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I agree. There have been some very good threads on this in the past. Most full time Realtors agree that it should be more difficult to get and keep a license. I would be in favor of a required mentorship/ apprenticeship program for the first year and minimum number of transactions per year to keep a license.
I don't think you can place the foreclosure blame on Realtors though. There were buyers taking creative loans and mortgages that they knew strapped them. There is lots of blame you can pass around but you can't point the finger at any one profession.
Your right but my hope is that most realtors and mortgage brokers go out of business. There are five times to many.
I would be in favor of a required mentorship/ apprenticeship program for the first year and minimum number of transactions per year to keep a license.
Thats an interesting idea. Don't inspectors and appraisers have to go through a apprenticeship program?
My company requires a minimum number of loan transactions every 90 days to stay active. I am not sure how a government mandated minimum would work but maybe something to keep a Realtor designation versus just paying dues.
Quote:
Originally Posted by Brandon Hoffman
I don't think you can place the foreclosure blame on Realtors though. There were buyers taking creative loans and mortgages that they knew strapped them. There is lots of blame you can pass around but you can't point the finger at any one profession.
I don't point the finger just at Realtors or any one profession. "Creative" loans have their purpose, but banks expanded who could use them and brokers sold them to people that should not have them. Many brokers barely understood how they worked and could not tell a client what the risks were.
Everyone, including buyers that took advantage of "free money" to buy more than they could afford shares in the blame. Those that committed fraud or that deceived consumers should be prosecuted.
Going back to the OP I think the point is that everyone needs to realize that to fix this will require higher standards in licensing, education and professionalism. Maybe I am crazy, but I hope this drives out all the part-timers and wannabes that jumped in for the money and that Realtors, Mortgage Brokers and Bankers can go back to being professionals and not the next rung on the ladder for snake oil salesmen.
Thats an interesting idea. Don't inspectors and appraisers have to go through a apprenticeship program?
My company requires a minimum number of loan transactions every 90 days to stay active. I am not sure how a government mandated minimum would work but maybe something to keep a Realtor designation versus just paying dues.
I don't point the finger just at Realtors or any one profession. "Creative" loans have their purpose, but banks expanded who could use them and brokers sold them to people that should not have them. Many brokers barely understood how they worked and could not tell a client what the risks were.
Everyone, including buyers that took advantage of "free money" to buy more than they could afford shares in the blame. Those that committed fraud or that deceived consumers should be prosecuted.
Going back to the OP I think the point is that everyone needs to realize that to fix this will require higher standards in licensing, education and professionalism. Maybe I am crazy, but I hope this drives out all the part-timers and wannabes that jumped in for the money and that Realtors, Mortgage Brokers and Bankers can go back to being professionals and not the next rung on the ladder for snake oil salesmen.
I agree with all you said.
Unfortunately, the people who are hurt the most are the middle of the pack full time agents that relied on RE as a primary income. The part timers don't need the money because they only counted on a few transactions anyway. They'll hang around and still do their 1-3 transactions a year.
I did it part-time and it was hard! I have a pretty flexible fulltime job and I was still taking time off to be at the inspections and signings. I couldn't concentrate on both jobs, especially when this one is so time consuming and time sensitive! It's just not worth it and I really like real estate. Plus, it was costing a lot of money.
You need to also figure out what your fees are, here in Texas full time and part time office fees are the same, plus your MLS dues, realtor assoc. dues, supra key yearly payment, many other fees.
HOWEVER SUGGESTION: You can be a referring agent in Texas you can earn up to 25% - 50% commission referring clients to other full time agents, not worry about the additional expenses.
Okay, let's not get carried away comparing surgeons and attorneys to realtors. Two of these require 7 years of education and one requires a 2 week course and a state exam.
In this current market, I am not sure you would make enough to justify the costs involved with being a realtor. It is a very expensive profession just to pay for the things that you must have to do it. Also, someone mentioned prospecting. You must prospect in this current market. You have to find people to list and to buy. They are not ringing your phone off the hook. You could do it, but I wouldn't. It takes full time dedication to do this and make money. Also, being available is a key to a happy customer. You have to be able to show property on their schedule and attend closings and hold open houses. The idea of being a realtor's assistant was a good one, just to start. The company I work for has a mentor program that is very good.
You can do it part time - if you're retiring after several years in the business. What no one has mentioned so far is the hardest part for new agents - prospecting. You can't prospect part time, it takes hours and hours to get yourself "out there." Nobody is going to come to you and say, I want to buy or sell today, can you help me? This businesss is way too competitive for that!
And dbn_girl - not sure where you're seeing this, but every successful full time REALTOR works nights, weekends, holidays, days, etc.
I own a company that provides virtual tours and photography, I work as a marketing specialist and mentor (and have for quite some time) and I am also the head of a business & networking organization here in Durham. I work with Realtors and Brokers on a regular basis. My statement came from what I've seen with the Realtors we've been working with, who are supposedly full-time. We have not been able to get in touch with several of them after 5 or on the weekends, for filming & photographing their properties (we like to offer an even mix of night and day shots and video to showcase the properties' best qualities, outside lighting & evening neighborhood activity etc. ), nor do they answer their cell phones or office phones on weekends. I understand that to be successful Realtors should work nights, weekends & holidays...but in truth, many don't.
Last, prospecting doesn't have to be a hard thing or time-consuming at all, especially not in this day and age. For those who are willing to adopt them, there are several newer techniques and methods that can be used to build up a reputation and make the "prospecting" process more automated. As a marketing specialist, this is one of the things I teach to my students. However, what I've noticed is that a lot of Realtors aren't willing to learn new things, or new technology, that will help boost their careers. When this industry as a whole starts to become more open-minded and forward-thinking (there are many Realtors & Brokers who are, but there are even more who aren't. Many in this city alone don't even have a website!), I think Realtors will see that there are things out here that can make a portion of their career less taxing, less stressful and less time-consuming.
If cakeprincess is willing to think outside of the box and put to use some of the technology and methods that can help to automate the prospecting and follow-up processes, and if she can ensure that she doesn't take on too much at one time (working with one buyer at a time should not be too much, especially again adopting those methods that can automate certain processes), I think she'll be fine. It may not leave her much personal/leisure time, but that is her choice. Cakeprincess, just be sure to do your research, know what to expect, what kinds of fees are involved and start putting a plan together before you take the plunge. If nothing else, it is something you can focus on learning more about through working with others, and perhaps in the future you'll have more time (or want to put more time in) to devote to this business. Anything is possible with the right plan, a forward-thinking mentality and a positive outlook!
One more thing...just because someone is trying to work real estate part-time does not mean that they are just in for the money, or don't have a passion for the business. It could just be that personal circumstances won't allow them to up and quit their regular job, and most folks want to be able to make a somewhat smooth transition from one career to another (especially during the first few and hardest years). I am not sure where cakeprincess' passion or level of dedication lies, but who are we to try and assume or judge? Only she would know if her heart is really in this or not.
I don't think part-time agents are the cause of many of the issues we're seeing in the industry today. You can be a veteran of 10+ years and be undereducated (of your own choosing), or you can be a rookie of less than 3 years (even part-time) with a serious passion for helping families and a willingness to soak up everything you can when you can. I think comparing Realtors to surgeons or doctors of any kind is a bit extreme, but I will compare them to nurses. anyone can take an 18-month course, a few exams and become a certified nurse. Just because someone chooses to (or has to) do it part-time, doesn't mean they don't care as much about what they do. It might be a bit harder for them to keep up with the newest procedures, laws, paperwork and policies, but additional study on one's own and the willingness to stay up-to-date can solve a lot of those issues. It is the same with Realtors. If someone wants to do this part-time, more power to them. They just need to understand that they will be at a serious disadvantage and that they will have to work double to stay up-to-date etc. If they're willing to do that, then who is anyone else to stop them? But like I said before, having a plan of action in place BEFORE taking the plunge is key. Talking with skilled veterans, doing the proper amount of research and working out things like how you plan to make it to negotiations, closings, inspections that are outside of your planned hours is necessary to make the process a smooth one. Having a good relationship with buyers is also key once in the business. If you have a good relationship with your clients, you should be able to work out situations and give each other enough notice as to times of meetings. I know situations come up, but honestly as a buyer if a seller or seller's agent called me to schedule a meeting the day of (with little notice), I would have to step back. Buyers don't like or shouldn't be rushed into decisions. Not only is it not professional, but it's a good way to lose a sale. If an understanding can be worked out as to giving notice for meetings & inspections, things should be just fine.
Wanting to be part-time vs. full-time is no reason to not do a thing at all. The one involved just needs to realize that they're putting more on their plate that they would have to as full-time. If they're ok with that and have a plan worked out, then why not? There is no rule that says only the full-time survive, nor should anyone be shunned because of time restraints (if a reasonable schedule can be worked out) if it's something they really want to do. Just be ready and willing to accept all that comes with it!
aren't many realtors now a days working part time any way? If you look at the closings in our area and look at how many realtors there are, I bet you most realtors have to take a side job to keep paying their bills. This is not me having fun at all, because I see what is happening around me and how many homes are for sale and short sale, and foreclosed and not even looked at by buyers. I hope the good realtors make a good living by helping their clients, the rest should leave this business and do some other work they are better qualified for. Maybe that is the issue why so many people complain...if these realtors who look like they don't do anything, maybe are having another job and still want to pretend to be a realtor.
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