Real estate agent licensing: arguments for and against

This paper examines the issue of introducing mandatory licensing for real estate agents in the Russian Federation. It analyzes both foreign experience and Russian specificities. Arguments in favor include improved service quality, increased agent income, and enhanced trust in the profession. Arguments against focus on the risks: growth of the shadow market, increased transaction costs for consumers, labor shortages, a snowball effect across generations, excessive requirements for licensing exam candidates, and potential deterioration in service quality. A microeconomic model was developed to assess the consequences. Based on the analysis, the conclusion is drawn that introducing a system of mandatory licensing for real estate agents isn’t currently needed, as its potential negative consequences outweigh the expected benefits.