New Realtors Pile Into Hot Housing Market. Most Find It Tough Going.

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The booming market suggests there’s a lot of money to be made selling homes. And in most states, it doesn’t take much to get a license: “There are very low barriers to entry...but the barriers to success are very high.”

The red-hot housing market has achieved a number of milestones this past year. Perhaps the most telling is this: There are more real-estate agents than homes for sale in the U.S.and how surging prices are persuading tens of thousands more Americans to try their hands at selling real estate.

Michael Mitchell in Boston is one of them. He signed up for a real-estate course in June after being furloughed from a managerial position at a regional restaurant chain. He greeted the new profession enthusiastically, thinking his skills and focus on customer experience developed during 30 years in the restaurant business would be transferable to real estate.

He got his license in October, but has yet to land any deals, as Covid-19-related restrictions are limiting in-person interactions with clients. “I’ve learned some aspects of the business, but it’s hard to connect with people…that you’ve never met,” Mr. Mitchell said.

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2008 called. They want their grossly inflated housing market and unbridled optimism back.

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The % of a sale lost to realtor commissions in the US is typically 6%, while in Europe, it's 1.5-2%. Why? -- Researchers at the National Bureau of Economic Research found that using a real estate agent did not increase seller prices at all

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