Lew Sichelman

Worried the real estate agent you hired to sell your house isn’t up to the job? If so, you’re not alone: Brokerages are worried, too.

But here’s the rub: Most brokers are doing little, if anything, about it.

In a new survey delving into what brokerages think about the state of the industry, “professionalism, or the lack of it, came up more than any other theme,” reported Marilyn Wilson, founding partner of the WAV Group consulting firm.

More than 100 brokers responded to the WAV poll. That’s a relatively small sample, but it is still significant, Wilson says, because these aren’t neophytes: Nearly 70 percent of respondents are independent brokers, as opposed to franchisees, and almost two-thirds have been in the business for more than 25 years.

In other words, this is a survey of seasoned operators, which makes their concerns even more worrisome. And boy, are they troubled.

“Brokers described a market flooded with part-time and low-production agents who they feel are dragging down the reputation of the whole industry,” wrote Wilson.

Lots of Rules, Easy to Enter Sector

One respondent said the realty sales sector is “fragmented, fraught with too many rules and a very, very low bar to entry.” Another claimed there are “way too many non-professional, below-average agents” who sell two houses a year, max, and “do not communicate well.”

Brokers split sales commissions with the agents who fly under their banners, so they make their livings on the success agents have in bringing buyers and sellers together. So, typically, brokers defend agents. But not necessarily this group.

Surprisingly, these brokers would raise the bar to entry. Brokers are always recruiting new agents – not just seasoned veterans snatched from other firms in search of larger splits or better support, but also rookies lured in by the prospect of big paydays. So, you’d think they’d like to keep it easy for agents to become licensed.

But making it more difficult for agents to earn their spurs came up “again and again,” Wilson said: “Brokers want stricter licensing standards, more education and more accountability before someone can call themselves a real estate professional.”

One respondent would require that agents have at least a two-year college degree. Others would make it a rule that agents close a certain number of deals every year to keep their licenses active.

Some brokers addressed the need to remove bad actors from their ranks, calling for “more accountability and teeth in the methods for removing disreputable or incompetent practitioners.”

“More focus on the consumer,” one broker offered, “less focus on us.”

A Familiar Chorus

Findings like these aren’t necessarily new.

“It’s not the first time we’ve heard this,” says Wilson, whose company has been taking the pulse of the business for years. “What we don’t hear is what these brokers are doing about it.”

Some brokers – a “real minority” – are working to instill more professionalism within their ranks. But for the most part, Wilson told me, “Nobody’s willing to step up. Agents are holding everyone hostage, and brokers are afraid they might lose people.”

In the meantime, the lack of professionalism within the ranks is worsening, she said. After COVID, agents couldn’t keep up with demand. But now that the market has tightened significantly, “people are starting to do things they shouldn’t do” to make deals come together.

“You don’t need 1.4 million agents to sell 4 million houses,” she said. “Some people are getting ugly.”

New Report Questions Lenders’ Tactics

While we’re on the topic, another report shows that some lenders are prioritizing selling loans over what’s in their borrowers’ best interests. And the trend is especially prevalent when it comes to seniors and refinancing.

Trading an old mortgage for a new one can be a good way for seniors to tap their equity or lower their monthly payments. But they must be sure to avoid what a recent Bankrate study calls “shady sales tactics.”

The study highlights how high-pressure sales tactics, misleading refinance pitches and a commission-driven sales culture can contribute to seniors paying more than they should, or refinancing when it isn’t in their best interest.

In 2025, it found that borrowers 55 and older were more likely than younger borrowers to refinance into higher-cost loans than their financial profiles entitled them to, concluding that seniors overpaid by nearly $2,400 a year.

Lenders no longer rely solely on mailers with the promise of savings in all-caps red. Most bank on cold calls instead, and their tactics can be manipulative.

“One loan officer who made cold calls to older homeowners says she was pressured to convince them to refinance, in part by promising a skipped payment they could use for a ‘trip to visit their grandchildren,’” reads the Bankrate report.

As North Carolina broker Michael Parker told Bankrate, some call-center lenders imply that they are affiliated with the senior’s current mortgage holder, using phrasing like, “I’m calling about your loan with” that company.

“They act like they are with that company and gain [your] trust,” said Parker.

Lew Sichelman has been covering real estate for more than 50 years. He is a regular contributor to numerous shelter magazines and housing and housing-finance industry publications. Readers can contact him at lsichelman@aol.com.