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%

1Reply
483 views

Most Popular Reply

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

Jump to latestLatest
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    I have a feeling that in any performance based industry the stats will be similar.  Real estate is the widget.  The agent is the magical part.  Those agents would perform or not perform in any other industry at a similar level if I had to guess.

  • Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    I'll add to the "answer the damn phone" sentiment. Cannot recall how many listing agents I've contacted that have not answered or returned my calls/emails/texts. I am tempted to send letters to the homeowners telling them that their agent is trash and isn't working for them like they think he/she is.

    But with any industry or job, you're going to have a pyramid of players where the majority are average or below average, and the small minority are very good at what they do.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y

    Jim,  from my point of view.. this is a sales gig.. they don't have sales training or skills.
    they should start at a car dealer and learn how to qualify present and close..  agents let buyers and sellers lead them around by their nose ring.. a good agent who is going to make money ALWAYS takes control .
    and yes answer the friggin phone.   Or if you don't want to get sales training selling cars.. go work at a time share operation or in my day  a Land sales organization ALA  Glenn Garry Glenn Ross that's how you learn to actually sell real estate ... you have to have sales chops to be a top producer.. in MOST instances or niches of the market.

  • Member since 2019 · 1k+ posts · 1k+ votes
    6y

    @Brad Bellstedt

    I find the exact same sense of ease with managing and owning residential property. It’s easy to be better than average when the average is an absentee landlord who hasn’t updated anything since Shaft was kicking arses and taking names.

  • Rental Property Investor · OH (ohio) · Member since 2018 · 166 posts · 113 votes
    6y

    I’ve struggled to find value in a lot of realtors, so my question is, what makes a good realtor?? I just finished college in marketing, flipped two houses the past two years, and I’m going to get my license in the next few months. I love marketing, know about social media, staying in contact with sphere of influence, some sales techniques like qualifying, but I struggle to find how to provide VALUE to clients as a realtor, since I’ve never experienced it myself. Most realtors I’ve seen just open house doors and give basic info, and tell me how good or bad schools are. Cmon people I can do that! And if you’re just going to do that, you dang well better at least answer my call.

    For me the only way I can see how to provide value now is help new home buyers and educate them on the process, since I’m new and have no experience besides how to buy a house, and all I can help are beginners. Possibly beginner investors also.

    I don’t want to be successful because I know how to call my clients once a month, or send gifts, or convince a lot of people to buy houses. I want to provide value to someone! So what makes a GOOD REALTOR who provides value, and doesn’t just know how to sell a product?

    This question is mainly for residential realtors as I can see where commercial and investor realtors can provide value.

  • Avery CarlBusiness Member
    Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
    6y

    @James Wise I read a stat somewhere that something like 50% of licensees never actually sell a house.

  • Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Michelle Fenn:

    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.  

    Michelle, I'm actually on the other side of that, frustrated by agents who insist on calls, not text. I usually have to call multiple times or deal with their office leaving messages, scramble to write down important info when they call back even after requesting they text me with code or info instead. Texting is a written record in case of discrepancy (extremely useful), parties can respond at their own convenience, not play phone tag, no handwriting or garbled voicemail involved. I try to always answer my phone 9am - 6pm, usually get "wow, you actually answer your phone," but I usually ask agents if I can text to this number & I'll text with information requested. For clients who prefer calling, that's different and I'll cater to them as much as possible.  But luckily most clients prefer text, too, so they have a record and can answer at their own convenience.     

  • Real Estate Agent · Broken Arrow, OK · Member since 2020 · 24 posts · 9 votes
    6y

    Here is my question as a newbie as an agent and working toward my first investment. For the investors what makes a good agent? One thing I want to do with my license is to work with investors. How can I be one that “doesn’t suck”? What do investors want and need in an agent?

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

    Jim,  from my point of view.. this is a sales gig.. they don't have sales training or skills.
    they should start at a car dealer and learn how to qualify present and close..  agents let buyers and sellers lead them around by their nose ring.. a good agent who is going to make money ALWAYS takes control .
    and yes answer the friggin phone.   Or if you don't want to get sales training selling cars.. go work at a time share operation or in my day  a Land sales organization ALA  Glenn Garry Glenn Ross that's how you learn to actually sell real estate ... you have to have sales chops to be a top producer.. in MOST instances or niches of the market.

     Yup all starts with sales and more importantly marketing. Myself I got my start in sales selling cell phones and later invisible fences. My process of selling a phone is similar to how I sold an invisible fence and how I now sell properties.

    Before the sales though, it's the marketing. Most agents treat this as a job, not a small business. You wouldn't open up a new restaurant without a marketing budget for it. Not sure why so many schmo's think real estate will be different. Even in this thread nobody really has a clue what makes an agent successful or not. Everyone is talking about not answering the phone. Only you, me and @Joe Cassandra have mentioned sales and marketing. If the right people aren't calling your phone then it doesn't matter if you answer it or not. 

    To be good agents need a funnel and a process to weed out those who aren't ideal for them. Back to the restaurant. If your restaurant is Billy Bob's Crab Shack you don't want a bunch of people with Seafood allergies showing up. Same thing here. I haven't personally answered my phone in years. I've got a system in place that funnels down who I do and do not need to talk to. That's how you get to the top folks.

  • Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    6y

    @Spence Kal   I used to think agents would become obsolete with advanced technology allowing easier marketing for FSBOs, then I realized that one of the most important things I do for clients is problem solving on whatever level they require. For many, buying and selling real estate can be the biggest transactions they'll do in their lives, and it can be emotional on many levels, good and bad. For someone like you who can do it, yourself, like I always could, you may not realize how valuable a service it is and how fragile any deal can be right up through closing. Many times, my clients are not ever aware of how many problems I've avoided or solved for them because giving them as stress-free an experience as possible is important.        

  • Specialist · Brooklyn, NY · Member since 2015 · 2 posts · 1 vote
    6y

    @James Wise hey James, l love your YouTube videos, what would you suggest as better market for cash flow, $60k property, single family, B class neighborhoods, As far as jobs growth? Cleveland or Memphis?

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

    @James Wise hey James, l love your YouTube videos, what would you suggest as better market for cash flow, $60k property, single family, B class neighborhoods, As far as jobs growth? Cleveland or Memphis?

     Thanks man glad you like the show.....I don't get into the weeds on comparing similar markets often. However in this specific instance I'd say $60k will go further in Cleveland than it would in Memphis. However I would leave any further analysis on Memphis to the experts actually located in Memphis as an expert on Memphis I am not.

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

    @Spence Kal   I used to think agents would become obsolete with advanced technology allowing easier marketing for FSBOs, then I realized that one of the most important things I do for clients is problem solving on whatever level they require. For many, buying and selling real estate can be the biggest transactions they'll do in their lives, and it can be emotional on many levels, good and bad. For someone like you who can do it, yourself, like I always could, you may not realize how valuable a service it is and how fragile any deal can be right up through closing. Many times, my clients are not ever aware of how many problems I've avoided or solved for them because giving them as stress-free an experience as possible is important.        

     The percentage of people using agents to buy and sell their homes is actually higher today than it was the year before Zillow launched. Go figure.

  • Real Estate Agent · Highland, UT · Member since 2015 · 407 posts · 272 votes
    6y

    I agree realtors are the worst! With that said, if people would actually research and find a good realtor to work with vs hire the first one they think of it would change a lot. If every agent had to be interviewed and show value before being hired or showing up to open a door the buyers and sellers would have a better experience because it would force those who are bad to get out and those who stay to get better. I wish there was a way to be more transparent with the skills the realtor has before a consumer starts working with them.

  • Real Estate Agent · South Lake Tahoe, CA · Member since 2016 · 681 posts · 644 votes
    6y
    Originally posted by @James Wise:
    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.

     Nothing like showing 8 properties in a day to an “investor” to only find out later they can barely get a loan for 25% of the list prices you were showing all day. Another time you might show one house and then get to make a successful offer all in less than an hour. Without a pre-qual, it’s a total crap shoot.

    As far as the 35 hour stat, that was median I believe. That means that over half of all realtors don’t work full time in real estate. I wouldn’t be surprised if it hit the 75th percentile before going over 40 hours a week.

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

     Nothing like showing 8 properties in a day to an “investor” to only find out later they can barely get a loan for 25% of the list prices you were showing all day. Another time you might show one house and then get to make a successful offer all in less than an hour. Without a pre-qual, it’s a total crap shoot.

    As far as the 35 hour stat, that was median I believe. That means that over half of all realtors don’t work full time in real estate. I wouldn’t be surprised if it hit the 75th percentile before going over 40 hours a week.

     Yup. Agree with you on all fronts.

  • Investor · California, CA · Member since 2016 · 367 posts · 375 votes
    6y

    @Ben McFarland Investor agents need to know what makes a good investment property. Investors are interested in the numbers, ROI, Cap Rate, etc. How much can I rent it for? What is the RV ratio? What parts of town are renters interested in? What features make a house rent quickly? You should develop relationships with good property managers, handymen, contractors, lenders, title companies, insurance agents.

    Don't show me houses that are too nice, too fixed up, too expensive.  Owner occupants usually want houses that are pretty, don't need any work.  Investors usually want the opposite, houses that don't look great, but have no major problems, and with not too much time and money can be improved into something that people will rent.  You need to be good at finding the latter. 

    AND the basics, answer the phone, return my calls and e-mails.  

  • New to Real Estate · NJ · Member since 2020 · 124 posts · 63 votes
    6y

    I'm not a realtor, and I don't have years and years of experience in investing. That said, the biggest issue I have faced in the past few years has been finding a decent agent. I'm at the point where I'm so fed up, I'm considering just getting my license so I can have direct access to the MLS and put in my own few offers every week.

    The biggest issues I have faced with realtors I have worked with:

    - Don't answer phone or get back to me

    - Take DAYS to put in an offer for me

    - Don't answer questions/provide property information

    ALL that said, I'm not ignorant to the fact that I have probably annoyed an agent or two. That said, how can I make myself more attractive to a great realtor?

  • Real Estate Agent · Broken Arrow, OK · Member since 2020 · 24 posts · 9 votes
    6y

    @Tim S. Thank you so much for the information. Those are the things I thought might be what was needed for an investor. Hopefully as I grow in knowledge on both sides I can help be talked about positively in these posts. Hope you and everyone has a great weekend. 

  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    Man, we are taking a beating here! Ha! Its good. I understand the frustration as a Buy & Hold Investor myself with a portfolio in Memphis, TN. Sometimes I cant get agents to answer the phone either. I take a lot of pride in answering every PM in get here on BP and since I focus on OOS investors in Memphis, TN, I see a ton of calls from out of state. 

    If any of you guys out there have missed me, please send me a PM through BP and I will make 100% certain I get back to you! :)

    Have a great weekend guys and gals and stay safe and healthy!

    CrestCore Realty4.713 Reviews
    View Page
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    6y

    I DON'T answer the phone. That's right. If you are calling me out of the blue expect to get NOTHING. Someone can go to my website and click get started. They can fill out the form and submit financials. I will review and THEN DECIDE if we set up a phone call or not.

    After reviewing their financials they might not be a good fit for what they are trying to do and they might not understand the markets and how loans work for commercial.

    We talk on the phone if they seem like a possible match for an ideal client and then I send them the exclusive buyer agreement. After the initial phone call I DO NOTHING for them until that agreement is signed.

    I would counter that people that answer the phone call out of the blue when you dial have nothing going on or are a poor time manager. The busy brokers and agents doing deals have clients and appointments SET UP in advance.

    I think investors are under a FALSE impression that brokers and agents are desperate waiting for your call to buy something. New agents with little to limited knowledge and experience might be that way but not proven performers. Great brokers and agents are a commodity that investors and regular buyers and sellers are drawn to.

    Some investors do not want a committed relationship and want to just call tons of brokers and see what comes up. That is great they can go elsewhere. The funny thing is almost 17 years in the business my Rolodex and network is going to crush someone else just starting out or a few years in the business. So they are just creating a lot of unnecessary work for themselves and likely won't get the same results. Some people are control freaks even when it doesn't make sense to be that way.

    Often on the commercial side buyer direct inquiries the larger to mid size listing firms  have the newbie junior agents (the grunts) calling those buyers and most of them have little knowledge of anything. It's the blind leading the blind. The brokers like me are doing deals so are busy. The big firms let the grunts do the weeding out of the buyers to see if there is any quality there whereas I automate that filtering process.

    Just like investors do not want certain types of properties I do not want certain types of clients.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @James Wise:
    Originally posted by @Dustin Allen:
    Originally posted by @James Wise:
    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.

     Nothing like showing 8 properties in a day to an “investor” to only find out later they can barely get a loan for 25% of the list prices you were showing all day. Another time you might show one house and then get to make a successful offer all in less than an hour. Without a pre-qual, it’s a total crap shoot.

    As far as the 35 hour stat, that was median I believe. That means that over half of all realtors don’t work full time in real estate. I wouldn’t be surprised if it hit the 75th percentile before going over 40 hours a week.

     Yup. Agree with you on all fronts.

    the other big one is not getting the wife into the communications and such right off the bat.. lots of hubbys talk a big game.. but wife rules the roost in 90% of the relationships out there.. other than some cultural ones we know of ..  beginner agents learn this the hard way.

  • David NilesBusiness Member
    Property Manager · DeLand FL · Member since 2012 · 860 posts · 243 votes
    6y

    Most suck because its the only industry I know that EVERYONE thinks they can do.  Not sure why that is.  Too many of them counting everyone elses money and decide thats the job for them. 

    If you knew @Pat L. and his daugthers are anything like the old man, they'll handle themselves just fine.  lol

  • Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
    6y

    Problem is, a lot of realtors do it as a part time or side job. It's too easy to become one. Only a small percentage are really good at sales/marketing and do a lot of business. An even smaller percentage know both the retail side and REI side.

    Also a lot of people have licenses but aren't technically doing deals. Even I have my RE license. I almost never use it because it would be stupid (rather give my brokers the commission so they bring me more deals). I only use it when I buy an REO and can get an easy commission from the bank.

  • Real Estate Agent · Spokane, WA & North Idaho · Member since 2017 · 135 posts · 170 votes
    6y

    I'd say the 20% that succeed answer their phones...

    In all seriousness, it can be a tough gig. The image and the low barrier to entry brings in a lot of people looking for a quick buck. The reality of running their own marketing, prospecting, administration, book keeping, etc etc etc, hits people pretty hard and they perform poorly in one or more areas and ultimately fail. Having 100,000's of people entering the business every year with the same frame of mind means there's always fresh reasons to say "most realtors suck".

    Maybe there ought to be another organization other than "Realtor" for those with over 2 years experience or for those who have met another threshold.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.