Are real estate agents going the way of the travel agent?
There used to be several travel agencies in the neighborhood in which I grew up. This weekend, I noticed that all those old agencies are now gone.
The Los Angeles Times, in a recent story, wondered whether real estate agents will soon join them.
The Times profiled a couple who bought a home in Burbank through an Internet service. At the end of the process, the couple, who never did meet a real estate agent in the flesh, received a $10,000 rebate check from their Realtors’ 3 percent commission.
The statistics show that real estate agents are leaving the industry in record numbers, not surprising considering how long the housing industry has been in a serious slump.
According to the Los Angeles Times’ story, the National Association of Realtors has reported a 13 percent drop in its membership since 2006.
The Times’ story goes on to say that in California, one of the states hardest hit by the housing downturn, only 2,030 people took examinations for broker and agent licenses in March. That’s down from more than 18,000 people who took these tests in March of 2005, the story reports.
Again, this is no surprise. During the housing boom, which ran from about 2001 through the first half of 2006, real estate agents flocked to the housing business in droves. It was a pretty easy time to make solid money as an agent. Homes sold in record times. Sellers juggled multiple offers. It seemed like everyone involved in the selling of real estate was making big money.
Then the housing slump came. Suddenly, working as a real estate agent was extremely difficult again. Since the slowdown, it’s taken real, hard work to make a solid living as a real estate agent.
I expect the ranks of the real estate agents to continue to shrink. But don’t forget, a good, talented real estate agent is a real ally to anyone looking to buy or sell a home. A top agent can help you land the best price for your home. A skilled agent can also help you purchase a home for the right price.
The housing slump, and new technology, have weeded out some of the dead weight in this industry. You could argue that it’s made the real estate industry stronger.
