Today, I want to let you know three things most people do not know about Realtors that cost them thousands of dollars.
First of all, the bar of entry to become a real estate agent is low. The person who cuts my hair for $20 studied for 1,000 hours. Do you know how long I studied in order to sell $500,000 homes? Only 90 hours. Anybody with $2,000 and a couple weeks can become a Realtor.
Before you hire someone, you might want to know that they had the exact amount of training as a teenager does to get a driver’s license. I don’t see people waiting in line to have that teenager be their Uber driver.
Also, according to the National Association of Realtors, the average Realtor does 11 deals a year. That’s not even one deal a month. Not only is the bar of entry low, most Realtors don’t even get a lot of practice at selling homes.
Plus, you can’t really make a living on 11 deals a year either, so that means the average agent has to supplement their income. That means these agents are working part time.
And you’re going to have them sell the most expensive thing you ever bought? That’s insane.
The NAR also explains most Realtors have less than half of their business coming from referrals. On average, referrals are only 20% of their business. What’s the problem with that? If their referral rate is less than 50%, I would think that Realtor is not doing a good enough job to have people refer them.
Another aspect of this that most people don’t really think about is that if only 20% of their business comes from referrals, they do not have the systems in place to take care of their customers. Once the sale is done, that’s it! They have to put their resources into getting more leads. If you want someone who will be available to you with resources before, during, and after the sale, you might want to find someone who gets more than half their business from referrals.
Those are three things that most people don’t know about Realtors’ that can cost you a lot of money. How do you combat that? Interview your agent about these things.
If you, or someone you know, would like my Roadmap to Avoiding the Wrong Agent, just send me an email and I will send it on over.
As always, if you have any other questions, please don’t hesitate to reach out to me. I would be happy to help you!