Real Estate Intelligence

[michael]

I’d like to hear your thoughts on the real estate industry and its ability to attract serious intellectual talent.

Money and prestige seem to attract all the serious talent. Technology, science, law, wall street, have a long history of attracting the best and brightest our nation has to offer.

The recent, albeit shortlived, run-up in housing prices has attracted some exceptional talent to the industry (I believe the Professor and several on this board are examples of real talent that through the evolution of the BLOG have graced us with their knowledge and that if it weren’t for the bubble, their talents would be utilized elsewhere) but for the most part, the real estate industry is lacking true professionals. Any group of individuals that would allow somebody like David Lereah to represent their industry… well, need I say more.

It seems to me that most of the folks that I have met over the last 5 years that are in the real estate industry aren’t the sharpest tools in the shed. Most don’t have a college degree and aren’t qualified for many of today’s knowledge intensive jobs.

The technology bubble of the late 90’s attracted lots of talent. The subsequent bubble burst left many temporarily unemployed. However, most individuals were very talented and managed to find jobs or start up their own businesses (some even found their way to the real estate industry).

During this real estate bubble, the industry has also attracted many people. What will happen to these people when the bubble bursts (I would argue that it already has)? What will become of many of these real estate agents and mortgage brokers that benefited from the rising tide and are now quickly realizing that they have no marketable skills?

Will the industry mature in such a way that our Ivy League schools will produce graduates that will change the real estate industry? In the aftermath of the bubble, will the real talent stick around or go back to the real professions?

[powayseller]

The realtors I met on piggington are very smart; several are engineers. Bob Casagrand is a retired business executive, who turned around divisions of major US corporations in Europe and the US, and consulted in Saudi Arabia. I have 2 realtor friends, ladies, who are also intelligent. But I am sure there are many below average folks too, since the barrier of entry is low and the perception of easy money exists. I just have not met these people personally.

[Anonymous]

The Real estate industry has never had a lot of so called “talent” that you are talking about. By definition real estate agents are salesmen. To be good in sales doesn’t generally require any particular technical skills or degrees. The same traits that make a good car salesmen also works well in real estate.

So, what will happen to all the real estate agents after the crash? The real good ones will continue to be successful in real estate, or probably any other sales related job they wish to pursue. The poor ones and part timers will get weeded out. I don’t see anything drastic happening here, just a natural cyclic shift in employment.

[zeropointzero]

The low barriers to entry to the RE industry surely has allowed some lesser lights to join — and the last five years has allowed some of these folks to even thrive, as long as they could find listings and motivated buyers. On the other hand — the industry does attact some folks with energy and hustle, at least.

Of related intest — is there any way to track growth in “owner is lic. RE agent” listings? Surely there is going to be some real shakout from RE agents who assumed mortgages that cannot withstand a significant downturn in income in the coming months and years.

[anxvariety]

College Degree = 4 years+
Real Estate License = 2-4 weeks (maybe less)

I’m in software development – no degree needed in this field as experience is far more valuable than education… at least in the majority of cases.

Even people that appear to be idiots will amaze me quite often.. I believe that most people have the same brainpower, it’s just used in different ways.. some can’t do 5+5=10 but can tell if you’re lying to them..

I would measure a real estate agent’s career worth to be based on would be integrity*, level of effort and ability to adapt….

*I believe that integrity pays it’s dividends in the long run.. and that liars die young.

[SD Realtor]

Powayseller talking up Bob Casagrande and leaving me high and dry… I guess I better start sending her some better bribes…

Seriously guys I ABSOLUTELY agree with the statements made. Nothing new in this post except this is an opinion from someone on the inside… It is FRUSTRATING as heck when the realtor on the other side of the transaction is a bonehead. I want to be fair though, it is just as frustrating when the person on the other side of the transaction is a bonehead mortgage broker as well…

Yes it is a low barrier to entry… As an engineer and a Realtor it is a quite a difference dealing with the different peer groups. I will say in all fairness, many Realtors who have no advanced degrees are VERY good at what they do. So I do not want to bury them as a group…

Do the major brokerages care about the low barrier of entry? Absolutely not. Look they figure that with every bonehead they bring in, that bonehead has an aunt, or spouse, or friend, or someone in thier “sphere of influence” who they can get a transaction out of.

That is what is important to them….

Last I checked, no real estate brokerage has any tests you have to take to maintain employment… If you pass the DRE requirements, and are not a total screw up, and pay your required fees… you will get to hang around…

One good thing about the downturn is that the good agents will survive and the rabble will go back to thier waitress and bartending jobs…

[powayseller]

SD Realtor, you are my fav! You are in my first sentence: “The realtors I met on piggington are very smart; several are engineers.” That’s *you* I am referring to.

[VCJIM]

SD Realtor,

I appreciate your posts, although I have one criticism about your last one. While you’re decrying lack of intelligence of some realtors, you’ve mispelled “their” twice! Sorry, I couldn’t help myself.

[(former)FormerSanDiegan]

Whyle Im not one too pick on grammer, what’s even more funnier is that VCJIM misspelled the word “mispelled.”

[sdrealtor]

I guess this just keeps on going as your grammer is off also “what’s even more funnier is that” should simply be “what is even funnier is”

[VCJIM]

Damn!

[(former)FormerSanDiegan]

SDR – you missed several other intended misspellings and grammatical misgivings (including my misspelling of grammar) … as well as the sarcasm intended.

I was just trying to stop this glass-throwing from inside rock houses.

[sdrealtor]

Doh! My bad, got it.

[powayseller]

Spelling is a weak point for many people. So are writing skills. So I do not judge a person’s inteligence by their spelling, unless it is really bad. However, if someone speaks poorly, saying “ain’t” or double negatives (I don’t have no time), then I think they are uneducated.

I found a realtor on RealtyTimes, with so many bad spelling mistakes, I made fun of her and put her article in a post here. Some people thought I was too rough on her. “She’s a foreigner, give her a break” I was told. Well, “she needs to get someone to proofread a report that she publishes on Realty Times”, was my response. That lady was an example of a stupid realtor.

But people like SD Realtor, Bob Casagrand, John Hokkannen, and sdrealtor are intelligent people. They are still making a living in these hard times.

[Farls]

Ahhh..Powayseller you’re bringing back many memories of that lively thread…..I wonder how “Irrational Donna” feels about her downtown investment condo now and all her “instant equity”….

Farls

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