From floridarealtor.org
What keeps Realtors up at night? The National Association of Realtors says the No. 1 threat to agents — ahead of declining commissions, dwindling relevance or a repeat housing collapse — is other agents.
According to the giant trade group’s recently released “Danger Report,” the biggest menace looms in the form of “masses of marginal agents” — unskilled salesmen and saleswomen who lack the experience to coach a consumer through the purchase or sale of a home worth six or seven figures.
“The real estate industry is saddled with a large number of part-time, untrained, unethical and/or incompetent agents,” NAR’s report said. “This knowledge gap threatens the credibility of the industry.”
Getting an agent’s license in Florida requires a high school diploma, 63 hours of classroom training and passing the state real estate exam.
“It’s an easy-entry business,” said Michael Pappas, head of Keyes Co. Realtors in Miami. “For 63 hours and a couple thousand dollars in upfront costs, it’s the last bastion of independent sales where you can make a significant income.”
NAR counts more than a million members and hundreds of thousands more agents who hold state licenses but aren’t Realtors.
For years, accomplished agents have griped about their less-than-competent peers, but real estate has remained a freewheeling industry that welcomes all comers.
The Danger Report, sponsored by NAR and authored by real estate consultant and author Stefan Swanepoel, stresses the modest education needed to earn a real estate license.
“Becoming a cosmetologist requires an average of 372 hours,” the report says. “But to become a licensed real estate agent requires an average of only 70 hours, with the lowest state requirement being 13 hours.”
Pappas isn’t so sure that more classroom training would necessarily weed out the poor performers.
While star agents pull in six-figure incomes, most agents make much less than that.
In a separate report, the National Association of Realtors last year said the median gross income for its members was $47,700 –– from which agents paid gas, marketing expenses, Realtor dues and other expenses.
Agents are worried about commissions, too.
That threat places second in the Danger Report.
Consumers are “placing increased pressure on real estate agents to reduce their commission rates,” the report says.