Why nobody wins with a selling Broker
You have no doubt heard competing viewpoints on competing Brokers. There is no mystery here, it’s a black and white discussion and this article is going to settle it once and for all. How’s that for an opening statement?
Let’s start with this - Name a job that people do better when they only do it part-time? I bet real estate Agent or Broker didn’t come to mind.
We hear the complaints non-stop in our industry about part-time Agents. ‘They don’t know the market’, ‘they don’t know how to write a proper contract’, I mean c’mon, how could they possibly be as connected and valuable a Realtor as you are - a full-time practitioner, right? So why should a part-time Broker be any different? They have a day job too (it just happens to be competing against yours), but if you can’t give full credit to a part-time Agent, you certainly can’t give any more credit to a part-time Broker.
Selling Brokers are the management equivalent of part-time Agents. Ya, I said it.
I believe an aspiring Broker, just like an Agent, needs to feel the ultimate pressure to succeed. When a new Agent enters the industry and wants to hold on to some part-time employment, the result is almost always the same - it takes them 10X as long to get their career off the ground. I am not saying it is necessarily the wrong path, but that a solid career will naturally take much longer to get off of the ground, if at all. I have seen the very same thing from many small brokerages with part-time Brokers. Promises of ‘We are working on it’ to their Agents for resources and tools that take way longer to deliver than they should.
When an Agent holds on to a secondary job there is always that safety net there, so the absolute need to succeed in real estate is somewhat reduced. I understand that circumstances and life situations exist, but my experience is that sense of personal obligation to succeed on one path isn’t on the same level. When you have no choice but to be successful, you will find a way. Same deal here, a part-time Broker can always sell their way out of a bad business decision, a full-time Broker needs to fix the problem and soon. A non-selling Broker must focus on making leadership and business decisions that will ensure the success of their Agents and the brokerage. They don’t have a Plan B to fall back on.
How about the invaluable resource of time. No matter how many Agents work there, running a worthwhile Brokerage is a complicated and full-time gig. When a Broker is actively selling they are not dedicating the necessary time to the job of building a better brokerage. The end result - things take exponentially longer to get done for Agents, the growth plan for the firm
We need to deal with a couple of myths/spins that are certainly out there.
Myth #1- A Broker that still sells is more connected to the market.
This is a lovely tale spun by selling Brokers to justify their decision to keep selling.
The fact is they need to sell to keep their Brokerage doors open and it also doubles as a lovely disguise in which to unveil recruiting strategies. I would argue that a selling Broker is actually LESS connected to the market. Here’s why …
A selling Broker is not just a part-time Broker, they are also a part-time Agent (remember those people you complain about all the time?). They are focused in on the clients they have and the price points, locales and property types that suit those clients, not the market as a whole. There simply isn’t enough time to study the entire market, service existing clients properly and do everything it takes to run a proper Brokerage.
A good full-time Broker makes the time to study the entire market. They time-block their calendar weekly to run data, they audit paperwork across all price points and are always talking to their Agents and getting an exact read on market temperature. A part-time Broker scrambling around opening lockboxes simply won’t have the time to see the whole picture.
Myth #2 - My Broker doesn’t need to make their money from me because they still sell
The first one bugs me, this one just drives me nuts. Part-time Agents out there should use this strategy in their listing presentations - ‘Don’t hire that Agent, they are all full-time Agent. Hire me instead, I make my money as a teacher’. For some people this theory may resonate, but for the vast majority of people out there I think they see the value in a full-time professional who is completely dedicated to their craft. Your Broker shouldn’t be any different.
Everyone is entitled to eat and feed their families, however if the offering is good enough, no one should ever complain about the Broker being compensated. Just like their clients do, Agents will see the value in a full-time professional as well.
Myth #3 - Running a Brokerage isn’t that hard and there is plenty of time
This can, in fact, be correct. If you are running a business-as-usual, mailing-it-in, we-were-great-yesterday kind of operation - then yes, there should be plenty of time to get out there and take some listings. However, if you are attempting to run the very best ship you can, running a Brokerage is more than a full-time gig for anyone.
Myth #4 - My Broker only deals with existing clients. They give the other Agents all the new business
Everybody hates new business. If they applied that theory they wouldn’t be sending out recruitment emails to every other agent in town, they would be happy with the existing Agents they already have. ‘I never compete with my Agents’ - Don’t believe this statement for a second, in fact it should be mandatory to say *Asterisk* after every time a Broker says it. But either way, the argument shouldn’t be where the business came from, but the amount of time it is taking away from properly running a Brokerage to service those clients.
Alright, I feel like I made my point - A selling Broker is a part-time Broker. With sensitivity to intentionally smaller firms, this was meant to be more of an assault on Brokerages with say more than 25 Agents and still a selling Broker. Or ones with 100+ Realtors and the Broker is running the #1 team, or ones where the Broker … I could go on all day.
I will end on this - As a full-time and committed Realtor you have made a decision to believe in yourself and go all in. To completely understand where you are at, your Broker should be all in on their own career as well. You, the committed Realtor will always win in this scenario as your sales career is the direct beneficiary of a full-time and committed Broker.
We had our say, now its your turn. Agree or disagree, just make sure you comment below.