Forgive me if I step on a toe or two here, but I want say something in defense of the new agents entering the real estate business, many of whom will not succeed.

Recently I attended a business luncheon where I heard some astounding facts presented by the executive director of one of the largest local Realtor associations in the country. According to his research, there are an estimated 3 million real estate licensees in the United States. One million of them belong to a local, state, and National Association of Realtors.

Ready for this? An estimated 25 percent will sell one house or less their first year in this association!

Does that surprise anyone? Does it raise any questions or concerns? Does it say anything about the industry’s ability to screen, train, and guide? Especially, when we know going in that according to the National Association of Realtors, only about 15 percent of new agents have any sales background at all.

Many new agents will become worse off financially than they were when they started. Others will see their dreams crushed under realities they never saw coming.

Why?

I believe one of the reasons is that we tend to treat new sales agents as they may be treated in a direct sales organization where sales people come and go and sales people are considered expendable.

Real sales skills training ranges from nil to not much in most offices. There are no training standards or minimums. Agents are to follow the law and do business ethically. That’s fine and as it should be. But somewhere in their early days, they should be given intense sales skills training before they can meet the public.

Real estate agents are selling one of the most serious investments most people ever make. There is so much to learn in so little time. Broker owners must provide enough training to protect their interests, or course. There may be training in contracts and what to do with escrow checks then point the agents to their local associations for the balance of the training.

“But we provide many hours of training for our agents” some might say. Great! Do you give them a certificate for perfect attendance? Or do they actually have to prove their skills? They can’t develop skills without practice and they must practice their skills correctly to become skilled. What percentage of your training addresses “skills?”

Many agents believe that to be successful they need a laptop, an expensive contact system, and more right off the bat. I don’t agree. Hopefully, they will need all of that and more, but my first suggestion always is to learn how to prospect and sell. Learn how to eliminate sales resistance to you and your services completely. Learn how to build sales acceptance totally and know where you are in that process. Its called “selling” and it’s a skill 85 percent of those entering the business do not have.

It is a complicated issue. We are dealing with independent businesses people here. But in our corporate hearts we know that their battle will be difficult, the odds long, and the needs great.

NAR is to be commended for the professionalism it promotes and fosters. Realtors are accountable to do business within strong legal guideline and a code of ethics with teeth. It’s time that we bite another bullet and make a real commitment to helping new agents survive by establishing basic standards or guidelines that any member of the association has a right to expect.

It is not a matter of designation or credit hours. It’s a matter of survival for many new agents.