For the last several years, we have been recognizing alternative facts as actual truths. This creates problems of course, and its infecting all parts of American life. Take real estate and how Agents and Brokers perceive their market. It’s almost as if we live on two different planets.
Planet 1 is fact-based and boring. Planet 2 is inspirational and pandering to excess. The recent KW re-boot of Trump University is a great example.
Planet 2: The Dean of KW School of Real Estate said of their program; “Through this critical endeavor we will make entry into real estate more accessible than ever before”.
Planet 1: If entry into real estate were any more accessible the dead would qualify. What are they talking about? Has anyone ever said, “I’d love to be a real estate agent, but it’s too hard to become one”!
Planet 2: Through financial assistance in getting a license, KW seeks to balance the racial makeup of our industry. As KW President Marc King notes; “ We see this deliberate effort as crucial to closing the homeownership gap for historically marginalized communities”. (Note: taking credit for yet to be realized ideas is one of the hallmarks of the Planet 2 egosystem)
Planet 1: The cost of a real estate license is $149. Nobody needs financial assistance. It should also be noted the racial gap in homeownership is in NO WAY caused by the excessive costs of becoming a real estate agent.
Need some pandering?
Planet 2: Robert Refkin, CEO of Compass; “One of my proudest moments at Compass was seeing how quickly you all mobilized to help your clients. Even when the world stopped. You didn’t stop helping everyone find their place in the world”
Planet 1: Jeff Bergstrom, Wynd Realty; “Real estate is a 100% commission job. You don’t sell, you don’t have anything”. Helping “everyone find their place in the world” is the old Cheers TV show theme song.
Planet 2: Agent commission splits with their Broker can be as high as 30%
Planet 1: There is no such thing as a “commission split”.
Planet 2: Agents pay their Broker a percentage of their referral and rental income.
Planet 1: Commissions from Referrals and rentals are always FREE any of Broker fees.
Planet 2: The National Association of Realtors is a critical part of an Agent’s sales strategy.
Planet 1: The National Association of Realtors is a grift.
Planet 2: The real estate Broker is an Agent’s partner in business and critical to an Agent’s success.
Planet 1: Real estate Brokers are service providers Agents utilize to run their businesses and have absolutely nothing to do with an Agent’s success or failure.
Planet 2: NAR, looking out for the interest of their industry, spent $84M dollars in needed governmental influence lobbying during 2020. Topping the previous year’s contribution of $41M by x 100%. Making the ten-year running total of NAR’s “political purchases”: over $500 million dollars!
Planet 1: Why does an industry need to spend that much money EVERY year? What’s so wrong with the industry that it needs that kind of financial commitment year after year after year? For that matter, what does politics have to do with the “process” of buying and selling residential real estate?
Any other industry in the world spending $500M dollars “maintaining their best interests” would see tremendous improvements and enhancements over a decade. I can attest, the real estate industry today runs exactly like it did in 2012. Nothing has changed.
Any other industry in the world that blows through a half trillion dollars without realizing any marginal difference would see its management structure replaced. On Planet 2, they are lauded as heroes.
The catch phrase of year for 2021 could very well be, “The Big Lie”. How does that happen? Like it always does; with money. It takes a lot of money to sell “alternative facts”. Ask NAR, they have been doing it for over 50 years.