oh boy the headlines made me mad!

You probably have seen many of the following headlines and proclamations about the future of real estate:

• "Brokers, analysts and consumer advocates called the decision — which awarded plaintiffs nearly $1.8 billion in damages — a game changer."
• "Real estate experts say the current system won’t stand."
• “The industry can no longer believe that any jury will decide in favor of their price-setting system,” Steve Brobeck, senior fellow at the Consumer Federation of America

If you are freaking out about what's next - join the club. I mean not me, but many realtors are freaking out. Many were already freaking out because business had changed, and now they are wondering if they will ever get paid again.

I don't know about you, but I definitely read some of them and was emotionally charged. My first reaction when reading the news was to tell everyone outside the industry who said "yes!" to these headlines: "Go $%^# yourself!" Then I took a deep breath.

To be fair, I can see their point of view - in fact, in some cases, I am on their side! Five to six percent of every transaction goes to the buyer and seller agents - and as home prices have increased this number can seem outrageous - and maybe even unnecessary. Technology has increased access to information, home search is mostly in the hands of the buyers, and AI is ___ - who knows what the future role AI will play? The point here is that technology companies and other people who hate real estate agents have been coming after our commissions for at least twenty years. For them, this seems like a huge win. 

From the real estate haters' point of view: how many real estate agents should be out of this business? Like, the novices that were here to make a quick buck. They know nothing about real estate, they don't know the contract, they don't know how to negotiate, they don't know how to prepare their clients, and they don't know the ins and outs of getting a deal to closing. Why should those people get paid anything?

On the other side are the true professionals in our industry (I put myself in this camp). Surely our clients appreciate us and have little to no issues with our fees.

What's the problem then? Is it maybe that our industry's low barrier of entry, the lack of real standards, the fact that anyone with a heartbeat and half a brain can get a license? Maybe the ego-centric jerks, the ones with the cheesy and aggressive ads/videos that give real estate a bad rap? I mean isn't that what outsiders hate?

I've written before that the difference between physicians and real estate agents is that physicians typically have at least 12 years of education and training before they get to go out on their own. Real estate agents: take some classes online for a few weeks/months, pass a test, and out you go! No formal training. No formal mentoring. No one is watching over them. Again, no real industry standards are being enforced. 

In real estate, the market has a lot of influence on agent income, especially when the market goes the other way. What goes up usually comes down. When times are good, people jump in. The good market allows many people to make money whether they are worthy of it or not. When the tide goes out...not so much.

I am not an expert who can debate the current legal challenges, the pros and cons of our association, the long-term need for real estate agents, or any of those other issues. There are plenty of other people who can make much better arguments, so I will leave those cases to be made to them.

Here is the point that I am making: there will always be a need for professionalism. Navigating the market will not be obvious. Maybe someday AI can replicate a real estate agent - but that day is not today. For now, as Chris Voss often says, "A good real estate agent is the best bargain on the planet". Keyword: good. You have to be good at what you do. You have to care what you do. You have to work to be a professional. I don't mean "trying hard", I mean doing it.

The rainbow and unicorn days are over. Whatever you were doing the last 12 years is totally irrelevant. It is not going to work. It is not going to cut it. Hang on, this next part is going to sound really, really harsh: if you have been in business less than 12 years (more than half the realtor population) you have NO IDEA what's ahead. You have NO CLUE how to operate in a NORMAL MARKET! 

If you want to succeed in this business going forward, you must be a professional. You must know what you are doing.

• You must know the contract
• You must know the inventory
• You must know the seasonality of the business
• You must know the economics behind the market
• You must know how to prepare a home for sale
• You must know how to prepare your clients for the speed bumps ahead

BTW: None of these things are hard! They are all totally doable!

Compounding - "the 8th wonder of the world" - doesn't only work on money. It works on skills and relationships. If you check out, if you quit, or if you take a break - you lose the opportunity to compound your skillset and your relationships.

Those who settle in and decide that this is their business and career - no matter what - are going to do just fine. Being willing to be honest with yourself, having the mental fortitude to dig in, and being self-aware - are also critical skill sets. You must see when you are doing things that don't empower you, that don't move you forward, and to stop doing them. Conversely, this is a time to double down on the things that compound: your skill, and your relationships. Remember, you have relationships with people who trust you as a realtor! Relationships and skills compound like money in the bank.

Professionals get paid. Many people can do their taxes themselves, but many hire a professional. People can decide they want to sell houses on their own, or with an amateur who charges little to no fee - they will get what they pay for. Be someone that's worth paying for.