That's the response my first-month real estate agent friend got from her Big Name broker when she emailed to say she had a $1.5M buyer lead. "Good for you, let me know if you need anything."
Are you kidding me?
My friend, smart as she is ;-] can barely spell MLS. She doesn't know what radon is, she doesn't know any inspectors, she doesn't yet have a relationship with a lender. She doesn't know how to select the best homes to show her new buyer.
But of course, she's been thoroughly trained on scripts, farming and other prospecting strategies as part of her Big Name training package.
We've all been there, and it's a scary place. An exciting place to be, for sure, especially when a $1.5M buyer comes to call (hmmmmm... yeah, I can do that math). And yes, being new implies a level of scariness when presented with one's first customers. But Puh-leeeeaze! To tell a brand spanking new agent to "let me know if you need anything" is criminal, in my opinion. Okay, that's melodramatic, so if not criminal, let's say irresponsible. Heck, how about downright STUPID? My friend is on a 60/40% split, so the broker's take on this deal is... how much? A LOT. And the chances of my friend closing this deal without help are slim-to-none. Oh, and the guy is qualified up to $3.5M but claims that he's "cheap," so he asked my friend to try to stay around $1.5M.
My friend calls me for help. Of course, I don't know her market or her contracts or her MLS or her local customs, but so far, I've been a hell of a lot more help to her than her on-site, stands-to-make-$20k-on-the-deal broker.
I won't name names, but this is a national company that recruits rookie agents and promises them world-class training. I'm underwhelmed, to say the least.
Thanks for listening.
Shouldn't matter if it was a million dollar client or a $50,000 client. The broker should supervise a new agent. Simple as that.
Sadly it is not overly surprising. This industry as a whole is grossly under educated. And owners/brokers play the biggest role - or SHOULD play the biggest role. I guess they just want free money - and that is their motivation for managing/owning. I was forced to train myself in this industry. My first company's owners were dumb as dooknobs.
This situation is common in many areas. Untrained agents giving advice that is beyond the scope of their knowledge. Buyers frequently select agents based on personality rather than experience.
Excellent point, Kris.
Steve- I learned early on that my gut instincts were far better than any advice I got from above. But still... a new agent needs (and is paying for) some serious handholding! Our clients deserve that.
Hmm.. .I think I have a pretty good idea of this Big Name company that spits out below average rookies like someone eating sunflower seeds. . and when the star Rookie sees the amount of money to their broker. .they will simply ask. . .tell me again. .what did you do to deserve 30%?
Oh.. yeah. .you let me use your copying machine.
but wait. .
I paid for each copy made!
I could go on. . .
No question your friend needs some support or mentoring. The size of the deal is irrelevant to her situation. It should be another learning experience until she gets enough experience to competently handle this buyer !
Jennifer, good for you for helping your friend, she might want to consider a new agency also.
Jennifer- Wow... that is crazy indeed. Is a shame that new agents are just thrown out there with very little support. Did the agent respond to the broker's request at least saying "Yes, I need some help" and forcing the issue ? If the agent is not getting any support or training, it may not be a bad idea for her to start looking around NOW for a better place to work. At our office, we take on very few new agents, but every once in awhile for the right agent, we do. They are provided intensive support from a team leader or mentor that would really helps these agents and provides confidence.
In any event, keep us posted on what happens next : ) ~ Chris
Guidance, mentors, experience and sharing what works, what mistakes were made. That is why we are all in here at AR University.
I am a broker of two offices and have agents that have all been in the business at least two years and I will walk along side them through a whole transaction if they need me too. Just this week I met one of my agents who hooked a builder client and needed my counsel on how to market the homes. I was with her at 6pm in the evening walking through the models giving her advice on how to present to her clients. She said she felt a lot more confident about dealing with them after our meeting. THAT is how a broker should handle their agents. I think what we are seeing is mega offices with little or no guidance to their agents and that is a travesty in our profession. If you have so many sheep that you can't tend to your flock, it's time to re-evalate your approach to the business. Is it about how many warm bodies you can cram into an office or selecting quality agents and helping them grow a successful real estate practice that can stand the test of time? Great post!
Jeani - That's how I would be. I can barely help myself from calling my friend every day to see if she needs my help. If I had actual agents depending on me (not to mention me depending on them), I can't imagine blowing them off, even a little tiny bit.
Andrew - Amen!
Chris - I think my friend has pretty much given up on getting help from her broker, in any form. If this is as much as her broker cares... well, then, whaddya do?
If I called my broker and told her I had a 1.5 million dollar buyer she would come with me on the showing appointments to make sure it goes well!
One of the brokers I work with would help every step of the way to make sure this deal goes smoothly. This broker must have a lot of agents with 1.5 million dollar deals in the office.
Jennifer, This is precisely why I chose to sign with a small, independent broker with only a few agents, JJ Jacobs Realty Inc. , rather than a big-name real estate company. I know the broker personally, she chooses her agents carefully, and I think because her company bears her own name, she has even more of a vested interest in making sure her agents represent her and the company well. What I've lost in brand recognition I believe I've gained in true mentoring and coaching.
You're being a very good friend, Jennifer.
And I so appreciate your take on the various business situations we're faced with.
That's a big ouch....just a most ridiculous response. They need hands on help. But at 1.5 mil, I"m not saying "good for you." I'm working for good for both of us.
Crazy, crazy, crazy! Your friend is lucky she has you to come to for help. You would think her broker would be trying to ensure her success in this deal.
I am still waiting for that 1.5 million dollar call ! Unbelievable the attitude. But really believable based on what I am seeing in the market these days
Wow, that's pitiful, isn't it? If her career is starting this way with her broker, she's probably in for a few more surprises, sadly. Supporting new agents is SO important to ensure they are successful. There is only so much "training" they can get from a video, or a book. They need one on one as well, in my opinion.
My old office in Nashville had a weekly meeting for the Rookie agents that they HAD to attend, as well as their own personal mentor. We also had a non competing broker, that was there to help get deals put together, if needed. More offices should have the same policy! Bob Parks Realty is amazing :)
Hi JA.
Couldn't agree more.
Training? A joke. They teach scripts. Not how to take care of the customer.
Ken
BTW, the $1.5M buyer was a referral from my friend's SOI ;-]
Ken - you put that very succinctly...
Elizabeth - every transaction is unique, so there's no way you can learn much about taking care of the deal from a book or video. If I ran my own shop, I'd want it to be like the one you describe!
Wow, I feel sorry for the CLIENT. A new agent does not even begin to know what they do not know and there is a lot of money at stake REGARDLESS of the amount of the transaction. To some people, a $100,000 house is huge, so while it seems worse because this is a bigger number, it's not - regardless, we are dealing with other people's money and it's important to each of them.
She does not have a good broker. Period. And I agree, it does border on criminal.
There are plenty of great brokers out there who mentor, train and hand hold every step of the way...I know, I have one and despite being in a relatively large office (200 agents, 2 managing brokers), I feel as if I have a broker who somehow is ALWAYS there for me - and I don't know how he does it!
Jennifer - Is the Agent considering looking around for a better work atmosphere where more support and training is provided ? She could ask around the Real Estate community in the area and begin to ask some of the agents that she knows at other offices of interest.
I love this post. I know the experience. And I am so glad to see it in the open. Thanks, Jennifer.
One of the suprises for me as I learned more about the Real Estate business .... just how many brokers are just in the business of renting desks and collecting a "piece of the action."
We deal with many agents and brokers from a different vantage point than other agents, brokers and customers. It has been very revealing.
I am so fortunate that I was watched like a hawk by my Broker for my first year. I wasn't allowed to submit a contract without her reviewing it first. Thank you Arlyn!!!!!
Tina in Virginia
FYI Jennifer... this inspired me for a post (which, naturally links to yours). Thanks for the seed!! G
Jen- this echoes my experience with my first broker- a "big name" local agency with many offices. (see my recent blog on scripts). We were even given "mentors", who used practically these exact words- Let us know if you have any questions. I found out later the mentors were getting paid for this!
Jennifer:
Being extroverted comes from knowledge and confidence in what you are talking about.
Richard
The brokers should just give all rookies a copy of Sell With Soul - and they'll be all set.
Wow, sounds like our first broker. I hope she has ActiveRain - that's how we were able to get through those first big tranasctions, with help from our friends on ActiveRain.
Jennifer - I agree with your general take on some of the large national brokerage churning new agents. They make their 4-5 sales in the first 2 years and move on - usually out of the business. However, I think that there is a bigger problem in the industry. It includes independent contractor agreements, part-time agents, and low entry barriers into the profession. It has developed a Walmart training model - that is, "just in time" delivery. We see agents who don't want to learn the skills until they absolutely need them as opposed learning new skills daily and implementing them daily. I'm not sure that the agents failure to develop a relationship with a lender, building inspector, etc. or learning about radon can be solely placed at the broker's feet. We do meet and greets with our preferred service providers as a part of the orientation process. Having said all this, I know one thing for sure. Either my partner or I would be accompanying this agent and showing them the ropes on a $1.5 million sale. However, at our brokerage, the shadowing process and working with buyers starts on their first day, not when they absolutely need assistance.
I think I could take a wild guess on that big name company with that split....glad I left them in the dust and moved on to a company that will have my back.
I've seen that time and time again! When I had my own firm, I made it a point to help them, be with them as needed and available toanswer questions or concerns. I enjoyed helping them become successful.
One office I was at (may be same franchise?) did not even return any of my clients calls when my spouse was transferred to an out of area hospital in an emergecy and I could not call out. I did let them kow where I was and about the situation. Did not even refer calls to my best friend in our other branch. And the only thing on MY mind was my spouse. The office manager said"not her problem" and the boss had a flood in new condo when he ran the dishwasher so he just did not have time for any calls... in a week. Obviously I made a change... and a good one!
Wow, how ironic. I have a close friend that had almost an identical situation. She said the client must have figured her out because he stopped calling her back. Luckily she knew that she didn't know squat and didn't dwell on it. She took the high road and called it experience!
Jennifer - When a broker stands to make any amount of money from what their agents are producing, I just can't believe that the broker is not more than willing to help throughout the entire process. That is why I am where I am at, and love my small independent broker. She understands that if I make money, she makes money, and she is more than willing to help with anything and everything.