The Profession of Real Estate Sales
Why is the real estate profession a haven for mediocrity?
- There are virtually no barriers to entry.
- Many brokerages are willing to hire anyone who can fog a mirror.
- The local, state and national Realtor® associations are willing to accept most anyone willing to pay the annual dues.
Isn’t it ironic that with little to no training, someone can become licensed to oversee the single largest financial transaction most consumers ever participate in?The industry needs to create the equivalent of Consumer Reports for rating and ranking real estate agents and brokerages. By working together to define and implement minimum standards of performance, we can dramatically improve the real estate buying and selling experience and go a long way in restoring credibility and dignity to the profession.
My comments have nothing to do with limiting competition and in fact should create more. Educated consumers will seek out agents who can deliver a quality experience not just a listing in the MLS. As a result, Realtors® and brokers will begin to invest time and resources in delivering more innovative approaches to selling homes.
How do you see the landscape changing within the next year or two in regard to realtors and brokerages?
I think last I heard there were 4,000 realtors in Sarasota. How many do you think will be left a year from now?
There is one advantage to the softening of the local real estate market: many of the mediocre (or worse) real estate agents will be forced to leave the profession. This “correction” will clean house in terms of agents. The perception that “anyone can make money in real estate” will likely be a thing of the past (at least for a while). I believe the real estate sales industry would be better served if more brokerages established production standards to help weed out mediocrity instead of waiting for a downturn to do it.