Buying or selling a home can be an exciting experience. But navigating the complexities of the housing market can also be a bit overwhelming. This is where a skilled and Experienced Realtor can make all the difference. Are all Realtors are created equal? It’s one of the biggest misunderstandings I hear on the real estate market of today and it’s simply not true. That’s like saying all Football players are the same, all teachers are the same, all mechanics are the same, all Doctors or all Pastors are the same, nothing could be further from the truth.
What sets apart the Professional vs the amateur? For the Professional Realtor, it’s a commitment, it’s their livelihood, a way of life. We pay our bills and our taxes, buy groceries for our families, we make donations to charities and our church. For the amateur or part-timer, it’s a weekend hobby.
Here today, Gone tomorrow.
There are concerns when it comes to hiring a part-time or amateur real estate agent. It’s true that everyone starts somewhere, and there can be individuals who are genuinely passionate about real estate and want to get their foot in the door. However, the decision to hire a real estate professional should be based on a careful consideration of the agent’s qualifications, commitment, and experience. Here are a few reasons why some people might hesitate to hire a part-time or amateur agent:
Availability: Real estate transactions often require timely responses and actions, which can be challenging if an agent is juggling multiple jobs or can only work on weekends. Clients may need assistance during weekdays, evenings, or even holidays, and having an agent available during these times can be crucial.
Research has shown that it takes at least 5 years with at least 10 sales a year before someone knows what they’re doing without help. If that friendly new part-timer only has 2-3 sales a year (average for part-timers) how many years will it take them to become a good negotiator? According to the National Association of Realtors, statistically, 87% will be gone within the first couple of years.
Commission
It’s important to note that commission rates can vary widely based on factors such as location, property value, market conditions, brokerage policies, and individual negotiations. Ultimately, the commission structure should align with the value provided by the Realtor, their level of expertise, the quality of service, and the expectations of both the agent and the client. Or, as someone else once said, “You’re asking a pretty high commission for someone with little experience.” The part-timer replied, “Well this job is going to be super hard since I don’t know what I’m doing.” Make sure they can justify the commission they’re asking for.
Real estate professionals, whether newly licensed or experienced, should be transparent with their clients about their qualifications, experience, and the services they provide. You, on the other hand, should consider the value and expertise they are receiving and make informed decisions based on their specific needs and priorities.
Bottom Line
In Minnesota, there were 22,711 members in January 2022. In 2023, there has been a decline to 21,950. YTD there have been only 27,562 sales. Then consider the top 15% of Realtors do 85% of the sales. That leaves the remaining 18,657 real estate agents …. Well, do you really want someone representing you who hasn’t sold a house this year? Probably not in your best interest.
Having a seasoned expert by your side can indeed make a substantial difference in the overall experience and outcome of the process. There are a lot of things I’ve learned in 46 years as a Full-time, Experienced Realtor helping good people like you with your housing needs. It’s been an Honor and a Blessing. The amateur, part-timer, or weekend Hobbyist is on-the-job training, at your expense. The guidance and expertise of a local Professional and Experience can make all the difference in turning your vision of the perfect home into a reality.