In 2003 to 2005 anyone could be a real estate agent.  Well, almost anyone.  You did have to go to the class and take the test to get your license.  But really it didn't take much to get started.  Maybe run an ad and you had people lined up ready to sell their homes and make a fortune.  And once you listed those homes, you had buyers there very soon (many times within hours) making competing offers. Deals went through quickly and you were on to the next gig.

Well, times have changed, fewer homes are being sold and being a real estate agent is turning out to be a lot of work.  As painful as a declining market has been for consumers, it is bringing about a situation that will benefit them within the next 1-3 years.  That is, this market is weeding out the less skilled, less ambitious real estate agents.

When real estate brings easy money it attracts all kinds, including those who only have their own interests in mind or those who want to make a quick buck.  However, when the going gets tough many people quit or move on to other fields of interest.  When real estate was moving at a hectic pace it was harder to spot an agent who wasn't doing a great job.  In fact, some consumers are now experiencing the very painful consequences of having an agent who wasn't working in their best interest.  I am starting to see news stories about buyers who have extreme buyers remorse after buying in a hot market and doing things that weren't in their best interest.  For example, there is a company here in Tucson who has been picketed on and off over the past year because one of their agents represented a client who chose not to get a home inspection.  There are very serious problems with the home that an inspection would have uncovered.

Since only the best survive in this market, what qualities should you expect from an agent who is not just surviving but thriving?

Extensive Market Knowledge

Today's agent must have a knowledge of the market for each area he/she works in.  It is no longer good enough to run comparable sales and add a few thousand to the price.  Now, we are required to analyze which models are selling the best in a subdivision, how many homes are currently on the market and whether that particular neighborhood or area of town is currently declining, stabilizing or increasing in terms of price.

Ability to Communicate Honestly

As much as I'd like to tell every homeowner how perfect and awesome his or her house is, that's just not the truth.  What consumers need now more than ever is an agent who will realistically analyze his or her home and give an accurate evaluation of selling price as well as great tips to help the home attract as many quality buyers as possible.  This may include tips on decluttering, staging or even replacing worn carpet.  An expert agent will be able to provide great advice in a tactful way that explains to the consumer exactly how their home appears to buyers and how is could appear with a few small changes.

Knowledge of Mortgages

Whether representing the buyer or the seller, an agent is now required to have an extensive knowledge of mortgages and financing.  Especially when the mortgage industry is in flux, as it has been more noticeably over the past couple of weeks, it is vital to have an agent who thinks creatively and can give more financing options to help keep a transaction going.  I have had to rely on my previous mortgage experience much more heavily in the recent past and am thankful that I not only understand the terms and various mortgage programs available, but that I have first-hand experience from the inside and can anticipate situations that may arise.

Level-Headedness and Creativity

Many times a transaction is challenged by various small (or large) road-blocks.  It is of extreme importance that a consumer is protected by an agent who is not only adept at finding creative solutions, but can remain calm in all situations.  The agent's job is to look at the transaction from a business standpoint rather than an emotional one.  Many times I find myself "across the table" from an agent who takes everything personally, from the offer price to the request for repairs.  As agents, we can't afford to become emotionally involved.  Our clients are depending on us to think clearly and come up with solutions that benefit everyone and keep the transaction moving forward.  In addition, it is our duty to protect our clients' interests and provide legal protection.  An agent who is too emotional may create a situation where the agent or client acts irrationally and does things that expose them to legal liability.

Overall, I think that the current market is allowing the best of the best to come forward and show their true colors while thousands of other agents are moving on to other fields where they are better suited.  Only those who see real estate as a career and have the stamina to work through the tough times and add new skills as necessary will remain standing to continue to serve buyers and homeowners in the future.