Section C · State Regulatory Agencies
Enhance Professionalism with Strong Licensing Requirements
It is time to stop thinking of agents as salespersons and start identifying them as advisors. To achieve this, there must be stricter licensing requirements that align with the responsibilities of professionals.
In Context
The 2015 D.A.N.G.E.R. Report identified one of the biggest threats to the industry as the “Masses of Marginal Agents Destroy Reputation.” Nearly a decade later, this issue persists. Many organizations still prioritize quantity over quality, and while many agents are skilled and dedicated, the growing presence of underqualified agents continues to erode the industry’s reputation.
Here is a look at some professions with minimal licensing requirements.
| Bartender | 4 to 20 hours (Alcohol Server Certification) |
|---|---|
| Security Guard | 8 to 40 hours (depending on the level and state) |
| Life Insurance Agent | 20 to 40 hours |
| Pest Control Technician | 20 to 80 hours |
| Real Estate Agent | 40 to 180 hours (average ~75 hours) |
| Tax Preparer | 60 to 80 hours |
| Home Inspector | 60 to 140 hours |
| Certified Nursing Assistant | 75 to 180 hours |
| Pharmacy Technician | 120 to 600 hours (varies by certification) |
| Nail Technician | 200 to 600 hours (varies by state) |
It is alarming to see real estate agents categorized alongside bartenders and security guards, considering the complexity and responsibility involved in real estate transactions.
Several professions demand significantly more advanced training and education, often extending to post-graduate levels. Here are some examples.
| Doctors (Medical License) | Medical school (~6,000–7,000 hours over 4 years), plus 3 to 7 years of residency (thousands of additional hours). |
|---|---|
| Pilots (Airline Transport Pilot License) | At least 1,500 flight hours, plus ground school and other training. |
| Lawyers (Bar License) | 7 years of education, totaling around 15,000–20,000 hours, including study and practical legal training. |
| Architects | 5-year degree, ~3,700 internship hours, and passing multiple licensing exams (~10,000+ hours). |
| Dentists | 4 years of dental school (~7,000 hours), plus additional years for specialties. |
| Veterinarians | 4-year veterinary degree (~7,000 hours), plus prerequisites. |
| Electricians | 4,000 to 8,000 hours of apprenticeship, followed by a licensing exam. |
| Physician Assistants | Degree, ~2,000 hours of clinical rotations, followed by an exam. |
| Pharmacists | 4 years of professional school (~5,000–6,000 hours), plus internship/clinical hours. |
| Registered Nurses | ~1,800 hours of clinical training, plus coursework. |
Although the professions mentioned above are not comparable to real estate brokers and agents, the disparity in training and licensing requirements is very significant. Recent class-action lawsuits may not have directly targeted licensing requirements, but they underscore an underlying shortcoming.
In today’s increasingly litigious landscape, inadequate standards could very easily open the door for future lawsuits. Therefore, strengthening licensing requirements is crucial to mitigate these risks and elevate consumer protection even more.
The Opportunity
The need for higher licensing standards in real estate is urgent. State legislators must take the lead in raising and enforcing these standards for both brokers and agents. This is not just about tougher entry requirements—it is about ensuring that licensed real estate professionals are equipped to handle complex, high-stakes real estate transactions.
Although some believe that rising costs and decreasing commissions will naturally weed out unqualified agents, history demonstrates that this approach is ineffective. It is also essential to strengthen the role of brokers, as they establish the standards for the agents they supervise. Brokers must adhere to more rigorous requirements to ensure the quality of service. This is a crucial opportunity to reshape the industry and empower agents to deliver exceptional service to consumers.
Perspective
Over the past few decades, the role of the agent has shifted from that of a salesperson to a trusted advisor, requiring expertise and deep market knowledge rather than a simple show-and-tell approach. Allowing unqualified individuals into the industry simply because entry requirements are too lenient is unacceptable. Forty hours of training is grossly insufficient for preparing real estate agents to manage an approximately 180-task, multi-party, time-sensitive, high-value transaction. This is a pivotal moment for change, and the solution lies with state legislators to establish and state regulators to enforce stricter licensing standards. State and local Realtor associations must advocate for higher professional standards and work to streamline the home-buying process, while brokers must hold their agents to greater levels of accountability. The responsibility rests with many different stakeholders and that is probably why very little change has occurred.
Explore related opportunities