The future of RE agents?????

The future of RE agents?????

Involved In Real Estate · Rochester, NY · Member since 2011 · 138 posts · 11 votes

In full disclosure, I AM a licensed RE agent.

But as an Investor, I have asked myself that question. And I say: it depends.

Most good agents build relationships with their clients. And most good agents are resources for just about anything: attorneys, financing, handyman, lodging, schools, etc.

If you're looking to only use an agent to "look" at the mls, well then I think you get what you get. (BTW, here in NY if I give a non-licensed person access to the mls, that is a violation and I could lose my license.) Agents PAY for the use of their mls, through dues. We pay to belong to a local board for those privileges.

I've read on other threads about this agent does this or doesn't do that. Agents perform ALOT of non $$ things for their clients. Good agents know how to build their business and referrals. And sometimes, after all that work, the agent is the FIRST to get thrown under the bus. And the FIRST person everyone looks to when there's not enough money to close so "can you cut your commissions?"

The internet has changed the agent's job so much. I myself am able to research alot of properties BEFORE I even have to call an agent.

So I'm just putting it out there: What future do YOU see for RE agents? And can agents do NOW to help investors solve their problems?

0Reply
69 views

Most Popular Reply

J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Originally posted by Kathy V.:

So I'm just putting it out there: What future do YOU see for RE agents? And can agents do NOW to help investors solve their problems?

In my opinion, RE agents will eventually go away. As information becomes more widely and easily available, the system of real estate transactions will become more frictionless, and will eventually be commoditized.

I wouldn't be surprised if real estate "consultants" remained -- people paid on an hourly basis to help with transactional details and paperwork -- and I wouldn't be surprised if real estate attorneys took a more prominent role in the complicated transactions, but I don't think the value of real estate agents is there.

Ultimately, agents do the following:

- Help procure buyers for sellers and help procure housing prospects for buyers;

- Help with negotiation;

- Fill out forms and deal with procedural details of the transaction;

- Coordinate closings.

The first bullet above is by-far the most important, and eventually the Internet will provide the ability for buyers and sellers to find each other without a middleman.

All that said, real estate agents have a very strong lobby, so they probably won't go away as quickly as they should.

And full disclosure, I'm a licensed agent.

See this reply in the discussion

32 Replies

Jump to latestLatest
  • Involved In Real Estate · Rochester, NY · Member since 2011 · 138 posts · 11 votes
    15y

    Flat fee listers have not caught on in this market. But a few years ago, when they entered, we were worried. But they haven't hurt our market share.

    I am really learning alot from these responses......

  • Member since 2011 · 6 posts · 0 votes
    15y

    As an investor, I struggle with agents that are active investors as well. I need to know that they are finding me the best deals they can. If they are also finding deals for themselves I see a conflict.

  • Involved In Real Estate · Rochester, NY · Member since 2011 · 138 posts · 11 votes
    15y

    Good point Travis. I also wonder about this very thing.

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    15y

    Duffy Realty hasn't dominated in fact many of her listings expire.

    The other day they were asking about how to jump on the short sale band wagon.

    She is growing through selling a franchise model just like Solid Source is expanding nationwide.

    As a broker you either like the model of VOLUME or you don't. Me personally I tried it and didn't like it.I am doing much better selling my own commercial listings and buying for myself than watching agents and hand holding them.

    Travis I don't see a conflict in deal finding.Sure I will look at a deal but doesn't mean I have the cash or time to add another property to my portfolio.

    So just because I pass it on or list it does not mean it is a crap or a marginal deal.

    Used to these flat fee companies would list and take the money and not do anything.This left the buyer broker giving an implied fiduciary duty to the seller having to help them and do twice the work for one side of the commission.

    So our forms changed where you have to check if you are doing a sign in the yard and putting in MLS and thats it or will you be showing,marketing,helping with contracts etc. for a certain flat fee or percentage of commission.

    This forces the flat fee'rs to do the same amount of work as regular brokers for the small fee and not just list and leave.

  • Investor · Little Rock, AR · Member since 2010 · 628 posts · 251 votes
    15y

    I think we are all forgetting our position in this discussion. We are thinking as professionals and not the novice "once in a while home buyer". We don't actually need an agent to do our due dilagence and negotiations. But, the novice buyer (With exceptions) needs and wants a guiding hand during the process.
    Don

  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    15y
    Originally posted by Don Hines:
    But, the novice buyer (With exceptions) needs and wants a guiding hand during the process.
    Don

    That's only because the process seems to be such a mystery to those outside the business. And this is the way NAR likes -- they want everyone to think that buying/selling a house is a complicated process that requires professional hand-holding.

    As Jon pointed out above (and this is the quintessential example in the online world), travel used to be the same way. People didn't know how to book travel packages -- it was complicated to find the best deal on combined air travel, hotel, car, etc. Real estate agents had better deals, software tools, contacts, rebates, etc, that the typical traveler didn't have access to.

    15 years ago I couldn't imagine booking a nice vacation without a travel agent. Here we are 15 years later and I can't imagine using a travel agent!

    As information becomes more available and services become more commoditized, the veil of secrecy and intrique gets lifted, and before you know it, the average Joe starts to realize that buying and selling real estate really isn't that complicated.

  • Investor · New Orleans, LA · Member since 2011 · 22 posts · 4 votes
    15y

    They often compete with me on advertised deals. And when they try to sell me something it's usually priced too high yet they act like the $$$ is nothing but paper. Like most plaintiff attorneys, just looking for another pigeon.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.