Professions in America have almost always evolved over time. Technology, trends and many other details and aspects of the working life have caused changes, with the progress both good and bad, depending on one’s point of view.
For REALTORSⓡ, the recent past has seen their jobs become not just often more difficult but for many less lucrative as well. Fallout from the Burnett verdict and NAR’s subsequent settlement could very well have a significant negative impact on many buyer agents. Added to an already dicey residential real estate market, what with inventory issues, still challenging mortgage rates and fierce competition for new listings, and it’s for sure many more people will be leaving the industry than entering it.
The Bureau of Labor Statistics shows that the real estate agent failure rate overall is between 43% and 54%. And, soberingly, 87% of agents fail within five years.
RISMedia asked brokers and agents nationwide what they’re thinking about their jobs, and how they feel about the future of the industry.
“The job has certainly become more demanding in recent years, not because the fundamentals of assisting buyers and sellers have changed, but due to numerous external factors influencing the market,” says Josh Jarboe, principal broker/owner of RE/MAX Empire, in Mount Washington, Kentucky. “Most licensed agents only close a deal once every couple of years, which doesn’t serve consumers well. I advocate for a minimum transaction count, and those who don’t meet it should be required to undertake additional continuing education to stay updated with the current market.”
Melissa Hoff, broker associate and team leader of The Hoff Group at Compass in Florida, agrees that what has always been a challenging profession is ramped up even more now.
“The job has become harder in the past few years because of prices and mortgage rates,” she admits. “Agents are having to get back to the basics of showing their experience and expertise to buyers and sellers. Buyers aren’t calling off the hook willing to overpay for homes, and many homeowners are staying in place because they are locked into a good interest rate. The market has cooled off significantly.”
Some agents, such as Rylie Schroeder, founder of Schroeder & Co. Real Estate, focused primarily in Austin, Houston and San Antonio, Texas, thought harder times were simply another obstacle to overcome…enthusiastically!
“Like any market, there will always be challenges and changes,” she says. “The fun part about my job is that it is never the same. If you go into real estate expecting an easy job you’ve chosen the wrong career, and those people usually don’t make it past two years. Agents who are successful in this industry are resilient.
“I network with a number of nationwide groups and we are all confident that the NAR changes don’t actually change anything for good agents. In the same way that people pay a premium to see the best doctor in their field of concern, or out of pocket for a great therapist, or are willing to hire the best attorney in the area, REALTORSⓡ who provide value and offer a great client experience aren’t going have an issue getting business.”
Pam Rosser Thistle, with Berkshire Hathaway HomeServices Fox & Roach, REALTORS® in Philadelphia, notes that tech has kept agents on their toes more than ever.
“Managing the transaction has become more involved,” she says. “While technology has made connections with prospects easier, you need to be ‘all in’ to stay up on how to do your job successfully. If you miss a beat, that can cost your client or lead to emotional distress.”
Blake Blahut, a broker associate and REALTORSⓡ at Realty ONE Group Inspiration, in Orlando, Florida, thinks it’s simply a numbers game that will work itself out organically.
“With sales down overall nationwide, I can see how it has become more difficult for real estate professionals to sustain business,” he says. “Like all agents, I have my challenges and ups and downs, but I personally have been blessed with repeat clients and referrals. While still not easy, it makes for a more sustainable real estate business when you have that built in.”
Another REALTORⓡ, Tallahassee, Florida-based Danielle Andrews, with Realty ONE Group, doesn’t think the job has become inherently harder.
“Instead, I believe that the industry is demanding hard work and adaptability from its professionals,” she says. “Even before the NAR settlement, advancements in how technology is used have played a role in placing a greater emphasis on agents to embrace shifts, find new opportunities, seek professional education and become innovative. Quite frankly, these aren’t things that can be taught, but rather a mindset and intrinsic motivation to adapt and overcome.”
Another voicing the opinion that the job has not become harder is Lisa A. Harris, of RE/MAX Center in northeast Atlanta.
“It has become crystal clear that buyers and sellers understand they need to be working with full-time professionals who continuously train and focus on improving their skills so they can navigate them through the largest financial decisions of their lives,” she says. “The REALTORSⓡ who are dedicated to the trade already have systems and processes in place, making them more efficient and effective in any market condition.
“I believe many will choose a different career path, especially the part-time agents and lenders who lack organization, training, guidance and expertise. When the market slows, there’s often a fallout among these groups. While this can seem like a challenge, it actually benefits experienced professionals like me since it allows those of us with deep expertise and a solid track record to shine and provide unparalleled service to our clients. Quality over quantity always wins in real estate!”
Answering yes or no to whether the job has become harder was less illuminating than the fact that respondents all agreed that working hard overcomes all roadblocks, and that successful agents will stay successful. Nevertheless, each agent polled did answer yes or no to the question.
“Our jobs have become increasingly harder over the years,” said Jeffrey Decatur, a broker associate with RE/MAX Capital in Latham, New York. “I have been licensed since 1994, when a beeper was cutting edge, and a sign of success. The real estate industry changes at light speed. Technology has made it increasingly more convenient, but at the same time complicated. Digital signatures, emailing contracts and digital lockboxes all make things convenient.
“The amount of misinformation the public has at their fingertips makes it complicated. HGTV and other TV shows have agents showing three houses, driving Bentleys and making millions. But that’s not at all the case. It has become more on-demand 24 hours a day. Everybody wants everything yesterday, and if you are not there people will move on. The public has a lot more access to information they thought gave us value, giving them the false sense of security that they know what they are doing, when they do not. I tell them my job may not be to find you the house you buy because a client can stumble into an open house. We have to demonstrate our value, knowledge, and expertise, and guide them throughout the intricacies of a transaction. A good agent is worth their weight in gold.”
Getting deals done has become more challenging, according to Tali Berzak, a broker with Compass in Brooklyn, New York, thus making the job harder.
“It has become much harder to put deals together and make sure they stick,” she says. “Both sides of the transaction have become less understanding and less amenable to friction, and there isn’t as much of a willingness to bend. Generally speaking, all deals have roller-coaster situations, but now it feels like it’s much easier for the deals to derail completely. We used to be able to ride it out but now brokers need to become much more involved and have a much richer understanding of the legal context.”
Finally, Dawn David, as associate broker with Corcoran in Manhattan, blames technology for upping the stress level of agents.
“The job is definitely harder, particularly as technology makes it easier for buyers and sellers to act on their own, as the information is out there in real time. Social media is the innovative way of marketing, and it evolves at record-breaking speed. Keeping up with it is exhausting.”
