The housing market, against many expectations, has boomed over the past year, causing a rush to real estate. But not just by home buyers! People who lost their jobs to the pandemic have decided to take advantage of the booming housing market and jump into the real estate business, causing a glut of inexperienced real estate agents.
Real Estate, depending on the state where you get your license, can be comparatively easy to get into. And selling real estate, even part-time, can be a respectable source of income. Many people who became unemployed because of the pandemic saw this and the active housing market as an opportunity, not realizing how many others had the same idea. The number of agents registered with the National Association of Realtors in the last year has gone up almost 10% over the past year.
But getting a license is only the first step to becoming a great realtor. Many real estate agents who are just starting out spend years working as a junior realtor on a larger real estate team to learn the nuances of the real estate business with the support of experienced realtors.
Especially in a tight market, an experienced realtor is crucial for buyers. When a house has 10 or more offers, an experienced realtor will be able to guide buyers on what they should or shouldn’t include in their offer to make it competitive. An inexperienced agent who isn’t as familiar with the area might suggest or approve options, like waiving a housing inspection contingency on an older home, that would be appealing to sellers, but potentially devastating for the buyers down the road.
Experienced realtors also have a broad network of local realtors that they can keep an eye on. They are more aware when homes in the areas the buyers want come on the market, and can have offers ready so buyers can be quick to put an enticing offer in front of the sellers.
Sellers, on the other hand, might not notice as much in a tight market. But when the housing market turns downwards, an overabundance of inexperienced agents can make things worse. Homes that need to sell quickly in a slumping market need a an experienced realtor.
When an experienced realtor goes into a home, they know what buyers in the area want. They know what upgrades and renovations that the homeowner needs to do to get the best price for their home. Even in tight markets, this can make a difference of thousands of dollars in the price of a home.
Experienced realtors have established relationships with trusted professionals who can make the upgrades at good rates and on time. And they know professional photographers and stagers that can make a home look its absolute best.
Inexperienced agents won’t have a large network of potential buyers yet and might not know the best places to market a home when the pool of buyers is smaller. With too many inexperienced real estate agents in a market, too many homes might not sell before they go into foreclosure, making a slow market into a slump or worse.
It may not be too hard to get a real estate license, but actually buying and selling real estate well requires time and effort. When selling or buying a home, working with an experienced realtor, or a realtor on an experienced team, is always going to be the best choice. This rush to real estate and overabundance of inexperienced agents makes it hard for new buyers or sellers to find a realtor that is going to have the skills and expertise to help them on their home buying journey. While we might not be seeing too many effects yet, when the home buying market takes a turn, this could be bad news.
If you need an experienced realtor to help you buy or sell a home, contact Geva and Jane. They have many years of experience, a robust network of buyers and a trusted team of professionals that will help you buy or sell quickly.
Elizabeth Marcano, Writer for Geva and Jane Real Estate