Will Real Estate Agents Leave As Market Cools?
Apparently, real estate agents are leaving the business in greater numbers now. Experts expect many more to leave by year's end as the market continues to slow.
It will take some time to see how many agents will feel the pinch and get out. After all, a broker or selling agent's license is usually good for a couple of years, so it may still be several months before we see larger numbers of people allowing their licenses to lapse.
However, there will be pressure to decide whether to hang in there as time goes on. There are Realtor association dues and MLS memberships to pay for. The costs of advertising homes will go up as those homes stay longer on the market. Willingness to incur costs, without making as much in commissions, will determine who has the stamina to stay and who will leave for other types of work.
A lot of agents got into the business as the market heated up. The money looked good; the prices of homes were rising and that meant commissions were rising too. The existing market will thin the ranks to those who love the business, and aren't suffering financially as much.
It can mean good news for sellers. The pressure will be on to compete for those commission dollars. You may be able to negotiate a lower commission rate when you go to sell your home.