• The Consumer Federation of America (CFA) reports a surplus of part-time real estate agents, creating a so-called “agent glut.”
• The CFA associates this glut with “widespread incompetence,” as numerous part-timers potentially lack the necessary skills and experience.
• Besides incompetence, there’s an increased pressure to stick to high commission rates among these part-time agents.
• According to the CFA, the surge of part-timers is partially due to the ease with which people can get their real estate licenses.
• The CFA encourages clients to be vigilant about agent qualifications and suggests that agent regulation agencies should increase their licensing requirements.
Real Estate Agent Glut: A Comedy of Errors According to the CFA
The Part-time Paradox: More Agents, More Problems
According to the Consumer Federation of America, there’s an overabundance of part-time real estate agents, akin to a buffet where you’re given too many mediocre options and you’re unsure which ones won’t give you indigestion. This surplus is leading to what they describe as “widespread incompetence,” a phrase that’s as comforting as a cactus cushion.
The Commission Conundrum: High Prices, Low Effort
There’s also a not-so-subtle pressure to maintain high commission rates among these part-timers. Since they’re working fewer hours, they want to squeeze every penny they can out of their work, like performing house keyhole surgery with a chainsaw.
Licensing Disarray: A Walk in the ‘Real Estate’ Park
You’d think getting a license to sell people’s homes would be challenging like rocket science or assembling IKEA furniture. Instead, it’s as easy as a walk in the park, seemingly. This, according to the CFA, is a part of the problem – too many unqualified people are being given the keys to the kingdom.
The CFA’s Final Advice: Don’t Be Fooled by Fancy Suits
The CFA is encouraging clients not just to evaluate an agent by their shiny suit or a flashy smile. Remember, a clown can wear a suit, but it doesn’t make him a CEO. They’re also nudging towards the agent regulation agencies, suggesting they pull up their socks and tighten the licensing requirements.
In this world of real estate agent glut, it’s just like being at a comedy show with too many jesters and not enough kings. The CFA points out that the stage is flooded with part-time performers trying to juggle high commission rates and turning their incompetence into a variety act. They suggest buyers beware of the fool’s gold, and advocate for stricter licensing, much like a bouncer at an exclusive club. But until then, clients, hang on to your homes and your wallets because the real estate circus is in town!
Original article: https://www.inman.com/2024/01/04/49-of-agents-sold-either-1-home-or-none-at-all-in-the-past-year-cfa/