Thousands of agents have left the real estate industry due to the churn created by low level entry requirements, one industry figure has claimed.
In response to figures released by the Real Estate Institute of Australia (REIA) that show 10,000 agents have quit the business in the past year, Real Estate Institute of New South Wales (REINSW) CEO Tim McKibbin said most of those who left would not have received the appropriate training.
“Unfortunately we have a lot of people entering the industry that are under qualified,” Mr McKibbin told Real Estate Business.
“In NSW a person can earn their certificate of registration over the weekend and begin working as a real estate agent by Monday.”
Reduced commissions and low sales volumes have been blamed for the agent exodus, but Mr McKibbin believes the figures reflect the large number of agents who don’t have the underlying experience and competency required to operate effectively.
“Now there is a rumor that they are going to reduce the entry requirements down even further,” he said.
“I’m astounded that this has been suggested. I’m shocked that real estate agents are thought of as just salesmen making a transaction.
“There is a degree of legal training that goes beyond salesmanship.”