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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  • Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    I buy 100 to 400 unit deals and one of my best deals came by not using a agent. I was direct to the seller. 

    For other deals I have used a broker and they were great!

    Personally I don't think brokers/agents will ever become obsolete. The ones that won't make it long term in this industry are those that are only about the "sale". Real estate is a relationship business and the good brokers understand this and are very successful.

  • Residential Real Estate Broker · Rockport, TX · Member since 2015 · 19 posts · 3 votes
    10y

    Katie 

    I understand where you are coming from since it is the sellers that usually pay the bill.  However a good buyers agent will be worth, to the buyer, every $ he/she is paid.  Realtors are ethically bound to do the best job they can for their client and if the buyer signs a buyers rep agreement with a Realtor you are that Realtors client.  

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

    @Mark Ferguson is spot on about the appraisals.  Almost every single house I buy, sell, or help a client buy or sell, the appraisal price is the exact amount of the sales price.  I assume that most appraisers on sales start with the sales price then work backwards to make the math and comps fit the price of the property. Id say only about 10% of the appraisals I see vary from the sales price, and when they do it is just small amount over the sales price.

  • Santa Barbara, CA · Member since 2015 · 644 posts · 17 votes
    10y

    Gary, Sellers do not pay the bill.  The buyer does.  The seller pays from the proceeds of the house.  It is the buyer who provides those proceeds.  You are probably right that a good buyer's agent will be worth every dollar.  So I guess the conclusion is that most buyer's agents are not very good, unless and until the buyer aligns the agents interest most fully with the buyer, usually with a bonus on top of the commission.

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