Real Estate is a Human Business
International agent coaching expert and speaker, Darryl Davis, who’s been coaching agents for over 30 years, joined me on an episode of my podcast. We discussed how important it is for brokers and agents to understand that real estate is human business and is so more than just buying, selling, listing, and transactions, production, and volume.
The Big Myth - Agents Leave for Money
It’s often said that agents make their decision to leave based on money, but that’s not entirely true. What’s been confided to Darryl in his agent coaching sessions is that agents feel like they weren’t being “cared for” or their broker “didn’t have enough time” for them.
It’s imperative for brokers, managers, and leaders, to recognize that listening and engaging with your agents 1-on-1 and recognizing their achievements is going to go farther than a commission split. Brokers who aim to do this will want to consider implementing some systems and processes, like 3 Data Pulse, to stay connected and engaged with their agents.
While recruiting agents, if you are concerned with competing solely on commission splits, “You are going to lose,” Darryl says. No matter what business you’re in, if your only advantage is a cheap price, there will always be someone else who is going to do it for less.” It’s more important for people to feel as if they are part of something bigger, not just another line item in the income and expense sheet.
Developing a Company Culture
People want to be a part of something larger than themselves and within the arena of Real Estate, it’s important for agents to feel like they picked the best brokerage in town.
Developing a company culture requires a few things:
Actually writing a Mission Statement: This can just be one sentence, but brokers should define what they want their company mission statement to be. Those who don’t, find that the culture is defined for them and it’s often not what they would like it to be.
Define company values and what you stand for
Developing a language within your culture to help members identify themselves within your culture
Implementing procedures, process and support systems, like 3 Data Pulse, to help with synergy and tracking
If the company culture is, “To positively impact lives and the community through real estate,” and the values of that company are, “Service, Knowledge, and Integrity”, then you can change the language of how agents interact with their clients. They aren’t “selling” they are “serving”. It’s not a “transaction” it’s a “navigation” through the challenges of that transaction. A culture that is purposeful, and enjoyable that makes your agents feel proud to be a part of the team, thus hitting on that human element.
Commitments First - Goals Later
Brokers and managers will usually discuss what an agent’s particular goals are in transactions and volume as a measure of success, but these conversations are often missing the human element, which can eventually lead to agents feeling as if it’s just the bottom line that’s cared about.
Darryl stresses that brokers and managers should be discussing an agent's commitments to where they see themselves in their personal lives before setting goals based on volume and transactions. It’s important to do this to understand what is really driving your agents, and understanding their “why”. After pin-pointing the why, break down the money it will take to reach that goal and equate that to transactions and volume goals.
The key part of this, and what is a broker’s or a manager’s key responsibility is to keep them accountable to these commitments, not because of the brokerage’s bottom line, but because it’s your promise to them to help them be successful. Keeping your agents accountable helps them to focus on what they have to do to keep that very important commitment they made to themselves to reach the next level of their lives.
The Ripple Effect
No one sells a house just to sell a house; and no one moves brokerages just to move brokerages. There is something other than money driving that decision and that’s often their next level of life. When brokers and leaders approach real estate with the focus on the human element of the business, they can inspire their agents to connect with their clients on that same human level.
