Sellers and Buyers rely on a real estate agent to buy and sell the largest asset most people will ever own. You would hope the real estate agent you chose to represent you has the experience and business savvy to guide you through the frequently difficult process.
The old 80-20 rule is; 20% of the sales staff produces 80% of the sales. However, the 95-5 rule applies to residential real estate. Why? It only takes a few real estate classes and $175 to $250 dollars to obtain a real estate license and just about anyone can become a Realtor. That is why there are over 62,000 real estate agents in Maryland, D.C., and Virginia alone. The vast majority are residential real estate agents as described below.
- 24% work less than 10 hours a week or are not active.
- 27% work less than 30 hours per week.
- 49% work 40 hours or more hours per week.
- 20% have had their license for 1 year or less.
- 67% do not have a college degree.
- 63% are women and 37% are men.
- 54 is the average agent’s age.
- $63,595 is the average income for a full-time agent after working for 4 years.
- 98% have never owned or managed any sort of business.
- 70% of Sellers list their property with the first agent they interview.
- 90% of Sellers do not use the listing agent a second time.
- 28% of Buyers found properties they purchased using an agent.
- 50% of Buyers found properties on the internet without an agent that they purchased.
- 95% of agents that list a property, do not find the Buyer. The Buyer is procured from the agent representing a Buyer.
In addition to representing Buyers & Sellers, agents earn money by providing mortgages, settlement services, property insurance, title insurance, home warranties, moving services, property management, construction services, real estate investment services, and more! You need to ask yourself, is their focus on you when you want to sell your property?
Everybody has a sister, a friend, a cousin, a hairstylist, or a neighbor that will be all over you the very second they hear you are even thinking about selling your home. Every one of them will tell you anything they think you want or need to hear to obtain your listing. Do yourself a big fat favor, DO NOT hire any them, because 99% of the time, it will be a disaster. Think about what will happen if you have to fire someone close to you. Rule of thumb, hire someone you don’t have a close relationship with just in case you need to fire them!
Before engaging any real estate agent, DO YOUR HOMEWORK! There are good agents out there, but not as many as one would hope. Look for an agent that is a full-time agent that has been representing Buyers and Sellers for at least 5 years and has a track record of concluding at least 30 or more transactions. A good agent is worth their weight in gold! An inexperienced agent will cost you a lot of money and make your life a living hell!
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The real estate market is ever-changing. A Buyers’ market can become a Sellers’ market overnight. Real estate values are often determined by the season, the economy, and major events taking place locally, throughout the region and around the world. We’re here to guide you though the process and figure out which method is best for you.