Abstract: Real estate market is highly intermediated, with 90% of both buyers and sellers hiring an agent to help them transact a house. However training to become an agent is short and agents pick up most relevant skills as they work with clients. Due to low entry barriers and fixed commission rates, the market is highly populated with entrants and inexperienced intermediaries that deal with a large fraction of the transactions. Using a rich micro-level data set of listings and deeds data, we first show how agents' experience affects clients' outcomes. We then study the aggregate implications of experience distribution on the efficiency of the real estate market by building a theoretical entry and exit of real estate agents and considering several policies that raise the cost of entry and thus favorable alter the equilibrium distribution of experience. Finally, we extend the model to incorporate aggregate fluctuations to study boom-bust dynamics and find that low entry barriers amplify the cycles in the housing market.