Many brokerage leaders say the lack of full-time, serious agents is a drag on the industry. Intel asked if that would change after the latest settlement.
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In its monthly survey of hundreds of real estate professionals, Intel did not ask broker leaders about unqualified agents.
But dozens of brokerage owners and executives came forward with this unsolicited complaint, complaining about the industry’s low barriers to entry and citing a long list of problems that were causing trouble for their businesses. dissatisfied.
These brokerage leaders were surveyed in January and February by Inman Intel Index, which revealed that dealing with a group of agents with low knowledge levels – brokerage or otherwise – is the most frustrating aspect of working in real estate today. part one.
Some believe this has taken a real toll on the business.
One leader wrote that “so many unskilled real estate practitioners” harmed “the credibility of the industry as well as buyers and sellers.”
It is against this backdrop that news broke earlier this month of a major settlement by the National Association of Realtors in its ongoing commission litigation. The fallout from the lawsuit is widely expected to result in a reduction in the ranks of real estate agents.
If the testimonials from these brokerage leaders are any indication, many of these brokers won’t be missed.
Explore this trend in the full report below.
not just you
As every month, Intel asks broker leaders what The most challenging part of the business environment It’s today.
Answer choices provided in the survey range from interest rates and profit compression to hiring and regulation.
- more than one third of leaders Select “Other” and write their response. The proportion of not selecting one of the main options offered was particularly high compared to other questions in the survey.
This high “other” response rate represents an opportunity for Intel to refine its response selection to better serve its readers.
But it also provides an opportunity for an unsolicited, unfiltered look into the frustrations of real estate decision-makers.
What is one of the most common spontaneous reactions? This January brokerage leader respondent is representative of many in this group.
- “We have Let’s dumb down our industry,” the leader wrote. “We recruit inexperienced people who know little/nothing about the real world of business and have never been mentored—they Lower brokerage fees and cause us trouble Due to incompetence. ”
Many brokerage leaders are pointing the finger at agents, who they say are not working hard to improve their skills.
- There is a “Agent quality is below threshold In our market,” one reported. “They are Busy posting on social media “They’re not focusing on the necessary skills that are valuable to consumers.”
Others also expressed frustration that rival brokerage firms were failing less experienced agents.
- One brokerage executive wrote that “the lack of education most brokerages provide their agents” is the problem. “Care deeply about paying the highest dividends They can’t afford the overhead Training and accountability. …in turn, the agency has no value proposition, and Commissions are falling. (No one) is solving this problem. “
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As the industry turns to a new chapter, the issue may not have as much of an impact on real estate decision-makers as it does now.
At least that’s their expectation.
- When asked what is the most challenging part of the business environment 12 months laterIn the January and February surveys, few brokerage leaders singled out underperforming brokers.
That may be because Most real estate professionals Intel’s survey in November predicted that many agents would leave the industry as a result of the commission’s lawsuits and settlements. It stands to reason that agents with lower volumes will be among the first to exit.
But for many brokerage leaders, the problem is deeply ingrained and is likely to persist.
- Both brokers and agents are “still Not aware and unable to encourage change and take the time to train and focus on the real estate process and professionalism,” one agent wrote in response to the February survey.
Six other people echoed this sentiment when asked about the main business challenges facing the year ahead.
We’ll ask one of them — a brokerage leader who responded anonymously to the January survey — The last sentence:
I think 12 months from now the most challenging aspect of the business environment, particularly in the real estate education space, will be the “other: enabling Enough registration provided at school Structured, non-self-paced courses.’
The core challenge lies in Attract attendees to face-to-face or virtual courses. This difficulty stems from several factors unique to the real estate environment.
first, Real estate agent income fluctuations, which can be uncertain and inconsistent, making it financially challenging to commit to a structured education program. second, The prevalence of dual-career agentsThose who juggle real estate with other professional responsibilities often create severe time constraints.
These factors combine to make it increasingly difficult for such educational programs to maintain strong enrollment, especially compared to the flexibility and accessibility of online, self-paced alternatives.
Methodological Notes: Inman of the month Intel index opinion poll Taking place from February 20 to March 3, 2024.Invite the entire Inman reader community to attend, and Intel 811 responses were received.Respondents to this opinion poll They were directed to the SurveyMonkey platform where they self-identified their profile in the residential real estate market. Respondents were limited to one response per device, but there was no IP address limit. Once a profile is selected (residential real estate agent, mortgage broker/banker, business executive/investor/proptech or other), respondents answer a unique set of questions for that specific profile.because opinion poll There is no requirement for demographic information such as age, gender, or geographic location, and there is no weighting of the data.Esther opinion poll Will be conducted monthly, with recurring questions and unique questions for each profile type.
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