The Town Broker

Why People Hate Realtors.

Realtors have an image problem. Whether we like it or not, most people dislike us! In fact, a recent Harris Poll shows that Realtors are held in lower regard than farmers, actors, union leaders…pretty much everybody. At best we’re seen as a “necessary evil”. We’re the gatekeeper to the thing that consumers really want…the sale or purchase of their new home.

When I first got into this profession, this fact really bothered me. Within the industry, it’s caused many to call for a “raising of the professional standards bar“. And while that’s a discussion for another day, today I saw yet another example of why this negative attitude about Realtors exists…and probably will for many years to come.  And I blame the big name/ old school brokerage companies.

Selling Your Soul For $50

Last week, I was scheduled to meet the structural and termite inspectors at a home for a current buyer. Unfortunately, the listing agent lost the keys to the place which required the owner to return home (after 1 1/2 hours) to let everyone in. But by that time, one of the inspectors left, which required a return visit at the cost of an additional $50. My client (who arrived 30 minutes early) asked the listing broker to pay the additional $50 for the return visit. He refused.

Keep in mind that this was a BIG NAME broker in our market…a name that would roll off the tongue QUICKLY if I asked you to name a local broker. (In fact, if I gave you the agents last name, most folks in our local market would know it. So I won’t.)

And here’s how our conversation went:

• [Me] The inspector won’t release the report to our client until it is paid for. My client already paid for this inspection, but needs to pay again because we couldn’t get in the first time. He’d like you and your company to cover this so we can move forward.
• [Him] That’s not going to happen. I’m not in the position to approve an expense like this, and I wouldn’t do it anyway. $50 isn’t a big deal…so why is your buyer making it into one?
• [Me] Well it’s an additional $50 that he needs to spend because you lost your sellers keys. And your client wants to close quickly, so who can approve this?
• [Him] Nobody. It’s just not going to happen!
• [Me] Wow…OK. I guess you can run your business whatever way you want. But sometimes, you just need to do the right thing. Never mind…I’ll take care of it.

So I called the inspection company, gave them my credit card, and got a copy of the inspection report within 15 minutes. Problem solved.

When The Broker’s Need Comes First

So why would I write this post? I’m not going to name the other agent or company, and I’m certainly not looking for someone to give me a cookie for doing the right thing. It was only $50…hardly a “game changer”. But that’s the point!

The real estate industry is full of disempowered agents…sent by their brokers to represent them…until they make a mistake. Then, they’re suddenly “unauthorized” to make things right for their clients…especially if it costs the broker money.  And I think that’s just the way some of the big companies like it!

Believe me…I know this first-hand. I spend nearly 4 years managing for one of the big name/ old school brokers. I remember getting calls from agents at the closing table looking to authorize what seemed like a legitimate expense so that some sticking point could be resolved and everyone could go home. After being chastised one day for authorizing just such an expense, I remember being told ”the buyers and sellers have too much at stake to let their deal die for $X. Don’t let your agents give in. Don’t let them back down.” Wow… Really??

And so “we’re not authorized to approve this expense” became the mantra in the office. In fact, it’s still the mantra in most offices in most of the big name companies. I deal with it day after day after day.

It’s one of the reasons I left managing for the big name, and joined my current company. My current company ”authorizes me make my own decisions”…and trusts me to do the right thing. My current company believes that when I do the right thing for my client, I’m doing right by their brand name. What a concept!

But what worries me most for our industry is that the big, old school brands will continue to send their “unauthorized agents” out to do their bidding. They will continue to coach their agents to not back down, and not give in…even when they screw up. The perception of Realtors will continue to rank at the bottom of the public opinion polls.

And life will continue to be that much harder for the rest of us.

Tags: Harris Poll, Public Perception, Realtors