Experts believe the hot real estate market doesn’t need more agents

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IN coronavirus pandemic pushed splash potential home buyers the housing market, many of whom want more space and want to benefit from historically low mortgage rates.

However, according to some experts, this does not mean that the industry needs more agents.

A spokesman for Redfin told FOX Business that “low home supply and high competition” will further complicate the bargaining process for new agents.

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“The reality is that a lot of people are starting real estate right now, but most new agents are unlikely to pay off in the first year,” the spokesperson said.

Even before the pandemic, the industry was very competitive.

“The industry is highly competitive even in normal times, with some doing well and generating six-figure income, while others have trouble building their reputation and customer base,” Lawrence Yoon, chief economist at the National Association of Realtors, told FOX Business.

A real estate sign advertising a Contract home is displayed in Vienna, Virginia, near Washington. (Reuters / Larry Downing) ()

In today’s environment, “homes are selling quickly and inventory is hard to come by,” Yoon said.

This means that agents who know how to get listings will continue to do well, “while those who work primarily with buyers will do a lot of work and re-work in a multi-offer situation,” Yun added.

However, there is “fierce competition” in the country.

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“Good luck to everyone, but the reality is that not everyone will succeed,” Yoon said.

The National Association of Realtors estimates that 1.5 million realtors are involved in all aspects of residential and commercial real estate, “hence 1.5 million individual business plans, of which about 11 million transactions are completed annually,” Yoon said.

However, some experts argue that now is the time to break into the industry.

“While the market is extremely active and stocks are low, that doesn’t mean you can’t close deals,” Oxford Property Group CEO Adam Mahfouda told FOX Business.

In fact, Mahfouda argued that “now is a great time to build relationships with buyers, and good agents who really care about their client’s best interests may even dissuade the client from buying in a bull market dominated by betting wars.”

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In addition, agents operating in today’s market will also benefit if listing prices are set correctly, because that means they will sell very quickly.

“That said, many companies (like ours) that have an independent contractor relationship with their agents versus an employment relationship also provide their agents with leads, benefits, training, and more,” he added. “So you don’t have to be an employee to take advantage of these benefits.”



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