Will Real Estate Agents Become Obsolete?

Will Real Estate Agents Become Obsolete?

Wholesaler · Austin, TX · Member since 2015 · 37 posts · 13 votes

On average, most consumers only move once about every 7 years or so and for the typical consumer, a good real estate agent can be worth her weight in gold as far as the negotiation skills and technical experience brought to the table. However, if you are a professional real estate investor selling properties every month, you need lower cost options that will not eat into your profit margins. Many companies offer a flat-fee listing service that will substantially reduce the cost of marketing a property on the MLS which can add up to tens of thousands of dollars saved if you're flipping houses. As a business owner, your number one priority is to keep your eye on the bottom line. As Ben Franklin said, "A penny saved is a penny earned." In this case we are talking about a whole lot of pennies! If you can show up on time, dress professionally, and communicate well, you should list your property with a flat-fee listing service and pocket the commissions you'll save. With all that extra change in your pocket, you can invite me to lunch. Win-win!

http://www.thestreet.com/story/13319909/1/will-real-estate-agents-become-obsolete.html

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y

@John Ma  your talking technical information.. the reason real estate agents are needed and are not going away is very very simple.  Putting buyers and sellers together is a very bad idea... Sellers withhold critical information frequently ... And buyers puff their ability to buy.   

Anyone who has actually been and agent will tell you.. how offended a seller can be when a buyer low balls them.. to the point they tell them to take the contract and stuff it were the sun don't shine... You need agents to keep them apart.. Just like if you have ever been in a legal mediation  the two sides are in seperate rooms and the mediator works between the rooms... its a cardinal sin in RE sales to let the buyers and sellers communicate much more than a greeting.

think about the homeowner who loves there homes and their frilly wall paper.. young couple comes in and first thing out of the Mrs. mouth is this wall paper is gross ... seller is insulted deal never happens, this is real world RE sales.. not BP world

You need agents to control emotions.. you don't need agents to help the under 50 crowd work the internet.. and all the on line information.

Also this is an investing site so the slant is for investment properties which are different than 90% of transactions which are sellers selling to homeowners ( at least in the SFR realm) And commercial has different brokers who are much more intuned to the financial side of the transactions than your RE agent who is trying to find that certain look that the wife wants.

The reality is the wife if they have one will have the yes or no decision about 95% of the time.. Husbands huff and puff but at the end of the day its the wife that will make the final decision to pull the trigger and that decisions is based on female things IE how the house looks  whats in the kitchen the bathrooms the master etc. 

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  • Investor · Nashville, TN · Member since 2015 · 688 posts · 607 votes
    10y

    I disagree with this point. Sure you can slap something on the MLS for $150. But then you have to spend your TIME showing the property, following up with buyers, getting the buyers pre-approved (because agent's won't bring buyers to your properties), marketing the property outside of the mls, you have to set up closing, set up appraisals, repair addendums, the list goes on and on.

    Your time is worth something. Do you want to spend all day doing what I just described above? What happens when you have 4, 5, 10 projects going at once. Are you going to do all of the above for all your properties? NO. You will at this point hire an agent or hire an employee you have to pay, which takes away from your bottom line either way. Basically, back at square one. It's a circular argument.

  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    10y

    I figure if you are selling a property you need an agent. Someone has to get out there and show it, setup Open Houses etc. With a realtor you are just paying someone to do that for you so you can do something else to make money. It is just like paying someone else to put carpet in. Sure I could save money by doing it myself, however if I pay someone else to handle it, there is a better job, faster job and I am free to go work on other things at that time.

  • Wholesaler · Austin, TX · Member since 2015 · 37 posts · 13 votes
    10y

    Devan and Mike, I think those are both very valid points.  You might also concede though that there are plenty of customers out there that don't think a real estate agent brings any value to the table whatsoever with the mountains of free data available on the internet.  I see this as being more of a gray area where there are clients out there that would install the carpet themselves if they could just to save a few bucks.  To your point, that may not be the best use of an investor's time but that will be the client's personal preference and depend on their own circumstances.  Their argument would be "Why would I go pay an agent $10k to do a couple of open houses?"  Why are wives the world over asking their husbands why they didn't go hire a plumber instead of trying to fix the sink themselves?  Why do I need to change a tire myself or wash dishes or mow the lawn?  Almost everything can be outsourced at this point.  That doesn't mean that I want to.  There are pros and cons to outsourcing anything, and to me, it's valuable to know that there are other options out there besides getting an agent and I can make the decision on my own terms.  To your point, when your time is so valuable that you're better off hunting for deals versus going to an open house, then by all means spend your time where it's going to make you the most money.

  • Toronto, ONT · Member since 2014 · 64 posts · 12 votes
    10y

    Disclosures, Liability, Fiduciary obligation to client and invaluable service. Agents are a key component to your team. We do help you so you can do what you do best. 

    I am an advocate for my investor clients. I find off market deals, run comps from the MLS and title, and thoroughly analyze the property and tell them why it is a good or bad deal. Not using third party outdated and wrong information from Trulia, Zillow or Redfin. They have complete control over their business. I add value to the team.

    As a property owner you want the highest and best possible price. An agent will market your property in ways you cannot.  Follow up with prospects and keep them interested in and convince them why the property is worth more than the others on the market. Not just a body at an Open House. But working with you from the initial start of the sale of the property to the end.

    When you are in contract the real meat of the work begins and we are there every step of the way until COE.  Holding your hand, your lenders, your buyers, your title companies, your inspectors, transaction coordinators and any sub contracts. Ensuring initial deposits are made and contingencies are removed and everyone is proceeding to close.

    We protect you against any lawsuits or liabilities that may arise in the course of a transaction.  Just like a great accountant actually says you money and protects you.

  • Dawn BrenengenBusiness Member
    Moderator
    Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Tim LaBorde You're right.  There are some people who find a lot of value in what I do, and I'm sure there are plenty that find no value in what I do.  Those people don't hire me.  I also see a lot of people shoot themselves in the foot when marketing their own property.  Terrible pictures, overpricing, making it hard to show, etc. If they do find a buyer, that buyer will often have an agent, so the 6% you thought you were saving often just turns into 3%. Then you have to actually get the home from contract to closing. There can be appraisal issues, negotiating repairs, paperwork.  

    There are a lot of people who are quintessential DIYers.  Those people may want to take on all the tasks that go on in a transaction, but most do not. Although I work with MANY investors, still most of my buyers are retail buyers, and they need me the most.  I really can't imagine any website making them comfortable enough to go through one of the most major purchases of their lives without some sort of hand holding.

    Investors don't need the hand holding as much, but they are too busy at their full time jobs, or finding more deals or spending time with their families to bother with trying to become pseudo real estate agents.

    I could change my own oil if I wanted to too, but I don't, so I will never.

  • Wholesaler · Austin, TX · Member since 2015 · 37 posts · 13 votes
    10y

    David and Dawn, I absolutely agree with a lot of the points you've made.  However, there are many clients out there who either can't or won't see the value that an agent provides and the proof is in the pudding if you look at the article I pasted in my initial post this morning. Brokerages are having to lower their fees to remain competitive because agents are being looked at more and more like the stockbrokers who've been replaced by daytrader websites.  Do agents provide value?  Sure we do but the market is driving down the commission percentages telling you that they don't think it's worth 6%.  It will be up to us as the agent to say "Yeah I understand you can pull so much data on your own but here's what you're not thinking about..." and go into the points you've mentioned.

     http://www.thestreet.com/story/13319909/1/will-rea...

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Tim I am not getting your point. I have been in this business over 12 years. I focus on commercial real estate. My business has never been better and I am in the top 1% of income earners.

    Data doesn't close deals. Negotiating the contract and getting it to closing is where the value of a broker/agent comes in. This is a relationship business. I have been hearing this same junk story for over 10 years now.

    Foxtons and a horde of others have bit the dust. You will see similar stories to this over the internet from years past. There are people in this world who value SERVICE. People do not want the cheapest they want the best value for the money.

    I look forward to seeing another one of these articles pop up months to years from now and I will still be crushing it. 

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Tim you are right that there are cheap people out there everywhere. There are also people that want service and knowledge and are willing to pay a premium for it.

    If 100 people tell you to take a hike but 10 people buy through you and you make 1 million in commission then was that a failure? Not in my book. You do not need or want all the business. In fact I qualify people for certain criteria before I spend time with them.

    I have found that by being focused all the noise is drowned out and your results exponentially increase. Tony Bennett the icon singer said he learned to just focus on one thing and not give anything else his time. That keeps him the very best at what he does. Nobody wants or sees value in a mediocre singer just like a mediocre agent. When agents are average they do not make the rules.  

  • Wholesaler And Coach · Springfield, VA · Member since 2011 · 169 posts · 75 votes
    10y

    Not sure if they will be obsolete but there are bound to be serious changes in the coming years. There are brokerages right now allowing buyers to show houses with a lock box with no agent present. You also have Zillow who I think is positioning itself for people to sell without an agent. I think we will see more a la carte options for sellers and buyers that may want to do portions of the process. Who know? All just guesses on my part.

  • Rental Property Investor · Marianna Florida · Member since 2011 · 357 posts · 169 votes
    10y

    Just because is a lot of real estate data is available on the internet, real estate agents will not become obsolete. There is a lot of medical data available on the internet, yet doctors will not become obsolete. 

    Most people who are not investors know they don't know enough about real estate to risk a huge costly mistake by trying to sell their house on their own.

    Really good investors so on top of their game need and use agents even more than average investors because they have so many properties going at the same time, they don't have time to sell them on their own.

  • Real estate investor · Porter County, IN · Member since 2013 · 64 posts · 13 votes
    10y

    I dont think realtors will become obsolete. From experience, even using a flat fee broker as as a seller many times another agent brings the buyer. I myself use a flat fee broker because I am comfortable enough filling out the paperwork and handling showings on my own.  I had enough minor issues selling with an agent to try it on my own several times and now I have a fair enough grasp. I have a small operation going on in BP terms and have the time and knowledge to complete a transaction on my own (zero agents involved) or with a FFB.

    Back to the point here many  buyers and sellers will definitely require the service of a full service broker. If statistically people move every few years they dont have the time, knowledge, or connections to complete a transaction themselves.

  • Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
    10y
    Originally posted by @Tim LaBorde:

    Devan and Mike, I think those are both very valid points.  You might also concede though that there are plenty of customers out there that don't think a real estate agent brings any value to the table whatsoever with the mountains of free data available on the internet.  I see this as being more of a gray area where there are clients out there that would install the carpet themselves if they could just to save a few bucks.  To your point, that may not be the best use of an investor's time but that will be the client's personal preference and depend on their own circumstances.  Their argument would be "Why would I go pay an agent $10k to do a couple of open houses?"  Why are wives the world over asking their husbands why they didn't go hire a plumber instead of trying to fix the sink themselves?  Why do I need to change a tire myself or wash dishes or mow the lawn?  Almost everything can be outsourced at this point.  That doesn't mean that I want to.  There are pros and cons to outsourcing anything, and to me, it's valuable to know that there are other options out there besides getting an agent and I can make the decision on my own terms.  To your point, when your time is so valuable that you're better off hunting for deals versus going to an open house, then by all means spend your time where it's going to make you the most money.

    I'm not sure how you value your time, but I don't work for anything unless I get 80-100/hour. If I run 2 jobs with 3 guys each that means i need to get an income of 15/employee for me to be satisfied. If you relly want to save up money, why not save the couple of $ posting on the MLS? Post it on craigslist! make some phone calls to the agent or broker, don't list it, it will save you bucks anyway.

    On my end though, I like to concentrate on the big picture, acquiring projects, managing manpower, calling suppliers for better prices. On a 100k project, I could save a lot of money if I do everything myself, but the question is, why would I use my hands when I could simply hire somebody for it, or simply, just because I could afford it. If I don't like the service or I change providers, who says I'm stuck with them?

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    I've been on the opposite side of a deal from discount brokerages such as redfin and another local one here about half a dozen times....and I was able to capture referrals and clients from two of theit own clients on the opposite side of the deal. So I'm not exactly afraid of discount brokerages pushing me out of business if they can not even retain their own clients.

    If someone does not need an agent I am all for them going at a deal themselves. But what happens is a high percentage of the time? FSBO's end up sitting on the market and getting listed with an agent eventually. Buyers overpay for properties. People make mistakes in their contracts and create situations with clouded title.

    I had a friend recently who did not think they needed an agent because they were buying new construction. Well they overpaid by about $20k on the property on the sales price and missed out on $15k in a closing cost subsidy that was the average this builder had been giving out. So they had a net negative of $350 they left on the table by simply not having the proper market knowledge. Much of the data for real estate can be found for free on the internet, but not all of it including some very important pieces of information such as the seller subsidies.

  • Dawn BrenengenBusiness Member
    Moderator
    Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Russell Brazil Is spot on with his new construction buyer story. I hear a lot of people talk about all the money they saved by not using an agent, and then when I look at the sales data, I see they over paid for the house or negotiated no closing cost assistance or builder freebies if new. So, not only did they not save any money by not having an agent, they also lost out on concessions that any agent with MLS access would have been able to negotiate for them.

    I helped a client buy a FSBO last year, and my buyer paid my commission directly. The seller just had a thing against hiring an agent, but he sold the house for about what he would have netted if he had put it on MLS with a full service agent at 6%. So, he saved no money, did all the showings himself, delt with all the contract to close stuff himself, etc. He actually went with another buyer instead of my client at first, only to call me a few weeks later when the first buyer fell through. It turns out, they couldn't qualify for a loan. By that time, my buyer could have already closed.

    I'm sure that seller was still feeling pretty proud of himself for not using an agent, but it was a total waste of time for him to do it himself.

  • Real Estate Agent · Austin, TX · Member since 2015 · 12 posts · 10 votes
    10y

    There's a lot of talk on this subject on the internet of agents becoming obsolete. The way I see it, is the selling and buying process is so infrequent in someones life, they just go with an agent. Sure there's plenty of services out there to help you in the buying and selling process, however there's nothing out there to help you with negotiations. Plus you're taking a lot of time to try and learn the entire process, and you could easily screw up on the way. Your house is your biggest asset. I feel it's not a smart move to handle it yourself, just like trying to represent yourself in court is not very bright. Plus the affluent are always accustomed to hiring other people to handle stuff for them. So high end houses will almost always be listed with an agent.

    The thing about brokerages lowering commissions to get business tells me that they aren't very strong in prospecting, or marketing. I never lower my commission. If I'm lowering my value, what do you think will happen when I negotiate on your house?! People want quality services. You get what you pay for I suppose. You want cheap, then you can get cheap and possibly lose out on the best terms and price.

    Another reason to hire an agent is if you have a full time job. Ultimately you do lose out on offers if your house isn't available on other peoples time frames, and you can't answer the phone.

    However if you're an investor who understands the process, then by all means you may not need agents. Especially if you don't push volume. I wont try to convince you otherwise, because there are plenty of investors that use agents. It's more convenient, especially if you have a lot of business on your plate as is. Why step over the dollars to pick up the dimes? Having the technician mindset of doing things yourself will prevent you from expanding your business. You free up so much time hiring an agent, so that way you can just let that end go, and focus on higher income earning activities in your business. 

    The way I see it is most Americans are consumers. They will pay a lot of money to have quality stuff, like those yeti coolers that cost a couple hundred dollars. Or pay money to have a lawn service mow their lawn for them, making their life a bit easier. Agents aren't going anywhere. Especially if you position yourself in the right manner. It's not about turning and burning clients. Building long term trusted relationships with people whether they buy or sell now, or 10 years down the road is what will keep an agent in business.

  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Joel Owens:

    Tim I am not getting your point. I have been in this business over 12 years. I focus on commercial real estate. My business has never been better and I am in the top 1% of income earners.

    Data doesn't close deals. Negotiating the contract and getting it to closing is where the value of a broker/agent comes in. This is a relationship business. I have been hearing this same junk story for over 10 years now.

    Foxtons and a horde of others have bit the dust. You will see similar stories to this over the internet from years past. There are people in this world who value SERVICE. People do not want the cheapest they want the best value for the money.

    I look forward to seeing another one of these articles pop up months to years from now and I will still be crushing it. 

     Right on Joel. Another thing most of these articles miss is that real estate can't be valued easily like stocks or other commonly bought items. Every piece of property is different. Is it worth saving 3 percent, which actually turns into 2.5 or less after costs, to represent yourself against a buyer who is using an agent who is a pro and knows all the tricks? Plus pricing wrong will cost more than 3 percent whether too high or two low. On top of that you have to show the house, Make sure the contract is legit, make sure the addendums are right, inspection, apprasial, etc and interpret closing figures. Most agents with buyers know they will end up doing much more work with a fsbo seller because the seller won't know how to do all that and won't want to show those houses as much which hurts your buyer pool. 

    Overall you probabaly won't save money because you don't know the market well enough to price right, you will have much more work and headaches and you will limit your buyer pool.  Sounds like a great deal. Lol

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    10y

    There are still some travel agents around even with the likes of Expedia and Kayak, so no, real estate agents won't become obsolete, and I think real estate agents can provide more value in the future than travel agents can because a home purchase is a much bigger deal than a trip and people don't want to be penny-wise and pound-foolish (for the most part). So while I do think real estate agents will wane in significance, they will still be around... that is until the robots take over everything, of course.

  • Investor · Arlington, VA · Member since 2014 · 151 posts · 37 votes
    10y

    This is a great topic, and i have strong opinions on this that i share often to people.

    The traditional real estate industry (MLS/realtor) is very outdated ever since the internet became a common tool. The only thing keeping it going the way it always has been is because of the politics in the industry.

    Buyers (normal retail buyers) have much more power now a days. Research on areas, house history, curb appeal and what to look for are just a matter of doing a bit of reading or google-mapping where as before realtors were the main source of information.

    We an certainly do away with the current model, however I don't see it going away because its already an existing system and is too powerful as it is protected by law.

    I do see it changing over time though.  I RE industry does not like Zillow,Trulia,Redfin because it empowers the buyers however I notice many successful Realtors are embracing those sites to generate more business.  

  • CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
    10y

    @Joel Owens right on man. I always laugh at the people who say "oh xyz profession isn't worth paying for" because those are the people that don't understand the value of their time and likely make the mistake of not factoring in real estate commissions into their deal analysis, meaning they don't really understand real estate as it is.

    @Tim LaBorde I feel like your opening post is some sort ad for yourself or your business. Do you have a license or are you wholesaling without a license? If you have a license, how are you compensated on transactions?

    The way I look at it is this: I don't want to be a generalist, good at everything and master at none. I'm an expert in tax, accounting, quants, and want to be an expert in business systems. A realtor is a business system for an investor as it helps automate the process. 

    I don't want to deal with the technicalities of preparing the applicable statements and checking off each step in a real estate transaction. It's simply not worth my time. For it to be worth my time, on my recent acquisition ($91.8k purchase), I'd need to spend no more than 27.54 hours (@ $100/hr) doing whatever realtors do in order to save any money. Am I going to be able to learn (and be competent in) all the state laws, how to prepare forms, what steps are required, etc. in less than 27.54 hours? Doubtful. Additionally, every hour that I'm spending trying to figure out how to be a realtor, I'm potentially losing big business for my CPA practice.

    Lastly, good realtors have good connections. Why not leverage their services and then their network? That cross-selling is priceless.  

  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    l think the first thing that will happen is a company like Google (Alphabet) will decide to take over the MLS market. As someone that has used the Realtor Association controlled MLS, I can say they would do a much better job.

    Most Realtors I know are only members of the Association because it is required for MLS access.

    If a company like Google does MLS and makes it open access to the public there is a logical next step.

    On vacant houses in particular, I can imagine a cell phone App used to control smart key boxes.  They can be used to do showings at vacant houses.

    The App could very simply prepare and submit any offer.

    I could imagine all kinds of add on features for the App.

    But all this is crazy talk.  Nobody would let people into their house or car based on an App.

    If you do not get the joke google Uber, Lyft,  and Airbnb.

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    10y

    Didn't read all that, but some to get the point.

    Will agents be obsolete? No, but when we are riding around in hover cars agents may never need to step foot on a property, the may advocate from other media, you might close a transaction on your "Beam Me Up Scotty" personal device. 

    For all I know, appraisals might be done with small drones with equipment to transmit video that can't be seen by the human eye.  

    Lenders may already know if you're qualified and the property is an acceptable risk. 

    One thing I do know, things will change, they always do, but the function of business dealers will always be in our economy, there will always be a niche or function for opportunity. I don't see how advocates will ever be out of business. :)  

  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    10y

    All real estate is local, as is the real estate business. In areas that have not bounced back from the crash, there are a lot of really good, well qualified agents, competing for a much smaller amount of business. Many of the agents are offering discounts, and FULL SERVICE to their clients. 

    The amount someone does or does not charge for their service does not necessarily reflect how good or bad they are at their jobs, anymore than overpaying for a house, car, etc. means you are getting more value. 

    As with everything, compare apples to apples, and do your due diligence!  

  • Wholesaler · Austin, TX · Member since 2015 · 37 posts · 13 votes
    10y

    @Brandon Hall I saw the article online about reduced commissions for brokerages and wanted to put it out there for discussion.  I found it interesting that people are protesting being paid less than $15/hour to work at McDonald's and McDonald's installs machines to take orders instead of giving raises.  Labor costs have gone down since NAFTA; why is it unimaginable that costs should go down in this industry as well?  I'm sure when cars became prevalent there were horse buggy manufacturers scheming on how to get congress  to enact protection schemes.  Many people have commented on here - if you have a superior skill as a top 1% or 10% agent you have nothing to worry about because you're providing value beyond data and so none of this would apply to them.  The fact of the matter is that those top guys would have probably been successful in whatever industry they ended up in.  Work ethic, reputation, and integrity carry the day.  Yes I'm a licensed agent but I only work on distressed properties.  We put properties under contract and close on them and sell them for a higher price as professional wholesalers.

  • CPA · Raleigh, NC · Member since 2013 · 1k+ posts · 2k+ votes
    10y
    Originally posted by @Tim LaBorde:

    @Brandon Hall I saw the article online about reduced commissions for brokerages and wanted to put it out there for discussion.  I found it interesting that people are protesting being paid less than $15/hour to work at McDonald's and McDonald's installs machines to take orders instead of giving raises.  Labor costs have gone down since NAFTA; why is it unimaginable that costs should go down in this industry as well?  I'm sure when cars became prevalent there were horse buggy manufacturers scheming on how to get congress  to enact protection schemes.  Many people have commented on here - if you have a superior skill as a top 1% or 10% agent you have nothing to worry about because you're providing value beyond data and so none of this would apply to them.  The fact of the matter is that those top guys would have probably been successful in whatever industry they ended up in.  Work ethic, reputation, and integrity carry the day.  Yes I'm a licensed agent but I only work on distressed properties.  We put properties under contract and close on them and sell them for a higher price as professional wholesalers.

    Sorry about the licensing and ad comments then. The original post came off as a ploy :) 

    It's not unimaginable that costs will go down, and I never said that it was. What I did imply is that a realtor's value comes from the time I'm saving in a transaction. This "time" includes hundreds of hours of education/studying and thousands of hours of experience. What they can likely do in two hours may take me an entire day. All the while, I'm not winning more work or completing projects for my current clients. Huge opportunity cost there.

    I get that in your example you are trying to illustrate price squeezes, but comparing McDonald's operating strategy to real estate isn't a good analogy. When I drive through McDonald's, I don't care who (or what machine) prepares my burger because it costs me $1.00 and I already know it's not the healthiest food anyway. My expectations are very low. McDonald's knows that it's customers don't have high expectations, so implementing automated serving systems will decrease their labor costs and boost their bottom line without taking a huge hit on the top line.

    Now let's compare that to making the largest financial decision of one's life. When thousands of dollars are on the line, experts will always be consulted. I will pay an expert handsomely if it means I'm saving my own time and the transaction is going to be executed flawlessly.

    Perhaps we should ask guys who purchase large buildings if they would have been comfortable doing so without a realtor/broker. Maybe I'm way off here. @Brian Adams @Ben Leybovich @Serge S. Brian Burke (I can never tag you, not sure why).

    I feel the original argument should be rephrased so that it's not a blanket statement involving all realtors. If the argument was "50% of retail realtors will leave the industry" I feel you'd have better success substantiating your arguments.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y
    Originally posted by @Account Closed:

    l think the first thing that will happen is a company like Google (Alphabet) will decide to take over the MLS market. As someone that has used the Realtor Association controlled MLS, I can say they would do a much better job.

    The problem with this idea is that google would need to enlist hundreds of thousands f people who have access to the data to get it for them and give it to them willingly. The MLS data is collected by agents for agents benefits. The only way to get the data for the transactions is to be a part of the transaction. Agents are not just going to allow the information to get out there. Even the information agents and the MLS allow to be public on sites like Zillow and Trulia is only a part of the transaction. Information like seller subsidies is typically only privy to MLS members.

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