Real estate sales

By: J. David Chapman/July 19, 2018

I am a peddler – a salesperson. I am not embarrassed by that; in fact, I am proud. I have always been selling something, whether it was an idea, service, product, or myself.

I received a call from Jennifer Sharpe, who writes a special supplement called Square Feet for The Journal Record. She frequently calls me in preparation for the quarterly publication, and I love to contribute because it allows me to ponder answers to the questions she asks. This week, she simply asked me about commercial real estate broker opportunities, if it is still a viable career path, and what changes are taking place in the industry.

It’s timely she asked this question because, as the leader of a program with 80 aspiring real estate professionals at UCO’s real estate program, I have been thinking about this a lot lately. Our graduates have choices in real estate careers. Traditionally, they go into sales, lending, property management, appraisal, urban planning, development, and law. Fewer and fewer today are choosing real estate sales, and those who do are in the job only until they can become an investor, asset manager, or developer. Why is this? The profession has served me so well.

Unfortunately, consumer perception of real estate salespeople and the service they provide is not good. The real estate sales career is interesting because it is highly regulated. It may be the most legislated, regulated job in all of sales. My opinion is that sales professionals should be problem solvers, asking questions and listening to determine how they can be the most help. In the last decade, legislation has been passed that limits what, and how much, help a real estate sale associate may provide.

The legislation has to do with when salespeople become agents – which we are typically not. They are supposed to be, what we call, transaction brokers. A transaction broker does not represent the buyer or seller, but instead acts as a neutral resource to help both parties complete a sale. My guess is, even after disclosure, most buyers and sellers don’t truly understand the role the real estate salesperson is supposed, or allowed, to play in the transaction. I am anxious to see the next Square Feet publication and evaluate this profession I love so much.

J. David Chapman is an associate professor of finance and real estate at the University of Central Oklahoma (jchapman7@uco.edu).