Friday, February 03, 2006

Rookie Realtors - Will They Succeed?

The following is taken from an article By Bernice Ross of Inman News. A study was recently conducted to determine if there are certain traits a young agent possesses that will determine whether or not they will success in this business. In the states there are 25,000 new agents joining the industry every month, while NAR predicts their membership will actually drop from 1.2 million to 800,000 this year. If the market slows, the cost of hiring the wrong agent will increase for brokerages, and it will become tougher for new agents to succeed. Today's article talks about the different tests used, later this week the continuation will talk about whether they predict a rookie's success. Here are exerpts from the Inman article:

In summer of 2005, isucceed.com, RealEstateCoach.com and RealEstateSimulator.com conducted a study to identify the correlates of real estate success for rookie agents. The study evaluated agent production as measured by number of listings taken, number of transactions closed, and GCI (Gross Commission Income). It also examined agent performance using three different assessments:

1. The Real Estate Simulator

This assessment contains three online video sales simulations, a quick IQ test, and an analysis of key behavioral factors related to real estate sales success. The Real Estate Simulator provides feedback on 12 different scales and compares the agent profile against those of agents who earn a minimum of $150,000 per year. Validation studies show that the simulator is a highly accurate predictor of real estate sales success for experienced agents. This is the first study to examine whether the same holds true for rookie agents.

2. The DISC (Target Training International online version)

The DISC assesses the agent's behavioral style. Agents who score high on the "D" factor (drive, dominance, i.e. the "get-it-done" factor) traditionally do well in sales. So do agents who score high on the "I" factor. These agents are "people-people." The most successful agents (approximately 5 percent of the population) score above the 50th percentile on these two factors. Agents who score high on the "S," or steadiness, factor succeed best when they rely on systems. Those who score high on the "C," or compliance, factor are detail-oriented and often make excellent assistants or transaction coordinators. The challenge for "S" and "C" agents is that their behavioral style makes prospecting and converting leads more difficult than those agents who score high on the "D" and "I" factors. The DISC profile accurately predicts sales success not only in real estate, but in numerous other sales professions as well. The question is whether it is predictive of sales success for new agents.

3. The PIAV (Target Training International online version)

The Personal Interests, Attitudes, and Values assessment examines six key motivators underlying behavior. The six categories of motivators that drive behavior are:

Aesthetic
People who score high on the Aesthetic factor of the PIAV have an appreciation of form, beauty, art, and design.

Individualistic
These individuals often seek to be a leader or influencer in their chosen profession. They are normally independent and may have trouble taking direction from others.

Social
Those who score high on the social factor love people. They enjoy being around others and will actively seek out social interactions.

Theoretical
Their primary focus is seeking truth through observation and logic. These people tend to be intellectual and seek knowledge for the sake of knowledge.

Traditional
Traditional individuals prefer systems with defined rules and regulations. They are often politically conservative and place a high value on religion and authority.

Utilitarian
People who score high on the Utilitarian factor are motivated by money and security. They tend to be practical, entrepreneurial, and business-focused. Accumulating wealth is important to them, not only for themselves, but for their family as well.

Target Training's cross-cultural validity studies based upon sales leaders from 178 companies show that the most successful salespeople in America (72 percent) and Germany (71 percent) score high on a single factor. Regardless of their DISC profile, "when it comes to what is on the inside of top performing salespeople, both United States studies as well as the German study confirm it is hands-down, a Utilitarian attitude (i.e. a focus on practicality, efficiency, or economics)." Target Training International's research demonstrates that behavioral style is secondary to sales success. An agent with any behavioral style can succeed, provided their behavioral style is coupled with a high Utilitarian score on the PIAV. Does having a high score on the Utilitarian factor on the PIAV predict early real estate success or are other factors more predictive in new agents?

Read part 2 here.

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