How is it going right now for Real Estate Agents?

Question

Hello all,

I'm a passive investor, my main business is in adjusting insurance claims as a public adjuster. The other day I had a Real Estate agent who referred a client very upset the claim was taking too long and was quasi yelling.

This seemed odd, I told her from the beginning claims take a long time. I called the referred client to see if they are okay. They said they had no issues, but the real estate agent was upset because she was hoping to sell the house once the claim is done. They client has no interest in selling the house at this time.

Come to find out it's all her, which makes me think perhaps sales are down.

I also noticed a real estate office that is nearby where I live has closed after being open for several years.

Everybody has a gauge on what is going to happen to the housing market over the next year or two.

My thing is how are real estate agents doing right now? Are they still able to get houses bought and sold?

That will help tell us what is coming.

Steve Morris · Answer

In Portland - Apt broker. Business has slowed:

1) Pricing is getting breath-taking

2) City of Portland rules targeting landlords and evictions becoming draconian

3) We've had about 8 years of rent increases and tenant's are maxxing out.

My gut is it'll be better than 2009. In 2009, prices didn't drop with the exception of some sellers that got their hand forced by banks. Then 2012-2018 stuff doubled in price.

Other reason is while banks have tightened, they are still lending and rates are cheap.

Geoff Antone · Answer

So things have been rough on that end too. Sounds similar to the last recession, the top agents did well as they can adapt. The other ones struggled a bit.

Do you think there will be a wave of foreclosures next year? If so how do you think it will compare the previous recession?

Abel Curiel · Answer

Hello @Geoff Antone,

Great question. The answer depends on what type of agents you're asking about. Top agents are doing well, others... not so much. I think from March-May, many of the casual/part-time agents in my market abandoned ship.

Our Real Estate team lost about $40-50K in commissions during that time due to deals dying. I'm sure others on BP had similar setbacks. People are losing their jobs, other are getting furloughed. As a result, banks are tightening their requirements and deals are falling apart because borrowers cannot get a final commitment or 'clear to close' from the banks.

Top agents in my market and in other markets have never been busier. During difficult times, there are many opportunities to capture market share. However, agents in that bottom 20% are probably on their way out if they haven't already left the industry.

Agents who haven't adapted will have a tougher time in the coming months. Those who adapt to the changing market, position themselves as a resource, and learn to leverage technology will thrive in the coming years.

Abel

How is it going right now for Real Estate Agents?

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