There has been a growing concern if in the future real estate agents will become a thing of the past.
In New York, stock brokers are said to be worried that with the emergence of online trading, they will soon be kissing their jobs goodbye or if not their commissions will be greatly affected negatively. Real estate agents are feeling the same worries now that consumer savvy real estate sites are gaining popularity.
According to The Street, a recent survey conducted via SurveyMonkey for the Seattle-based Redfin audience has uncovered that 17% of people bought a house in the last two years without an agent. The same survey has also discovered that discounting commissions is has become common. Why do some people prefer not to seek the help of an agent? It was cited as an example that a typical home with a conventional Realtor costs around 6% of the sales price. Which means a $230,000 median home would have a commission cost of about $13,800 and that's a little heavy on the pocket. It was said that selling a home without an agent lets the owner save at least 3% in commission fees and that would be more or less $6,900.
Moreover, director of business strategy at ForSaleByOwner.com says, ""We're seeing a dramatic transformation of the real estate industry with today's consumers, especially millennials exerting more control over the buying and selling process than we have ever seen before."
According to The Street, ForSaleByOwner.com reported an increase on its listings by over 57% during the height of the spring selling season of 2015.
As to the fear that real estate agents will be obsolete in the future, Redfin system may prove this concern is unlikely to happen. According to The Street, Redfin charges a 1.5% fee to sellers and this 1.5% can be a significant savings on the seller side. In some markets, Redfin reportedly charges on 1%
The [commission] savings is gaining market share," says Rachel Musiker, a spokesperson for Redfin."We use technology, so our agents can work more efficiency. And, so consumers shouldn't have to pay the 3 or 6% commission."
So the real estate industry may be revolving but the change can still be good for the agents. Having said that, their role are vital to be obsolete because they know the market well, they can handle the paper work and can help seller and buyers avoid costly mistakes.
