Will the Real Estate Agent be obsolete 20 years from now?

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Will the Real Estate Agent be obsolete 20 years from now?

Ryan P. Kotschedoff
Real Estate Agent · San Luis Obispo, CA · Member since 2018 · 79 posts · 39 votes

Hi BP, 

I am 16 years old and I plan to get into the real estate agent industry once I am of age to get my license. I have studied how to be a good RE agent for a little over a year now and I am about to be an intern for a brokerage in the upcoming months. I really enjoy the business and this is definitely the career I want to pursue, preferably I want to be in residential RE, but I am worried that apps might take over the industry. My question is, should I think about Commercial real estate instead or just stick with what I enjoy more which is residential? Since I am only 16, should I look for a different career that doesn't have the possibility of getting replaced by technology or just stick with it? A lot of people say that that the agent will never be replaced because they can provide more. So what can an agent provide that technology wont be able to do 20 years from now? Thanks for your time

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y

Technology merely makes it so a real estate agent can be more efficient and more successful.   The vast majority of the populace are clueless and incredibly scared about going at a transaction without an agent.  With the average home owner staying in their home 8 years, I do not see this changing unlike things that are more of daily use like online shopping.

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Long story short they’ll probably still be around
    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    If your more keen on the investment side go that route.. its harder but man you stick it out get a clientele base and you can do quite well  quite well.

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  • Ana Marie B.
    Rental Property Investor · SF Bay Area, CA · Member since 2015 · 206 posts · 156 votes
    8y

    @Ryan P. Kotschedoff - I'm impressed.  You're only 16 years old and already asking such prudent questions!  Anyhow, I don't know enough about commercial real estate to provide any comment there, but can say that I already see tech companies delving into the residential side.  While I don't believe tech will be the end to residential realtors, I do think that whatever you do, it would be wise to adopt and learn new relevant RE technologies along the way to stay ahead of the game. 

    PS - I know realtors who did not adapt to technology and are now having difficulty maintaining a portfolio of clients, especially millennials who want everything done electronically, etc.

    2Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    Technology merely makes it so a real estate agent can be more efficient and more successful.   The vast majority of the populace are clueless and incredibly scared about going at a transaction without an agent.  With the average home owner staying in their home 8 years, I do not see this changing unlike things that are more of daily use like online shopping.

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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y

    I doubt real estate agents will be obsolete , but there will be some obsolete real estate agents 20 years from now 

    4Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y

    They said the same thing about car salesmen years ago .. people adapt to technology . A realtor that’s good can do things you can’t find on a computer 

    1Reply
  • William BrownPro Member
    Wholesaler · Los Angeles, CA · Member since 2016 · 276 posts · 181 votes
    8y
    Will they be completely obsolete—probably not. Will there be better alternatives to using them—absolutely. I’m 19 man, and fantastic to see kids my age out here hustling as well. My biggest advice would be to set a goal, 10x it, 10x it again, and half the time you allotted yourself to get there and stay determined to hit them and get creative. In the next 3-5 years, a the tsunami of big data, and the behemoth agencies wielding such data, will wipe out almost all of your small time agents because they just won’t be able to compete. Very similar to how Walmart flattens mom and pop shops. In the next 10-20 years: No personal offense meant to anyone agents here, but you and I know that technology is getting to the verge of becoming MORE than just making existing systems and processes more efficient. What does this mean? AI, neural transmitting, things are going to look a lot different. Be careful not to learn to much about current processes about how 99% of firms work because they are about to change. Don’t get stuck in that mindset; learn the fundamentals of real estate, because people will always need a place to live. That fundamentally will never change, just how that looks and happens will.
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  • Account Closed
    Investor · Cleveland, OH · Member since 2016 · 118 posts · 147 votes
    8y
    NAR is the second biggest lobbyist behind the NRA. I think realtors have to become more sophisticated as the value proposition gets challenged, but it’s harder to automate these transactions given the nature of the business and asset. Additionally, there is so much waste through a real estate transaction, it will take a long time to fully optimize the process (brokers, lawyers, title companies, appraisers, inspectors, they all have areas which can be optimized) I’m a licensed broker in NJ FYI
    3Reply
  • Michele B.
    Vandalia, MI · Member since 2018 · 569 posts · 264 votes
    8y

    WOW, for 16 I am impressed. I think that in 20 years there will still be select jobs for real estate but, I do believe the days of making the huge commissions are about to come to an end. I am sorry to say that but, I believe that most tech savvy people will figure out ways to go around having an agent thus making it harder to make a living if you are an agent.  Is an agent worth the money they get?  YES! I think they work really hard to get the job done for clients. 

    1Reply
  • Van Blackman
    Real Estate Broker · Chicago, IL · Member since 2015 · 122 posts · 103 votes
    8y

    Hello @Ryan P. Kotschedoff,

    Interesting question!

    Nobody has a crystal ball, but I highly doubt there will be technology sufficient enough in the next 20-50 years to replace a real estate specialist completely. Of course, technology has been created, and will continue to be created, that will make home buyers' quest for property easier if they choose to go-it-alone, but the fact is, the technology that we have today provides insight that is far too generic to be considered "valuable" in my opinion.

    It all comes down to 2 things for me:

    1. Specific market & industry knowledge 

    2. RELATIONSHIPS

    There are too many variables to discuss in length here, but a website or application cannot know the ins and outs of every neighborhood like a real estate agent who's been beating the streets for 20 years can. 

    Simultaneously, there's a reason why "rapport" is mentioned in every sales and negotiation book there is out there. People like to do business with people they "like" because it establishes a RELATIONSHIP. And, people want to do REPEAT business with people where there's an existing established relationship because of familiarity, trust, and comfortability. Good old fashioned face-to-face business will never go away. I actually find that the more technology-based business gets, my chances of success increases!! Who writes and sends personal hand-written thank you cards anymore when you can email, text, or message clients on any social media platform? NOT MANY! However, it goes a LONG way, believe me. And that's why we do it.

    So, my personal suggestion for you, sir? Go with your passion, and don't worry about the profession going obsolete because it won't. If you like residential real estate, chase that dream, and become a person of value so that no website ever created could hold a candle to you!

    Hope this helps!

    1Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    Elon Musk AI Agents 

    2Reply
  • Melissa Gittens
    Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
    8y

    I think they will still be around. Agents are needed to open up the doors and it give a sense of security when you have someone who is licensed entering in the property with their client. Also  the fact that you have another set of eyes and ears working on your behalf and have your best interest in mind when selling or buying for their client 

    1Reply
  • Timothy Wolfgram
    Lender · Westlake Village, CA · Member since 2018 · 37 posts · 26 votes
    8y

    Great question and something that I have thought about as well, but not just for RE Agents but also on the lending side as there is already a pattern of automated processing/underwriting. The biggest factor though is trust, and it can be nearly impossible for a lot of people to trust something they can't talk to/meet with in person. This is especially true on large financial transactions/a place to live, which comes in real estate. 

    2Reply
  • Tracy Selfridge
    Contractor · Lexington, SC · Member since 2015 · 62 posts · 50 votes
    8y

    I'm in the class now to get my license here in SC. In my opinion for my market, no they will not be obsolete. 

    There is a lot of stuff that goes on with a real estate transaction that isn't common knowledge. And if one isn't careful, they can end up in some legal issues and money issues if they don't have a professional holding their hand through the transaction.

    1Reply
  • Noel Challenger
    Realtor · Paterson, NJ · Member since 2017 · 134 posts · 97 votes
    8y

    They have been saying things like this for years. I don't think Realtors are going anywhere. Getting the job done like a great Realtor would is more complicated than most people think. There's skill, knowledge, and experience involved that you just don't receive from these discount services. Real estate is an interpersonal business and in almost all cases the largest financial purchase of a person's life.

    On the other hand, Realtors who don't adapt and implement technology in their business won't be around in twenty years. But, the ones who do will do 5 times as much business. I see this happening now in the industry. Realtors who refuse to use the Internet, Facebook, an iPhone, etc.. these guys are getting swept by tech-savvy agents who dominate the market.

    1Reply
  • Doug P.
    Investor · Kitchener-Waterloo, Ontario · Member since 2008 · 1k+ posts · 1k+ votes
    8y

    @Ryan P. Kotschedoff Not a chance. Human nature doesn't change, so sellers will be just as lazy and/or busy 20 years from now and would rather hire you to deal with selling their house than do it themselves. Buyers on the other hand won't (in most cases) buy a house without personally walking through it, and someone has to be there with the key to let them in.

    Commission rates will continue to drop due to competition and automation of non-physical tasks. But prices will continue to rise as well so you'll still be making bank.

    1Reply
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