Bob Hale is friendly in that expansive, Texas sort of way that’s immediately disarming. But make no mistake, this is a savvy guy. And a courageous one.
See, while most of us were trying to figure out how to burp out a value proposition in 140 characters, Hale, the CEO of a major Realtor Association, was working on something that may actually improve the real estate industry.
In a couple weeks, the Houston Association of Realtors will launch a Web application that allows consumers to see which Realtors within their chosen search area are transacting business – and which are not.
Here are the highlights:
- The app is based on MLS data and will be available from the association’s highly-trafficked Website
- Every Realtor in the market is included, there is no opt-out
- The app is map-based, so consumers can see who has sold what, where, over different time periods
- The app may be made available to MLS organizations nationwide
Let that sink in…
A Realtor association is helping consumers make decisions with clarity, on their own, objectively and with no compromise.
An industry leader is taking an obvious but politically perilous stance: that what is good for consumers is, in time, good for real estate professionals.
Human beings that need to get professional help to buy or sell a home will be able start their decision process on a foundation of good data, not within a flurry of sales scripts wielded like nunchucks in the confines of their living room.
If you care about this industry, pay attention to what Bob Hale and his team are doing. And support it.
Outside agitators, inside movers
This has been done before, most notably by Neighborcity, a startup brokerage that uses MLS data to display agent sales activity on its site (disclosure: 1000watt Consulting performed some work for Neighborcity in 2009). And there’s a whole category given to agent review sites on the 1000watt index.
The direct inspiration for the HAR app came from the “Connect Create” contest at Inman’s Real Estate Connect event last year, at which a team from Diverse Solutions, a real estate tech company, built an app called “Agent Scouting Report” that allowed agent search based on productivity. That app was never released into the wild (more disclosures: I was president of Inman News until 2004 and Inman is a client of 1000watt Consulting).
But these were outsiders. And outsiders, invaluable as they are in pushing change, do not have the implements of disruption close at hand. They need to raise millions to build traffic that can be used to pry into the industry (Zillow) or mount a crusade of controversy and appeal directly to consumers (Redfin).
An institution like HAR however, and a leader such as Hale… well, that’s a different and more uncommon thing. A move like this from within the industry can clear a path for others to take risks and challenge their constituencies.
This may already be happening. The HAR application was recognized by the NAR’s “Game Changer” program, which encourages and rewards innovative ideas from real estate associations. As a result, once the app launches, Hale thinks it’s possible the NAR may get behind it at a national level.
That too is worth supporting.
Politics
Hale says his board of directors – comprised of real estate brokers – has been very supportive of this effort. As have the many productive, full-time agents who have previewed the app. As you might expect, it gets a little dicey when you start to talk about newbies, part-timers, or those who just don’t win much business.
This is a politically charged move. And we need more of those in this industry – from people who have political capital and positions of institutional authority to risk. I can write until my house falls down about creating a better real estate industry, but it’s going to take more Bob Hales to get there.
So go, Bob, go! We’ve got your back! Anyone else?
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AAR stand up and do the same! I LOVE THIS! Bob Hale I tip this beer and toast you and your efforts!
Brilliant! Exposing mediocrity does not come easy though. I hope it catches on.
Bob Hale (backed by his lovely bride Susie) is a nice guy, and just ridiculously smart. And he’s got big giant cojones which is exactly what this industry needs. I’ll help you cover his back, but I don’t think he needs it….
Overall I like the idea. My only concern is with agents who are just starting out. I’m pretty sure this won’t make getting their first listing any easier.
If HAR wants to take it a step further (to avoid the issue that Laurent mentions), they would also show years of experience along with number of transactions. Methinks “Emeritus” would become a dirty word awfully fast.
Very bold move! Kudos to Bob and HAR! It will be very interesting to see how this plays out and if it spreads around the country.
I like the idea of putting this information out there, but I’m not convinced it is appropriate for HAR? Of course, if the members want it…then give’em what they want. My first thought is what does the data show – maybe it shows who is good at getting listings? For the information to be really useful for buyers and sellers, I think the information needs to be cast alongside a couple of other data points; specifically, client satisfaction rating (which HAR already offers) and commission rate.
In any event – ya gotta start somewhere and this is a great start.
I think it’s a half step in the right direction. Production is one factor in quantifying excellence. I don’t choose a plumber, accountant, barber, etc. based on which provider has sold the most. Knowing that they are busy is a consideration and a cue, but I would be interested in other factors as well. I want to know how others view their experience and interaction with the service or the provider. Sharing production is part of the puzzle, but the picture is fuzzy without consumer input. History is riddled with horror stories where the focus is placed on “quantity over quality”. I hope “quality” is somehow weaved into future enhancements.
We all know agents who sell a ton, but their professional and personal skills are horrid. Without knowing what the consumer experience was like, the information is half important. We also know agents who might be considered modest producers, but they are flat out passionate and effective at managing every detail with excellence. Hopefully the report will include details that at least hint at quality, details like real Days On Market and Original Sold Price to Original List %.
If there was some way to include client performance evaluations (no opt out), then you’d really have something.
It will be interesting to see how the unproductive masses/majority respond. After all, the agents and brokers being marginalized and vaporized are dues payers. I agree that it’s a positive for consumers and the real estate industry in general, but it’s hard to imagine a non-productive dues payer happily paying dues for a system that basically points them out as unchoosable.
One thing for sure, everything, everywhere is in a state of disruption. Which is a good thing, in the long run. The short run is messy. Interesting times. Onward.
I’m glad Ken pointed this out.
In another post about Remax, everyone was saying that selling the most real estate doesn’t really mean anything. I was the only one who thought selling the most was indeed a very strong marketing statement.
In this case, it seems people are agreeing that selling the most real estate is a good thing. It even separates the performers from the hacks is basically what some of you are saying.
It all seems a little contradictory to me.
A very interesting development! I’ll be eager to see it implemented. What struck me was the fact that it will be map based, which is of course how it should be. Getting a quick “snapshot” view of where, how much, and how long an agent has been selling is really powerful information. Presumably it will quickly help one to identify the most active and experienced agents in particular neighborhoods. The geographic distribution of listings/sales will tell you a lot about the nature of an agent’s business and specialization.
It could start to get really interesting if you mash it up with other data like days-on-market and list-to-sale ratios. Seeing this broken out and perhaps even ranked by agent and geography could get interesting quickly. The smart rookie agent with fewer listings might look pretty good against the big volume agent if the smart rookie’s sales spend less time on market and sell at a price premium…
Transparency rewards the honest and the competent.
Bob has been my mentor for more that 12 years and I served as the Chairman of HAR in 2007. Even though it’s a callaborative effort Bob is the thread that stitches it all together. Engaging the consumer how they want to be engaged is quintessential for this industry to survive. Being on the cutting edge will keep us relevant to an increasingly savvy public. It’s not the Realtor competition that is a threat, it’s the DOJ, consumer advocacy groups and third-party aggregators that threaten our relevancy in the transaction. Simply stated, it gets no better than HAR and Bob Hale. And to answer the question, Who’s got Bob Hale’s back?”; thousands of HAR members and me, that’s who.
[...] Bob Hale is sticking his neck out – who’s got his back? – This is a great start and I hope to see more associations start to implement it. Combine [...]
@ Laurent and others
Respectfully, there is nothing contradictory here or there.
We never claimed said selling lots of real estate means nothing.
We never claimed posting agent stats will destroy new agents chances of getting a listing.
We never stated that selling the most real estate is a good thing.
Bob is not trying to award agents who sell the most and penalize the agents who sell the least.
These are assumptions being made which I very carefully pointed out in my post about RE/Max is where confusion is born and raised.
What Bob is doing is simply presenting important data that will help clarify a few things for consumers and quell the occasional hyperbolae that often seeps its way into sales campaigns that either regard how much an agent really sells and where they actually sell it.
In fact, I would argue that this presentation of data might be more troubling to producers prone to taking liberties in their accounting of their accomplishments than it will be for the folks who haven’t sold enough real estate yet to participate in that practice.
What Bob is doing will not hurt non-producers or new agents. In fact, it will help them in a myriad of ways – too many for me to list here on Brian’s post.
Suffice it too say, real estate is and always will be a personalized business built off of relationships. There will still be many, many consumers that will be happy, in fact, more than happy to hire the nice young 22-year old kid they met at an open house who isn’t carrying 15 other listings and willing to kill for their one and only customer.
Every one of you agents began with nothing other than your heart on your sleeve and desire in your pocket. Every one of your first customers knew that’s all you had. They all could have easily hired anyone else in your brokerage. Or any brokerage. But they didn’t. They hired you.
That will continue well after the HAR platform launches because real estate is more than sales. It’s more than volume.
We held true to this belief on the RE/Max post and we hold true to it here.
Brian,
Great post, as always.
I think this idea has merit, but if it catches on and becomes the standard it will effectively raise the drawbridge. I’m sure this will please the vets who don’t want the competition from newer or less active agents. Certainly there are more than enough agents to go around.
Maybe, instead, a proclaimation by NAR that says you can’t be a Realtor unless you close, say, ten properties a month?
If you believe that real estate production is prime example of the Pareto Principle, and HAR has 20,000 members or so, that means 16,000 don’t do much.
If the rating service works as hoped, meaning consumers love the rating system, It will be interesting to hear what 16,000 dues paying members will say, when the 1 or 2 transactions they might have had enjoyed, go poof, and their friend tells them, “I was gonna list/buy with you, but I went to the whiz-bang HAR website and used the Rate A Realtor feature, first, that’s a cools service, I’m glad HAR has it and your dues fund it, second, and more importantly, I hope you understand, I see you’re sort-of-a-loser, so I’m choosing Susie Q, because she’s not. Sorry.”
I’m not saying it’s a bad idea, or shouldn’t be done, I’m saying, it will be interesting to see how members react to being revealed. No doubt Bob has an Army of staff and supporters to protect his back The question is how many of the 80% who don’t do much will have his back when they feel that business has been ripped from their grasp?
It’ bold and leadership personified. Successful is another story. I hope for the best. I believe this new level of transparency, although not perfect, will help our company and our team win more business.
Unleash hell, I say.
Transparency is obviously a great thing but I think it should be adopted in conjunction with a ratings system. That way we won’t blur the lines that equate productivity with the things we hold truly valuable like integrity and accountability.
Just as a point of clarification: While the Client Experience Rating is an optional service for our members, if a member participates, their rating and client comments will be shown on the search results with the new REALTOR Match program. This is in addition to any designations they have earned and languages spoken. We are always improving our services so continued feedback from members and consumers will be integral to providing the best, most user-friendly REALTOR Match program that will benefit both members and consumers alike.
The new REALTOR Match program from HAR is really just an updated version of “driving the neighborhood” and asking for referrals from friends. More and more people are trusting online ratings and comments from previous clients/customers. People would also drive neighborhoods in which they were interested to see which REALTOR had signs in the most yards. This is just a technological advancement of “driving the neighborhood.” REALTOR Match combines those common aspects of how most people find a REALTOR into more of a 2010 version.
And as an aside, Bob is truly an amazing leader for REALTORS in the greater Houston area–and beyond, as others adopt many of the tools and services that he has ushered into creation. (And I am not just saying that because he’s my boss, but I am very proud he is.)
Matt Burrus
Chief Communications Officer
Houston Association of REALTORS
That kind of changes the whole idea behind real estate brands and takes the focus away from the big brands. I like it.
Teresa –
I had the exact same thought.
Thanks for the comments. To address one point raised in several of them:
I recognize that production is a not a conclusive measure of Realtor competence, but it is important – much more important, I believe, than much of what buyers and sellers have heretofore been offered by way of decision support.
I am also fine with the fact that this may make it harder on new agents. Breaking into a business as financially and emotional consequential as real estate should be.
Brian -
On the production factor –
In this market, if you’re not doing at least7-10 sides a year you don’t, in my opinion, have the experience to competently represent your clients. I learn something new *every single day* by virtue of doing this *every single day*.
The agent who hasn’t done a transaction in the past six months likely has no idea what the current market is.
Who has Bob’s back?
I don’t know of another association who’s members support their association as much as HAR. Take a look at their Facebook fan page. It seems as every other post says “I love HAR!” How many other members openly make the statement that they love their association? The customer rating system is a good thing. It’s a tool members can use (much similar to using Yelp) to promote their business. It’s much better than Yelp because the association has control over it, not some other 3rd party vendor.
Another thing that differentiates HAR from the rest is that know how to get the job done. Each staff member is talented and used to their maximum potential. I have seen their culture inside and out and their results are a true indication of sound leadership.
Stay tuned for more good things from HAR. Way to go Bob and Matt!
Steve Jameson wrote, “Maybe, instead, a proclaimation by NAR that says you can’t be a Realtor unless you close, say, ten properties a month?”
I don’t have the data, but I suspect NARs membership rolls would drop by over 99% if you had to close a transaction every three days to be considered a Realtor.
I assume these sales will be pulled from MLS data? How are they going to handle off-MLS sales (primarily new builds, at least around here) and how are they going to handle team sales?
What I want to know is are they just presenting sold data and are they just presenting the listing agent that sold the house? What about exclusive buyer agents? Granted their aren’t a ton of EBA’s, but I assume for a single property two agents would show up as having sold it?
Bob has always been an INNOVATOR…being named innovator of the year last year came for good reason. He listens to the cosumer and is forwad thinking enough to actually find a way to give them what they want, need and in the manner that they choose. Not only is HAR gaining the consumers respect but their trust as well. It will also help brokers weed out the non-performers.
Congratulations Bob and HAR Team for making it happen!
I am a REALTOR and have been for nearly 30 years. I no longer list and sell because I manage a very large branch of my company. How does this website deal with management????
[...] ) Bob Hale is sticking his neck out – who’s got his back? – The Houston Association of Realtors will soon launch a Web application that allows consumers to [...]
[...] was recently reading Brian Boreo’s post on the 1000watt blog Bob Hale is sticking his neck out – who’s got his back? and it got me thinking about how real estate agents interact with technology. Media [...]
[...] Which Realtors Are Doing Business? Which Are Not? 1000wattconsulting.com is reporting that “in a couple weeks, the Houston Association of Realtors will launch a Web application that allows consumers to see which Realtors within their chosen search area are transacting business – and which are not.” (complete story here) [...]
[...] ) Bob Hale is sticking his neck out – who’s got his back? – The Houston Association of Realtors will soon launch a Web application that allows consumers to [...]
Brian,
Another great post from the 1000Watt camp.
And great comments from some of my favorite thinkers in real estate.
Of all the perspectives, I think Ken Brand’s views are the most accurate. This type of reporting IS a step in the right direction.
But it WILL create a maelstrom in that market for a variety of reason.
On the plus side of the ledger, Brian, you are correct: this sort of transparency is inherently a good thing, even if it’s not perfect.
Jay Thompson is correct in that there are sales that occur “off MLS” – new construction, FSBO, etc. – which probably can never make it “into the numbers,” and that will serve to muddy and confuse this process.
What do we do with that data, which in some cases can be significant? There have been many years in my career as an agent where maybe 20% of my sales were new construction. As an agent, I won’t be happy when I think the public is being told that my sales are 80% of what I know they actually are. That puts me at a competitive disadvantage.
And what about the skewed reporting of so many real estate teams (i.e., situations in which 12 agents all report sales under the name of the “star agent”)? That is a can of worms that will likely raise the ire on both sides of that particular fence.
My biggest fear is that an ignorant public will misinterpret this information and the dreaded “billboard agents” – the churn-and-burn, it’s all about agent income not client service, super-ego types that are in my humble opinion the biggest blight upon our industry – will get richer.
This “focus on production” throws gasoline directly on that “bigger/more is better” psychology that is the very driver such types use to win business. I have no doubt these people WILL benefit from the reporting of this kind of information.
But there is a silver lining (at least from the perspective of “raising the bar”/improving professionalism)…
And I think it may be large…
Looking at this from the macro perspective, this reporting may have the effect of further gutting the big-box brokers who absolutely rely on agent count to drive their over-sized, expense laden operations that are so desperately in need of the plastic surgery that Marc Davison prescribed for them five years ago (see at http://p1fran.com/2010/04/rtb-real-estate-liposuction/).
Four of these bloated operations have been shuttered within a half-mile of my office within the last 18 months. There are only a few left standing, and I’m guessing they are on life support.
I think Ken Brand asked the right question: what will happen to the 80% of the agents who will undoubtedly suffer from the reporting of this information? I see them as future Wal-Mart greeters or Starbucks baristas. And the departure of even more of these “barely in the game” people can only be a good thing for the reputation and performance of the industry over the long haul.
A better question is this: what will the OWNERS of those big-box operations think when the public has direct access to the knowledge that we insiders have had all along, which is that in a typical 200 agent office only maybe 20 or 30 of those agents are doing much business?
Echoing Teresa Boardman’s comment, that creates a potentially damaging blow to the image of a given brand.
Pandora, thy box has a name…
Best,
Michael
I agree with most of what Michael has to say here.
There are many Realtors out there that are just entering or re entering the industry or area that will not have the production.
There are also many soccer moms turned Real Estate agents to fill there days in 100% Commission offices and no direction that only list their friends and relatives that do fill up many office rosters.And again you have the large ‘Teams’ and the Realtors that spend a small fortune on start up and continued advertising. What has all this to do with SERVICE and KNOWLEDGE. If I don’t know I know the public won’t.
This will thin the number of agents, but do we really want all of them thinned out. The present market may help with that anyway
Just an old goat spouting
Margaret
One word…ACCOUNTABILITY! Great start to what will follow from Bob Hale and his staff.
[...] Match Me with an Agent [...]
I’m not sure if it’s appropriate to add a link, so I won’t. But NAR’s CEO, Dale Stinton read this post, as well as the story on Inman News, and posted his comments over there. Here’s a copy and paste of what he said.
Who has Bob Hale’s back? NAR does. We think the idea of providing more information to consumers about the number of transactions REALTORS® are completing — especially added to data like agent reviews — is a concept worth exploring. That’s one reason NAR is helping to fund this program through our Game Changers initiative. As with the other programs funded by Game Changers, the Houston Association of REALTORS®’ experience in publishing this data will be measured and evaluated. If the program is a success, all other associations will have the groundwork laid out for them to do something similar.
NAR’s ongoing goal of raising the level of professionalism among its members has many paths. We are raising the bar in several ways — with our REALTOR® University project, the REALTORS® Property Resource, as well as HAR’s Realtor Match program.
–Dale Stinton, Chief Executive Officer, NATIONAL ASSOCIATION OF REALTORS®
The idea is good; however, it does NOT allow a consumer to choose a REALTOR based on the REALTOR’s professional designations! For years, NAR & HAR have advocated professional designations (even charging fees to maintain them!) . . . and this new program completely ignores this hard work! HAR needs to add this search criterion as a minimum!!!
Sam,
I agree that the industry has put a lot of work into designations. Some represent real accomplishment; others represent very little. But in either case, I don’t think they mean a great deal to consumers.
Sam – are you serious?
Brian wrote: “I don’t think they [designations] mean a great deal to consumers.”
I’d go so far to say that designations mean absolutely nothing to the vast majority of consumers.
Heck, most consumers couldn’t tell you the difference (or even care if they knew) between a Realtor and a non-Realtor. If agents think consumers know or care about all the letters after some agent’s names, they are sadly mistaken. And why should they care? Most designations are bought, not earned.
Sam –
Jay beat me to it, but I’ll back the point up – see page 64 of the 200 NAR Profile of Home Buyers and Sellers.
In the “Most Important Factors when Choosing an Agent” heading, 1% – one percent – said that “Professional designations held by real estate agent” was the most important factor.
Designations – to the public (and a whole lot of Realtors) – are meaningless.
Jim and Jay – You are missing the point. How about letting the consumer decide? Why, then, has NAR & HAR “pushed” designations for 35 years? Frankly, I have an “RAA” . . . there are very few with the ability to EARN this designation, and in a fair choice situation, a consumer should have the ability to make this selection. If the consumer doesn’t care, so be it. At least they should have the option! Right now, they don’t have that choice. Make the system fair to those who have worked hard and earned those designations. If it’s all about the consumer, it would be best to not charge real estate fees for services . . . the consumer would benefit most from free services! That is just as ridiculous as a “no choice” plan!
Sam -
I’d argue that one reason that NAR/HAR have pushed designations is because they generate revenue. Another is likely the educational value, but realistically, it’s about money.
While a consumer should care, they don’t.
After a quick search, I figured out what the RAA designation is. If it makes you more educated and better at what you do (which I assume it does) congratulations, but don’t expect the consumer to care.
Should a system be changed for 1%? In my opinion, no.
Jim – what about the thousands of Realtors who have earned the CDPE (Certified Distressed Property Expert) designation? They are specially trained to help the consumer avoid foreclosure by assisting with the unbearable and embarrasing tasks forced on them by the huge lenders . . . these agents should also be readily identified! What about those who have earned the CRS (Certified Residential Specialist) or NAR Green Designation? There are consumers who need to be educated to find a Realtor who can help serve THEIR interests! These are significant educational earned designations that keep Realtors on top of their game to serve consumers.
Sam – I don’t mean to hijack this post, so the last I’ll say is to ask two questions –
How many of these designations
1 – Charge an annual fee
2 – Have a legitimate pass/fail test – that is graded – and people actually fail?
The education is good. The designation – not marketable.
Jim – I’ll answer, and leave it alone, too.
Though I can’t speak for all designations, I can speak for two:
1. CDPE — tested, some pass some fail. No annual fee.
2. RAA — extremely difficult to earn (the appraisal exams I took were some of the most difficult I’ve ever taken!!! Majority fail.) There is an annual fee.
I disagree about the marketability . . . I use them regularly in what I do, and it is effective.
Jim and Jay,
I agree with your observations.
Any “designation” that can be earned in a few days or even a few weeks is of limited value, in my humble opinion. It’s form over substance in most cases.
And I also agree that revenue generation is likely a key motive in the creation of these “designations” in the first place.
And you already said it, but I think it bears repeating and amplifying: in NAR’s most recent “Profile of Home Buyers and Sellers,” “professional designations held by agent” was called the “most important factor in selecting an agent” 1% of the time.
There’s simply no way to view that in a positive light. The public attaches almost no significance to these industry-created designations.
Best,
Michael
[...] week, Brian Boero at 1000 Watt Consulting wrote a great post about one of NAR’s Game Changer-funded programs being developed by the [...]
Sam, et al:
A designation probably isn’t going to sell someone on working with you; the knowledge gained in the course of earning that designation, put to good use, might.
[...] Houston Association of REALTORS recently decided to put realtor performance metrics online, drawing heavy praise from the guys at 1000watt (and yours truly as [...]
Transparency is always a good thing. But only showing quantity and not quality could be misleading. Some agents prefer to offer better customer service by working with a few clients at a time and having face-to-face or at least phone calls weekly to assure satisfaction. As a home buyer and seller before I became an agent, I’d rather work with an agent like that than one who scrambles to get as many listings as possible and only shows up for the listing appointment and closing. Quantity doesn’t tell the whole story and by stating it alone may actually be a disservice to clients.
Hard to say about this one. Although it keeps consumers informed (and an educated client is the best type of client), it also ‘refers’ more business to the top producers while neglecting those who are just starting out.