So said John McCain during his acceptance speech and the RNC convention.
And I think he's right!
He was, of course, talking about our youth - I am, of course, thinking about my friends the real estate professionals.
Let's start with our kids. Survey after survey states that the US is falling behind when it comes to international education rankings. It would seem that many countries like Japan, Korea, Finland, New Zealand and even the United Kingdom have developed more effective education systems in recent years.
Generally speaking US reading results are lower than 30 years ago, and in a 2006 reading survey spanning 40 countries our 4th graders came 14th. SAT scores are basically unchanged in the last 3 decades. Even in science in which the USA features the best we are behind countries such as Finland, Hong Kong, Australia and, Germany. Even our neighbors to the north, Canada are above us.
So John McCain or Barack Obama, you have an important and huge responsibility on your shoulders for the decade ahead.
Meanwhile, back on the real estate ranch we are also sadly lacking. Compared to many other "jobs" or "professions" we are in most cases way behind. In a few states you can get your real estate license for as little as 40 hours.
40 hours??
That's about 5% the time we take every year just to research and write Swanepoel Trends Report. So what's in the Real Estate Licensing Exam? 100 multiple choice questions, some basic comprehension of real estate terms and a few simple math calculations.
Not good enough!! Do we always have to give everyone an incentive to do the right thing?
If we want smarter and brighter kids that have a better future, then education is the key.
If we want more professional real estate agents that have a successful career, then education is key.
So what should we do in the Real Estate industry to take a quantum leap forward?
We agree! Education should be a key priority in our industry, our family life, and our nation....education is the key to success and personal power in every aspect of our lives. Knowledge is power...that shoud be enough incentive for us to place more importance on education individually. What should we do in the Real Estate industry? Each brokerage is responsible for it's agent's actions. Isn't that an incentive? ....a brokerage firm's business model should be driven by accountability and supported by education.
Wouldn't it be nice if every agent's website included information of which educational courses they had taken, and when they'd taken them? Those constantly seeking to improve themselves and their services should have some kind of recognition.
Do you know why I don't have any initials at the end of my name? Because the only initials I can use would be totally irrelevant. The initials would be Ph.D. I’ve met several REALTOR Ph.D.’s in on AR and they have one thing in common: they are a lot smarter then those who slapped down the money for a few initials at the end of their name. It’s not the quantity of education it’s the appalling QUALITY.
The notion among agents seems to be “I paid the money – I get the designation – and if I keep paying – I get to keep it.” These courses are literally spoon fed to agents. There is no true academic RIGOR because almost NO ONE fails. That just won’t cut it…in fact its absolutely pitiful. These courses need to be far harder to pass with at least a 10-20% failure rate to have an credibility or teeth.
I’m not wasting my hard-earned money on pointless and worthless designations. I can learn far more by reading in a fraction of the time AND save money, by LEARNING.
OK, So I’m an academic snob – so shoot me. But I’d rather be an elitist snob than and idiot who has a little bit of knowledge. A little bit of knowledge is a dangerous thing.
I don't think that there is a solution for it in the real estate industry. The NAR isn't interested in thinning their ranks... The states don't really seem to care, and the only thing that would be accomplished with severely increased education requirements would be that there would be fewer agents... but they probably wouldn't really be any better.
As many bad agents that I deal with that are new to the business, I get to deal with bad agents that have hundreds of transactions.
I don't know Lane, I think we need to define a "bad agent." There is incompetence AND dishonesty. It’s unfortunate that the dishonest and pushy have fewer scruples during a down market and are more likely to score deals because they tell people what they want to hear. You can’t mandate morality. Discussing how to rid the system of dishonest agents is probably a topic for another discussion.
Incompetence is a different matter. You can raise the education bar and get rid of a lot of the totally clueless and idiotic. Now I grant you that I lay much of this at the feet of greedy brokerages who love tons of starving agents scraping by with the brokerage raking in fat splits. Incompetent and stupid agents should have two points of elimination: the initial training process and at the level of the brokerage. But failing elimination at the brokerage level, NAR and individual state licensing requirements need to provide relief to the public on this issue. I’ve met some unbelievably stupid agents.
Stefan, I am definately in support of more education for the pre-licensing classes. 40 hours crammed into one week is not enough and really you don't learn the practical, only the law in each state.
One day I was walking in a store, and heard someone telling her mother, "I'm gonna git me one of them thar real estate licenses, it only costs 240.00." In a ignorant voice.
yikes...and 800.00 to join the board, NAR, MAR, computer, MLS dues, software, key pad.
Education and mentoring for at least a year would be helpful and profit everyone in our industry.
Ruthmarie. I know where you are coming from, but I have dealt with too many clueless agents that have been in the "biz" for years. I don't know how they survive, much less prosper, but they seem to do that. They are missing stuff that IS in the classes and on the tests... and telling them more isn't going to stop them from remembering less.
The ones that are unethical are a different matter... and they will also be around regardless of the classes and licensing requirements. Cheating is efficient and profitable for them.
Hi Lane,
I guess my point is that these agents aren't serving the consumer very well. You may not be able to screen out the unethical. But you certainly can screen out the “stupidity factor” in education classes. For the truly clueless - the required training would winnow the field.
That's the way it’s done in other professions. The educational process is also an elimination process. The field of candidates is pared down by two factors: 1. Like qualifying a client, you make the candidate jump through several hoops eliminating most hobbiests who want to do a deal or two a year for pin money. These agents are notorious for not knowing what they are doing – and simply not caring. 2. Since in a true college level course there is a certain rate of failure, you can at least make a big dent in the “stupid factor” that has invaded real estate. Most people are perfectly capable of passing a year long course of study at a community college – those that aren’t motivated to do so or can’t shouldn’t have the license to begin with.
Look at it this way - we often compare our fees to those of doctors, lawyers and other highly paid professionals. Well if we want to talk the talk, we need to walk the walk. Most of our "training" is on the job. The trouble with this system is that consumers becomes guinea pigs for an entire army of new agents every single year. That's a BIG PROBLEM. There has to be minimal competence for any "profession" to have credibility. That means a good 20% have to fail out before they even get to the licensing phase.
@ Ruthmarie
I agree the levels for real estate education are way to low and the quality often abysmal.
@ Lane and Ruthmarie
Who needs to take up the responsibility to shoulder change. Brokers or NAR?
The only chance we have of changing anything meaningfully on a national level and it will IMHO have to be NAR that takes the lead. Lets hope they do.
I think that Stephan is on to something. I think that the NAR needs to make REALTOR actually stand for something above a license.
And just for the record, I have had to indirectly deal with a lawyer... and you could ask for someone more clueless... but she made it through law school and she passed the bar. She just sucks... but she has a few clients. If you can't weed them out with a law degree... I don't think we can weed them out of real estate.
Better is to spend our time educating consumers...
I can't speak for the rest of the country but in Texas it is too easy to get and keep a license from an education stand point that is.
Hello Stefan,
At this point I agree with you that it needs to be NAR. Looking to the states and local brokers would create too much inconsistency. Raising the bar to entry would at least winnow the field. A large number of people wouldn't bother with the license if they had to spend a year getting it. The agents would be better prepared and it would help chip away at the idiot factor. It would also chip away at critics who say we shouldn't earn as much because anything field that gets you a license in 40 hours isn't a true "profession."
I teach the real estate licensing courses here at PSU schuylkill. Here in PA you just need 2 classes, 30 hours each (60 total), pass the test and you're a realtor! Way too easy, in my opinion. But I also don't have much faith in NAR to be able to do anything about it. If anything, they want our ranks to be HUGE so they get more dues. And their quad. ethics requirement--a joke. Requiring that class does not make anyone ethical. Sorry to be doom & gloom, but I would be shocked if NAR tried to make it harder to get/keep a license.
NAR has nothing to do with license requirement. This is a state licensing thing.
NAR could raise the bar. The states provide minimal requirements for licensing - however to become a Realtor with access to the MLS etc - NAR can set a different set of requirements and set the national real estate market on a more consistent and higher level.
Key word there is COULD raise the bar. I don't think NAR would see it in their best interest. Would cut into their dues money if agents decided they didn't have to pay the money and raise themselves to the bar.
I believe that under the leadership of Dale Stinton NAR has a set of strategies for the next few years that include raising the bar and changing the image of what a Realtor should become and how he or she should be serving the home buying and selling consumer.
As always a great post Stefan. Agreed that education is essential. Like your train of thought, but NAR doesn't really have the cohesiveness and capabilities to really improve overall real estate education on a national level. They just do designations. Am I missing something?
Looking back at a 100 years of NAR John, you may be right. But I believe the NAR is seriously taking introspection and will come forward with numerous strategies next year to reposition NAR for their 2nd century. Time will tell whether they can pull it off, but at this stage it looks very promising. More details will be forthcoming in my 2009 Swanepoel Trends Report.
The problem with NAR or local Boards raising the bar is that they'd lose members, and they run on numbers.
Sharon hit the nail on the head. Can NAR change? Anyone from NAR willing to comment?
I would LOVE it if we raised the bar and (1) made it harder to become a REALTOR and (2) put some teeth into the ethics training/requirements.
I will look forward to seeing what happens in 2009 with NAR! Unfortunately, from seeing the past 10 years I think the bar has FALLEN not been raised. The quality of agents out there today.... pathetic (for the most part).
The raised standards have to start somewhere. If the BROKER doesn't set the bar, or keep up standards, nobody does. NAR must push this initiative forward so that the word REALTOR means something.
Check out our annual rankings of "respect" as far as other professions go. We're always way at the bottom in terms of respectable careers.
Realtors constantly compare themselves to professionals when defending their commissions: lawyers, doctors, etc. Yet other professionals go to school for years, not 40 or 60 hours!
I agree -- standards need to increase and it starts with education and not just for real estate agents but all of those that are affiliated with the real estate industry -- mortgage professionals, title professionals, home warranty, disclosure and on.
Education will raise the level of professioinalism and respect in our industry and with the assistance of technology -- it will move in that direction.
Stefan - Very important and complex issue. Education is the clue. In Ohio we have 120 pre-license requierment, which is not too bad in comparison but - sad in reality.Why don't the college education (at least on Associate degree level) be the starting point for entering the Real Estate schools? Who win from existing High School diploma rule and, as a result, high first year exit rate - neither brokers, nor NAR. Real Estate schools are the only winners here!
Making things worse, the person doesn't even need to be a Realtor in order to get MLS access in our NORMLS - say Hi to DOJ. Already had a problem with this - non-Realtor member of MLS cut the co-op commission during the transaction and no way to contest this, as ethics and arbitration are for Realtors only today!
However, NAR needs to run on members and not only for financial reasons - otherwise we may lose the lobbists' power.
Bad image of undereducated Realtors hurts the industry.
Bad image of undereducated Realtors hurts the industry. Amen. Excellent comment Svetlana.