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I agree. There's no question in my mind that some agents are honest, caring, and adept at acquiring/interpreting economic data. I think I've met at least 2. It's sad that the number isn't bigger, but that's partly due to the low barriers to entry in this profession, and the commission compensation structure, IMO. I often find agents who are caring, some who are honest, and very few with good research and analysis skills. After all, if you were a professional-level business data analyst, you might be able to make more money with far less expense and hassle working in that field, versus real estate. Last time I heard, the average agent makes something like $20,000. And I bet a data analyst could make at least $40k.
That is, on the residential side. I imagine commercial agents have to be able to wave some numbers at people and do a Powerpoint dog and pony show. So... I guess I'm saying the more high-powered whiz-bang number crunchers are more likely to be found in the "financial community," not necessarily because they are better, but because they can convince others they are better, and therefore convince wallets to open wider.
It will be interesting to see if Wall Street types start drifting into your turf, as the Financial Apocalypse continues.
I actually know a couple of former Wall Street MBA's that are in real estate now...
The problem with being just a number cruncher is the lack of personality that tends to go with that type of person. Most people aren't that analytical. Most buyer's and sellers want some data, but not too much as it gets overwhelming.
Now you take MikeJ's personality with some data crunching abilities and his kick a$$ PhD from Hill Billy Carolina and you have one rocking agent.
I agree. You do not need a 4 year degree or post graduate to work as a REA. It's a humble profession so the barrier should be too. We are talking about selling used homes here.
I'm not arguing that licensing requirements should be raised to become a real estate agent. What I'm worried about is that a large number of the population is unaware of lack of education or experience requirements it takes to become one, and as such interpret what may be well meaning, but potentially wrong advice as fact.
The problem with being just a number cruncher is the lack of personality that tends to go with that type of person. Most people aren't that analytical. Most buyer's and sellers want some data, but not too much as it gets overwhelming.
Hey leave Mike be. He is in his own bubble. No real estate agent can touch him!
I agree with you on this one. Thankfully he has a good sense of humor and knows that I just like teasing him. Plus, I promised to take him out to lunch if I'm ever out his way...Somehow I think I just upgraded his lunch from a sandwhich to a steak...
Do I have data on my belief that generally speaking number crunchers tend to not have personality management skills or that buyers and sellers get easily overwhelmed with data?
Do I have data on my belief that generally speaking number crunchers tend to not have personality management skills or that buyers and sellers get easily overwhelmed with data?
Actually, nobody can pick the exact bottom of this market... or even come relatively close... but if I needed to take the advice from one group of people... it would be from the very seasoned real estate investors. These aren't the infomercial guys, or the flippers, or the flashy (I made $500k on my last deal) investors, but the investors who have been investing in the same local area for 15-20 years that never mention how much money they've made. They use information from the economists, analysts, real estate agents and bankers to help them make their decisions and then risk their own money, so they better have done their due diligence.
. it would be from the very seasoned real estate investors... but the investors who have been investing in the same local area for 15-20 years that never mention how much money they've made. They use information from the economists, analysts, real estate agents and bankers to help them make their decisions and then risk their own money, so they better have done their due diligence.
I would too, if I could find them! In fact, I'd probably tie them up in the basement and tickle them until they divulged their secrets! But who are these mysterious geniuses, and where do they live? Do they blog? Are they single?
I think the reason why real estate agents often tout themselves as experts in areas that stray outside of their realm of expertise is because they actively market themselves as professionals. Many people naturally come to trust the advice given to them by a hired professional (such as a lawyer, doctor, or accountant), and real estate agents try to feed off of that level of trust.
Sadly, in my opinion, real estate agents are not the professionals they try to pass themselves on as. When questioned, many real estate agents on this board will compare themselves to a doctor or lawyer in terms of required professionalism and knowledge in their area of expertise. What they won't tell you is that there are little to no education or experience requirements to perform their job. Doctors and lawyers spend nearly a decade in post secondary schools, while undergoing grueling examination and scrutiny by their peers. Even then, simply graduating from their courses is not enough to legally practice their desired profession. Bar examinations and review boards constantly verify that service and advice is sound and legally accountable. Real estate agents take a few night classes, pay their NAR dues and are allowed to call themselves Realtors (with a capital R).
Real estate agents do not have this elaborate system of checks and balances in place to ensure that the advice and knowledge they pass on to their clients is accurate, which should be considered a giant red flag to clients who are eliciting their advice.
Another example of what keeps me from considering real estate agents as the professionals they strive to be is their pay structure. If you were to go to your doctor's office and explain to them that you will pay them 6% of the total cost of your surgery, they will laugh you out of their office. The same goes for lawyers and accountants. Their level of expertise, and accountability, allow them to command high hourly wages. Because real estate agents are paid based on a commission of the sale, their job duties and responsibilities fall in line with a commissioned salesperson (such as furniture or used cars).
While I don't disrespect real estate agents (I understand it can be difficult to make a living from a profession that is paid solely on commission in a market that is in a strict decline), I take all their advice with a grain of salt. As has been previously mentioned in this thread, real estate agents rely on sales to make a living, and as such their advice is generally biased.
If I want a fair market value of a home I'm considering, I contact a licensed appraiser and have them value the home. If I want to know the condition of a home, I contact a licensed home inspector. If I want to draft contracts and offers, I contact a real estate attorney. However, if I just want to tour homes in a neighborhood, I will contact a real estate agent.
Excellent post.
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The Men in Black?
