Unconventional R.E.

RTB has the wrong focus

I recently discovered the “Raise the Bar” podcast by Michael McClure and his partner Todd Waller.  I recommend it to anyone interested in real estate industry issues that affect the everyday real estate agent.  

The core message of the broadcast is a movement to Raise the Bar (RTB) for real estate agents to increase the holistic professionalism of the industry.  How?  By cleansing the industry of its bottom feeders through much higher licensing and license renewal standards like requiring a bachelor’s degree to practice real estate. 

The problem is real.  The effort is admirable.  The solution is wrong.   

The RTB movement is not going to accomplish it’s goals by trying to improve or eliminate the lowest-common denominator.  Those at the bottom of the pile when it comes to professionalism, ethics, and class are not there by accident.  It takes conscious thought and effort to intentionally ignore calls from other agents wanting to show and help your listed homes.  It takes true gumption to look someone in the eye, smile, and encourage them to buy that house with foundation issues because “if you are interested in it with these problems, so will someone else when you are ready to sell!”  

Leadership science tells us that the best way to stop a behavior is through fear of adverse consequences. The Army has known this since sticks and stones.  Think of a drill sergeant chewing into a private for being late to a formation, or the threat of a firing squad for abandoning your post.  We could use the fear of losing your license or livelihood through increasing minimal required standards but that does not achieve the goal - a higher “average” level of professionalism and performance of agents.

That same leadership science tells us that the best way to encourage behavior is not through fear of consequences but through the promise of good things.  It is the “carrot” that causes people surpass standards and even go beyond.  

So what to do?

This is not my cause as I am a believer in letting the markets and competition sort it out for itself.  However, if RTB wants to have a role in this economic Darwinism, here is what they should do:

1. Focus your efforts on changes that are grounded in basic human nature which means switching focus away from raising the “low bar” through higher entrance and retention standards.
2. Instead, focus on ways to raise the “high bar” for the great mass in the middle.  These are agents are hard working, ethical, and love the business of real estate. They care.  They care about more than just the money. They care about “how” the job is done. They care about what their peers think of them.
3. The best way to do this is leadership by example.  You have your own brokerage so raise the “high bar” by example and tell us what happens.  I don’t know anyone who starts a brokerage hoping for it to be a clearinghouse for the lame and unprofessional. As the founder and owner of two former brokerages, I could learn from you personally on how you balance the complex competing forces that a brokerage new to a market faces.  It is much easier to set above-average standards and requirements when you have significant market share in a market.  It is much harder when you need the agents more than they need you.  

I think this RTB effort could be significantly helpful to the brokers out there who want to have that top-tier, highly-professional outfit but don’t know how to get there.  As a former broker who has scars from the brokerage business, I personally would appreciate to see how that can be done from scratch.

Good luck and go get it!

7 June 2010 ·

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