by Michael Ertem
Like every morning, I was checking new listings in my area this morning. It helps me to be familiar with the inventory and informs me with market activity. I was looking at a property listed close to 2 million dollars and read the description and looked at the photographs to my horror.
Many real estate agents have cookie cutter descriptions of the properties they list kind of like one fits all approach. This agent's listing is not differentiating the home than others in the greater city listings. I decided to check on this agent. Her website says she is an award winning realtor since early 80's. What kind of awards are given to mediocre professionals? Who is giving these so called awards? What makes them top agent? Then, I find out, this agent sells zero to two homes in a particular year since she started her career, apparently a part-time agent.
National Association of Realtors recently commissioned Stefan Swanepoel a real estate consultant, who conducted extensive research to put it together a 164-page report called DANGER (Definitive Analysis of Negative Game Changers Emerging in Real Estate), covering interviews with 70 notables inside and outside the industry and a survey that collected nearly 8,000 answers.
Here are some responses from the report;
"I don't like lawyers; I rarely work with an incompetent one. I like real estate agents more, but there are a large number of incompetent ones."
"Technology is constantly evolving, and agents aren't. The difference is noticeable and it is getting larger."
"Part-time agents are the enormous risk to our future."
The conclusion is, masses of marginal agents destroy the reputation. Unfortunately, real estate industry is seated with a large number of part-time, unethical, untrained, or incompetent agents. This knowledge gap threatens the credibility of the industry.
Most professions require thousands of hours of study with a bachelor's degree. Cosmetologist has to study 375 hours to became one. To become an earth driller, you need over 700 hours of instructions. To became a licensed real estate agent, an average 70 hrs of study is enough and in some states it is as low as 13 hours. Entry to the profession does not require much and as a result of it, consumers suffer the consequences.
Let's go back to the award winning realtor I was talking about, why would a homeowner choose her as his realtor? Does the home seller know she is a part-timer? Is she a friend? I don't know, but what I know is that the same homeowner would not choose a part-time doctor, lawyer or accountant.
I know this, though, there are quite many great Realtors especially in Berkeley and San Francisco Bay Area, and this homeowner didn't need to settle down with this one.
Ask "why would I" questions to yourself
Why would I;
That is my rant for today...