It’s an interesting question. Certainly we sell real estate. But is that even true? Do we sell it, or do we simply facilitate the transaction between the buyer and the seller? I remember talking to a friend who’s a broker in Gilbert, Az. several years ago about a person I knew that was a tremendous salesman — the best I’ve ever seen anywhere. When my broker friend indicated he was looking to expand his operation, I suggested the man I knew who was a salesman. I still remember his response: “great salesmen don’t generally make the best realtors.”
Doesn’t that seem completely opposite of what you’d think? I mean, realtors “sell” real estate, don’t they? He explained that his comment stemmed from what you perceive a salesman to be. If when you hear the term salesman, you think of used car salesmen or time share condo salesmen, then in absolutely no way are realtors salesmen.
Here’s the difference as he explained it: typically, a “salesman” has a product, or products, that he / she takes to a customer to convince them to buy — they “sell” the customer the product. In Real estate, the buyer most often comes to you (instead of vice versa) and you help them find what they are looking for. It’s not your product. You didn’t make it, you don’t own it, etc. You are helping them find what they want. You can’t “sell” somebody something they don’t want (or at least you wouldn’t want to.) Nor can you have perconceived ideas of what they should buy. You show them what’s available, they sell themselves on the product, and you make the arrangements between the them and the seller.
As long as you’re helping them buy a home you’re in great shape. They will love you for it, and they will refer their friends. When you start to try and “sell” them something, you are on thin ice, and the likelihood of them feeling positively toward you at the end of the transaction is reduced. I remember an agent (who was supposed to be helping me buy a home) telling me if I didn’t buy a particular house — the one she wanted me to buy — I was crazy. Needless to say, I didn’t buy the house, I wasn’t crazy, and I didn’t do business with her again. Nor did I refer her to any of my friends. Much to the contrary.
My broker friend in Az. shared with me something I’ve found to be true over the years. That is, the best real estate salesmen aren’t really salesmen at all. They are people who care about people, who want to see a good outcome for everyone involved. They’re not in it for themselves. They don’t take advantage of either the buyer or the seller. They are trustworthy (yes that still means something, even today). They are simply facilitators in a complex transaction. The better they are at facilitating the deal, the more successful they will be.
Yes, it’s true some of the talents and abilities of a facilitator are the same as those of the salesperson, but it’s much more than simply “selling.” Think of very successful realtors you know and ask yourself if you think they would be equally successful selling time shares. I’ll bet the answer is no. Facilitating real estate transactions is much more than just selling, and much of what you learned about being a salesperson doesn’t apply in this arena. It’s a unique set of skills and abilities. So for new agents, don’t be discouraged by the fact that you’re not the world’s best salesperson, or that you don’t have extensive sales experience. This is a chance to work in “sales” without having to be a salesperson.
It is refreshing to hear of a new perspective that real estate agents are not neccessarily salemen. I agree. Our brokerage understands that we are hired by our clients, buyer or seller, to represent their interests in the process of selling or buying a home. We are taught that the client interest are always above my interests. That is a significant difference between an “agent” and their “agency relationship with their client” and “sales” and “salesman whose interests are those of his empoyer or himself. An agent who places the client interest above that of his own, is valued more by our brokerage even if the client does not end up selling or buying. The benefits follow. Thanks Allen for helping make that distinction.
Excellant Article. This is something I’ve been trying to explain to everyone who asks me why I’m a Realtor when I’m not a fan of “salespeople”