Brokers say motivation can’t be taught, but education ensures agents’ success

By Jo-Ann Cubello

How does a broker instill in his or her agents something that cannot be taught and something as intangible as motivation? We asked several brokers how they are motivating their agents, given current market conditions.

Their answer was simple: Educate and train them to work current market conditions … then, stand back.

“Based on our observation of the past three business cycles, we believe the worst is over, and, in the current climate, we are training our agents that a down cycle actually presents an opportunity for them to grow their productivity,” reports Cameron Merage, president and CEO of First Team Real Estate, Costa Mesa, Calif. “We empower our agents with education and information to motivate them. The agents who handle this market will win, but the ones who leave are those that did not absorb the training well.”

Starting with five agents in one office in 1976, First Team now has more than 1,850 agents and employees in 32 offices across Southern California.

Merage credits their market share in the present economic climate to innovation and proprietary marketing tools such as Hot Buys® and Market Trends™. Hot Buys® is a sophisticated system that analyzes and quickly pinpoints the best real estate values in the market. Market Trends™ identifies current prices neighborhood by neighborhood to predict where prices will go in the coming months. “Our Market Trends™ mapping is available online, and helps sellers price their properties right so they don’t miss out, and helps buyers make offers correctly,” he adds. 

He points out that people are drawn to Southern California for the climate, so the influx of residents is certain to continue. “Our challenge in this market is simply to take advantage of the opportunities to grow, and as an industry to provide improved training programs to meet the needs of our agents and clients.”

Agents should master the detailed ‘“ins and outs” of foreclosures, short sales, and staging properties, and participate in panels, discussions, and seminars on a variety of topics. “I have found that motivation is not something you can ‘give’ to someone. Just try not to ‘demotivate’ them! If they have a positive atmosphere and education, that will bring out their motivation,” Merage says.

Detroit Broker Educates and Integrates

In Metropolitan Detroit, both Carl G. Williams of Saturn Realty Group and his agents believe this is not a bad real estate market but a changing one. “We knew it was coming and we had to move ahead of it. Agents were making money selling houses three years ago and now they are making money selling REOs.”

Saturn, a small family-owned business with 16 agents, opened in 1991. Williams, the 2008 president of the Detroit Association of REALTORS®, admits no agents left his firm this past year, but it was a different story in the suburbs surrounding Detroit where membership decreased by 18 percent to 20 percent. “The reason we survive is we still have a market, but a different one,” he adds.

His number of sales is up approximately 40 percent, but the average sales price is down 30 percent due in part to the REOs in the area. He encourages his agents to attend conventions and classes with speakers teaching these types of transactions, not to motivate, but to educate them.

Although it might be slow for sellers of traditional and “mortgageable” properties, it is extremely good for REALTORS® who work with investors, according to Williams. “Recently, I had two investors in my office from San Diego looking for property here. Additionally, due to the large number of investors from out of town, property management has become a hot and lucrative segment of the market. Many people feel that Michigan was hit first and will therefore come out of it first and soon, but it is more important, however, to deal with the changes whatever they might be. Specializing in a particular area or market may not work at present, but keep diversified and be prepared for anything. People will always need a place to live. Be prepared to provide it for them.”

Tallahassee Broker Promotes Technology

“Using all the new technology and tools that are available is extremely important in today’s market. Make it easy for buyers and sellers to find you because they don’t want to work that hard at real estate,” says Patti Ketcham of Ketcham Realty Group and 2008 president of the Tallahassee Board of REALTORS®. Ketcham, who has been in the industry since 1979, employs 10 full-time agents and seven more who are not “actively” selling at the moment.

She suggests this is the time to research the market, clean up systems, and try new methods for a few months. “If it doesn’t work, try something else. Get rid of anything you are paying money for that is not working.”

She recommends The Secret, a DVD about The Law of Attraction, and the KOLBE Index, a 20-question self-test that identifies a person’s strengths and weaknesses. “I find these have very good results. I also provide a dot board like the old-fashioned ‘gold star’ when an agent lists or gets a contract.”

Ketcham wants her agents to remember to have fun, so their group pictures have a whimsical look to them with “silly” noses or glasses. “I know that our clients and associates look forward to these ads just to see what we are going to do next.”

She feels their market was out of control and not healthy; now it is almost finished correcting and back to a normal 5 percent appreciation each year. “Although this [market correction] feels bigger than most, we go through this every now and then. Unfortunately, a lot of good decent people will not be able to ride it out.”

While her local real estate board lost only 7 percent of its members, others around the state averaged 40 percent decreases in their membership. She admits the state capital is doing better than the coastal and middle regions of Florida. “With steady pay checks from government jobs and being a university town, this area has more stability. Since we are close to Georgia and the Gulf … 45 minutes either way … it gives agents variety, so we can keep a step ahead of the game.”

Jo-Ann Carol Cubello is a Los Angeles-based freelance writer.