Rob Hahn

It is unfortunate that the Obama administration -- you know, the most transparent administration ever? -- did not allow recording devices or cameras for broadcast into yesterday's Conference on the Future of Housing Finance. By all appearances, it promised to be high political theater, by which I mean that the entire thing was likely carefully scripted from the start. My partner, Jeff Corbett, expressed some skepticism about the proceedings in an earlier post on HousingWatch.

Forgive my cynicism but, again, most of these panelists were smack in the middle of the housing boom, enabling -- even perpetuating -- what became a bursting bubble. Are these the same people we want directing policy, going forward?

And where were the representatives for the nation's real estate agents?

Few professions come in for more abuse than real estate agents. Maybe lawyers. And possibly politicians, but I hesitate to call that a "profession" in any sense of the term. And since housing is so much in the news these days, one can't help but pick up the animus of the general public against real estate agents.

Megan McArdle's recent post on The Atlantic website regarding Wisconsin's $1,000 down payment program, for example, was a critique of the government program. But in the comments, you find sentiments like this:

"I agree that this program doesn't make sense. But why do you end the post by saying that the motivation for it is to buy votes from low-income voters, when you have already recognized that it is surely the realtors* who are behind it. (And that it is not their votes that the politicians want -- it's their money.)

*'Realtors' is a trademark and you are supposed to capitalize it. Screw them."

From the outside, that line of reasoning makes a lot of sense. Real estate agents make more money when they sell more houses at higher prices, given the particularities of how they are compensated, and the National Association of Realtors has a lot of political power. Surely, they're conspiring with politicians in smoky back rooms trying to stick it to the average American to enrich themselves, right?

The thing is, when you're inside the industry, the picture is a bit more complicated.

Unbeknown to most consumers, there is a seismic shift coming in the American real estate industry. The Obama Administration is contemplating fundamental changes to the national housing policy.

As yet, this is something for various think tanks, government officials, lobbyists, and academics to argue over, but it will come to affect virtually every single American citizen in one way or another. I wrote about this on my blog for the industry insider folks, but wanted to see what you, the consumer, knows or thinks about the issue.

There's this perception out there that real estate agents are making money hand over fist.

It's understandable. Consider the average seller's experience: He might speak to the real estate agent a couple of times on the phone; then meet him or her in person at the initial listing presentation, when the real estate agent gets the listing; then have a few more phone calls over the next couple of months. And the next time he sees his agent, it's at the closing table and she's walking away with a check for tens of thousands of dollars. Plus, the real estate agent is usually dressed well, drives a nice car, and seems to be the picture of success.

If you don't see the actual day-to-day work of a real estate agent, and don't see all of the work they end up doing for no pay (and why would you?) then it's perfectly understandable why so many consumers think that agents are overpaid and do no work for the fat paychecks.

The reality is -- as many real estate agents will tell you if you ask -- that most real estate agents work extremely long hours for nothing, and end up closer to the poorhouse than their wheels and threads might suggest. As salespeople, their professional appearance is important, so they invest in looking like a million bucks.

The truth is, the job just doesn't pay that well. The 2009 Member Profile from the National Association of Realtors tells us that the median gross income of a Realtor was only $36,700 in 2008. But that alone doesn't tell the story.

Just a brief note of warning to folks who might be thinking about buying a home or a condo or whatever strikes your fancy. Sometimes headlines aren't just wrong, they're flat-out misleading.

For example, we have this headline from HousingWire: "Obama Signs Homebuyer Tax Credit Extension."

Based on that headline, you'd think that the $8,000 first-time homebuyer tax credit was extended. Time to start scouring the Web for your dream house? Start calling real estate agents?

Hold on just a minute.

Continuing my attempt to help consumers understand the days and nights (and weekends) of real estate agents, I figured I'd let you in on some inside-the-industry talk that's really hot at the moment.

One of the things that good real estate agents would like you to know is that most of their peers flat-out suck at their job.

If you speak to some of the top-producing, most-respected agents in the business (and I do), what they'll frequently complain about is how little the other agents they have to work with know about actually doing a real estate transaction.

As a real estate industry insider over the past several years, but never a broker or a real estate agent, I've always thought most consumers have no idea what it's like to be a real estate agent. We all know that people resent the hell out of real estate agents/brokers and have little respect for them. I mean, to be ranked below actors and union leaders -- that's just harsh.

Real estate is a weird business. It's a major pillar of the American -- nay, global -- economy, as the current malaise shows, and yet so few people understand it.

Buying a home is the biggest financial transaction for the vast majority of Americans, and yet because they do it so infrequently, most consumers don't have a clue about a process that could put them into debt for the rest of their lives. And people's impressions of real estate agents is formed more by movies, TV shows and commercials than reality, because they simply don't interact with them often enough to gain an informed opinion.

Think about it. You see your doctor a few times a year. You see your accountant at least once a year. If you have a lawyer, chances are that you see him or her at least a couple of times a year. You see a real estate agent once every seven years, if you're the average consumer.