If you don’t know how hot the housing market is, you’ve been living under a rock. Every news outlet is touting the same story — record low supply and record-high prices. A not-as-well-known fact? There are more real estate agents than homes for sale in the U.S. — almost twice as many, according to the latest data.
A Perfect Storm
The strength of the real estate market is one factor spurring peoples’ interest in real estate careers as is the large number of Americans looking for employment following the early pandemic unemployment spike. Service industries in particular took a big hit, leading many to seek jobs in real estate.
“There are very low barriers to entry, in terms of getting a real-estate license. But the barriers to success are very high,” according to RE/MAX Holdings Chief Customer Officer Nick Bailey. Competition is fierce for the few listings that come up, and sellers prefer agents with a long track record of success. These experienced agents are going all out to entice and educate potential sellers with innovative marketing and social media.
As a result, new agents who are fortunate enough to find a client often represent home buyers who are facing fierce competition thanks to extremely tight inventory. Realtor.com reports that half of potential first-time buyers fell in love with a home but were unsuccessful in purchasing it. Most reported being outbid or unaffordability as the main reasons for missing out.
Redfin took a look at the data and discovered that close to 61% of offers written by their agents went into bidding wars in February — marking the tenth straight month where more than half of offers faced competition. Redfin Chief Economist Daryl Fairweather explains, “The uptick in mortgage rates is likely fueling more bidding wars in the short term because house hunters are rushing to buy homes before rates rise even further.”
The Big Leagues
This new normal is showing in new agent salaries. According to a 2020 report from the National Association of REALTORS®, members with two years or less of experience reported a median gross income of $8,900. (Sadly, that’s not a typo.) Compare that to a median gross income of $86,500 for agents with 16 years or more of experience.
Even for experienced agents, it’s no picnic out there. One veteran Boston-area agent puts it bluntly, “Frankly, this is not the time for amateurs. This is the big leagues here.” With homes selling at such a frenzied pace, it’s more difficult than ever for experienced agents to find clients. By the numbers, there are approximately half as many listings available as there were last Spring, and those that are on the market are selling 18 days faster than last year.
What’s a New Agent to Do?
Make the leap to investment real estate. New Western is experiencing unprecedented levels of growth and we need more sales agents in markets across the country.
As the largest private source of distressed investment properties in the nation, we aren’t struggling with an inventory shortage. Our incredibly talented acquisition team scours the market and delivers a steady flow of investment properties for you to sell. And unlike a traditional brokerage, you’ll work with a large network of investors, not a handful of frustrated home shoppers.
Many of our most successful agents started their careers at New Western with little more than a relentless drive to succeed. From live and on-demand continuing education classes to coaching and mentorship from top performers, we give you the tools to do just that. We’ll teach you how to analyze investment opportunities, structure a deal and build a portfolio.
We also have a track record of promoting from within and our agents typically earn more in commissions than their peers working in traditional real estate brokerages. We provide more properties, more convenience, and more opportunity to our investors. That translates to higher and faster earning potential for our agents. We also move much faster than a traditional brokerage with transactions typically closing in days or weeks, not months.
If you want to be a part of improving your local neighborhoods and communities while finding personal fulfillment and growth, we’d love to talk.
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