First off a sad part of reality is to understand what is really going on. To understand if your industry is good, they will figure out a way to stop it. Real estate is one of those industries that has thrived for a long time and real estate itself will most likely continue to flourish the only difference is who controls it.
You have these brokers that have done well for so long, some having in excess of 60 agents working below them, most bring in sales and everyone is happy. Then you have a transition of which people from other industries see how lucrative it could be and also join making it a healthy competitive market allowing buyers and sellers to choose who they want or fire those that suck in the field. Oh, I have had my share of those even recently you would think these guys will go crazy for a sale but truth is they are lazier then ever. They set you up with a Trulia account and allow massive amounts of e-mails of properties that don’t even match your criteria to flood your inbox and this is your service. Who was my agent again?
Why are real estate agents so lazy now
There are several factors, first off it may not be laziness but a sign of them giving up on the market all together. Sales are bad, sellers are unreasonable, short sales are a game of hedge fund managers, cash buyers from South America and China flocking in with their own agents already in place. These agents don’t speak Portuguese or Mandarin so they are really batting a thousand. A foreclosure comes around and the hedgies pick it and a thousand others up simultaneously online from some unknown location. Even if a true American buyer comes along and seems perfect, the banks will figure out a way to decline that application on the grounds that something is not shown on his tax return or whatever. Being a broker in today’s market is suicide although there are a small few that still hang on, that manage rentals which will be around for the long run.
Like anything else in today’s ant stomping society, these agents get a bad taste in their mouth, they know they are doomed but yet have nowhere else to go so their performance lacks in every way. Brokerages that house tons of agents are suddenly shutting their doors, cars going up for repossession, leaving all their agents to find another house to hang their license.
What is happening to the real estate market
Some real estate brokers and mortgage brokers will continually say that inventory will pick up again and you can hear it in their voices, they say it as if it was a question or a statement of true hope. The fall of the real estate market created by the hedge funds will crush the entire industry and create nothing but a rental society. Home owners are crazy to sell, this is the time to keep what you have, keep the house, keep the car, perhaps upgrade to a Jeep as you may need it soon.
Those real estate brokers that are still holding on are going to great lengths to stay afloat, they are buying radio shows, they are buying major marketing campaigns and this might be the best way to bottom feed and actually stay afloat, but soon i’m afraid there will be little hope.
Whats the deal with all these short sales
Short sales are a game that you want to stay away from. A short sale comes on the market for $180k and the hedge funds submit offers up to 200k. The next week or two, the bank will reject all offers and allow the hedge funds to rebid. A normal consumer will get crushed in this market or the bidding war will continue until you have reached the limit on your mortgage approval.
Why real estate work to begin with
Real estate has always been that easy profession to get into with decent commissions. Many house wives used to become real estate agents to kill time as the kids grew up and every now and then make a 10k commission. It requires little schooling and a test that can be taken by anyone. It is simple to get hired by a brokerage firm and they really don’t care who they hire. All the broker cares about is the sales that flow or the listings that get listed by the firm. People lose their jobs and become real estate agents, eventually opening up brokerages.