This question of the month was posed to area Realtors: “More and more people are getting their real estate licenses lately. Are there too many? If so, should the state toughen the course requirements and the exam? If not, why not?”
“One measurement of a potential threat to any existing business is the ease of entry into the marketplace. It is very easy to enter the real estate industry by passing, on all accounts, a very easy exam. Still, the most difficult test is yet to be administered. The business is not for the weak of heart. In order to be a professional you have to understand both finance and people. You have to be disciplined and educated beyond that which the test examines. Of course, honesty and integrity go a long way, as well. The act of every licensed salesperson/broker reflects on the entire Realtor community. If any additional testing or tougher standards should be administered, they should be on the ethical side of the equation. The Northeast Florida Association of Realtors does a great job to enjoin this task by requiring additional ethical standards testing. I say let them come so long as they elevate the professional and ethical standards from which we are all held accountable.”
— Justin Clark, The Charles Skinner Company
“There are obviously more licensees entering the market now than ever, and why not? This is a great time to be in the business. However, the State has got to toughen up on, not only the pre-licensing requirements, but more importantly on the post-licensing curriculum. The 45 hours of post-licensing should be increased to 60 hours and at least half of that time should be focused on contracts and contract law. The public pays us a lot of money for our professional knowledge of the housing industry, and knowing our single most important tool is vital to improving our industry’s reputation. It is abundantly clear that most new licensees [and plenty of experienced licensees] have no idea how the contract reads and they grossly underestimate the importance and power of the legal document that can make or break their transaction/career. Eventually it might even help keep those E & O premiums down too. Let’s earn our money!”
— Robert A. West, New World Realty & Property
Management, Inc.
“I believe that teaching is learning. I think the old mentality is not to share your valuable knowledge because it makes it more competitive to the old experts. I do wish that the knowledge learned in school was more useful instead of more challenging to see if you can pass a test. You would want to be able to graduate and think that you could go right at it, but it takes more than some school to get going in this business. So mean while if you can pass the test, good luck on passing the life of a Realtor.”
— Todd Arnold, Kent and Associates Realty Services
“The course requirements to obtain a real estate license should be strengthened, but not to discourage people from entering the profession. The law of supply and demand will balance out the number of agents that are needed to service our area. For many agents, this is our second or third career and we have a wealth of education, experience and knowledge in other fields that translates to the real estate industry. However, a one week course to obtain a license seems insufficient considering it takes many years to obtain a degree in other fields. To better prepare our new licenses for the ever increasing complexity of the real estate business I would support expanding the course requirements. Better education will bring us better qualified agents which in turn benefits us all.”
— John Nicholls, Re/Max Real Estate Specialists
“The Florida real estate market has been booming for more than a decade and with all the construction going on and the influx of people from every corner of the earth, it’s really no wonder that so many new licensees have gotten into real estate. While I have personally had the pleasure of working with some excellent new agents whose future in the business looks pretty bright, it will be interesting to see what a downturn in the economy and the war will do to many other new agents. As far as course requirements and exams are concerned, I don’t think course and exam difficulty will dissuade those who are determined to get into the business. In my opinion, more important would be how much they are willing to learn in order to become real estate ‘professionals’ and to set themselves apart from those who shouldn’t be in the business? The St. Augustine, Northeast Florida and Flagler associations’ educational offerings provide many opportunities to become more and more proficient, and I applaud all those who take advantage of them.”
— Elke McMenemy,
Florida Home Realty
“The trend seems to be toward increasing requirements. One (proposal) is the requirement of a bachelor’s degree for a sales license and an advanced degree for a broker’s license. Also, there is an argument for a single designation with no distinction between broker or salesperson. As to the passing grade, if we want to make the practice of real estate a profession, then the passing grade should be higher than 70 percent. Would you want to use a surgeon who had a 70 percent passing grade on his exam? Also, there is a disservice done to people who have the time and money to sit for the school and the exam Realtor and Multiple Listing Service dues, who have no aptitude for selling real estate or anything else for that matter. Lawyers have to take the LSAT prior to going to law school, proving that at some time they have had the attributes of people who are likely to succeed in the practice of law. Of course, the current license holders would be in favor of increasing the requirements provided they were adequately ‘grandfathered’. I’m sure the State would love to increase the renewal fees too.”
— Paul Wood,
Paul Woods Realty
“I can’t respond to (the question about) too many agents — that would be like saying their are too many lenders. However, when I was getting my broker’s license a huge portion of the time spent was on commercial real estate, because there is no distinction between a license for residential real estate and commercial. I think it would make sense in separating the two since they are so very different. Then the time for residential brokers could be spent more on management and motivational skills, etc. that they will use in their everyday operation of a business.”
— Gay Bonner,
Prosperity Bank
“I think that it certainly is too easy to get a real estate license. I really don’t have a problem with that concept, I just wish that they would have to have more practical knowledge about selling real estate. It seems that the seasoned agents end up doing double duty on any transaction that we get with a new agent. You know when you are an appraiser, you have to have 100 appraisals under your belt before you can actively work on your own. Not such a bad concept. Everyone thinks that because they know a lot of people, they can sell real estate, too. That’s where we end getting the bad reputation of earning more than we are worth. If you have the right agent, and you let the agent price it correctly, it saves you months of sitting on the market. New agents typically will price the homes where the homeowners want it to be just to get the listing. For some offices it’s also a quota concern. The only way to slow down the rush on licensing is for the State to get involved.”
— Teresa Mercurio,
Re/Max 100 Realty
“I think the tougher requirements should come after being licensed. Too many Realtors are part-timers that are in real estate for the ‘glamor’ or just for something to do. They do not contribute to our profession and certainly don’t involve themselves with our boards. Mandatory active working hours and mandatory involvement with the local association might just help weed out a lot of these individuals. Tougher and more expensive continuing education requirements would also help.”
— Marcy Mock,
Summer Beach Realty
“In 1991, when I became a member of Northeast Florida Association of Realtors, and during the mandatory introductory meeting, I was told that 50 percent of new licensees were not renewing their license due to post-licensing continuing education requirements. My understanding was that new licensees felt that they were going to make the big bucks but after the first six months of little or no income, they choose not to renew and secure other employment. I wonder if that is still the trend today. In 1991 the Gulf War was on going, major corporations were laying off employees by the thousands, everyone and their brother were refinancing higher rate mortgages, and there were five pages of line item oceanfront condominiums for sale in the Multiple Listing Service. I had $5 million worth of inventory listed and made $8,000 my first year in real estate. Needless to say, times were tough then. With the turnaround in the market I would expect it to be some what different today for new licensees. The requirements for maintaining a license continues to become greater with additional hours being required. I feel that the standards should remain high to keep professionals in and those not in it for the long haul out.”
— Wayne M. Jones, Watson Property Management
“No, there are not too many agents with licenses. Many who got their license during the time I did are no longer in business for one reason or another, so I believe many drop out like they drop in. Also with this changing world many people who buy a home or sell their home want diversification of whom they desire to do business with or who will act as their agent. No, do not toughen the exam, I thought it was pretty challenging. Maybe it is just my age!”
— Sandra Brown, Prudential Network Realty
“I don’t know that I think the course and exam should be made harder — they are pretty comprehensive. I will say that I have seen some new agents recently at Graduate Real Estate Institute courses that are, shall we say, less than professional. The state has approved GRI-1 [and maybe 2 or 3 as well, I’m not sure] as the 45-hour post-licensing, and many new agents are taking it and killing two birds with one stone. Rather than making the course and exam for licensing more difficult, I would rather see the post-licensing and GRI-separate. In fact, I think there should be an experience requirement before coming eligible to take the GRI courses. They should have been in the business six months to a year, and full time, not part time.”
— Toy Scott,
Norville Realty, Inc.
“I think the exam and the classes would be dramatically improved if they truly covered aspects of the business. Also, if before a person took the class, they spoke with two or three people who are in the business, doing different specialties in real estate, and (also learned) the costs. For example, speak with a commercial brokerage, a real estate investor group, and someone in general real estate, a home inspector, and a title insurance representative. Many times, people do not have a realistic view of this business. This is a specialized business and most people signing up for the real estate exam do not realize that fact. Then the class is full of not familiar things and they don’t understand the connection to the real [real estate] world. In addition, passing the test and having a license do not guarantee anything, especially a focus on what the person will be doing. There are lots of training classes that help a new licensee train if they are going to pursue general real estate sales. The State should have a more automated way of tracking licenses. A broker number and a sales agent number need to be tied together. The State should clearly redefine the class, the materials, and the number of licenses issued. Many people misuse their licenses as well. I think there should be much stricter requirements and rules from the State.”
— Jenet Cattar,
Cattar Realty, Inc.
“It’s tough enough as it is! Our turnover rate is extremely high! Only those with determination and a true desire to succeed in the business stay with it.”
— Gail Henley,
Universal Realty Network
“I heard somewhere, when I first moved to Florida 10 years ago, that one in five Florida residents had a real estate license. There are always too many licensees - or so you would think. But 80 percent of the business will still be handled by 20 percent of the agents. So many new licensees think that simply getting a real estate license means sitting in an office and having instant success. When that doesn’t happen, they go inactive and eventually let their license expire. Should the exam get tougher? I don’t think so — the real estate schools will just get better and we’ll still have close to the same number of agents.”
— Karen Palmer,
Prudential Network Realty
“My concern about the number of agents coming into the business is not about the training required for their license, but the lack of hands-on supervision and continuing education requirements after. I have had cross sales with agents that have been in the business for years, who do not know what our Northeast Florida Association of Realtors contract says. They complete their continuing education via an open book course every two years just as the State requires. But as a fellow broker once said ‘There is a lot of difference in a 20-year real estate professional and an agent with 20 years of first year experience.’”
— Dianne Pittman,
Watson Realty