Real Estate Agents Become Collateral Damage in Housing Crisis

*As inventory plummets and agents struggle to stay afloat, innovative training program Mock Home Inspections provides lifeline*

*ELLICOTT CITY, MD / ACCESSWIRE / October 6, 2023 / *The US housing market is in a vise - and real estate agents are feeling the squeeze. Mortgage rates have surged above 7%, the highest level since 2002. This rapid rate spike has created a "golden handcuff" dynamic, locking existing homeowners into their low mortgage rates and deterring them from listing their homes. The number of new listings this year is running 20% behind last year. At the same time, high rates have priced many prospective buyers out of the market. There simply aren't enough homes for the agents to sell.

The nationwide housing shortage has placed incredible strain on real estate agents, who depend on transaction volume for their livelihoods. The median gross income for agents is $56,400, according to the National Association of Realtors. However, the median net income after expenses is just $36,500 - hardly the windfall portrayed on reality shows like Million Dollar Listing.

In fact, nearly 20% of licensed realtors earn less than $10,000 per year from their real estate work. Additionally, most agents are independent contractors rather than salaried employees, meaning they don't receive benefits like health insurance. For the majority of agents, however, real estate is their sole source of income. The limited housing inventory has forced agents to scramble for whatever commissions they can find. Bidding wars are rare in the current market. Buyers frequently offer below asking price, trying to bargain based on high mortgage rates. Even when deals are completed, agents are taking home smaller commission checks.

On top of the downward pressure on commissions, realtors in many markets report needing to work significantly longer hours to close deals. In such a competitive market, buyers are on high alert for any negative information that allows them to cancel a contract. This dynamic has made home inspections especially fraught, as even minor issues can derail a sale when few alternative options exist.

For many real estate agents, home inspections represent an area of vulnerability. Although licensure requires expertise in contracts, listing, marketing, and negotiation - there is no training mandate around the mechanics and systems within the homes themselves. This lack of fluency can ultimately work against agents and their buyers. Without understanding inspection findings in context, buyers may walk away from minor issues that could be inexpensively addressed. When deals crater after inspection due to misunderstandings, buyers often leave frustrated and blame their agents for not properly advising them. This not only costs agents commissions, but future business as well.

Some innovators are recognizing this pain point for real estate agents and trying to solve the knowledge gap around home systems. Rachel Oslund, a home inspector in Maryland, founded "Mock Home Inspections" to educate agents by letting them participate in sample inspections of vacant homes.

"Inspectors use intimidating technical lingo that agents don't actually comprehend," said Oslund. "We allow them to ask unlimited questions and teach them the mechanical, electrical and structural basics without any clients present." Oslund recognized that most agents do not want to look like they don't know something about houses in front of clients, so they resist asking questions in front of them. At Mock Home Inspection the only people attending are agents and a home inspector, allowing the agents to learn and freely ask questions - without feeling like they need to "look good" in front of their clients.

According to Oslund, "Home inspections don't kill deals when real estate agents understand how houses work and are able to share that knowledge with their clients. While this training is unlikely to fully transform agents into tradesmen, Oslund believes it empowers them to better interpret inspection results and guide their buyers.

Of course, more inspection knowledge will not solve the systemic issues in the housing sector. But for real estate agents fighting to stay profitable as the market constricts inventory, any new tool or skill can provide an edge. For an industry facing its greatest challenges in over a decade, agents need all the help they can get to navigate these uncharted waters.

*ABOUT MOCK HOME INSPECTIONS*

Mock Home Inspections is a educational system under the umbrella of LodeStar Inspection Services, who have performed over 10,000 home inspections throughout the Maryland and Washington, D.C. region since its founding in 2018. The company is known for its contributions to the real estate and home inspection industries through the education their inspectors provide and their volunteerism on committees throughout the real estate industry. General Manager Rachel Oslund has worked as a home inspector for over a decade, and is passionate about educating real estate agents and home inspectors via Mock Home Inspection's continuing classes locally and nationwide. *For more information, visit **https://lodestarinspections.com**. For additional information, visit Mock Home Inspections on **Facebook** or **Instagram**.*

*CONTACT*
Rachel Oslund
410-878-3039
Rachel@LodeStarInspections.com

*SOURCE:* Mock Home Inspections
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