Sunday, January 29, 2006

Too many real estate agents

I'm convinced the greater Sarasota area has too many real estate agents. At first glance you would think this is a benefit to the consumer, right? 'More agents = lower commissions and more money to the Sellers' is what a lot of folks think. The fact is the result is the direct opposite.

Several phenomena are taking place in today's market which are hurting the consumer. With too many agents (5,000+) in the market, most with less than 2 years experience, competition for listings is resulting in an abundance of over-priced properties. The newer agents are fighting to make a living - and get a listing. They do two things. They over-state the value of the property to 'get the listing'. Second, they deeply discount the commission rate. The end result is that over-priced listings don't sell because of price and cut-rate commissioned properties don't sell because they are not shown.

Sellers beware. "If something seems to be too good to be true ..."

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