My Fist Experience as a Licensed Salesperson Since I was going to sell property for others I need a license.I took my requisite 40 hour course at Delta College near Bay City Michigan then sat for the Michigan Real Estate Exam.I passed with flying colors but needed to be licensed under a broker.Since a land developer does not need a license, my father was not a broker.
He did however know a broker in Clio Michigan who welcomed me aboard.I was officially licensed with Realty World – LaClair Realty a very small office with just 6 salespeople including the broker Norm LaClair.Norm was an older gentleman who basically handled residential real estates in the Clio area. Looking back I realize that norm was an average broker.
I really didn’t learn much from him as I look back.On the other hand I learned a very valuable lesson.I recall being in the office and hearing that two experienced agents talking.They had teamed up and they were saying how they had shown 30 homes to a couple over the past week.I was shock to think that someone would spend that much time driving around and still not selling a home. Keep in mind that back then you had to drive to each office, pick up a key, tour the home and return the key to that office.It took a long time to coordinate such a feat.Lock boxes and cell phone were still not in common use.Pagers were the rage at that time.
I recall thinking that I never want to sell residential real estate.I enjoyed selling vacant lake frontage up north.Even thought I lived in Saginaw the land I sold was 2.5 hours away from the office.My buyers were 4-5 hours away in most cases.
I would run ads in Detroit and Grand Rapids, take calls and if interested, meet people at the property.I’d typically drive up the day of a tour and drive home that night.After being stood up a couple times I got myself a pager and an answering service.Since my buyers had to leave 2 hours before I’d ask them to call when they were leaving. If a problem after they were on the road I would get a page and know to turn back.
Selling never really seemed like work to me. I really enjoyed helping people. I got to meet new people, spend time outdoors and help them find a place to build a dream home.Who could ask for something better then that?I didn’t have to worry if a buyer liked the color of the carpet.They either like vacant land or they don’t. In the early nineties I didn’t have to deal with lenders either.All of the land I sold was cash or on land contract (owner financed). Cash buyer sometimes got a home equity loan but I had noting to do with it since they wrote a check at closing.
One interesting not is that as a broker, I did the closings.By that I mean I typed the deeds, closing statements, land contracts, mortgages, etc.I even recorded all the documents.It certainly taught me a lot about the process but I was overjoyed when title companies took over that responsibility.
My Broker License
As soon as I had 3 years full time experience I applied for my broker’s license.Michigan law requires 90 hours of additional education and passing a test to get a brokers license.Since I was going to college during my first 3 years as a Realtor I was able to get credit for 30 hours of education toward my 90 hours.
Even though I didn’t need to do so I took 90 hours which included enough hours to get my appraisal (Valuation Specialist) license.Since I was on a roll I also get my builders license.I fell you can never have too much education.
Once I became a broker in 1990, I opened Realty Network of Michigan, Inc. in Bridgeport Michigan just off I-75.At the time I was fully independent but I continued to work with my father on various developments in Gladwin, Roscommon, Standish and AuGres.My first condo conversion took place in AuGres when we converted a small lakefront hotel into condos.
Moving to Traverse City
By 1991 I decided I wanted to live in northern Michigan so I moved to Traverse City, a small resort community on the shores of Grand Traverse Bay’s and Lake Michigan.Since my background was primarily in vacant land I thought I should consider joining a national franchise again.Despite being licensed with a smaller national franchise my first 3 years in the business (Realty World), I had little residential experience.It was time to join the “big boys”. If I was going to make the leap I wanted to work for the biggest in the area so that’s exactly what I did, I worked for the dominate franchise in the area, Coldwell Banker.I was completely sold on all the benefits of working under the umbrella of a major franchise.
Life In a Big Office As many of you may have experienced as well, I was quickly disenchanted.It is not that the people were not nice or that there were no resources, it was kind of like being fed to the lions.One of the first memorable experiences I had with the company was when a veteran agent approached me one morning and said, “How would you like to take a couple that I have coming in.They will be here any minute and I have another client”.I was thankful and said, “Sure”.
Upon their arrival I soon discovered why he was so generous.They were nice folks but they had not been qualified and they had unrealistic expectations as to what they could purchase.Needless to say this meeting did not lead to a sale.What I learned right away was no one in the business did anything unless it was to their advantage.There was no team work. It was dog eat dog.I learned everything by trial and error.
On another occasion I was at the front desk chatting with the floor person when a call came in on a listing I had brought from my prior brokerage.The agent pulled the file and read the MLS sheet stating the property was 10 acres.Shortly thereafter the agent hung up the phone.I asked if that was a call for my property and she politely said, “Why yes it was”.I asked what the problem was and she replied that the property wasn’t private enough for the buyer.
I grabbed the phone and thanks to caller ID, I called the buyer back and explained to him that while the property was in fact 10 acres, it was a square 10 acre parcel which happened to be part of a 120 acre parcel my family had owned just prior to getting the listing.
I let the buyer know that the property was as private as a 40 parcel since the neighboring property was a tree farm, and the other owners had homes on the nearby river rendering the adjacent property free of homes.After we talked, he decided to meet me at the property and loved it.It was right then that I knew I had made a bad decision to join the a large company.
The Reality of Big Brokers
In truth, most franchises are no more than a broker’s way of generating Realtors (bodies) who will come into the business, get excited in the beginning, list or sell a few homes and if out of frustration, they quit, no big deal…simply replace them.It is a numbers game.You all know someone who got into the business and shortly thereafter quit.I know lots of people who did the same thing.
üA lack of team work
üAgents who weren’t willing to share their secrets of success because they were basically creating competition for themselves if they did
üWhy should I pay high fees for advertising I did not directly benefit from
üMaking 50% of my previous income (having been my own broker)
üNot having a mentor who was willing to help me succeed
üHaving no rational reason to stay with the company
I understood it all but I didn’t like it.I soon learned that the top producers within the company isolate themselves from the pack and essentially create their own sub office within the office.In other words it made no difference if I was an independent broker / Agent, worked for a large company or was a one man show.As long as people knew you and you were good at what you did you can succeed in any situation.With that in mind I went back to working on my own for the next 16 years.At least I knew I could trust those I worked with. (i.e. – Me)
The Early Years For the first 5 years after going back to being an independent broker I worked out of my home.Since I was primarily working on a specific land development (Pearl Lake Estates) I really had no need for a retail office.The vast majority of my buyers were from southern Michigan so I either spoke to them on the phone or met them at the property. The closings took place at a title company or by mail. In the early years I had the pleasure of working with my father on a development called Pearl Lake Estates.It was a 212 acre parcel with over a quarter mile of nearly uninhabited shoreline in northeastern Benzie County. The lake is unlike anything I had ever seen.As a fisherman I was truly in awe. This happened to be the second development we were involved in on this particular lake so I knew it like the back of my hand.The first, The Pearl Lake Land Division which we developed in 1989-1991 had been sold out.Like the other project, I helped my father lay out the lots in Pearl Lake Estates, we worked with the surveyors; we coordinated with the county officials and prepared the lots to be sold. In the beginning stages of Pearl Lake Estates I was still with Coldwell Banker.One thing I neglected to mention earlier was that I was unable to convince my office to put the development on tour to familiarize the other agents with our project.To my amazement no one was willing to go and look at it. I wasn’t sure if it was due to the fact that I was new, that the property was 20 minutes away or if the more experienced agents knew something I didn’t.I was very disappointed since one of the major reasons I wanted to work for the company was that I had a team of agents. I soon discovered that if I wanted to keep a roof over my head I needed to diversify and sell others peoples property.I was fortunate to get listings from Pearl Lake Estates every once in a while.Since I obviously knew the property I guess I was the most qualified person to re-sell it. Believe it or not for the next 10 years I always had a least one parcel for sale despite the fact that the project was sold out years earlier.To this day I have property for sale on Pearl Lake. Over the years I have made more income from the re-sales than I ever did as one of the developers.For more info on Pearl Lake visit www.PristineLake.com. My step into General Real Estate The need arose to have an office outside of my home so like so many others I rented an office on a major road and hung out my shingle.I sold property and managed to keep the lights on while my father and I looked for another parcel to develop.Since winter’s were long and slow I decided to diversify.I teamed up with a couple friends and opened a next day sign company.The business was surprisingly successful and in my spare time I helped run that business for 3 years while still selling real estate. After 3 years I found it nearly impossible to do both so I sold the sign business and moved my office back into my home for another 2 years.Again I knew it was nearly impossible to run an office from home so I considered my options once again.Should I rent an office or should I consider one of the other franchises. I decided to rent a building and hung out my shingle again.This time I decided I was going to hire salespeople and make money just like the other brokers.About the same time I was given a referral form a local attorney who had a developer looking for a broker.I met with the client and we determined that the best course of action was to create a separate entity which became Copper Ridge Realty. Copper Ridge Realty represented a multimillion dollar commercial and retail development in Traverse City.Like all other projects I represented, I learned everything I could about the project.With the assistance of the developer, who I worked with closely, the project took off.I had 2 brokerages and was doing fine with both. Although I didn’t actively seek agents I hired 3 agents all of whom were part time but had specialties.One was a builder, one was a forester and one was a environmental consultant.None of them did any serious volume but I managed to make several thousand dollars from their efforts.I saw how it was beneficial to be the broker. One day after seeking a chance to our MLS system,I was asked to join the Traverse Area Association of Realtors MLS Committee and I began to learn more about how the local MLS worked and more importantly how the “system worked”.Being on that committee I was privy to a conversation, squabbles and complaints about the MLS system.It was then that I realized just how much the system needed change. The Pitfalls Although I liked the pay checks from the agents I had licensed with me, I did not like the liability, the paperwork, the responsibility or the time I had to put into trying to training them.I knew this was not going to last.About that time I decided I need to step it up a notch or close and merge my efforts with another company again. This time I interview with Century 21 and Re/Max. I even interviewed Coldwell Banker again, After all it had to be different after 10+ years right…wrong. None of the programs felt just right. Why should I give up 30% to 50% of my income and work with a group of agents who really only care about one thing and that is making themselves more money. What did I have to gain?So I could save a few bucks on adverting and I could eliminate my answering service.Was it worth it?About that time I got an email from Exit Realty basically claiming to have “the better mouse trap”. Since the company was still small (in this area) I really didn’t give it much thought.A week later I got a call from Bob Rieck (one of the regional owners of Exit Michigan) and was invited to a meeting on Exit Realty Corporation.I decided I would go listen to what they had to offer.I was impressed but I still wasn’t convinced I need them. Several months went by and I stayed in touch with Bob.He was always happy to talk to me and never pushed the company on me.He nicely let me know what they were doing as a company and said I was welcome to stop in anytime.Still not sold on Exit Realty, I continued to do my own thing and listed and sold countless properties in the Traverse City Area.
Search Property for sale in Benzie, Grand Traverse, Leelanau & Antrim Counties. Find Lakefront property on Long Lake, Green Lake, Silver Lake, Bass Lake, Boardman Lake, Dyer Lake, Lake Doubonnet, Duck Lake, Rennie Lake, Spider Lake, Indian Lake, Cedar Hedge Lake, Ellis Lake, Fish Lake, Brown Lake, Sand Lake, Muncie Lake, Arbutus Lake, Fife Lake, Little Traverse Lake, Lime Lake, Lake Leelanau, Cedar Lake, South Bar Lake, Davis Lake, Elk Lake, Lake Skegemog, Clam Lake, Lake Bellaire, Hanley Lake, Ben-way Lake, Torch Lake. Jules B. Yates (webmaster) - Associate Broker, Exit Realty Paramount, Traverse City, MI 49684 - 231-218-5199. Real Estate for sale in Northern Michigan.
The information contained herein and contained in any supplemental documents has been furnished by the seller and/or other sources. We believe these to be reliable and have made every effort to provide accurate information. However, the brokers involved are not responsible for misstatements of facts, errors, omissions, prior sale,change of price or withdrawal from the market without notice. Owners are not to be contacted directly by referral brokers, agents or prospective purchasers. All arrangements for inspection of the property must be made through the listing agent.