Yeah, I know, touchy subject. No one put a gun to a home buyer's head, but did anyone slow them down, have them take a minute to think? Did realtors get home buyers into trouble? Many, including the industry as a whole, certainly acted as enablers.
Why so Many Agents?
This is not a new question. Over three decades I've asked this countless times. Why are there 2M+ agents? There is absolutely no need for that many. The answer is one word "fees". Desk fees, license fees, membership fees, training and classes, equipment...brokerages could care less if sales are made, just pay those fees. So at every level, real estate is pitched as the ideal part time hustle, beat your "spear" of influence to death and make a cool couple hundred grand a year. The idiotic idea that a real estate transaction is akin to ordering a book on Amazon was destroyed by the iBuyer implosions.
Unskilled and Inexperienced
Is selling real estate a profession or hobby? Appraisers have extensive classroom training then extensive required apprenticeships. Stock traders have multiple similar requirements, from CFP to the varies Series ratings. Yet a realtor, tasked with guiding a client through one of the largest financial moves in a lifetime has what, a few hours of nonsense to sit through? Once licensed, there is no oversight? No tutelage, no understanding of contracts, stipulations, negotiation.....
Comical Designations
As bad as this industry is when it comes to brutalizing the written word, that pales when it comes to self aggrandizement. Every single agent is "#1" or a "top producer"; every single agent is a "million dollar this and that"; no, they're not. But organizations crank out fictitious "designations"; "earned" as long as the check doesn't bounce. Consider just the NAR list, 32 designations? Absurd and there to solicit money from anyone needing more nonsensical letters to push.
The Public is to Blame
Despite the lack of oversight when it comes to ensuring competence, no one forces an agent on someone. Buyers and sellers seek out their agent and if they elect to work with one that has no clue, it's on them. People spend no time vetting agents; they spend more time researching restaurants, clothes, tech or on social media. Rather than take five minutes to Google and verify production and references, many blindly move forward. Of course, everyone wants "rebates/kickbacks" and sellers always shop price. Some are guilted into working with friends or relatives because they feel obligated. So to an extent, you get what you pay (don't pay) for. Recent surveys have over 70% of homebuyers regretting their purchase.
Hopefully, 2023 is a year that sees these hobby agents disappear. It's clear that nothing changed over three plus decades, any future change is unlikely. For the true professionals in the business, this is a constant source of aggravation. We know what it takes to make a transaction boring, to an extent we created this idea that real estate is easy. It's not, ask any genuine professional.
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