DAVID BATES
‘Comprehensive feedback’
The booming housing market in Massachusetts in the past several years has attracted many who wanted to take a stab at working in the real estate business. But not everyone is cut out to be a real estate agent.
Some real estate brokers in Massachusetts and across the country are increasingly relying on a recruiting tool developed by a Canadian company about two years ago to screen prospective real estate agents and determine whether a candidate will succeed in real estate.
The product, called Real Estate Simulator, allows potential agents to experience what it’s like to be in the real estate business through a video over the Internet. The video presents a series of common situations and challenges that real estate agents routinely face. The participants must interact with a customer on the screen and must select what they believe is the best response for each question and situation that is presented.
The participants’ responses are compared to those provided by top-performing agents who make at least $150,000 annually in real estate commissions and many of whom earn more than $1 million a year. The simulator reveals how the responses match up and rates the overall suitability as low, satisfactory or high.
“This provides the most comprehensive feedback that people could get with regard to how they may fare in this business,” said David Bates, a principal of Prudential Unlimited Realty in Brookline.
Bates’ company started using the simulator about three weeks ago. People who are seeking a job at Prudential Unlimited can take the “test” by clicking on a link on the company’s Web site. The results are automatically sent to Bates who reviews them. Bates will only consider candidates whose overall suitability is assessed as “satisfactory” or “high.”
Bates said his company decided to start using the simulator because in the last several months he has seen a lot of people from different professional backgrounds seeking to work in the business. But what many of them don’t realize, according to Bates, is how challenging real estate work can be.
“We always try to point out to people what to expect in this business,” said Bates. “It’s a deceptively hard business. Even though [some may] come from accomplished backgrounds, it doesn’t mean they’re going to be successful real estate agents.”
When Bates heard about the Real Estate Simulator, he decided to give it a try. “We were looking for some type of litmus that might indicate whether the person we’re hiring has a chance to make it in this business,” he said.
‘A Great Test’
In addition to screening potential employees, Bates and other real estate brokers use the simulator to assess agents already working in their offices. The results help managers identify areas in which agents may need additional training.
“It’s a great test. It’s very accurate,” said Tami Bonnell, president of Exit Realty Corp., U.S. organization, a corporation with world headquarters in Canada and U.S. headquarters in Burlington.
Exit Realty has been using the simulator for at least a year. Bonnell said it has helped managers identify the strengths and weaknesses of agents already working for the real estate firm and determine how to “best coach them.”
Jack Cotton, owner of Cotton Real Estate in Osterville and Hyannis, said he brought his entire sales team of about 30 agents together one day to take the simulator “test.” The sales agents voted on the answers.
“It was a good team-building exercise,” said Cotton. “It was educational for everyone there. We found out that we work better as a team.”
Cotton, who learned about the simulator at a real estate convention in New York City last year and started using it in November, said the tool has helped him expand his sales team.
“It’s helped us find how we can enhance what skills people have,” said Cotton.
Besides helping real estate brokers determine who will succeed in real estate, the simulator is also beneficial for people who are interested in a real estate career, according to Cotton and other users of the product.
“It’s simple to get a real estate license, but that doesn’t mean you’re going to be a success,” explained Bonnell.
Developed by a Toronto-based company called Upward Motion, the Real Estate Simulator is currently used by about 250 real estate brokers in North America, Cyprus and South Africa, according to Kim Ades, the company’s president.
Ades said nearly 20,000 people have taken the assessment across North America. “Our product works,” said Ades. “It helps individuals who may be interested in real estate by providing a type of job preview.”
The cost of using the simulator varies. Users can pay per assessment, but most clients select to pay for a site license, which means they pay a monthly fee to place a link on their company’s Web site and are not charged per assessment, explained Ades.
Monthly fees vary according to company size, with companies with 100 or fewer agents, for example, paying $225 per month. Users must also pay a $500 initial set-up fee.
The simulator assesses participants in various areas including their sales ability, cognitive ability and their overall personality. A summary of the results is provided, along with a more detailed assessment of each category.
Bates provided samples of assessments of two candidates. One assessment showed that the candidate’s responses “deviate substantially from those of top performers” and that his “sales competencies are not as well developed as they should be for a successful career in real estate sales.”
The other candidate’s assessment shows that she is well suited for a real estate career because her “responses closely match those of top performing agents” and indicates that her “sales skills and abilities are highly developed.”
“It’s a very comprehensive review of their skills assessment,” said Bates.
Aglaia Pikounis may be reached at apikounis@thewarrengroup.com.
