As one of the few industries not affected by tough economic times, there has been increased interest in the real estate agent profession with everyone from laid off dot-commers to housewives re-entering the workplace wanting in on the action.

Real estate remains one of the last bastions of entrepreneurial opportunity. But with so many clamoring to join the business of selling the American Dream, how can we brokers help ensure the viability and sustained professionalism of the industry?

One powerful tool is training. As brokers, we are only as successful as our agents, and with profit margins growing ever slimmer and the cost of doing business constantly rising, helping agents to maximize their success is critical to their financial stability -- and to ours.

The training that agents receive early on is also critical to the customer’s positive encounter with our profession – from the professionalism with which they are treated, to the agent’s knowledge about the legal and procedural processes, to the ability of their agent to represent their interests.

Yet many brokers still fail to provide comprehensive training programs, or stop short in providing on-going training and support in an ever-changing industry.

Prudential California Realty (PCR) has invested hundreds of thousands of dollars in new agent and technology training, with a strong belief that lifelong education enables agents to be more effective in their careers and their lives. It also keeps them in the PCR family long-term, which makes for a stable and positive relationship between broker and agent.

Our training covers three essential levels that take an agent through their professional journey:

1. Nuts and bolts, or basic training, such as prospecting, developing clients, delivering service;
2. Trends and the future of the business, which includes pertinent technology, handling an ever-changing MLS system, discovering and utilizing emerging trends and technologies;
3. Principals and values, which helps agents to balance life goals with professional goals. Things such as financial management, retirement planning, and family and community support, are addressed in this training.

Why provide such extensive training and is it really necessary? I say there is far too little investment in agents and their success these days.

We are not doing anyone any favors if we lower our standards and put unprepared agents out on the streets who poorly represent clients and our industry. That kind of reckless and shortsighted philosophy of quantity versus quality only undermines a credible and professional business. And, in most cases, agents who come into the business with limited training and resources, leave soon after because they are not experiencing the level of success they anticipated.

In fact, I am amazed that business models that provide little support, and limit agents’ ability to truly maximize their potential still exist at all. Many lure agents with promises of attractive commission splits and fortunes, but the truth be known, without the proper training and resources to back their efforts, success rates are marginal at best.

We are even seeing business models that pull agents away from the core business of solving their clients’ real estate needs, and into recruiting other agents – a practice that does not serve either the agent or the consumer well in the long run.

When you consider that selling real estate gives people the benefits of owning their own business, yet minimizes the risks by providing training, mentoring, marketing and technology resources and an established brand name, it’s no wonder it’s such an attractive option for many with an entrepreneurial spirit.

It is my goal and our responsibility as brokers to support our agents in the success of their business. Such an approach will ultimately benefit brokers and secure the future vitality of our industry.

Ed Krafchow is president of the tri-state consortium of Prudential California Realty (PCR), Prudential Nevada Realty (PNR) and Prudential Texas Properties (PTP). Krafchow is known for his personal commitment to agent training, motivation, inspiration and integrating technology into daily operations. Krafchow has increased the company’s transactions and sales volume more than four-fold in 10 years now with over $8 billion in sales volume, 118 offices, and more than 3,300 agents. A frequent national speaker on several industry-related topics, Krafchow has been identified by the California Association of Realtors as one of California's top brokers and recognized as a technological leader by the Employee Relocation Council.

Published: September 17, 2002

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