Why Being A Realtor Doesn’t Make You Smart

The other day, I showed a duplex that was owned by a real estate agent.

It was overpriced, and the rent was well under market rates.

My buyers asked me why the owner/agent had done that. After all, they thought, shouldn’t an agent know the market better?

Not necessarily.

The state real estate examination and licensing requirements don’t include mandatory knowledge of multi-family property workings. And, well, frankly, anyone can own a duplex without knowing much about the market.

What’s more, many Realtors only work part time. They might see a real estate career as a way to supplement their income, or save a little money when buying property for themselves.

Or, they may have found the rigors of the profession to be too much, and the income too unpredictable to make it a career. But after all of that schooling, they don’t want to drop their license.

True competency in any profession comes from experience, not a piece of paper.

It comes from encountering real-world problems, and finding real-life solutions.

And it comes from specializing in a type of property or a neighborhood; not from simply taking a class.