Most Realtors Suck and the STATS to prove it.

Most Realtors Suck and the STATS to prove it.

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes

It's a daily occurrence that somebody creates a thread here on BP talking about how bad their Realtor is, and how Agents all suck etc....

Myself, I'm licensed and have sold over $200 Million, so it's a fair assessment that I myself do not suck. However, does this ring true for the rest of the real estate industry? It's widely known that over 80% of agents fail in their 1st two years in the business. That state alone backs up the notion that most agents do indeed suck. What about the ones who don't fail though? What does the average agent look like? Does the average agent suck?


NAR Membership Statistics

Members to date: 1,383,010 as of July 2019

Number of local associations: 1,148 as of January 2019

Source: Monthly Membership Report and NAR Membership Statistics, 1908-present

REALTOR® Demographics

  • 68% percent of REALTORS® are licensed as sales agents, 20% hold broker licenses, and 14% hold broker associate licenses.
  • The typical REALTOR® is a 54-year-old white female who attended college and is a homeowner.
  • 67% of all REALTORS® are female, and the median age of all REALTORS® is 52.
  • Real-estate experience of all REALTORS® (median): 8 years
  • Median tenure at present firm (all REALTORS®): 4 years
  • Most REALTORS® worked 35 hours per week in 2018.
  • The median gross income of REALTORS® was $41,800 in 2018, an increase from $39,800 in 2017.
  • Median number of transaction sides in 2018:
    • Residential sides for all REALTORS®: 11
    • Residential sides for residential specialists only: 12
    • Residential sides for commercial specialists only: 4
    • Commercial sides for commercial specialists only: 4
  • Formal education of REALTORS®:
    • Some college: 30%
    • Bachelor's degree: 31%
    • Graduate degree and above: 13%
    • Associate degree: 13%
    • Some graduate school: 6%
    • High-school graduate: 8%
  • REALTOR® affiliation with firms:
    • Independent contractor: 87%
    • Employee: 5%
    • Other: 8%

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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
6y

Sorry Brad. Answering your phone puts you ahead of 95% of agents...

See this reply in the discussion

73 Replies

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  • Real Estate Agent · Las Vegas, NV · Member since 2017 · 279 posts · 133 votes
    6y

    I find that it is VERY easy to be a good Realtor when there are so many bad ones out there. It's kind of like dating a girl who just got out of an abusive relationship, which makes you look like an angel by comparison. 

    Literally, answering your phone when it rings puts you ahead of 40-50% of agents currently holding licenses. Luckily for all of us NAR just increased the number of hours needed to get your license and to renew it so with a higher barrier to entry, I think we'll start seeing some of the bottom of the barrel agents/would-be agents unable to acquire/maintain their license. A welcomed change from my view.

  • Investor · Lake County, OH · Member since 2016 · 124 posts · 55 votes
    6y

    Hi James,

    I agree that many realtors have room for improvement as to many other professions.   As always, get referrals and do some due diligence when picking a realtor, a contractor, a babysitter, Doctor, attorney etc.  Glad to see you don't suck :) and have the intelligence to do what needs to be done to be much better than average!

  • Amy VergesBusiness Member
    Investor · Baton Rouge, LA · Member since 2014 · 128 posts · 138 votes
    6y

    Thanks for posting those stats @James Wise . Really interesting info.

    Unfortunately I tend to agree that most realtors suck.  I got my realtor license 4 years ago for that exact reason.  There's a very low barrier to entry and not a lot of training involved/offered.  I also think there's an added layer of realtors "sucking" when it comes to working with investors.  There are a lot of realtors who kick a** at working with clients who are buying & selling primary residences, but know absolutely nothing about investors or investment properties.  It takes a totally different skill set and knowledge base to be a good realtor for investors.  That being said, there ARE great realtors out there; you may just have to weed through the bad ones to find them. 

  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    6y

    Agreed! Most Realtors don't know what they are doing

  • Rental Property Investor · Tucson, AZ · Member since 2019 · 173 posts · 87 votes
    6y

    @James Wise

    "Most Realtors worked 35 hours per week." That's has to be a skewed stat. How could they track number of hours and what would most mean??

    If most realtors actually worked 35 hours per week lead generating, then 80% would not fail within the first 2 years. The only thing that really matters is lead generation. You can even hire a real estate attorney to deal with all of the paperwork.

  • Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    6y

    I love the new concept. You call about a property, have to leave a msg, someone calls back to get all your pertinent info & then tells you they are part of JOE REI's 'team'.

    Then JOE REI who you originally called eventually gets back & without allowing you to interrupt gives you a run down of all their life, experience & success in REI. Then when you ask how many investment properties THEY OWN it's crickets, until they again repeat their value to you the 'buyer'. In 25 years we have had 2 'go to' agents & that's only because the 1st retired. The only agent I have had offshore for 30 years is 75 & still with it.

    But in all fairness my 26 yr old daughter just connected with a 'grandma type' agent (her words) in Scottsdale AZ regarding a home purchase there & was very impressed with her. The agent did NOT put her down because of her age or insist she be pre-qualified before she 'wasted her time' showing the home(s) esp given the value of the properties she wanted to view. 

    Both my daughter & room-mate work from their respective home offices hence the need for 4 bedrooms & because their cells & lap tops are melting if they are at the pool too long. If ONLY they could meet decent motivated guys !!!

  • Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    @James Wise Sturgeon’s Law: “90% of everything is crap” :)

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Pat L.:

    I love the new concept. You call about a property, have to leave a msg, someone calls back to get all your pertinent info & then tells you they are part of JOE REI's 'team'.

    Then JOE REI who you originally called eventually gets back & without allowing you to interrupt gives you a run down of all their life, experience & success in REI. Then when you ask how many investment properties THEY OWN it's crickets, until they again repeat their value to you the 'buyer'. In 25 years we have had 2 'go to' agents & that's only because the 1st retired. The only agent I have had offshore for 30 years is 75 & still with it.

    But in all fairness my 26 yr old daughter just connected with a 'grandma type' agent (her words) in Scottsdale AZ regarding a home purchase there & was very impressed with her. The agent did NOT put her down because of her age or insist she be pre-qualified before she 'wasted her time' showing the home(s) esp given the value of the properties she wanted to view. 

    Both my daughter & room-mate work from their respective home offices hence the need for 4 bedrooms & because their cells & lap tops are melting if they are at the pool too long. If ONLY they could meet decent motivated guys !!!

     Well to be fair showing properties to buyers who have not be pre approved doesn't make someone a good agent. irregardless of if it worked well with your 1 situation in particular it's actually a very poor business decision for agents to do that. Majority of the time it doesn't work. That's a big reason agents fail. They do not know how to effectively determine who is going to be good and bad client for their business.

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Patrick J.:

    @James Wise

    "Most Realtors worked 35 hours per week." That's has to be a skewed stat. How could they track number of hours and what would most mean??

    If most realtors actually worked 35 hours per week lead generating, then 80% would not fail within the first 2 years. The only thing that really matters is lead generation. You can even hire a real estate attorney to deal with all of the paperwork.

     Yea great point. I've had about 75 agents work for me over the years.......There is no way this is an accurate stat lol.

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Brad Bellstedt:

    I find that it is VERY easy to be a good Realtor when there are so many bad ones out there. It's kind of like dating a girl who just got out of an abusive relationship, which makes you look like an angel by comparison. 

    Literally, answering your phone when it rings puts you ahead of 40-50% of agents currently holding licenses. Luckily for all of us NAR just increased the number of hours needed to get your license and to renew it so with a higher barrier to entry, I think we'll start seeing some of the bottom of the barrel agents/would-be agents unable to acquire/maintain their license. A welcomed change from my view.

    I'd love to see the NAR advocate for major increases in the barrier to entry in all 50 states but I don't see it happening. The NAR has one goal, and that's to collect membership fees. Nothing else. Everything else is all marketing fluff from them.

  • Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
    6y

    I saw a video yesterday from a prominent DFW broker I used to know. 

    He claimed something like 1/3 of new realtors quit within 6 months of passing the exam. 

    Why? 

    MOST REALTORS SUCK BECAUSE: 

    1) They don't know how to generate enough leads...

    PLUS!

    2) They don't know how to cultivate and follow up with leads (people rarely sell their house within the first 3 months of thinking about selling). 

    Worse...most people think realtors are all the same. So, they'll list with the last agent they talked to. 

    3) They try and be everything to everybody. RE agents (and I'm not an agent, so my thoughts as a marketer) should niche down. 

    Be a listing agent that specializes in probates. 

    Be a buyer's agent specializing in luxury housing. 

    Be a buyer's agent specializing in distressed properties for investors. 

    Not niching puts realtors in positions to lose credibility where they don't know what to do next, what advice to give, or how to negotiate repairs, ARV, etc.

  • Rental Property Investor · Tucson, AZ · Member since 2019 · 173 posts · 87 votes
    6y

    @Joe Cassandra

    I don't think niching down is a great strategy unless it's based on the luxury market or location focused.

    I think location focused niching is better than any other form because one can spend all of their time and marketing budget in one area instead of going city and state wide.

    Also, none of the top producers I've seen have a niche besides either the luxury market or location based.

  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    6y

    Sorry Brad. Answering your phone puts you ahead of 95% of agents...

  • Rental Property Investor · New York City · Member since 2019 · 90 posts · 122 votes
    6y
    Originally posted by @Joe Cassandra:

    I saw a video yesterday from a prominent DFW broker I used to know. 

    He claimed something like 1/3 of new realtors quit within 6 months of passing the exam. 

    Why? 

    MOST REALTORS SUCK BECAUSE: 

    1) They don't know how to generate enough leads...

    PLUS!

    2) They don't know how to cultivate and follow up with leads (people rarely sell their house within the first 3 months of thinking about selling). 

    Worse...most people think realtors are all the same. So, they'll list with the last agent they talked to. 

    3) They try and be everything to everybody. RE agents (and I'm not an agent, so my thoughts as a marketer) should niche down. 

    Be a listing agent that specializes in probates. 

    Be a buyer's agent specializing in luxury housing. 

    Be a buyer's agent specializing in distressed properties for investors. 

    Not niching puts realtors in positions to lose credibility where they don't know what to do next, what advice to give, or how to negotiate repairs, ARV, etc.

    100% Agree. I feel there should be some kind of additional measure put in place to weed out many of these realtors prior to them being "realtor certified". Higher standards can equate to higher performance 

  • Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
    6y
    Originally posted by @Patrick J.:

    @Joe Cassandra

    I don't think niching down is a great strategy unless it's based on the luxury market or location focused.

    I think location focused niching is better than any other form because one can spend all of their time and marketing budget in one area instead of going city and state wide.

    Also, none of the top producers I've seen have a niche besides either the luxury market or location based.

     Well..yes, most top producers end up in the luxury market because they make the most there...a la niching. 

    You won't see top luxury producers selling $100k junkers because: 1) It's bad for their brand...i.e. the luxury niche brand and 2) It's not worth the time/effort

    If they're a top producer, they're likely then opening their own brokerage and thus taking on a different role than simply being a realtor...thus generalizing again. 

    ----

    If you inherited a probate house, who would you rather sell it? 

    The RE agent with the cheesy smile in all the magazines promising to help you buy or list...and looks credible. 

    Or, the RE agent that markets as the "agent that sells probates for a living" and has dozens of sold listings to back it up. 

    Niching always works because it's easier to market and attract your ideal client. Most are afraid to because they don't want to miss out on business. 

    Your top luxury agents are turning down $100k houses all the time...because they know their time is better spent finding more luxury listings.

    ---

    I know this firsthand. Not in RE. But my own business. I work in marketing and started off offering services in every niche imaginable --- travel, software, financial, one client was a passport consultant for immigrants (ugh...). 

    It was a struggle. They'd go to my website and see nothing that spoke to them..."does this person understand me?"

    Right when I niched down to just financial, the money tap flowed on. Because that's how I market myself so they know I'm an expert in the space vs. the 'everything' marketer.

    ---

    A niche doesn't have to be hyper specific like probates. 

    Maybe it's just "I only list homes in North Georgia. I know how to sell houses." 

    Can you help me buy?

    "No, I only list."

  • Real Estate Agent · Las Vegas, NV · Member since 2017 · 279 posts · 133 votes
    6y

    @Mindy Jensen Lol. I thought I might have been a little conservative there : )

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Joe Cassandra:
    Originally posted by @Patrick J.:

    @Joe Cassandra

    I don't think niching down is a great strategy unless it's based on the luxury market or location focused.

    I think location focused niching is better than any other form because one can spend all of their time and marketing budget in one area instead of going city and state wide.

    Also, none of the top producers I've seen have a niche besides either the luxury market or location based.

     Well..yes, most top producers end up in the luxury market because they make the most there...a la niching. 

    You won't see top luxury producers selling $100k junkers because: 1) It's bad for their brand...i.e. the luxury niche brand and 2) It's not worth the time/effort

    If they're a top producer, they're likely then opening their own brokerage and thus taking on a different role than simply being a realtor...thus generalizing again. 

    ----

    If you inherited a probate house, who would you rather sell it? 

    The RE agent with the cheesy smile in all the magazines promising to help you buy or list...and looks credible. 

    Or, the RE agent that markets as the "agent that sells probates for a living" and has dozens of sold listings to back it up. 

    Niching always works because it's easier to market and attract your ideal client. Most are afraid to because they don't want to miss out on business. 

    Your top luxury agents are turning down $100k houses all the time...because they know their time is better spent finding more luxury listings.

    ---

    I know this firsthand. Not in RE. But my own business. I work in marketing and started off offering services in every niche imaginable --- travel, software, financial, one client was a passport consultant for immigrants (ugh...). 

    It was a struggle. They'd go to my website and see nothing that spoke to them..."does this person understand me?"

    Right when I niched down to just financial, the money tap flowed on. Because that's how I market myself so they know I'm an expert in the space vs. the 'everything' marketer.

    ---

    A niche doesn't have to be hyper specific like probates. 

    Maybe it's just "I only list homes in North Georgia. I know how to sell houses." 

    Can you help me buy?

    "No, I only list."

     Becoming an expert in one area is always the right move. Trying to service everyone because you're afraid to miss out on a deal leads to under performance and less income. A specific and directed marketing approach is by far the best way to do things. Do 1 thing better than anyone else and you'll be a top producer. It's that simple.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y

    @James Wise most people in any businesses suck. As @Mindy Jensen said simply returning a call puts you ahead of 95%. I had a roof replaced on a rental property, I called several roofers and most didn't even call me back. A couple said they would give me a bid and never did - I even called to remind them! I ultimately got three bids. One was 25% higher and the other two where within a couple hundred dollars. I ultimately went with the first one who returned my call. He was also the only one who insisted on giving me the bid face-to-face. 

    I have called yard signs to ask realtors about properties and it is very rare that someone answers or calls me back. I don't know if people are afraid of human interaction, lazy, disorganized, or what. 

  • Real Estate Agent · Virginia Beach, VA · Member since 2019 · 34 posts · 17 votes
    6y

    @James Wise you’re so right! Thank you for posting the stats.

    It would make my job a lot easier if I had decent agents on the other side of the transaction. Unfortunately, it’s rare that the other agent is good.

  • Real Estate Broker · Bradenton, FL · Member since 2017 · 544 posts · 363 votes
    6y

    @Brad Bellstedt

    Nailed it! 😆

    Then if you can be friendly on the phone, boom - top 25% realtor

    Then if you actually know something about real estate, boom - top 10% realtor

  • Real Estate Agent · Cleveland OH · Member since 2015 · 213 posts · 275 votes
    6y

    As a realtor it drives me crazy when I have to work with the agent on the other side of the sale that won't pick up the phone and have a conversation, they think everything can be done with Dotloop and a text message.  

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    6y
    Originally posted by @Pat L.:

    I love the new concept. You call about a property, have to leave a msg, someone calls back to get all your pertinent info & then tells you they are part of JOE REI's 'team'.

    Then JOE REI who you originally called eventually gets back & without allowing you to interrupt gives you a run down of all their life, experience & success in REI. Then when you ask how many investment properties THEY OWN it's crickets, until they again repeat their value to you the 'buyer'. In 25 years we have had 2 'go to' agents & that's only because the 1st retired. The only agent I have had offshore for 30 years is 75 & still with it.

    But in all fairness my 26 yr old daughter just connected with a 'grandma type' agent (her words) in Scottsdale AZ regarding a home purchase there & was very impressed with her. The agent did NOT put her down because of her age or insist she be pre-qualified before she 'wasted her time' showing the home(s) esp given the value of the properties she wanted to view. 

    Both my daughter & room-mate work from their respective home offices hence the need for 4 bedrooms & because their cells & lap tops are melting if they are at the pool too long. If ONLY they could meet decent motivated guys !!!

    LOL, Pat, THEY BOTH LOOK LIKE TROUBLE!

  • Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @James Wise - according to NAR we're not supposed to bad mouth agents. :/

    Ultimately it’s about results and fit. For some people, that newer agent who will show the buyer 10-50 homes and eagerly look up data is a good fit vs the streamlined agent who sends you out to view open houses (not burning their time) until you’re ready to view 3-5 that really fit your dialed-in criteria.

    Results mean: I am going to sell your house at fair market value as fast as possible. I will aggressively market online and/or host open houses (boosts us to the top) until we are under contract. I am going to take great pictures and revise them if we’re not getting offers. I have free staging stuff that I will share with you and set up. I will shoot a video or setup 3D Matterport and/or take room sizing and floorplan with my laser. Transactional results are: I will bargain for reasonable repairs and try to help you close on time by organizing the paperwork. I will develop trusted partners (lenders, title, contractors). Emotional results include: I will make you feel secure and cared for. I will call you with updates, address your concerns, and hold your hand (metaphorically now) through the fears and issues in the transaction until we close.

    Sometimes if you’re too analytical as an agent, you’ll try to convince a buyer not to make an offer on that property his wife loves but doesn’t pencil out. You have to balance.

    I get asked “find me a good deal” and it’s never simple because a good deal is different for everyone. And some good deals couldn’t have been entirely predicted. Like one person buys a property in Denver that doesn’t cash flow and 3 years later it’s worth double. They feel like a genius. I love house hacks and nearly everyone I meet says omg my privacy! it won’t work!! They’d rather work 50-100 hours extra every month than share their space with someone they might see 10-20 hours in passing and might even become a friend.

  • Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    6y

    @Pat L. That's a dangerous looking household if you ask me. Wow. 

  • Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
    6y

    @Brad Bellstedt

    I couldn’t agree more with @Brad Bellstedt that the agents just need to answer their phone. It’s ridiculous how many agents I call that never answer the phone. And I know it’s not just in one state since I have properties in 21 states. I called and call and call and no answer. The people that do answer get my business. I keep thinking if I was a realtor I could kill it just by answering the phone and talking to people. Yeah it takes some effort but isn’t that the point.

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