It took an extra year or so than I originally imagined but the drop in agent numbers here in the Phoenix real estate market finally has taken place.
The following originally was posted on January 2, 2007 …
Many people enter the real-estate industry because the requirements are light and the possible rewards seem great. “I want the license for my own deals” or “I’ll just do some for friends and family, here and there” are the most common refrains. And from a distance, real estate seems like a tremendous risk-reward proposition: pay $300 – $400 to attend a certified real estate school, pass the licensing exam and activate your license for $100 and change and you’re off and running.
I just completed paying my yearly dues to the Phoenix Association of Realtors. It’s almost the stuff of MasterCard commercials:
National Association of Realtors Dues $ 94
Arizona Association of Realtors Dues $150
Phoenix Association of Realtors Dues $ 75
Opportunity to be bashed on real estate
bubble blogs from coast to coast PRICELESS
Membership in NAR locally isn’t exactly required but if you want access to the local MLS you have to belong. You also have to pay a separate MLS dues fee later in the year.
Everywhere you turn in this profession, there is someone waiting with their hand out politely requesting another check. And so you wonder … with the turn in the market last year and with the seemingly easy money of 2005 gone, how many part-time sometime real estate agents are going to reach into their wallets for another year’s worth of dues? My hunch is we’ll see the numbers decline this year … not an unwelcome sight, not so much for the reduced competition but simply because of the level of competence (or lack thereof) being purged from the market.