Are Real Estate Agents going the way of Travel Agents????

[EZEtoGRU]

Travel agents seem mostly extinct now in the US.......except for the one's that specialize in the very high end travel arrangements and tours and maybe some that specialize in cruises (although Vacationstogo.com seems to cover the cruise market quite well now) or specialty travel. Most everything else can be done on-line directly without involving a third party. I always book my flight/hotel/car rental arrangements directly on line. I actually prefer it this way.

 

With the advent of real estate search engines like Zillow, Trulia, Realtytrac, and Realtor.com, aren't we able to do much of the groundwork ourselves where previously we had to rely on a realtor to identify properties to visit? I've worked with several realtors in the last 2 years and each time I am able to identify a better suited group of properties to visit than they are. I can also pull up comps for the area to compare to the property I might be interested in. It's funny cause a friend of mine in San Diego is going through the same issues right now and has been very frustrated with the few realtors he has dealt with........to the point he does not want to work with them any longer. I have just fired a realtor today and would really prefer to proceed with my search on my own and only involve a realtor once I am ready to make an offer. Is that possible??

 

I suppose there will always be a need to have a realtor involved in part of the process most of the time.........but at a much lesser level and likely a lesser remuneration amount. Like the travel agency business, there will be exceptions: The very high end market will always involve realtors. Private listings (but again....mostly high-end) that only realtors have access to. Corporate transfers will always involve realtors as people are often being transfered to an area they are unfamiliar with and need to find housing quickly so they need to really rely on someone familiar with the area. Beyond that, I struggle to see significant value that realtors add in today's world. Mostly, they seem to do administrative things like set up appointments to see a property and fill out paperwork to make an offer.

 

Does anyone else see the Real Estate representation business evolving the way I do?

 

ps. Sorry for the rant, I'm very frustrated with the Real Estate business today.

[+ Chris Eisenhower]

Only the vanilla ones.

[JT Brooklyn]

As long as there's people looking to make 6% they ain't going nowhere!

[+ deej]

The business is evolving, for sure. But there are still reasons to work with a licensed realtor.

 

If I had my house on the market, with a key box on the front door, I'd want some known quantity (like a licensed realtor) having access to the key box. I don't want my home turned into public access.

 

There are also "realtor-only" notes in those MLS listings that you and I cannot access. (The online sites are often behind, or outdated, too. Zillow still shows my neighbor's house as on the market, but they've owned it since before I moved in and have no intention of selling.)

 

I was fortunate to have a very good realtor, who set "watch points" on my selection criteria so he was alerted any time a new listing showed up in my preferred areas, with my preferred price point and other selection criteria. I'd often find a listing on realtor.com (my favorite because it doesn't require signing up for never-ending mailing lists) only to find that while it looked perfect in the online listing the realtor knew something about it that the online listing didn't show.

 

The realtor I worked with happened to also run a mortgage consulting business so he was able to wait until the very last moment to lock the rate and select the bank with the lowest rate that day, saving me the hassle of calling around (or searching online). He definitely earned his commission on just that.

 

We visited more than 100 properties before I finally closed on one of the first properties we toured. (It was a short sale, so from offer to close took five months.) He made all those appointments. Better him than me.

 

I do understand your frustration. I'm always struck by the rampant incompetence that runs through everything related to real estate. In my case, the seller's realtor almost lost them the sale several times in the process. A good realtor can be a big help. A bad realtor hinders the process. A lot. Fire them. There are good agents out there. Find them.

[Xander]

Only the vanilla ones.

 

I was surprised to see paragraphs in the original post

[+ WilliamM]

Travel agents seem mostly extinct now in the US.......except for the one's that specialize in the very high end travel arrangements and tours and maybe some that specialize in cruises (although Vacationstogo.com seems to cover the cruise market quite well now) or specialty travel. Most everything else can be done on-line directly without involving a third party. I always book my flight/hotel/car rental arrangements directly on line. I actually prefer it this way.

 

With the advent of real estate search engines like Zillow, Trulia, Realtytrac, and Realtor.com, aren't we able to do much of the groundwork ourselves where previously we had to rely on a realtor to identify properties to visit? I've worked with several realtors in the last 2 years and each time I am able to identify a better suited group of properties to visit than they are. I can also pull up comps for the area to compare to the property I might be interested in. It's funny cause a friend of mine in San Diego is going through the same issues right now and has been very frustrated with the few realtors he has dealt with........to the point he does not want to work with them any longer. I have just fired a realtor today and would really prefer to proceed with my search on my own and only involve a realtor once I am ready to make an offer. Is that possible??

 

 

I doubt that many first-time homebuyers have the set of skills that you mention. And even more experienced homebuyers may not have the time or the interest to delve deeply into the search engines you mention. Real estate is en exciting, addictive hobby for many, but not everyone. But, I agree that the real estate agent, as we now know her/him, will likely go the way of the travel agent...just not any time soon.

[+ Chris Eisenhower]

Travel agents seem mostly extinct now in the US.......except for the one's that specialize in the very high end travel arrangements and tours and maybe some that specialize in cruises (although Vacationstogo.com seems to cover the cruise market quite well now) or specialty travel. Most everything else can be done on-line directly without involving a third party. I always book my flight/hotel/car rental arrangements directly on line. I actually prefer it this way.

 

With the advent of real estate search engines like Zillow, Trulia, Realtytrac, and Realtor.com, aren't we able to do much of the groundwork ourselves where previously we had to rely on a realtor to identify properties to visit? I've worked with several realtors in the last 2 years and each time I am able to identify a better suited group of properties to visit than they are. I can also pull up comps for the area to compare to the property I might be interested in. It's funny cause a friend of mine in San Diego is going through the same issues right now and has been very frustrated with the few realtors he has dealt with........to the point he does not want to work with them any longer. I have just fired a realtor today and would really prefer to proceed with my search on my own and only involve a realtor once I am ready to make an offer. Is that possible??

 

I suppose there will always be a need to have a realtor involved in part of the process most of the time.........but at a much lesser level and likely a lesser remuneration amount. Like the travel agency business, there will be exceptions: The very high end market will always involve realtors. Private listings (but again....mostly high-end) that only realtors have access to. Corporate transfers will always involve realtors as people are often being transfered to an area they are unfamiliar with and need to find housing quickly so they need to really rely on someone familiar with the area. Beyond that, I struggle to see significant value that realtors add in today's world. Mostly, they seem to do administrative things like set up appointments to see a property and fill out paperwork to make an offer.

 

Does anyone else see the Real Estate representation business evolving the way I do?

 

ps. Sorry for the rant, I'm very frustrated with the Real Estate business today.

 

In all honesty I don't know what I would have done with the two realtors who have helped me during real estate transactions. Plus... the third realtor who helped me find the perfect place to live in DC. All of them did their jobs and did them well. I've funneled all sorts of business their way. Realtorin' is hard, and thank God I know lots of people in the industry who can help me should I buy another house or property.

[instudiocity]

I have just fired a realtor today and would really prefer to proceed with my search on my own and only involve a realtor once I am ready to make an offer. Is that possible??

 

Does anyone else see the Real Estate representation business evolving the way I do?

 

Buyers might find it easier to employ a real estate attorney rather than a buyer's real estate agent. You would pay the lawyer according to an hourly rate, or per transaction. You can find the home for sale listings. You can contact the Seller's Realtor to see the house. Then you can submit your offer through your attorney. You should be able to maximize your price negotiation because the only percentage player in the deal, hoping for half the commission can now make more money while at the same time cutting the real estate commission percentage.

 

Commissioned Real Estate agents are supposed to be marketing professionals who know how to develop a marketing campaign for a home, then guide the legal documentation track through to a closing. The protection gained by having an attorney overlook the process is invaluable to me.

 

Too often real estate agents become hungry for the commissions rather than hungry for the client. C'est la vie!

[operalover21]

Only someone who is a complete moron couldn't make their own travel arrangements; the same is true about real estate. I have done almost as many real estate transactions as I have young muscle guys and I almost always did most of the work. The realtor did some and got a big fat commission check for it. I say get rid of realtors/brokers and let the parties -- with the aid of a decent attorney -- work out the transaction and save everyone a ton of money.

 

Middlemen -- in general -- add nothing but extra costs.

[bigvalboy]

Well as a Realtor that has done business for the better part of 20 years, I would of course agree in part with you EZE. I think that the problem is not the idea of a Realtor being needed, but rather whether or not that Realtor is indeed qualified.

 

From my perspective, a home or income property is likely the largest investment you will ever make. Making that financial commitment without help of someone who is knowledgeable in that field is foolish. Knowledgeable being the key word here. Researching trends in the market, value of specific neighborhoods, home values when compared to the cost of renovations, navigating real estate law, Financing etc. The list just is almost endless, whether you are buying personal property or income property. While much of that information is accessible via the Internet, a qualified Realtor who is hands on in the field can provide real world information that simply cannot be duplicated on the Internet. It is almost like buying stocks without the expertise of a broker. Doing your homework and gaining your own knowledge has been greatly enhanced by the Internet, but doing it completely on your own would be a dangerous road.

 

I recently moved across the country, and knew nothing about the local market. What areas where worth investing in, which areas were growing, which areas and kinds of properties would bring higher resale, what the local market and trends were occurring in the area that I was interested in.

 

Like dealing with any professional, whether it is a stock broker, lawyer, doctor, Realtor etc. only a handful are worth the fees they charge. I hired and fired 4 Realtors before I found one that I thought was knowledgeable and professional enough.

 

Now my expertise in the field and my research I did on my own, helped me tremendously, but I learned invaluable information about the area I was interested in through my Realtor. Despite my research, coming from SoCal, I found many properties that I thought were of a good value, only to find out that many were still overpriced, some even grossly inflated because of laws the courts had enacted due the record number of foreclosures, and areas that I thought I wanted to live in, I learned through my Realtor that they were not as good a value as I had thought. I have also decided to purchase additional income property, and there isn't anyway I could research that information on line and make an informed decision without the help of a local Realtor who dealt specifically with income property, or property to purchase with the intent on flipping it.

 

And Realtors rarely get 6% anymore. That figured died years ago. Almost all the fees are negotiable. I have done deals for as little as 1% of the selling cost if I was to also got the sale on the upside from my seller. If you are selling any property, I would negotiate the commission with the Realtor.

 

Anyway, just my opinion and thoughts.

[Kevin Slater]

Both of my properties are condos. As I start looking for a third, I'll go through a realtor again. I suspect that here in NYC, at least one of the parties (buyer or seller) needs to have a realtor, just to shepherd the process through the condo or co-op board if nothing else.

 

The day I closed on the second property, the realtor told me she had a tenant ready to sign a lease and move in, without my even asking. Having rented the first out on my own, I truly appreciated not having to do that again.

 

Kevin Slater

[EZEtoGRU]

From my perspective, a home or income property is likely the largest investment you will ever make. Making that financial commitment without help of someone who is knowledgeable in that field is foolish. Knowledgeable being the key word here. Researching trends in the market, value of specific neighborhoods, home values when compared to the cost of renovations, navigating real estate law, Financing etc. The list just is almost endless, whether you are buying personal property or income property. While much of that information is accessible via the Internet, a qualified Realtor who is hands on in the field can provide real world information that simply cannot be duplicated on the Internet. It is almost like buying stocks without the expertise of a broker. Doing your homework and gaining your own knowledge has been greatly enhanced by the Internet, but doing it completely on your own would be a dangerous road.

 

I recently moved across the country, and knew nothing about the local market. What areas where worth investing in, which areas were growing, which areas and kinds of properties would bring higher resale, what the local market and trends were occurring in the area that I was interested in.

 

Like dealing with any professional, whether it is a stock broker, lawyer, doctor, Realtor etc. only a handful are worth the fees they charge. I hired and fired 4 Realtors before I found one that I thought was knowledgeable and professional enough.

 

Now my expertise in the field and my research I did on my own, helped me tremendously, but I learned invaluable information about the area I was interested in through my Realtor. Despite my research, coming from SoCal, I found many properties that I thought were of a good value, only to find out that many were still overpriced, some even grossly inflated because of laws the courts had enacted due the record number of foreclosures, and areas that I thought I wanted to live in, I learned through my Realtor that they were not as good a value as I had thought. I have also decided to purchase additional income property, and there isn't anyway I could research that information on line and make an informed decision without the help of a local Realtor who dealt specifically with income property, or property to purchase with the intent on flipping it.

I guess my thought is that the value a realtor brings to the process has been diminished in the last 10 years due to the plethora of information available to a potential buyer on on the internet. One can never leave a realtor out of the process completely, but it seems so much of the information on market trends, movements, listings, and comps is directly available on-line. Who needs a middle-man to get most this information? I can get it myself and and spend oodles more time analyzing it than a realtor can. I think that technological developments are transforming this industry as they have others. I agree with you, of course, that a home purchase is a large ticket item and needs to be considered more carefully than making a vacation booking. I guess I am just frustrated today with my experiences in recent times. BTW, people buy and sell stocks all the time with little or no involvement of a broker. Obviously, to do this, one has to be comfortable with stock market trends and dynamics......and be willing to accept responsibility for good and poor results. Not for everyone.......but many do it themselves.

 

All interesting stuff. Technology is changing our world before our eyes. It's facinating.

[bigvalboy]

I guess my thought is that the value a realtor brings to the process has been diminished in the last 10 years due to the plethora of information available to a potential buyer on on the internet. One can never leave a realtor out of the process completely, but it seems so much of the information on market trends, movements, listings, and comps is directly available on-line. Who needs a middle-man to get most this information? I can get it myself and and spend oodles more time analyzing it than a realtor can. I think that technological developments are transforming this industry as they have others. I agree with you, of course, that a home purchase is a large ticket item and needs to be considered more carefully than making a vacation booking. I guess I am just frustrated today with my experiences in recent times. BTW, people buy and sell stocks all the time with little or no involvement of a broker. Obviously, to do this, one has to be comfortable with stock market trends and dynamics......and be willing to accept responsibility for good and poor results. Not for everyone.......but many do it themselves.

 

All interesting stuff. Technology is changing our world before our eyes. It's facinating.

 

Well you are absolutely correct. The importance of a Realtor has greatly dimenished, and all the information on the Internet, digested correctly can be invaluable in a real estate transaction, and new technology has had a dramatic affect on the industry as a whole. I personally think it is going in a positive direction. The more information that everyone has, the smoother the transaction will go.

 

You indicated that you were frustrated by recent experiences. If that is the case, I have a couple of thoughts. One is that never hesitate to fire your Realtor and find someone else. If you are involved in a listing agreement, be sure to add your own verbage to allow yourself an out if the Realtor is not performing in the sale of your house. If they do not agree to you giving yourself an out in the contract, move on and find someone that will. I rarely signed a listing agreement with a client.

 

And lastly before I bore you to tears, I will say that it was my Realtor and her knowledge of the complex and the board members that got me approved by the board. It never would have happened had she not gotten personally involved...just one of the little things that a Realtor can do to make or break a deal.

[Frequentflier]

I like how ease by which its possible search for properties on line and then contact the different listing agents for properties one wants to look at. While the agents offer to do all the work searching for properties, I like not being linked to one. I learn something about the market and availability by interacting with several and I don't have to worry about "this agent has shown me 10 properties and I haven't bought yet" even though I know its part of their job and they never complain. To work between the buyer and seller I think most agents (at least all those I've worked with) have been masterful and could imagine the challenge of getting a deal done face to face with a buyer and seller on property. When it comes to real estate I think many of us negotiate and react differently as compared to our day to day selling or wares and other services.

 

Oh, and the electronic passing and signing of documents (which has been around a while) is outstanding.

[Traveler North]

I would say going thru a dependable realtor is the best way to go. I have had great luck with them showing me properties in good areas, warning me not to buy in some areas because of flooding etc. I did also do a private sale in buying my condo up north, but the sellers were really nice people and let my lawyer(brother-in-law) handle processing the sale. They wanted to give me the keys before I owned the condo, which I politely declined. Felt much better with the realtors I used who also were able to get me mortgages with the lowest interest rates. Even with the realtors, I did lot of computer research.

[bootdad]

The answer to this question has a great deal to do with where / type of market you live in ... I am talking major urban metropolis primarily. Do agents earn their keep, in this new tech savvy world - highly unlikely ! If your in a HOT market - desirable property - your home more often than not sells itself. If your selling a piece of crap in a questionable area yes an agent might help. In the end agents are interested in only 1 thing - the commission cheque - the larger the better. They promise you the world and don't do a damn thing.

Agents are trained to do one thing effectively ... SNAG THE LISTING ... that is the mantra of every good successful agent ! In the end the home owner does the majority of the work in terms of the staging, the prep, the maintenance of the home for presentation purposes, etc. I truly can't think of a more loathsome profession with more bottom feeders that requires so few skills as being a real estate agent ... oh no wait ... used car sales person !!! We are living in transformative times my friends and this is a poor career choice !!!

[bigvalboy]

The answer to this question has a great deal to do with where / type of market you live in ... I am talking major urban metropolis primarily. Do agents earn their keep, in this new tech savvy world - highly unlikely ! If your in a HOT market - desirable property - your home more often than not sells itself.

 

Nothing could be further from the truth. Clients in "hot" (of course no one has seen that in a few years) markets, and sitting on homes in the 5-10 million dollar range are most likely very successful business people who spend the bulk of their day developing their company. How would someone like that find clients from China, Dubai, Russia,Japan etc. and then set up appointments and navigate the legal aspects of selling property. I have never had a client that was even remotely interested in selling their own property. They rarely would get involved past agreeing on a price, discussing the cost and staging in getting the property ready for sale, and call them only when it was time to sign papers. Many of my clients traveled on business and I have negotiated deals while they were changing planes or between meetings while on business trips in Europe.

 

If I thought a house needed upgrading or needed to be staged, the conversation never went past, "How much will it cost" and then "Just get it done" I often did not even see my clients during the selling process, they were off doing other things in their life that took priority

 

 

 

In the end agents are interested in only 1 thing - the commission cheque - the larger the better. They promise you the world and don't do a damn thing.

Agents are trained to do one thing effectively ... SNAG THE LISTING ... that is the mantra of every good successful agent !

 

It profits no one if you secure a listing and spend thousands of dollars advertising, and then fail to sell the property. I rarely signed a 'listing agreement' but did the deal on faith. If the client wasn't happy with the way I was selling their property a month or two into the deal, then I always told them they could just fire me and move on to someone else.

 

As with ANY business, there are good and bad business people. Realtors are no different than a good or bad Lawyer, mechanic, accountant, doctor etc.

 

We are living in transformative times my friends and this is a poor career choice !!!

 

While it is true that I chose to leave the business when the market crashed. In the end I really was looking to retire, HOWEVER, over the last few years, I have had several friends make a fortune selling real estate in this down market. Somewhere around 60% of the buyers in South Florida at least were cash buyers. Make no mistake, there is money out there, and I have several friends from SoCal who have bought multiple properties for investment all over the country. Despite my experience and background in real estate, I did not rely solely on the Internet to gain knowledge about the area that I was interested in. That would have been an entirely foolish thing to do, but rather I did research, then hired and agent to help me navigate the foreclosure world in Florida. The result is that I bought a home for penny's on the dollar.