There’s an undercurrent to the battle between the real estate industry and its detractors few talk about. It may not define the struggle, but I think it explains some of what’s going on.
Perhaps it hit me when I read that Glenn Kelman’s hero is Ezra Pound in his recent Real Estate Connect speaker profile.
It’s class.
I see hyper-educated, affluent entrepreneurs, writers, technologists and other “outsiders” pitted against generally less educated, less affluent real estate practitioners.
Sure, much of what’s gone on in real estate over the past ten years has been strictly business: innovation, resistance, incumbents warding off challengers, etc. But would the outsiders attack the industry so strongly and dismiss its practitioners so blithely if the rewards of a real estate career were conditioned upon getting a “legitimate” education? Or if its people displayed a slightly tonier patina? Would the NAR and many of its members react so virulently and clumsily to challenges if they came from people they’d actually invite over for dinner?
I know, this is a ridiculously broad characterization. Bill Gates has no college degree. There are plenty of blue-blood brokers. But let’s be honest. How many of you entrepreneurial or technology types have sat in meetings where people who revere hedge fund hucksters mercilessly dis Realtors? Brokers and agents, how often do you clench your teeth listening to some start up exec give a presentation just because he’s got a Harvard MBA?
What of it? I have my opinions. But I’m more interested in yours.
– Brian Boero
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I'm with you… My job is to teach agents ways to get new business. I tend to deal with tech type tools and methods, because that's what I know. That's what I learned.
I get a lot of resistance from agents when I mention the "vflyers" or "blogging" etc etc…
So, I sit here daily thinking to myself "why not put some of this stuff to good use?" I could get licensed in what, like a week and a half(thanks to our loose licensing guidelines) and be on my way.
I've got the education (marketing and ISQA degrees), I have the new school mentality, and I have someone that is willing to mentor me (since I also don't think new agents should go it alone on their first few deals).
So, does anyone know a company that could help implement some of this stuff?
Congrats for bringing what some might consider an "unspeakable" issue to light.
Class IS a big issue for people, regardless of profession. I've found that many people, especially laywers, resent real estate agents because the commission is often 10 times what the legal fee is at closing. That's why there are so many lawyers leaving their practice and getting their real estate license.
Being here, in the Hamptons, on New Yorks East End of Long Island, there is an attitiude of elite-ism among our agents towards those that come from "up-island" or the traditional Long island markets. Then there are the Manhattan agents, who see themselves above all.
So, is it a "class thing"? I would say that, for the newbie-outsiders it's more of an irresistable challenge to see if they can create a technology that will make them rich and put their name in lights. Haven't you seen the grin that Barton breaks out into whenever he is introduced as "the guy who changed the airline industry and put thousands of travel agents out of business"? That's power! The same thing that drives scientists to develop cures for cancer or to get to other planets. And, sadly for many, the drive and focus is so strong, it doesn't matter what is demolished in its path.
This is a truly class-less post, and if the above commenters represent the elite class, give me back Archie Bunker. At least then I'd know who I'm dealing with. Shame on you! (idiots)
You obviously misunderstood the post Classless. As a result you did little to dispel what was suggested and did much to support your moniker.
I can tell you one reason why REALTORS are dissed by so many, at least in my state (Minnesota.) If you can fog up a mirror, you can pass the real estate license exam. It is incredibly easy. As a result, there are now more agents than buyers in my region. More stringent entrance requirements would certainly help the industry appear more respectable. This would improve the general quality of real estate agents, and would limit the numbers entering the field, which would shore-up the public's perceived value of real estate professionals.
That's a keen observation.
After a 10+ year stint in the real estate industry, I often laugh at the speakers that come to such meccas of so-called innovation like inman and real trends.
They've never sold a home or even taken a listing but they are somehow empowered by other MBA toting VC's to change the industry.
Guys like Glenn Kelman and Rich Barton are smart guys no doubt, but its interesting that they didn't study this industry's history, their rhetoric, is old and re-hashed. Billions has gone before them and billions will come after, while that average agent will continue to maintain the status quo.
The only way to change this industry is through educating the consumer. If your not in the consumer education business, your dead.
I agree with so much of this post. However, I would credit Kelman and Barton for partaking in this education albeit not their immediate intention. Without these MBA geniuses, real estate on the web would still look like it did in 1989 when agents started building cartoon sites for themselves on AOL.
They need to be credited for uplifting the industry to its current standard that is still in need of a face lift. They did a world of good converting by current count, 80% of today's from the off line medium to online.
Without them, I doubt we would be having this conversation on a blog.
What needs to now happen is education that teaches the rank and file agent how worthy all that is and how to take advantage of all the technology and awareness they have brought to the table.
well I agree that without outside influence RE technology would be light years behind the rest of the world.
However, I wouldn't give Kelman and Barton the credit for it. There are guys like John Hensley, Jack Willey, Russ Bergeron and many others that should get credit for getting the AORs off the "Listing Books"
I'm really not impressed with Zillow or Redfin from a business model perspective, what I am impressed with is their ability to polarize the industry. I think their presence exposes the industry’s lack of innovative thinking (from all their attackers) Just like you said, we wouldn't talk about it if they didn't exist. They are just the flavor of the month (or year) There’s is nothing revolutionary there.
Personally, I hope they survive, but I'm doubtful, Zillow doesn't "own" the data and Redfin, well, too many markets too soon. They can't get enough share in all those markets to survive, growth in a down market is tough for traditional models, much less a startup.
Yes, we agree on this. Barton, et al are merely carrying the torch lit a long time ago. Personally, Redfin, Zillow, I wish them well. If they go, others will take their place. If they stay, it means they filled a void. That's it.
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