Here’s a startling reality in the real estate industry: nearly half of agents sold either one home or none at all in the past year. According to a new report released by the Consumer Federation of America (CFA), this trend indicates a significant shake-up in the market, leading to widespread incompetence among real estate professionals.

The CFA’s report, titled “A Surfeit of Real Estate Agents 3: Abundant Jobs, Inadequate Mentorship, and Few Sales,” reveals that 49% of agents sold zero or just one home, while 70% managed five or fewer sales. This means the majority of agents working with you in today’s market lack the experience and sales track record you might expect when hiring someone to assist with such an important transaction.

With over 1.5 million agents in the United States, the report points out that part-time agents now make up a significant portion of the workforce. This “agent glut” is affecting the quality of service you receive, as many of these agents hold other jobs and work sporadically in real estate. In fact, you may find that a third of your local agents did not complete a single sale last year.

Moreover, this surplus of agents often results in pressure to maintain high commission rates, ultimately impacting your financial interests when buying or selling a home. Stephen Brobeck, a senior fellow at CFA, emphasizes that consumers like you do not benefit from a market filled with inadequately trained agents who may not possess the necessary knowledge to handle your real estate needs competently.

The ease of obtaining a real estate license is part of the problem. In 26 states, including Washington D.C., you don’t need a high school diploma to enter the field, and the average cost to obtain a license is around $600. This means anyone can become an agent, which compounds the issues you may face dealing with inexperienced individuals.

Interestingly, the report indicates that the higher the number of agents in a given area, the fewer homes they tend to sell. For instance, in Florida, there is one Realtor for every 102 people, resulting in a notable 56% of agents at Coldwell Banker selling either zero or one home in Orlando last year. If you are looking for an agent who has a solid sales history, you may want to consider the local market ratios to ensure you are selecting someone who can truly assist you.

To tackle the repercussions of this growing issue, the CFA report suggests that states implement stricter requirements for agent training and supervision. You as a consumer can also play an active role by considering an agent’s recent sales experience and customer evaluations before making your choice.

By advocating for improved industry standards and being more selective in your hiring practices, you can contribute to a shift in the real estate landscape, helping to raise the bar for competence and service in this important industry. Keep these insights in mind as you navigate your next real estate endeavor.