Why Do Realtors Get Such a Bad Wrap?
I’ve found that there is a significant number of people who hate on real estate agents in general, but I think it’s exacerbated here in Boston. In some cases it’s justified, and in other cases I think the issue can be lack of perspective. Remember, at the end of the day, real estate agents are people too.
It’s Easy To Get Your License
I think one reason why there are some bad agents out there, is because the barrier to entry is extremely low. All that’s required is a 40 hour class and 2 short tests. Complete that, and you’re on your way to becoming a top producer. Or maybe not.
I think the job also gets glamorized on television and in the media, and people are then more inclined to pursue such a career. Especially because the initial investment is only a few hundred dollars, and one deal, even if it’s a rental, should cover the initial expense. Because real estate agents are independent contractors, many people go into it with the idea that “I am my own boss” means “I can make my own schedule.” And while that’s true, that attitude isn’t going to help your clients.
When looking for an agent, find someone who loves what they do, and is eager to help you and is obviously working on your behalf, and not just trying to close a deal.
Poor Communication
There are a few different components to this. Having a good response time and being clear and up front is always the best approach. Real estate agents can have a habit of taking too long to respond, if they do at all. In fact, 48% of buyer inquiries go unanswered. And when an agent does reach out to a buyer, the average response time is over 15 hours. It’s also crucial to be as cut and dry as possible. Some agents sometimes get into vague/white lie territory because they don’t want to upset (or lose) their client or have a deal fall apart. In the long run, that’s not good for anyone.
Lack of Understanding
Sometimes real estate agents forget that people don’t buy homes everyday. It’s something we’re immersed in 24/7. Some agents can lack empathy when a problem arises. A buyer or seller might freak out about something, and an agent might not be able to quell their fears because it’s a normal occurrence to us and they just don’t know. But it’s important that we educate our clients and run through all possibilities with them, so they’re comfortable. It’s not our first rodeo, but it might be the clients.
Easy Money
On the outside, it can look like real estate agents make easy money. In the majority of cases it’s not true. I mean I’ve never had a buyer come to me and make a no contingency cash offer after 1 showing with no hiccups along the way. In fact, the median income for a Realtor is about $41,000 a year. Realtors with 16+ years of experience earn an average $71,000 a year, while agents with 2 years or fewer of experience brought in $9,300/year. Remember, it’s entirely commission based. An agent could be working on a deal for a year, but if the transaction doesn’t close, they won’t see a penny. And that doesn’t mean they weren’t working.
Most people don’t know that real estate agents work for free until the home is actually closed on. If working with a seller, an agent is going to pay up front for all of the marketing costs, and not to mention time promoting, showing and holding open houses. If working with a buyer, the agent educates, researches and facilitates showings all without accepting a penny. Putting in and review offers takes time. A good agent will be present for a home inspection, appraisal, smoke inspection or anything of that nature. It’s the agents job to ensure clear communication between all parties involved, which at times can be a lot: mortgage broker, closing attorneys, inspectors, insurance agents, repairmen and most importantly the buyers and sellers. When all is said and done, the average minimum time that each client requires is about 40 hours, but can be much more. Buyers generally require more time.
On top of all of that, agents give a cut to their broker. The broker ultimately carries the responsibility, and usually provides tools for agents and help marketing properties. If they’re a member of the National Association of Realtors, then there are yearly dues as well. When all is said and done, an agent will take home about $9,5000 before taxes for the sale of a $500,000 home.
And that’s it. Those are the reasons why real estate agents get a bad wrap. The TL;DR is: Low barrier to entry, poor communication, lack of empathy and a misunderstanding of the agent’s full set of duties.
With that out fo the way, this is the part where I convince you that I should be your Realtor. You can call me at 617 528 8461, or email me at willy.charleton@nemoves.com.