True Gotham

Brian Carter writes for the New York Press that the real estate industry not only has a bad reputation with the public, but some of the reputation may come from agents' self loathing. 

I recently spoke with the manager of a very well known and respected real estate company. He was speaking specifically about agents when he said the business had a self-esteem problem. Apparently, real estate agents aren’t very proud of what they do for a living. It was refreshing to hear, as overcompensation generally comes with the territory. Rarely does anyone inside the industry make such obvious or honest remarks. Most will tell you it’s a difficult but rewarding job—the safe answer. Some admit to loving it. I try to avoid these types. While I imagine others aren’t happy about it at all. But if agents overall are normally a little defensive, it’s for good reason. Last summer a survey conducted by Harris Interactive measured the public’s perception of the most prestigious occupations. Real estate agents ranked dead last.

Now this is one of the very reasons that True Gotham was born!  To increase credibility and agent reputations in the industry. The single most distasteful part of the industry in my opinion is the lack of respect that so many have for it. In the not too distant past, I would often avoid conversations at cocktail parties that involved discussions about occupation and when all else failed I would often spin the fact that I'm a real estate agent to make it seem much more important than it is. 

By the way, I do believe that assisting someone with often the largest asset in their portfolio is somewhat important. Here I go again, trying to convince myself that what I do is so incredibly important.

I will say that the reaction of some when they learned of my profession was anything but warm and frequently wreaked of disdain. That happens a lot less frequently as I no longer make apologies for what I do. Some days, I love what I do. Other days I hate it.  And mostly I'm satisfied with how I spend my days assisting buyers and sellers with transactions that often bring quite a few headaches for all parties involved. 

Brian says he isn't exactly sure where all of the hatred comes from and I would like to take an educated guess. First of all, the barrier to entry in the industry is exceedingly low, making it possible for anyone to get a license to sell real estate. Public perception of real estate agent income, particularly over the past 10 years, is that everyone is getting rich who sells real estate... not true as this business week online post points out.  These two factors are definitely breeding grounds for resentment but as my regular readers know, I don't for one second believe that public distrust of the real estate industry comes from nowhere. That low barrier to entry and the fact that most never longed to sell real estate but rather chose it as a second or third career or even "fell into it" due to a lay off or failed first career, has resulted in a sleaze factor that continues to permeate the industry.  The very structure of the industry (broker/agent relationships, commission structure, and in New York City, the lack of an MLS) results in unethical behavior by some who can't pay their mortgage, rent, car payment, or even dinner if they don't "close a transaction."  Desperation in any industry makes people do crazy things that are often unethical and downright dishonest. 

The good news... the industry seems to be changing for the better, albeit very slowly in New York City. Property information is becoming more accessible to the public via the creation of sophisticated, web based companies like Zillow and Trulia. The real estate boom of the past decade has brought some incredibly honest and intelligent people to the industry who are raising the bar for everyone. And perhaps most importantly, the more savvy consumer seems to have totally lost their patience for the "used car salesman" type agent who has everything but his/her customer's best interest in mind.

Great post, Douglas. Thanks for writing.

Let me throw another thought into the mix here ... could the consumer be partly to blame? I have heard it said many, many times that "it's a relationship business" but never have I heard anyone say "it's a reputation business". The first rule of good business is not to partner with friends or family, yet many agents seem reliant on those friendships for business. It all makes me wonder if consumers have been doing their due diligence correctly. Have consumers actively been seeking out great agents -- or are they more likely to work with friends and relatives - or friends of friends?

If this is indeed a part of the problem, then the good news is that it's another aspect of the business that transparency and innovation will correct. Through blogging, online communities and open marketplaces, consumers can now evaluate agents' true performance ... not just their personality.

All in all -- I agree that the trend is positive. I've personally come to hold in very high esteem the great Realtors that I've met this past year. Hopefully that's also a trend -- that the average consumer sentiment will start to change as consumers become educated about this fascinating industry.

Wow, I was surprised to learn that agents have this self-esteem problem. Certainly all the bad press can't help. It's a shame because, as you say, an experienced agent is invaluable and there is no greater joy than in helping others. Blogs like yours and others will surely help dispel that negativity .

Thanks David. Actually a good sign that you have had positive experiences with the brokerage industry particularly as so many of them resist the very thing that you do. Good news!

And thanks Joe for the support. The blogoshpere is definitely a postive force right now in raising the bar in my industry. My fear is that as the "average" real estate agent enters the fray, the bolgosphere will become just another salesy, marketing tool. I really hope that I'm wrong!

You are right, Doug. The bar is too low for entry into this business, and the public perception is that agents make too much money.

I think David is right, too. John Q. Public often uses his sphere of influence to select an agent... which may not be the best thing for our business as a whole.

We're raising the standards in Georgia for appraisers, and rumor has it that the education level for brokers is about to double. Our state brokers exam recently changed to an adaptive exam whereby you actually have to think about real-world problems instead of memorizing answers.

Now if they would make the salespersons exam more difficult.

And don't worry about the average real estate agent, Doug. He won't have a blog worth reading.

it is a a good sign that the author had had positive experiences with the brokerage industry..great post..