Real Estate and Politics | Does Experience Matter?
Changes on the horizon
The political and real estate landscape will see plenty of changes in 2008. New players in each are emerging and really shaking things up. It’s a battle between old school and new school thought leaders. Some are utilizing Web 2.0 technology and social media to their advantage while others are left scratching their heads.
Does experience matter?
The short answer is maybe? If you’ve been following the presidential candidates duke it out recently, then you’ve probably heard them talk about their qualifying experience. Some have a longer track record with more accomplishments under their belt than others. Does this make them better suited for the job? Perhaps. Or can someone who has less practical experience but is full of fresh ideas bring more to the table? Time will tell.
How is this relevant to the real estate industry?
Many of today’s Gen-X and Gen-Y consumers and agents are embracing web 2.0. In comparison, old school traditional brokers and agents have generally been a tad slower at adopting newer technologies. These old school agents have many years of practical offline in-the-trenches experience which you can’t buy anywhere. Traditionally, their marketing has been via word-of-mouth and print advertising. But how much longer can that alone keep working for them?
On the other hand, the new school agents, some with less experience, are embracing web 2.0 and growing their businesses a little differently - online. They are eliminating print advertising and are getting word-of-mouth referrals from relationships built on blogs and social networks. By establishing their online presence, they are expanding their reach and brand awareness more cost effectively too. But can this alone make them successful?
A shift is occurring. Times are a changing. So does experience still matter? I wonder how today’s buyers and sellers are selecting their real estate agents? Is it based on their years of experience? Good ol’ word of mouth? Cool website or blog? Trustworthiness? Knowledge of technology and modern marketing strategies? Google juice?
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Jim Duncan said,
March 14, 2008 @ 7:00 am
Experience absolutely matters, but so does recognition of and subsequent implementation of emerging trends. I would argue that blogs are no longer “emerging” and are mainstream, yet the penetration rate among Realtors remains quite low.
The best online presence in the world without market knowledge and expertise to offer is worthless. If you’re a crappy agent with a great presence, eventually that reputation will be sullied - likely even faster due to that presence.
Being able to combine effectively the new world with the old is where success will be (and is) found.
(and does my vote really count more if I sign into Toluna?)
Jeff said,
March 14, 2008 @ 7:09 am
Experience in the trenches is vital to me, although there are a growing number of different skill sets that must make up an agents overall skill level for someone like me to consider.
My ideal agent is also ‘experienced’ with todays technology, one who offers cutting edge search tools on their current website. I gravitate to agents who also take the time to blog, as this medium gives great insight to their knowledge base and commitment to their craft.
My Name Is Jeff Turner And I Think Experience Matters said,
March 14, 2008 @ 7:41 am
I’m not sure how any technology takes the place of experience. Technology a tool. Tools are best used by professionals. It takes experience to be considered a professional.
Mary Popee-Handy said,
March 14, 2008 @ 8:09 am
It’s not a black and white issue. As Jeff mentioned, there are a variety of skills needed.
Let me tell you a true story from my life. I had a rheumatologist who was very experienced and a good doctor. He told me not to go to a stronger category of drugs to battle my arthritis because there were too many side effects and risks. So I kept with my then-plan and continued to experience significant pain from my arthritis.
He retired. I got a new doctor, fresh out of Stanford Medican School. Guess what? She looked at me and asked “why aren’t you on stronger drugs?” I told her. We chatted and she bumped me up a level.
Yes, there were side effects. I won’t list them all here, but after 6 months I had to go off the new soup of drugs. BUT I WAS IN REMISSION. I hadn’t been in a remission for fifteen years. I felt like a new person - it was amazing to get out of bed every day and not hurt in half a dozen to a dozen places (that would last for a few hours to all day).
When I went off those drugs, she told me “you may stay in remission for a month or two”. It actually lasted for two and a half years. Recently, the pain’s been inching its way back into my life, so I will make an appointment to go see her.
In this case, she was NOT very experienced but was highly trained and current with her knowledge of the risks involved and I was thrilled with her.
As for real estate…. I have seen highly experienced agents who don’t stay current (what? multiple photos? web marketing?) and new ones who adapt fast and learn the ropes. Experience is very helpful in real estate but it’s not a panacea. Experienced agents need to stay current. If not, it won’t be much different than my experience - the lack of keeping up will leave folks in a less desireable situation, maybe even painful.
Jim Duncan said,
March 14, 2008 @ 8:29 am
It’s a balance.
All technology without experience = not the best prepared agent. All experience with no technology skills also = not the best prepared agent. There are some agents in my market who still do not use email!
Those who adapt will have a greater chance of success than those who do not.
Rudy, Social Media Guru said,
March 14, 2008 @ 8:35 am
Hi Jim!
“The best online presence in the world without market knowledge and expertise to offer is worthless. If you’re a crappy agent with a great presence, eventually that reputation will be sullied - likely even faster due to that presence.”
That is pretty powerful stuff. So is it fair to say that simply being a great blogger or having a great online presence does not mean you’re a great or successful real estate agent?
I agree with you that in today’s market, combining old and new ways of doing business will lead to success.
Thanks Jim!
Elaine Reese said,
March 14, 2008 @ 8:39 am
I think Mary’s experience is right-on. Experience is certainly a plus in real estate, but KNOWLEDGE is more important. IMO, experience doesn’t necessarily mean the agent is knowledgeable. Embracing new technology is more critical for sellers than buyers. Therefore, a seller may opt for an up-to-date, higher technology agent, while a buyer may do better with an experienced agent who has seen more pluses/minuses of homes and their pricing & condition.
Of course, the ideal agent is one with experience, knowledge AND bothers to learn new techniques.
Laurie Manny said,
March 14, 2008 @ 9:04 am
There is NO substitute for an experienced Realtor with honed internet marketing skills when selling your home. Representing Buyers requires skills, many of which can be taught in training programs or aided by a mentor or broker, still nothing replaces experience. Pricing, negotiating and knowledge of contracts improves with time. It takes time to really learn your trade.
Gen X and gen Yer’s may have internet and social marketing skills, but without practical experience in the field they have a gun with no bullets. With practical experience they are good to go. Internet skills do not protect clients, knowledge does.
Years of attending inspections can sharpen an eye. An experienced Realtor can pick out a damaged foundation, roof/ridge board, chimney, etc… In a market of first time buyers without after purchase money for repairs, this is valuable, no time is wasted, the buyer is protected.
Knowledge of ones market and future values in different neighborhoods comes with time.
Knowing the power of the contract (all of it) and how to bend it to either a sellers or a buyers advantage is priceless. When used to both protect consumers and to net them more in their transaction, experience shines through.
Blogging and social networking without practical experience will expose those without the knowledge to truly represent their clients. Those that can discuss and educate the consumer on real estate issues do. Those that cannot report on their neighborhoods, community events and restaurants - anybody can do that. Try tackling some real estate issues if you want to be known as the real estate EXPERT.
Jim Duncan said,
March 14, 2008 @ 9:54 am
After this, I’m going to go do some real estate work.
I would argue that if you have a tremendous online presence without market experience and expertise, then you may be a great blogger, but not necessarily a great real estate blogger and thus likely not a good Realtor either.
If you don’t have good first-hand knowledge you likely won’t write as well, or as credibly.
It’s a balance between doing and writing about doing.
Rudy, Social Media Guru said,
March 14, 2008 @ 9:56 am
Hi All! - These are some fantastic responses.
Hi Jeff [X-Broker]! - In-the-trenches is where agents learn the ropes. Stuff that can’t be learned from books. I agree with you that agents who have a combined set of tools and experience are the ones that will continue to be successful.
Hi Jeff [RESPRES]! - Agreed. Technology is something we use in order to become more efficient at something. But it’s how we use that technology that also matters. Give me a chisel and things could get ugly but give it to a Michael Angelo and you get art. Yes, but is that experience earned in years or in some other manner?
Hi Mary! - Thanks for sharing your personal story with us. It’s amazing that she was able to help you when the more experienced doctor didn’t. Call it the curse of knowledge or becoming complacent in your routine. This is why its’ so important for agents to continue learning everyday. Knowledge is power. Practice makes perfect. Make sure you go and see that young buck doctor again soon will ya. We hope you feel better…..
Hi again Jim! - Yes. It’s all about balance Danielson…..
Hi Elaine! - So true. Thanks for making the distinction between knowledge and experience. Since many buyers are starting their home search online already, then I’d say they have more experience with web 2.0 and newer technologies than sellers do. As you point out, sellers have some catching up to do. By using a hybrid agent who has both practical experience and a grip on technology, consumers can get the most value.
Danilo Bogdanovic said,
March 14, 2008 @ 10:03 am
Experience is very important (see Laurie’s examples in her response above). But it’s not necessarily the number of years that you’ve been in the business. I have only been in the business for 4 years, but I have over 120 transactions under my belt. If you look at the national average (6 transaction per agent per year), I have as much experience as the average agent who’s been in the business 20 years.
As far as being technology savvy, that’s more of a marketing issue. You may be the best negotiator and an incredibly talented agent, but if you don’t know how to market yourself to consumers and let the world know who you are and what you know, you won’t do as much business as someone with your same skill set that’s a good marketer. Blogs and social media are just the latest ways to help accomplish that (information and digital media marketing).
As Jim said, it’s a balance. I think that consumers are looking for both - an experienced agent who speaks their language. If the consumer is tech savvy, their language is blogs, social media, emails from your PDA, text messages, etc. If the consumer is more old-school, it may be something totally different.
One thing I learned a long time ago is that you can’t be all things to everyone. Pick a niche and run with it. I picked my niche of the tech savvy and self-sufficient consumer who wants a real estate consultant, not a traditional agent/salesperson. So far, so good!
Rudy, Social Media Guru said,
March 14, 2008 @ 11:02 am
Hi Laurie!
Well said. Skills are learned first hand and over time. You can’t really be the “expert” by reading a book or passing a class.
Lock and load. Practical experience is the best teacher.
Visual inspections of real property takes skill.
At the end of the day, educating the consumer is what it’s all about. This way, they can make more informed decisions.
Hi Danilo! - Good point. Years in the business is not always a solid way to judge ones competence. As you have proven, it’s what you do in those years that matters.
The proper use of technology and marketing will enhance your business and brand awareness.But you still need to be out there in the real world meeting people in an old fashioned sort of way.
As you said, consumers want someone that speaks their language and vice versa.
Glad you found your niche and that it’s working for you.
Jonathan Miller said,
March 14, 2008 @ 11:28 am
Its important, but I think it is very easily over-emphasized and can often infer
dated or old school thinking if you’re not careful. I think there is a diminishing return with experience.
A 5 difference between someone with 20 years versus 15 years experience is nominal relative to the
difference between someone with 5 years and <1 year’s experience.
Rudy, Social Media Guru said,
March 14, 2008 @ 1:03 pm
Hi Jonathan!
That’s a great observation. So at what point does the “years in business” really not matter all that much?
Laurie Manny said,
March 14, 2008 @ 1:29 pm
Rudy,
There are people in the business for 10-20 years who don’t know what some of the 5 year veterans know. But I would agree with Danilo in that many transactions = a lot of experience.
Some people are savvy enough to know how important it is to make sure that they are VERY good at what they do. It is unfortunate that they are the 20%.
It always comes back to the 20%
Karen said,
March 14, 2008 @ 4:54 pm
Experience, knowledge and the ability to adapt to change are the three most important aspects of any career. However, in reality, people who are notoriously on the internet will be found by more customers and that alone may make them more successful, even if they lack the experience and knowledge that the client may be seeking. Counting experience by years in the business is not necessarily a good indication. We all know agents that have been in the business for years without much experience (or knowledge for that matter)
Missy Caulk said,
March 15, 2008 @ 3:04 am
Experience Matters… yes because we learn from past mistakes, is it necessary to embrace Web 2.0 and be a good experienced Realtor? No, I know Realtors in my area that look at you crossed eyed when you mention blogging, but some a good Realtors.
Most Realtors in my area that do embrace technology are good Realtors and that is best especially for sellers. My daughter is 4 years in the business and a great Buyer Agent but just isn’t into the technology yet. But, she gets lots of leads, knows how to convert and gets tons of referrals.
Debra Sinick said,
March 15, 2008 @ 3:46 pm
Great thoughts. I agree with Danilo, that the years are not the only measure, of sales experience. Exposure to the different real estate cycles is another plus. Some Realtors have been in the business as long as a decade, done a lot of business, but never worked in a “down” market. Experience in the “down” times helps to navigate today’s tougher market.
However, there are some very basic ways the internet can be used to market homes. It just boggles my mind when Realtors don’t use these simple tools. Professional photography, and lots of it, photos of the schools, the neighborhoods, and exposure on multiple websites are pretty basic ways Realtors can embrace technology and bring more to the table for their clients.
It’s a combination or a balance as Jim said. Actual contract knowledge, the amount of listings and sales, and experience in different markets all give a Realtor a leg up. But no matter how may years, transactions, different markets one has been through, real estate is a learning experience everyday. That’s what makes it exciting and challenging.
Web 2.0 is, as Danilo says, a marketing issue, not an experience issue. Web 2.0 will work for some, but not for others. Some traditional ways of marketing can be combined with web 2.0 to create a terrific marketing program. Blogging is great, if you like to write and comment on other blogs. It’s not for everyone.
Diane Cohn said,
March 18, 2008 @ 6:41 pm
Experience absolutely matters, but so does new media thinking. One of the best pairings I’ve seen is an old salt-of-the-sea who knows everybody in town, has done hundreds of transactions, and operates brilliantly in the visceral, belly-to-belly world. His partner? A young, savvy, new media web marketer who can rumble with the most arrogant, academic, anonymous, peanut gallery on earth, my blog readers (don’t tell them I said that). He’s amazing. She’s amazing. Total opposites, but it works.
There’s no need to clash. If the two sides team up, they’ll rule the world.
Diane Cohn, Realtor
Chase International
Reno, Nevada
lake mary fl remax said,
March 21, 2008 @ 9:18 am
It’s not one or the other it’s a mixture. When typewritters came and we all complained we have to type the contracts and then computers and we had to learn how to run them and an now the internet and we have to blog and use a forum for clients. It’s part of the job and technology. It’s growing with an industry and merging the two. What took realtor hours to do and paperwork to pull a list is done in a click on a computer.