We don't need dumb and stupid people electing our legislators.
I look forward to the support of you and Bentlee in fixing this problem. Take the vote away from the dopes...only way to go...
There has been a lot of discussion on this thread about the minimal educational requirements to become a Realtor. I'm a Realtor and I believe that the minimal requirements contribute more to the poor reputation that Realtors have than anything else. Although individual states determine the educational requirements to get a license, the greatest majority, if not all, have standards that are embarrassingly low.
I posted the below information on Active Rain(a real estate agent community) regarding the discrepancy in minimal educational requirements of real estate agents compared to other non college degree professions in Tennessee:
I have made comments on numerous threads about what I perceive as a major problem with the real estate industry, that problem being the minimal requirements to become a licensed agent. I believe that this problem is a significant contributor to the poor reputation that real estate agents in general have. I also believe that this problem is a significant contributor to the plethora of under-educated and incompetent real estate agents.
I realize that each state makes it's own laws for real estate agent education requirements. Below are the current minimum education requirements in Tennessee to become licensed or certified in some selected professions:
Cosmetologist/Hair Stylist-must complete 1500 hours of education at an approved School of Cosmetology and pass a State written and practical exam.
Manicurist-Must complete 600 hours of education at an approved School of Cosmetology and pass a State written exam.
Shampoo Technician-Must complete 300 hours of education at an approved School of Cosmetology and pass a State exam.
Real Estate Agent-must complete 90 hours of education at a State approved school and pass the licensing exam.
It doesn't take a rocket scientist to see how low the bar is for someone to become a real estate agent. Additionally, once a person gets their license, all they have to do is send the NAR their annual dues, take a COE course, and they are a Realtor.
I realize that the NAR doesn't make State law. However, there are a number of things that the NAR could do that would raise the bar in order to become a Realtor. Some of these could be a required mentorship, minimum transactions, earning certain designations, etc. I believe that something along these lines would greatly improve the credibility and reputation of Realtors. I'd like to hear your comments on any of the above.
In my opinion, until something is done to make the minimum education requirements commensurate with the complexities of the job of a Realtor, the profession will continue to suffer from the poor reputation that it has.
Wow!!!! This is really shocking! Now I understand why there are so many realtors!!! Even more shocking that the professions you described aren't working with clients who spend the amounts as realtors are working with.
I spend 3 years full time in school for my education (after high school) which over here is taken also less hours, but this has changed in Europe too. Times changes the way education is given.
Some have mentioned other professions like mortgage brokers, but since I never had a mortgage and only twice or maybe 3 times spoke with a mortgage broker in my life, I never looked much at their background.
I agree as long as nothing is done many more people will jump into the real estate market as soon as the market gets better and the once who were weeded out might step back in, since it is easy to get a license and specially in Florida so I guess it will be crowded with realtors over here. Probable also wit convicted mortgage brokers... Like many homeless sex offender came over here this will be the State of...you need a license ...go to Florida and scam some people...So I hope Charlie Crist will do something. I already emailed his office, thanks to the person who put up the link (m.a.m., I guess it was )
I hope the person who posted the original one will mention it on other forums or websites so the public will take notice and something will change so we as clients can be assured we deal with real professionals and not amateurs as now is happening specially in this area (Tampa, FL).
Wow!!!! This is really shocking! Now I understand why there are so many realtors!!! Even more shocking that the professions you described aren't working with clients who spend the amounts as realtors are working with.
I spend 3 years full time in school for my education (after high school) which over here is taken also less hours, but this has changed in Europe too. Times changes the way education is given.
Some have mentioned other professions like mortgage brokers, but since I never had a mortgage and only twice or maybe 3 times spoke with a mortgage broker in my life, I never looked much at their background.
I agree as long as nothing is done many more people will jump into the real estate market as soon as the market gets better and the once who were weeded out might step back in, since it is easy to get a license and specially in Florida so I guess it will be crowded with realtors over here. Probable also wit convicted mortgage brokers... Like many homeless sex offender came over here this will be the State of...you need a license ...go to Florida and scam some people...So I hope Charlie Crist will do something. I already emailed his office, thanks to the person who put up the link (m.a.m., I guess it was )
I hope the person who posted the original one will mention it on other forums or websites so the public will take notice and something will change so we as clients can be assured we deal with real professionals and not amateurs as now is happening specially in this area (Tampa, FL).
Easily fixed Bentlebee. Just get rid of the dopey citizens...all will be well.
The qualifications of RE Agents are set by state legislation. They are way light from where they ought to be...after thinking about it a while I have hit on the problem...dopey citizens. Why on earth should we have such low requirements? Well because the legislators elected by the dopey citizens think it appropriate. Now it is likely they are beholden to various brokerages and stuff who provide financial support in elections and all that...but still it is clear that dopey citizens cause this problem.
A little sarcastic but I agree with part of this. Even if there was no legislation, or much tougher legislation.... in the end it is up to the consumer to do their research when working with a professional in any field.
The problem is that everyone went under the assumption that a Realtor or a lender was an interchangable commodity. The service/quality of one was equal to any other one. After all, it was the lowest quote that wins the day... who needs education, experience or a license... just quote a low sales commission (or rebate back a portion as a buyer's agent) or a low interest rate and fees.
Why pay 5% when you can get an agent for 2%? Why pay $595 application fee when you can get one for $295? It's all the same thing isn't it? Just exchange agent B for agent C... no difference but price. That turned out to be wrong. In some cases a few hundred dollars upfront for an honest professional could have saved someone from foreclosure and financial misery. How many people are on the mortgage forum asking "is X% a good rate" or "is $Y good for closing costs" and how many people are asking about the education, training and experience of their lender?
The consumer chose to remain uninformed when making one of the largest purchases of their lives. It is nice if the government had better standards, but in the end its the responsibility of the consumer to research a potential Realtor, lender, doctor, attorney or other professional. Just as bentlebee did and many are on this forum trying to learn, instead of accepting that a sales person is to be trusted when they are trying to SELL you something.
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Probable also wit convicted mortgage brokers...
)
but I agree with part of this. Even if there was no legislation, or much tougher legislation.... in the end it is up to the consumer to do their research when working with a professional in any field.
