WHYÂ REAL ESTATE AGENT MASTERCLASS
WAS CREATED
THE PUBLIC HAS A DIM VIEW
OF REAL ESTATE AGENTS,
AND IT'S GETTING WORSE!
For too long, the public has viewed real estate agents in a very negative light. At best, much of the public thinks we all “do the same thing” and that “houses sell themselves.” At worst they think we are grossly overpaid.
And that was BEFORE the DOJ investigations and the various class-action commission lawsuits of 2023. These headlines are further eroding the public’s already low opinion of real estate agents.
The above is just a symptom of the underlying problem, which is...
THE MAIN PROBLEM IS THAT A NEW LICENSEE ISÂ NOTÂ PREPARED TO SELL REAL ESTATE
Back when I first applied for my license, I remember not believing it when people would tell me, “You won’t use ANYTHING you learn in the license prep courses. Just get your license, and that’s when the REAL learning starts.” Then I went through the process, and I discovered they were mostly right. I can’t say that I didn't learn anything, but I certainly wouldn’t say that I was “prepared” to represent my clients at the highest level.
In most states, as long as you meet some basic education requirements, pass the test, have no major criminal background issues and pay the fees, they hand you your license. You are now legally allowed to represent a buyer, seller, landlord or tenant (or both sides) in a purchase, lease, or option contract, whether it’s residential, a business, or a commercial building, single or multi-family, industrial, land, bank-owned, short sale, etc.
THE STANDARD AGENT TRAINING DOESN'T MEASURE UP TO OTHER PROFESSIONS
Agents would like to be considered “professionals” and earn the commensurate respect and income that other professionals enjoy. However, the difference in education and preparation that the typical agent goes through vs. these other "real" professionals is frankly laughable.
It's just not very difficult to get your real estate license. It’s probably less than 150 hours of study for most applicants and possibly less if you already have some of the course work done in college. And then the test itself is not very challenging.
Other professions are MUCH more difficult to get licensed. Doctors, lawyers, engineers, pilots, etc. require several years and thousands of hours of study and that’s AFTER a bachelor’s degree. This is either in the form of a formal university setting or a structured training program.
These other professions all require a much more robust and difficult test. The LSAT test is VERY difficult and takes many, many hours to prep for, and that’s just to get a score to apply to law school where the ACTUAL training takes place. It’s really more of an aptitude/intelligence test to see if you can handle the rigors of law school. Then after graduation, some legal bar exams take two days to administer.
Then after this rigorous period of study and testing, almost no other profession let’s their newest members work alone with clients yet. Nearly every other profession requires some type of internship or residency, or at least working under a more experienced mentor/supervisor for a year, or multiple years. Becoming a carpenter, electrician, appraiser, etc. all have lengthy apprenticeship programs before you are turned loose on your own. In some states, an apprentice cosmetologist must work a minimum of 3,200 hours of on-the-job training under the supervision of an experienced trainer.
It takes MUCH less time and effort to get a real estate license. But that doesn't make much sense because...
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THE DEPTH AND WIDTH OF KNOWLEDGE AN AGENT NEEDS TO MASTER IS STAGGERING.Â
Obviously, a good real estate agent needs to know about our market, the neighborhoods, the schools, the weather, local events, etc. But beyond that we need to understand all the various contracts and disclosure forms, mortgage financing issues, appraisal issues, title issues, capital gains taxes, 1031 exchange rules, how property taxes are calculated, handling probate or divorcing clients, distressed sales, marketing homes for sale, etc., etc.
On top of that we need to know quite a bit about the physical land and building itself, how to decipher inspection reports, negotiate repairs, and have general knowledge about heating/air conditioning systems, plumbing, electrical, sewer/septic systems, etc.
It's very unlikely any new agent would say they have been adequately trained in all the above subjects.
MOST BROKERAGES DON’T HAVE COMPLETE TRAINING PROGRAMS
Formal training programs for new agents that cover all aspects of the business from A-Z are almost unheard of. The most common experience for a new agent is much less robust. They learn just enough to pass the test and join a brokerage. They are taught the bare minimum about how to use the MLS system and how to use the lockbox key to get into homes. Lastly, they are given a cursory explanation of how to generate a contract for their client to sign. Then they get a slap on the back and are told, “We’ll cover the rest later. Now, get out there and go get ’em! Come see me if you have questions or get into a jam…”
The old joke isn’t far from the truth—“Here’s your license, here’s your phone. Good luck, you’re on your own!”
Some brokers do set new agents up with an experienced agent in an official “mentor” capacity. However, the mentor is usually busy with their own business. Even if they do make time, it's not a formal step-by-step holistic training situation. It’s really just another person for the agent to go to with questions if the broker isn’t available.
REAL ESTATE AGENTS USUALLY “LEARN BY DOING”
The real estate industry expects a newly licensed agent to go out there and “do it all” right from the start of their career, with effectively almost NO real training.Â
I’m all for new agents having the opportunity to succeed, but it pains me to see how the agent (and their clients) struggle while the agent is learning the ropes.
Imagine if we prepared surgeons the same way that we prepare real estate agents. We teach them anatomy and basic surgical skills, then show them around the hospital and the operating room. Then the focus of their training shifts exclusively to be about how to find patients to operate on. They are then encouraged to “learn by doing.” The very busy head surgeon tells them, “Come see me if they have questions.” Yes, I realize that real estate isn’t “life or death” but it’s also not an inconsequential transaction like buying a pack of gum! Do we really think it’s OK to have agents out there who really don’t know what they are doing?
WHAT ABOUT TRAINING OUTSIDE OF THE BROKERAGE?
Most agents know they need more education. If they aren’t getting it from their broker, they can pursue training on their own through real estate trainers and organizations outside of their brokerage. There is no shortage of real estate training and advice. It’s a whole cottage industry. However, most real estate training is NOT about how to actually sell real estate. The vast majority of this type of training falls into one of three main categories:
- How to get your license.
- How to get new clients.
- Continuing education material. [Which covers most of the same material as in #1 above.]
Don’t believe me? Go run an Internet search right now and type in “Real estate agent training” and you will quickly see that nearly ALL the results will be one of the above three. And the VAST majority will be on how to get new clients, what we call "agent promotion." This adds no benefit to the client. It's just a race to see who gets to the client first.Â
There is precious little training on how to actually perform our function of selling real estate to best represent our clients.
 IT’S TIME TO RAISE THE BAR IN OUR INDUSTRY
Agents need to dig in and improve our skills and knowledge to the point where the public respects us because we DESERVE that respect. They will come to value our contribution and recognize our worth. THIS is how we can retain our rightful place in the center of the real estate transaction, because we are contributing more value to the client than what we are charging.
I've made it my mission to do just that. To that end, I’ve created content on a range of topics for agents to master. Everything from contracts to disclosures, to inspections and negotiating repairs, title, finance, appraisal, property tax, distress properties, and much, much more! Currently, everything on this site is 100% FREE and I'm adding new content all the time. Eventually, I will add some advanced paid resources. However, I'm committed to giving you a TON of free information FIRST so you can determine if what I have to say is valuable before releasing anything for sale.Â
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THE BENEFITS YOU WILL ENJOY
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Better Client Representation
Raise your level of competence and skill to the requisite professional level. You will feel confident in your abilities.
Higher
Income
Win more listings. Close more transactions. You can choose to work with higher-end clients. Lower ad spend.
Justify
Your Value
Most clients WANT full-service, professional real estate representation. They want to get what they are paying for and not overpay for substandard service.
More
Referrals
Your sphere of influence is more likely to refer you when they KNOW your skill level is top-notch. They will confidently refer you, often without you even asking.
Less
Prospecting
You will spend your time serving clients instead of prospecting. Interacting with clients will no longer feel like an "interruption" of your prospecting time.
Reduced
Liability
You will be less likely to be sued when you know what you are doing. Better contract formation, better property disclosures and due diligence all help protect you.