The Close surveyed newsletter readers about agent oversaturation, professionalism, and licensing requirements. The results reveal how real estate professionals view the state of their own industry: There are a lot of real estate agents.
As an agent in New Jersey, I’ve seen this firsthand. It sometimes feels like everyone either has a real estate license or knows someone who does. Throughout my career, I’ve met plenty of people who maintained their license but completed one transaction a year, got licensed to help a friend or family member, or simply weren’t actually building a real estate business.
Having a real estate license and actively working as a real estate professional aren’t necessarily the same thing.
That made me curious about how agents across the country feel about the state of the profession. I asked The Close newsletter readers whether they thought their markets have too many agents, whether they believe there is a professionalism problem, and whether it’s too easy to become an agent.
The results were surprisingly consistent: 80% of surveyed newsletter readers said their market definitely feels oversaturated. 64% said professionalism among agents is a major problem in their market. And 64% said licensing requirements should be stricter.
When we include respondents who were less definitive, the numbers become even more striking. 95% described their markets as either oversaturated or intensely competitive, 84% identified at least some level of a professionalism problem, and 83% said licensing requirements could be at least somewhat stricter.
These were three separate surveys, so we can’t assume the same respondents held all three opinions. Taken together, they point to a larger concern among real estate professionals about how many agents enter and work in the industry and the standards expected of them once they’re there.
Agents think their markets are oversaturated
When I asked newsletter readers whether their market has too many real estate agents, the answer was overwhelmingly yes.
80% said their market definitely feels oversaturated. Another 15% said maybe, because competition is pretty intense. Only 5% said competition feels normal.
And this wasn’t limited to one particularly competitive part of the country. Respondents who described their markets as definitely oversaturated came from the Northeast, Southeast, Midwest, Northwest, Southwest, and Alaska/Hawaii.
As an agent in New Jersey, I agree with this one. As I said previously, I’ve always felt like there are a lot of people with real estate licenses, but that doesn’t necessarily mean they’re all actively working as agents. That distinction matters when we talk about oversaturation. The number of people licensed to sell real estate doesn’t necessarily tell us how many are actively competing for clients and transactions.
But from an agent’s perspective, the competition can still feel very real.
Agents see a professionalism problem
When asked whether there is a professionalism problem among real estate agents in their market, 64% called it a major problem. Another 20% said there is a problem, although it involves only a small percentage of agents.
Another 14% said they occasionally encounter professionalism issues, but no more than they would expect in other industries. Only 2% said most agents they work with are professional and they don’t see a problem.
This is something I’ve experienced during my own real estate career. I started in real estate relatively young and was often much younger than the clients I represented. Because of that, I paid close attention to professionalism. I wanted clients and other agents to know that despite my age, I took my job seriously and could confidently represent someone through one of the largest financial transactions of their life.
But professionalism isn’t only something newer or younger agents need to think about.
I’ve also seen experienced agents become overly comfortable after spending years in the business. That can show up in how someone dresses for an appointment, how they speak in front of clients, how casually they treat a professional relationship, or even how they communicate with the agent on the other side of a transaction.
Experience doesn’t automatically equal professionalism. And when one agent behaves poorly, it reflects badly on the rest of us. Consumers don’t always separate one bad experience from their perception of the profession as a whole.
Does real estate need stricter licensing requirements?
Is it too easy to become a real estate agent?
64% of The Close’s newsletter readers said yes and believe licensing requirements should be stricter. Another 19% said requirements could be somewhat stricter.
Combined, 83% of surveyed newsletter readers supported at least some increase in licensing requirements. Meanwhile, 13% thought the current requirements were appropriate, and just 4% said becoming an agent is already difficult enough.
This is one area where my personal opinion differs from the majority of respondents. I don’t think the answer is simply to make it harder to obtain a real estate license.
Agents already need to learn state and national laws and satisfy the licensing requirements where they practice. What I think deserves more attention is the education that goes beyond that and covers everything else required to work professionally with clients.
Passing an exam doesn’t necessarily teach someone how to communicate with a client, conduct themselves during a showing, interact professionally with another agent, handle a difficult conversation, manage expectations, or represent themselves appropriately in a business setting.
Some of that education could happen in licensing courses. Some could happen through continuing education. Brokerages can also play an important role through onboarding, mentorship, training, and clear professional standards.
The goal shouldn’t be to make real estate harder to enter. It should be making sure agents are better prepared for the job once they’re in it.
How to develop professionalism
Professionalism isn’t one big thing. It’s often the small things clients and other agents notice throughout a transaction.
- Dress for the situation: You don’t need to wear a suit to every showing, but your appearance should match the setting and communicate that you’re there to do a job. A listing presentation, closing, open house, and property inspection may all call for something different.
- Keep communication professional: Texting has made real estate communication much more casual, but you’re still conducting business. Be clear, respectful, and mindful of how you speak to clients, other agents, attorneys, lenders, inspectors, and everyone else involved in a transaction.
- Remember that clients are still clients: It’s normal to develop great relationships with people you’re helping, but becoming friendly shouldn’t mean abandoning professional boundaries. You’re still responsible for providing objective guidance and representing their interests.
- Be prepared: Know the property you’re showing, understand the contracts you’re using, research questions you don’t know the answer to, and arrive prepared for appointments. It's fine to say you don’t know something. Guessing because you didn’t prepare isn’t.
- Be respectful to other agents: Professionalism doesn’t stop with the client. Difficult negotiations and stressful transactions aren't excuses to communicate poorly with the agent on the other side. You may end up working with that person again, and your reputation travels.
- Follow through: If you tell someone you’ll call, send a document, research something, or provide an update, do it. Reliability is one of the simplest ways to demonstrate professionalism.
None of these things require another license or years of experience. They’re habits agents can build from their transactions and continue throughout their careers.
How to stand out in a crowded market
If 80% of surveyed newsletter readers believe their markets are oversaturated, simply being another licensed agent isn’t much of a differentiator. You need to give consumers a reason to choose you.
Start by becoming known for something. That could be a specific neighborhood, first-time buyers, investment properties, new construction, relocation, luxury, condos, or another part of the market you genuinely understand. You don’t necessarily have to limit your entire business to one niche, but potential clients should be able to quickly understand what you know and how you can help them.
Your marketing should reinforce that expertise. Share useful local market information, answer questions consumers are actually asking, explain complicated parts of the transaction, and create content that demonstrates what it should be like to work with you. Then focus on the experience you provide.
Respond quickly. Follow up. Know your market. Be prepared for appointments. Communicate consistently. Keep clients informed even when there isn’t a major update. Do the basic things exceptionally well.
And don’t underestimate your reputation among other real estate professionals. Agents talk. So do lenders, attorneys, inspectors, and past clients. Being known as someone who is knowledgeable, responsive, prepared, and easy to work with can become an advantage that no advertisement can replicate.
You can’t control how many agents are competing in your market. You can control whether you look interchangeable with them.
What brokers can do
If there is one thing I think brokerages should take from these findings, it’s that agent training can’t stop after someone gets their license or completes onboarding. Brokers should be constantly training their agents.
New agents obviously need support as they learn contracts, showings, negotiations, client communication, and how transactions actually work. But experienced agents need continued training too.
Markets change. Technology changes. Contracts change. Consumer expectations change. Marketing changes. And sometimes agents who have been doing this for years develop habits that need refreshing.
Training also shouldn’t focus exclusively on laws and compliance. Those are essential, but brokerages can teach agents how to communicate professionally, handle difficult clients, work with other agents, conduct themselves at appointments, manage conflict, use technology appropriately, build their businesses, and provide a better client experience.
Brokerages can also establish clear expectations for professionalism. If an agent repeatedly communicates poorly, behaves inappropriately with clients or other agents, or represents the brokerage in a way that doesn’t meet those standards, leadership should address it.
Regular role-playing, workshops, transaction reviews, mentorship, market updates, and continuing education can help make professional development part of the brokerage culture rather than something agents only think about when they’re required to complete a course.
Getting licensed should be at the beginning of an agent’s education, not the end.
Takeaway
I’ve experienced both the oversaturation of the New Jersey market and the impact unprofessional behavior can have on how people view real estate agents as a whole. But I’m not convinced that simply making it harder to obtain a license solves the underlying problem. Getting licensed is only the beginning of learning how to successfully represent clients and build a real estate business.
I think we need to focus more on what happens after someone becomes an agent. Better training, stronger brokerage standards, ongoing education, and personal accountability can all help raise the industry's level of professionalism. In a crowded market where consumers have plenty of agents to choose from, a license gets you into the business, but how you conduct yourself and the value you provide can set you apart.
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