More on the agent Bubble

September 16, 2006

In the Post this morning:

Influx -- or Glut?
Despite Slump, New Agents Rushing In

By Kirstin Downey
Washington Post Staff Writer
Saturday, September 16, 2006; Page F01

In the face of a real estate slump that has left home sellers longing for the good old days, when homes sold within minutes of hitting the market, real estate agents are still flooding into the business.

So many agents...so few sales. Over 100,000 agents in the DC Metro area and over 120,000 in Maryland, DC and Virginia combined. In the past year, the number of agents increased by 4,000 in Virginia. This report has many of us scratching our heads. The easy money is over. Read my lips...O...V...E...R. The law of supply and demand seems to be out of whack. Or, these people don't read. Many of us are still expecting to see a decline.

This is not an easy business (except for getting licensed...now that's easy). Recent studies show it takes 3 to 5 years to build a business that can generate an average income of something less than $50,000 per year (that may seem like a lot unless you live in Loudoun County).

At a time when the industry is concerned about its image and is focused on raising the professionalism of its practitioners, revising the entrance requirements becomes an imperative. My advice to those that want to get into this business:

• have enough financial resource to carry you 2 to 3 years,
• get some basic business education (or have suitable business experience),
• be able to create a business plan,
• understand completely the concept of customer service,
• determine what sets you apart from the crowd (develop a unique value proposition),
• be willing to work into the wee hours of the night and on weekends (ie; be available when your clients are)
and
• find a broker that will help you develop your skills and learn the "real" business of real estate.

Finally, understand the definition of professional:

"applied to describe a person (or work of such a person) with the following attributes: service orientation, making expertise available to others, based on a distinctive body of knowledge and skills underpinned by abilities and values, autonomy in performing working within defined boundaries, public recognition of the authority of the practitioner by virtue of working to ethical standards and being accountable."

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