Hello all,
A while back, financial advice website WalletHub placed the Wilmington area near the bottom when it came to a ranking of good places for real estate agents. The ranking was typical of the many WalletHub reports one sees on a nearly weekly basis.
First off, the area’s reputedly sluggish economy automatically drags down Wilmington and Delaware.
Add in a real estate market that has not been as vibrant as some of its counterparts in the region and the ranking does not come as a surprise.
I passed along the findings to long-time broker Tucker Robbins. He sent the results to a group of 740 Realtors around the country and came up with the following:
– Those who responded did not trust the raw data
– Most areas are now are inundated with new agents. In today’s economy, it’s still the easiest business to launch at less than $1,000. Unfortunately, the washout rate in the first two years is still north of 80 percent.
– in a hot market, only a few agents at the very top are doing well.
Moreover, Delaware’s economic performance has to be put in the context of a region where many can find work if their particular job is not available here. Signs indicate some people are moving to the state, in part because of more reasonable home prices.
Secondly, the market is finally on the hot side, although homes have to be priced right. Inventories have dropped and a bidding war or two has broken out. Meanwhile, flips of outdated homes, while growing in number, can be difficult, thanks in part to the state’s high transfer taxes that cut into profit margins.
In this environment, a good agent needs a firm grasp of marketing, a knowledge of neighborhoods, an eye for detail, a willingness to work hard, and excellent people skills that can help deliver news that the buyer or seller don’t want to hear. It’s a tough business.
A note to our valued readers. The Delaware Business Now newsletter will not be posted on Memorial Day, July 4th and Labor Day. – Doug Rainey, publisher
