And Brokers Have Their Own Coaches
In sports, players will hire a coach to help them perfect their game. Some real estate brokers will hire a coach to help them increase their business. Now one might think that doing more business would help these brokers perfect their game. It does not. Sports coaches do not help players play more; rather, they help them play better. Real estate coaches do not help brokers play better; they only help them play more. And this is what these brokers want: Not better, just more.
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In the real estate business there is a class of consultant that refer to themselves as coaches. Not real estate coaches in the sense we used the term in the previous chapter. But rather these people are consultants to the brokers themselves. They coach brokers on how to do more business. They are essentially, sales coaches.
Now these consultants and the brokers that hire them would argue, the coaches are far more than merely sales coaches. That in fact, they provide coaching on every aspect of the broker’s business. So for example, you will hear brokers say things like: You know, when my business got to the point that I needed a team to keep growing, my coach was just invaluable.
But, we’ve already discussed the whole team shtick. It’s often a bit of a gimmick. But to what end? Well, to increase sales of course. And this is a perfect example of what this coaching business is all about.
I would argue that the worst attributes of contemporary real estate brokers and how they conduct themselves come from this class of consultant. Don’t get me wrong, the coaches advise, and brokers think and behave this way, because it works. It would be naive to deny that reality. But in my opinion these tactics, while perhaps successful, really demonstrate questionable integrity and a degree of shadiness. And certainly, a lack of respect.
Example: Only show three homes at a time. Wait stop; I actually agree with this sentiment. I mean, I might extend it to four, five, or six, but if you show too many homes at any one time, they all tend to run together. But then the coaches continue (I will start over): Only show three homes at a time…then ask them to buy one. Wait, what? Really? See what I mean? That tactic might work, but I personally question the ethics, not to mention the work ethic.
But of course the goal is quick sale, easy sale, so the broker can get back to client acquisition.
This class of consultant is primarily responsible for the scripts used in the business. But like I said at the end of our chapter on scripts: If you cannot trust someone to have a sincere and genuine conversation with you, how on earth can you trust them with something as important as a real estate transaction?
Well they teach and use scripts because they work. But that does not make them good business practice. It does not make them honest. Again: They are just not normal; not better, just more.
It goes well beyond scripts. There’s an attitude to this training that I don’t see in any other business. Show them three houses and ask them to buy one. It is condescending and disrespectful and belittling. In fact, I know of no other business that thinks so little of its customers.
As an example, coaches teach brokers to take control and be in charge of showing houses. If the buyer gains control of the showing process, not only is the broker reducing his chances of making a sale and earning a commission, but also extending the length of the sales process from days to weeks.
If the buyer gains control…? All hail the mighty broker! I’ll tell you what: If there is anyone who should be in control of a six-figure purchase, it should be the buyer. To think otherwise is nothing short of despicable.
Another example, coaches teach brokers to call potential clients as often as they can, because brokers don’t lose business by being too aggressive. Yes, there is a reason real estate brokers behave the way they do. They actually believe this is true. David Mamet’s Glengarry Glen Ross springs to mind. ABC: Always Be Closing.
I close this book with a whole section on real estate negotiation. But let me point out here that as negotiators, brokers should never be aggressive or pushy. In fact, just the opposite. It is testament to the intellectual limitations of this class of broker that they actually believe this is a good way to conduct business. Now they would argue: Well chump, say what you will, but it works. But it only works if all you care about is acquiring clients and a rush to close; and you don’t care at all about looking out for your clients’ best interests. Yes, it works for that.
Instead, I would argue never rush to close. In fact, forget about closing. Allow the deal, any deal, to come together. Without pressure. Well chump, you can have that attitude, but I’ll gladly come in and steal your candy. But as I will mention several times in this work, if you are reading this book, you are probably not going to be swayed by this sort of nonsense. Or perhaps you have done so in the past, and see now that it was a mistake. Pushy, aggressive brokers are not very smart, or competent. Choose smart over pushy every day. We are here, reader and writer, because this is a serious business. So let us be serious. We will have more on this in our next and last chapter in this section.
Not better, just more. And not even more for the seller, as in more money. Because these coaches spend a lot of time on how to get the seller to accept as little as possible. No, just more for the broker.
I am always just amazed by the lack of respect the coaches and their broker clientele have for potential customers and clients.
These guys sell their coaching services as subscriptions. They do videos and one-on-one coaching. They sell books and CDs and DVDs. They have events. You know, seminar type events, that look and feel like Amway conventions. Brokers attend, I’m told, because they are motivational. I guess like going to see Tony Robbins. And hey, if that is what these brokers need, fine. I just wish there was more substance to it all. And respect. My preference would be for brokers to spend time on something, anything, that would benefit their clients at least as much as themselves.
For instance, let’s look at some topics these coaches do not discuss:
The latest construction techniques or the pros and cons of slabs versus crawl spaces or siding choices. Material facts or inspection and repair issues or wire fraud issues. Polybutylene replacement choices, sizing septic systems. Record retention and digitalization. Contract changes or escrow account requirements. 1031 exchanges. Short sale techniques or radon or mold. Dealing with Homeowners’ Associations. Zoning changes. Municipal annexations. Unpermitted improvements. Reducing client risk. What home improvements offer the best payback. Strategies and best practices for offer and acceptance.
See a pattern? You know, the multitude of issues on the conveying real property side of the business. No, you don’t hire a coach to learn about radon and mold and best practices. You hire a coach to learn about client acquisition. So don’t let anyone pretend that these guys are anything but mere sales coaches with bad attitudes, questionable ethics, and no respect. Same for the brokers that hire them.
Before we leave this topic, what about negotiation strategies? Oh sure, the coaches may introduce some negotiating scripts. I can just imagine: Objection Handling for Negotiations. But in addition to demonstrating a low integrity activity, I hope I have convinced you how childish and frivolous and shallow all of this is. To me, it all just seems to have a quality of unseriousness. It reeks of unseriousness. Put a competent broker on the other side of a transaction and the lack of real skill and knowledge becomes all too apparent.
And these brokers could not care less. Because they are motivated, they are scripted, they are upbeat, they can manipulate, I mean handle, prospects and clients. And they are serious about these…er, qualities. But they are not serious about ethics or competence or acquiring competence or really, serving their clients.
Unserious. I looked it up: It said, see real estate coaches and the brokers who hire them.