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Five Things That Need to Change in the Real Estate Industry

The real estate world has had its fair share of drama over the past two years, with market fluctuations, National Association of Realtors scandals, and class action lawsuits dominating headlines. Full time real estate agents have continued to thrive even as the market has declined and sales seem more rare than a rational green haired TikToker.

There has been a shift in the industry where part-time agents cannot compete, and full-time professional agents have nabbed more market share. While the industry as a whole is evolving, there are five things that need to change right away.

1. New agents should not be allowed to practice real estate unsupervised or without a mentor scrutinizing their work. Too many agents get into the business and think they will learn it by the “seat of their pants.” That can be expensive for a client. Any profession from plumbers to electricians is not turned loose on the world without an apprenticeship.

2. The social media posts of people smiling at the closing, holding an absurdly large plastic key, need to be retired. Congratulations, Agent Bob. You did your job today. Hurray! No one else celebrates themselves like real estate agents. Every agent has done this at some point, but the trend needs to go away like the Macarena and the Ice Bucket Challenge.

3. The social media posts that are most watched about real estate agents are the ones that showcase tactics, lessons learned, and behind the scenes true life stories showing agents doing the dirty work needed to be a professional. The industry needs more of that. Too much of what an agent does is cloaked in mystery. It’s a hard business, and the public should know it.

4. The shift to explaining how agents are paid needs to expand. Agents invest in listing a property and lose money if the property doesn’t sell. Along the way, the agent jumps over multiple hurdles and obstacles. It’s not uncommon for someone to say, “Look. That agent got a $20,000 check for nothing.” What they didn’t see were the months or years of work the agent put in to successfully close the deal. The industry needs to be more vocal about how agents work hard for their money.

5. Agents need to collaborate and help each other improve. If an agent sees another agent making a mistake, then the more experienced agent needs to speak up. The industry is “self policing,” meaning agents keep other agents in check. Feelings can be hurt, but in the end, the industry and the clients it serves will both be better for it.

The real estate industry isn’t going anywhere—but if it wants to earn and keep the trust of the public, it needs to grow up a little. These five changes won’t fix everything overnight, but they’re a solid start toward raising the bar for professionalism, transparency, and collaboration. Full-time agents who treat this as a serious business already know what it takes to thrive. It’s time for the rest of the industry to catch up.

Get in touch with Steve Mallett here.