top of page
Writer's picturerisby drayton

"Incompetence or Oversaturation? Revealing the Reality of the Real Estate Industry"

Have you ever wondered about the competence of real estate agents, given their short schooling time? Are you one of the 93% of Americans who enlist in home buying and selling services, despite the availability of free online platforms like Zillow and Trulia?


These are valid questions, considering the current state of the real estate market.

It is undeniable that real estate offices and professionals are everywhere. It seems like there is an office on every corner and a new agent constantly popping up.


But the truth is, becoming a licensed real estate agent requires only 14 weeks of schooling. To put this into perspective, that's less than one semester in college. This raises the question, are these agents as competent as we would hope to believe?


Despite the abundance of online platforms for marketing and finding properties, the majority of Americans still choose to use real estate services. Many argue that agents provide valuable expertise and knowledge and can guide clients through the complex process of buying or selling a home.


However, with the rise of DIY culture and the prevalence of information at our fingertips, one might question the need for a real estate professional.


But the market seems to be telling a different story.


For many years, real estate was considered a lucrative and stable career choice. However, the recent economic downturn and housing crisis have greatly impacted the industry. Foreclosures are on the rise, and homes are staying on the market longer than usual.


This begs the question, is it really the market that is the problem?


The turnover rate of real estate agents is staggering. Research has shown that 70% of agents who obtain their license will be out of the business within seven months. That's less than a year of being in the job! And the statistics only get worse, with 87% of agents failing within five years. This high turnover rate and constant influx of new, inexperienced agents may contribute to the perception of a problem in the market.


But is it fair to blame the struggling market for high turnover rates? Some argue that the real estate industry is oversaturated, and there simply isn't enough demand to sustain the number of agents. Others argue that the market itself is not the issue, but rather the lack of necessary skills and knowledge among agents to navigate through challenging times.


Ironically, a surprising fact about real estate agents is that many of them are not homeowners themselves. This may come as a surprise, considering their job revolves around helping people buy and sell homes. However, with the rising cost of real estate and the high commission fees that agents need to pay, it may not be financially feasible for them to own a home.


This further raises the question of whether agents truly understand the struggles and concerns of their clients.


Furthermore, the 14 weeks of schooling required to become a licensed agent does not necessarily provide adequate training on investing strategies, which many agents claim to be specialists in.


This has led to some agents resorting to "bullshitting" their way to a commission, rather than truly understanding and guiding their clients in making a sound financial investment.


In conclusion, the real estate industry is complex and constantly evolving, and the competence of agents is a valid concern. While the short schooling time and high turnover rates may contribute to this perception, it is ultimately up to the individual agent to continuously learn and adapt to the ever-changing market outside of required education.


As for consumers, it is important to do thorough research before choosing to work with an agent.


Hiring a real estate licensee to list your property? Watch the video below on our Homeowner Guide to Avoid The Runaround




37 views0 comments

Commentaires


bottom of page