Updated almost 6 years ago on . Most recent reply
Real estate market saturation
I am considering getting my license to be an agent and had a discussion with a local agent who’s has been in the game for 25 years. He told me that there are currently about 500 agents in a region of southeast Idaho with currently and average of 150 listings. My questions are, is there a way of determining if a market is saturated with too many agents. Obviously 150 listings for 500 agents seems slim but I know that technically every agent is not a full time agent? I am aware of the grind a person has to go through for the first year when being an agent but if the market is super saturated, then the deck might be really stacked against me. Hopes this makes sense, thanks! Jonathan
Most Popular Reply
Hi Jonathan. I would suggest not allowing the number of agents in your area turn you away if its something you want to pursue. In my area, in December each year there are about 1300 agents and after yearly dues(feb) that number drops to around 900. Sometimes more sometimes less both ways. Agents who have been in the business for a long time will get most of their customers from referrals and so business will naturally come easier to them, but remember they were once new too. It takes time to build a customer base but that doesn't mean you cannot get lots of sells your first few years. Listings come easier to long term agents but if you work your sphere of influence you can get them too. I believe that real estate is like anything else in life, you get what you put in. With all the agents out there, there are still room for new ones. Find what works for you and stick to it. For me, I am better as a buyers agent than listing agent. Not because I cannot list homes and I can do it well but my personality allows me to obtain buyers easier than listings. I do not turn away listings but I also do not spend my time or advertising dollars on obtaining them. Agents have told me that you cannot make it as an agent if you are part-time or if you do not focus on listings but both of those didnt apply to me. Anyone can make it work if they invest in themselves and find what works for them. Now with that being said being a relator is costly and I have to sell two-three homes per year to breakeven. I think many agents get into the business without knowing that they can shell out $3-$5k before seeing any of that money.
Also, if the 150 to 500 really worries you, you can also reach out to your local board of realtors and ask them to tell you the numbers of realtors and sells for the last two years and year to date. They can also provide figures of how many agents did not renew or any other data you wish regarding sells, types of sells, etc. If you get zip codes or county numbers, you could use this to help you determine zip codes to advertise in and markets to target.
Wish you much luck making the best decision for you!!!