I’ve been in this business for a long time. A very long time. I started when Purchase Contracts, formerly called D.R.O.A.s, were one page, front and back. There were no computers. No internet. We typed our contracts and hand-delivered them. MLS books were our bibles. They contained all the secrets of new listings and sales. We had to wait for them to be printed. And the wait was long. But, when they arrived, they were golden and so were we. We held the best tool of the trade — the most exclusive tool — in our hands.
These Days, Buyers and Sellers are Knowledgable
Fast forward forty years. Today, information is at our fingertips. It’s also at the fingertips of consumers. Home searches begin online. Contracts are signed electronically. Search engines fuel and maximize exposure to properties. Sellers and Buyers are educated. Knowledgeable.
Or are they? Overall, the answer is yes! People understand and believe in the benefits of owning real estate. They have access to market data. They get how the market works, and they understand how real estate agents work. Sellers typically want exclusive representation. Buyers do, too. Both agree that having a professional guide you through the complex process of buying or selling a home just makes good sense.
However, beyond understanding the value of their individual agent, do Buyers and Sellers understand the value of the Brokerage, and more importantly, the Principal Broker?
What Does a Principal Broker Do?
One thing that has not changed since starting my career in the dark ages is the value of a good Principal Broker. The Principal Broker (PB) of a real estate firm is responsible for the actions of its agents. The PB has direct management and supervision.
He or she is responsible for all real estate contracts. All. The Principal Broker establishes policies and procedures concerning the handling of real estate transactions, is responsible for the conduct of associated real estate licensees, and the training of those agents. The Principal Broker must ensure compliance with estate rules, regulations, and the law. And this is just for starters.
Do Most Consumers Truly Understand the Value of a Principal Broker?
I venture to guess that the answer is “no.” I believe that most Buyers and Sellers hire agents without asking about their PB. And, I think this is a mistake. An experienced, honest, knowledgeable Broker is critical to the success of a real estate transaction. Why? Because they set the standard, implement the training, guide and manage the conduct of their agents, and ultimately, are the ones responsible for each and every transaction. They set the tone and the professional standard of practice for a Brokerage.
A Good Principal Broker is Key
Bottom line — an experienced, knowledgeable, honest, and engaged Principal Broker translates to a smooth, timely, positive transaction and outcome. Fortunately, at Hawaii Life, we have one of the state’s best — Matt Beall. That’s why I work here. I place high value on a good Principal Broker. So should you!