3 Million Agents, 5 Million Transactions— Something Doesn’t Add Up
Today, I had the privilege of meeting with a group of dedicated Silicon Valley real estate agents from Los Altos, Palo Alto, Menlo Park, and surrounding markets, organized by mortgage advisor Nikki James. Our discussion centered on an exciting initiative: the formation of a new trade group, the American Real Estate Association (AREA)—an organization that aims to elevate the industry and address the serious flaws in the current system.
The stark reality is that while only 17% of medical professionals and 15% of legal professionals join a federal trade group, nearly 99% of real estate agents are pressured—some might say strong-armed—into joining the National Association of Realtors (NAR). For decades, NAR has dominated the industry, but recent controversies, allegations of misconduct, and a refusal to evolve have raised serious concerns.
Why Change Is Needed
1. Oversaturation & Declining Standards
There are over 3 million real estate agents handling 5 million transactions per year. That means there are more agents than homes sold! The industry is bloated with underqualified, part-time, and barely active agents who diminish the profession's credibility. Shockingly, 70% of agents sold just ONE home last year. That’s unbelievable.
AREA’s mission? Raise the bar. Increase the cost of entry, mandate ongoing education, and ensure that only serious, skilled professionals represent buyers and sellers. Real estate isn’t a hobby—it’s a profession that demands expertise.
2. The MLS Monopoly Stifles Innovation
NAR’s grip extends beyond membership—it controls the MLS system at the local and state levels, creating unnecessary obstacles and inefficiencies. As AREA founder Jason Haber pointed out, if the State of California grants us the license to sell anywhere in the state, why do we need permission from local MLS systems to sell in different areas?
With over 20 different MLSs in California alone, agents are forced to navigate a fractured, outdated, and non-integrated system that stifles competition and innovation. It’s archaic and inefficient.
3. Raising Fees to Weed Out Unqualified Agents
The bar to becoming a real estate agent is shockingly low. A simple online course and a multiple-choice test grant you a license to help people with the biggest financial transaction of their lives.
It’s time for a change. The cost of entry should be higher—not just in terms of licensing fees but also in education, testing, and professional requirements. Doctors and lawyers undergo rigorous training and continuing education. Why should real estate be any different?
The industry is overdue for a purge. Raising fees, implementing stricter training, and enforcing real continuing education will naturally filter out the hobbyists, the part-timers, and the unqualified. The result? A smaller, more skilled pool of agents who actually know what they’re doing.
A Call for Competition & Innovation
For decades, NAR has had a stranglehold on our industry, influencing everything from local boards to archaic MLS systems. The result? A lack of competition, stalled innovation, and a profession flooded with agents who shouldn’t be in the business.
Is it time for a rebellion against the status quo? Will AREA be the catalyst for meaningful change? I, for one, believe the industry is long overdue for a shake-up.
