Why Your Second Cousin’s Aunt Might Not Be The Best Choice

The level of expertise your agent possesses will make or break the success of our transaction.

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In January of this year, Redfin executive Joe Rath shared a piece of remarkable data: according to his research conducted in partnership with Inman Intel, 71% of licensed real estate agents nationwide made NO deals in 2024. Even if this turns out to be a bit of an overstatement, there can be no doubt that 20% of the licensed agents out there generated close to 90% of the transactions completed in 2024. Now, many licensees work at real estate part time, or not at all. But this remarkable statistic highlights a reality which often goes unappreciated among consumers; real estate brokerage is an extremely challenging career choice, requiring a 24/7 time commitment and an extensive array of skills. And it often takes years to launch.

No single phenomenon has damaged agent credibility more than the “reality” TV shows about select agents and their multimillion dollar transactions. Over the past two decades, these shows have fostered the image that agents are gym-toned, expensively overdressed pretty people who make a few phone calls, throw an open house with little canapés, and collect a check for a few hundred thousand dollars. It ain’t like that in the real world!

Here’s why this information is relevant to consumers thinking about participating in a real estate transaction in 2025: who you hire will have a real impact on how closely your financial expectations in your purchase or sale are met. The level of expertise your agent possesses will make or break the success of our transaction.

Here are a few things to watch out for when hiring an agent:

• Do they talk about themselves, or do they talk about you? While you want your agent to convince you that they have the skills to get the job done, their primary focus should be on your needs and hopes for the transaction. A narcissist is usually not a good fiduciary.
• Do they supply you with the information you need to make informed decisions? A good agent will not only bring you comps to help you arrive at an appropriate price, they will also tell you if they believe you are overreaching. A good agent will advise you about what your property needs to make it into a salable product, be it painting or staging or decluttering.
• Do they immediately engage your trust? Chances are this purchase or sale will be one of the more significant financial commitments you make in your lifetime. In addition to having the requisite skills, you should feel an intrinsic sense of trust in the person you hire. This agent will be your representative in the marketplace. If you want to be seen as honorable and acting with integrity, make sure your agent displays those qualities and has that reputation.
• Do they have a history of getting the deal done? Don’t hire your aunt, or your cousin, or your sister-in-law’s brother, unless they have a history of success. The biggest mistake many consumers make is hiring a friend or acquaintance without applying the same rigorous standards with which they would choose any other financial advisor. As I said earlier, this transaction will likely rank as one of the major financial choices you make. Don’t set yourself up for failure by choosing your agent on the basis of anything but their character, skills, and expertise in your marketplace.

If you adhere to these guidelines you will probably have a successful real estate purchase or sale experience. There are not too many people (not just agents) around who can claim all these traits. So THAT is why 1/3 of the licensed agents create 90% of the transactions nationwide. Like many service jobs, real estate brokerage is considerably harder than it looks.

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