In a new report, (Heterogeneous Real Estate Agents and the Housing Cycle), the authors conclude there are too many inexperienced real estate agents. Inexperienced real estate agents hurt sellers, because houses listed for sale by them have a lower probability of selling. The study states there are too many rookie agents because of “low barriers to entry”. Policies suggested that could reduce the market share of green agents are: 1. lower commission rates (as inexperienced agents receive the same commission as experienced ones), 2. increased entry costs (increasing licensing education and experience prerequisites), and 3. more informed clients (sellers made aware of the disadvantages of inexperienced agents will avoid them). For years I’ve been saying that the educational requirements (an entry cost) for new agents should be increased (How Educated is a Real Estate Agent) . And besides the disadvantage of homes selling for less, rookie agents are far more likely to commit ethical violations and fall below the standard of care. If you want an advantage of experienced representation in your next Arizona home sale for the same cost as a part timer or rookie, use SimplySOLD. Since the purchase and sale of a home is probably the highest dollar transaction you will engage in, why would you settle for less?
