The real estate industry is set up a little strangely. The incentives for all of the participants (except the buyer) is for a house to sell. This sets up a potential conflict of interest for agents who represent buyers since they don’t get paid unless their clients actually buy something. This leads to situations where buyers agents forget that their primary duty is to represent ONLY their clients’ interests.
This is quite understandable. Everyone is human. Everyone needs to put food on the table and keep a roof over their heads. However, this is no excuse for an agent to forget their primary responsibility of protecting their clients.
Unfortunately, the industry is not set up well to help agents to stay true and loyal to their clients. The barriers to entry to becoming a real estate agent are actually quite low. A person needs 150 formal hours of training and then they need to pass a test. This sounds like a lot until you realize that it takes 10 times as much (1500 hours of training) to get a cosmetology license! A haircut is a relatively low cost transaction, while a real estate transaction is the single largest purchase most people make in their lifetimes.
This low barrier to entry means many agents are untrained, incompetent, and unprofessional. Do you want just anyone with a license to guide you through a purchase that will have ripple effects for the rest of your financial future? Join us as we discuss the details of this subject and share with you some war stories that really underline the point.
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