The Revolving Door of Real Estate Agents
At one time, a real estate agent was the local expert with years of accumulated experience. They were the people you trusted to help sell your home and find a new one. They were a necessary piece of the puzzle in helping people transition from one home to another.
Today, more than 80% of new agents choose not to renew their licenses after two years. Agents are paid on a commission-based structure and part of that commission is paid to their brokerage. For most brokerages, there is little cost in having a team of agents so they work to recruit as many as they can because more agents equate to higher revenue numbers. The market can become saturated with agents making it hard for them to make ends meet, so they leave the industry. It's a revolving door that has led to a lack of expertise and professionalism in the industry.
Real estate brokerages are desperately trying to retain agents and their outdated broker/agent model instead of evolving their team and system to better serve today's more educated buyers and sellers. It's a system that fails clients and most of the agents who join the industry wanting to help people.
There are five million homes sold each year in the U.S. and approximately two million agents nationwide. The simple math shows that the average agent sells just 2.5 homes each year. Today, the average agent spends all their time competing for the next listing. Does that sound like a system set up to best serve the public?