We need to create a profession for individuals instead of a mob of individual business. Real estate has the appearance of being a very cooperative business. In reality, in brokerage offices, the person sitting next to you or even sharing your desk, would love to get their hands on any transaction you do.
The agent’s model is to get as many deals as possible throughout the year. The brokerage’s model is to add as many agents as it can. This is directly in conflict with the existing agents need to get additional deals. It is in direct conflict with existing agents’ ability to stay in business. In other words, the brokerage, which is supposedly supporting the agent, is actually working in direct conflict with the agent.
The agent’s goal of more deals is easier to do if there are fewer agents. The brokerage’s goal is generating income. The best way to do this is by increasing the number of agents. How is this in the best interest of the industry or of our clients?
In addition, NAR is also interested in increasing the number of agents. So any lobbying or support done for the “agents” is in reality done for the benefit of the brokerages. The agent pays their dues and the money is used to benefit the brokerages.
By the way, if you’re an agent, you have the option of paying the requested donation to the PACs (Political Action Committees). If we want change in this industry, we need to let NAR know it. If enough agents stop paying the PAC dues, we might get our message across.
If you could run a business where by hiring people, you took care of your basic costs, and any actual production your “independent contractors” did was gravy, wouldn’t you do it?
In addition, new agents come into the business with a directive to market and sell themselves. Each agent uses the “brand” of the brokerage she joins to do so. After all, no one knows Joe Agent and everyone knows Brokerage B. So each agent, even if unsuccessful in the long run, helps the brokerage increase their branding. And since salespeople and associated brokers are required by law to list their brokerage on certain types of advertising materials, the agent has no choice but to spend her money supporting the brokerage.
Broker Managers must walk a fine line. If they give too much direction, then the agent is no longer an independent contractor. The good Broker Managers want the agent to come to them when the agent needs help. But some Broker Managers just want the deals to get done regardless.
Ultimately, we need solutions to all of these problems. But without a public uproar or an agent revolt, the real estate brokerages and trade associations will continue to control how real estate is bought and sold.
© 2007 by Judy Kane
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