Future of Real Estate

Posted by: DJM

Future of Real Estate - 06/05/18 07:43 PM

All, the future of real estate seems to elude me, so I would like your opinions on something. With knowing exactly what it will be like as a Real Estate Agent, or Real Estate Broker, which would you choose to pursue and why? If you had a choice that is? What do you all think being a RE Agent & Broker will be like in say 10, 15 or 20 years from now?
Posted by: Vermont

Re: Future of Real Estate - 06/06/18 10:22 AM

I'm not a clairvoyant (in fact, I'm now retired) and you've been observing this industry for 4 years or more yourself; so your observations would be just as accurate and valuable as mine.

In a little over 30 years, I have watched the growth of more State and National Regulation following the S&L Banking Crisis of the mid-1980s and the growth of national consolidators like Zillow and Trulia together with the advent of the internet while our local control of the MLS receded or was then completely surrendered. We still provide the data at the local level; but increasingly, we have lost control of who it is sold to afterwards, and now have to pay others to use it.

Further inroads into Commission reductions and Referral Fees by FSBO organizations and Lead Aggregators like Homelight take advantage of our individual decision making, while the National REALTOR Organization is increasingly helpless in defending against such incursions.

Agents need to know what the trending tidal movements are on a national scale and resist the temptation of giving away the bulk of their income to remote organizations which beckon them with easy sources of information which they could work to obtain themselves . . . . but they won't.

Maybe someone else foresees systemic improvements for the individual Agents in the industry . . . . but I see the future as fairly bleak.
Posted by: estatereal

Re: Future of Real Estate - 06/07/18 02:17 PM

i just received a 5k commission check from someone for being an advisor...

long story short

seller found buyer
buyer had agent
all was smooth
bump was hit (as always happens)
agent was needed.
they came to me.....
i said, you already have contract etc....
i said, i can advise (had agreement for this)
got paid 5k for advice
house closed

bottom line, deal would not have closed without me due to everyone being past thier breaking point...if i were there from day 1, knowing what i know after the fact, i would have had it done without them even loosing any sleep......i came in after deal blew up..put it together....got them where they wanted to go...got paid 5k.....did not even touch a single doc..just advised and instruction was headed...outcome positive....deal done


tehre are so many moving parts and the 1 thing that computers cannot help are peoples emotions..until you have people with no emotions who are 100% logical and 100% rational, ethical, cool headed, willing to work to make a bridge with the other party instead of a wall...as soon as you can get that, we are out of business...but due to the nature of a human bean, it is not going to happen...

for me.....this year...best year ever....

it can be your best year too if you want to figure it out and put in the time.
Posted by: Bob Squiers

Re: Future of Real Estate - 07/10/18 08:55 AM

Future of real estate can be:-

1. Databases will be complicated
2. Use of technology and cloud will increase
3. commissions & fees will rise rapidly
Posted by: Tex

Re: Future of Real Estate - 07/11/18 03:18 AM

I think that with the states having budget problems that sooner or later they just might wake up and realize that they aren't getting their piece of the RE transaction pie. There will be a tax on transactions, and the transactions will have to be transacted by agents.

Government also seems to want to "protect us from ourselves." I bet that some day it won't be legal to sell a home without an agent. And with the ongoing dumbing down of America more and more people need protecting from themselves.

Actually that might equate to more renters. Fewer and fewer young people are realizing the dream of home ownership.

I kind of wish that title companies would stop handling private transactions, (FSBOs). I bet that if a title company did that and advertised it to agents they would get a lot more business.
Posted by: Vermont

Re: Future of Real Estate - 07/11/18 09:27 AM

Originally Posted By: Tex
". . . they aren't getting their piece of the RE transaction pie. There will be a tax on transactions . . ."

Most States (about 75%) have realized this and impose a Property Transfer Tax at Closing . . . . Texas IS NOT one of them "yet". Here's a Table:

Property Transfer Taxes by State
Posted by: Tim Bizz

Re: Future of Real Estate - 07/13/18 03:11 AM

Being a DBA I think Databases are actually not complicated that much at all. Really if you think of a Database it is just a big Excel spreadsheet that has ways to logically manipulate the data. IN the end this is really what your content/User Management system is all about!

The Cloud is an interesting concept as most people have no idea how the cloud works and what it could do for them. In an enterprise clouds give collaboration which is really needed in the Real estate industry.

Not sure about number 3 I think that will be managed closely by the marketplace. If you are too high you just won't get the people... However time will tell smile
Posted by: DJM

Re: Future of Real Estate - 07/17/18 02:06 AM

Thanks everyone for your insight, pretty interesting. Hey Bob, can you explain number 3 and why you think commissions and fees will just get higher when I see them getting lower in some cases? As someone mentioned, any higher and no one will want to pay it.
Posted by: dalebeshansky

Re: Future of Real Estate - 08/17/18 06:27 PM

Just personal observation from a newly licensed salesperson. I am engaged with a major firm in my area for training and hopefully starting to make my own transactions in a few months.
I am curious why no one mentioned online brokerages? I am new to this forum as well (about a month) and may have missed such discussions.
It seems that would be the way of the future. The agent would still be working hard to generate leads in his area, but having all transactions handled online, and stripping away some desk and other facility usage and service fees would be a plus.
You would still have to advertise, and do signage and photos, which some firms like the one I am joining cover as part of the monthly fee.
REAL, RE (in CA), EXP, etc. are few major ones. I think they are thin on training, which is not a surprise.
Posted by: Granta Omega

Re: Future of Real Estate - 12/10/18 03:11 AM

People are seeming to contact agents less due to more information being available on the internet. People are relying on Zillow estimates and algorithmic calculators to determine how much a house is worth. There are many more cheap discount brokerages where a seller can pay 500 bucks and put their home on the MLS to save money, and they are no less featured now given all buyers pretty much do their own research. The last time I was an agent, the buyers pretty much had found all the houses they wanted to look at before even telling me their criteria and price range, and didn't need me for much but to get in the door and write an offer.

Pretty soon new web applications are going to be made to generate a purchase agreement for FSBO sellers guiding them through the steps answering all the questions people used to need the consultation of their agents to have answered. In my opinion, unless someone joins a team doing a high volume of business, they pretty much missed the boat for being a successful agent as the markets are typically dominated by 1-3% of the agents, with the rest either doing it in their spare time, or quickly leaving to get a real job.
Posted by: Suburban Gal

Re: Future of Real Estate - 01/08/19 03:26 PM

Originally Posted By: Granta Omega
People are seeming to contact agents less due to more information being available on the internet.


Originally Posted By: Granta Omega
...given all buyers pretty much do their own research. The last time I was an agent, the buyers pretty much had found all the houses they wanted to look at before even telling me their criteria and price range, and didn't need me for much but to get in the door and write an offer.


I agree.

When mom and I decided to move to SE WI over a year and a half ago, I held off on contacting a real estate agent due to a lot of information already being online. When we did settle on an agent, we E-Mailed him MLS links to properties we wanted to see and, in the end, ended up doing more work than he did. All he did was set-up the showings, let us in and then write the offer when we found what we wanted.
Posted by: Bigtoe

Re: Future of Real Estate - 01/09/19 06:11 AM

Originally Posted By: Granta Omega
People are seeming to contact agents less due to more informationtelling me their criteria and price range

This is nothing new here. I have been getting the bulk of my business off the net for the last 19 years.
Posted by: ALSTIEL

Re: Future of Real Estate - 01/09/19 08:21 PM

We just had a short discussion about this in a meeting last week.

I see changes and those that embrace the new technology and the Internet are going to be fine. Those old schooler's, we've done it this way for the last twenty years are going the way of the dinosaurs.

At the meeting my broker said that Amazon is seriously looking at getting into the real estate game. The only reason they haven't is the multitude of laws between the different states.

You can look all you want online but in almost every state in the country you need at least an agent to do the paperwork and in some states a RE Lawyer. That throws a monkey wrench into someones plans to jump into the industry on the national level.

It's going to happen, the question is will it be 10-15 or 20 years from now? If I had a crystal ball I'd be rich.
Posted by: Bigtoe

Re: Future of Real Estate - 01/10/19 08:10 AM

If real estate agents were going to be replaced by technology it would have already happened like it did to travel agents and insurance agents.

Buyers are never going to be comfortable with not touring homes before they buy. Pictures tell a thousands words but they can represent alternative facts just like words. If all an agent does is open the doors then they should not be agents. We should be able to provide a wealth of information about the homes, neighborhoods, schools, etc. This is info the z's can only pretend to provide.

It is rare for a deal to close without any problems. Problems that we agents overcome for the buyers and sellers that would kill a deal if we were not involved.

Any agent who thinks we can be replaced by the internet is not doing their job and should do the public a service and find another profession.
Posted by: ALSTIEL

Re: Future of Real Estate - 01/12/19 03:19 PM

You're right. My broker said the same thing yesterday in so many words. Good agents can't be replaced by technology.
Posted by: Granta Omega

Re: Future of Real Estate - 01/13/19 12:11 PM

I think the problem is in 2006, I was 19, and all the agents that had trained me were at least in their 50s, some older. They were saying knock on doors, go for the FSBOs, read the paper ads, pay to put an ad in the paper, give out your business card.

The problem is, people aren't looking for a realtor anymore. They are looking for a house. They use the agent they happen to stumble upon when inquiring about it, and being the first agent that contacts them when they have the internet at the palm of their hands is very unlikely.
Posted by: Airpropty

Re: Future of Real Estate - 02/12/19 12:19 AM

I agree with ALSTIEL. Good Agents can't be replaced by technology..
Posted by: HIRED Schools

Re: Future of Real Estate - 02/15/19 02:55 AM

Technology can be helpful in some way but what a real realtor tells you about the property, no one can. Real estate is still growing career.
Posted by: Photog

Re: Future of Real Estate - 02/26/19 08:55 PM

The job of Realtor is going to disappear, just like the long haul trucker will, and the blacksmith has.

Real Estate will be bought and sold remotely via photos, videos, and VR. 1 central office Realtor will replace 10 or 20 traditional Realtors. Sellers will conduct their own open houses and showings unless they are selling a remote vacation home. So pay a fair price for professional photography.
Posted by: Bigtoe

Re: Future of Real Estate - 02/28/19 06:56 AM

I have been selling real estate for a long ttime. I have 21 real estate websites that have been the backbone of my business. I hire professional photographers and use virtual tours to promote our listings and yet these professional photos and internet advertising have never helped any of our listings sell faster or for more money than those listings with cell phone pictures.

Pictures don't sell houses, agents do. Professional pictures help get sellers. Buyers are never going to be willing to buy houses without touring every house for sale. Zillow thought they were going to put real estate agents out of businees, like they did to travel agents with expedia, but they are coming to the realization that buyers are not going to buy houses sight unseen. This is why zillow is now opening real estate brokerages with real live real estate agents.

No matter how much you hate real estate agents, we are not getting replaced by the internet.




Posted by: Long Walk

Re: Future of Real Estate - 02/28/19 07:50 PM

Originally Posted By: Bigtoe
No matter how much you hate real estate agents, we are not getting replaced by the internet.

Ten ring!

I read a quote in 1999 or early 2000 from the CEO of a large start-up internet brokerage, maybe it was Redfin, but it doesn't matter. The CEO said that brokers would never be replaced by technology because brokers are the emotional ballast in the transaction.

Nothing I saw before or since has convinced me that he was wrong.
Posted by: Z06Fanatic

Re: Future of Real Estate - 03/01/19 03:56 PM

Originally Posted By: Photog
The job of Realtor is going to disappear, just like the long haul trucker will, and the blacksmith has.

Real Estate will be bought and sold remotely via photos, videos, and VR. 1 central office Realtor will replace 10 or 20 traditional Realtors. Sellers will conduct their own open houses and showings unless they are selling a remote vacation home. So pay a fair price for professional photography.


If that was true the 5-6% brokerages would be dead - they're still thriving for a reason. Anyone can take pics and post to MLS - the reason Agents exist is once the offer comes in. There's too much emotion between both parties to get a deal done without Agents - it's hard enough sometimes with Agents so imagine if the Buyers and Sellers worked directly.
Posted by: Granta Omega

Re: Future of Real Estate - 03/05/19 09:56 AM

I don't think the job of the realtor will disappear completely. They're still going to need people to carry out a lot of the work, but it is possible already to start creating different web applications that can generate the purchase agreements for the sellers based on a set of entered criteria, and given they are using the Zillow estimates now to get their home's value, there are also going to likely be more sophisticated services that have more side by side comparisons such as differences in home characteristics.

It's gotten more unlikely though that a newer agent will be able to break into the market, and when the internet was newer, buying leads was considered a waste of money and yielded very few results, but now buying leads is pretty much necessary unless you join a team that will hand you leads.
Posted by: Bigtoe

Re: Future of Real Estate - 03/06/19 09:19 AM

Paperwork is not part of the equation. I have all the forms available on one of my sites and it just scares them into using an agent. it might have been possible back in the days of the one page contact but now the 20-30 pages of paperwork needed to sell a house is too much for most people.
Posted by: Joyti Sharma

Re: Future of Real Estate - 07/15/19 07:37 AM

The Future of the real estate seems to be bright.
Posted by: Bigtoe

Re: Future of Real Estate - 07/17/19 12:28 PM

The future is so bright, i have to wear shades
Posted by: CREBuyer

Re: Future of Real Estate - 09/09/19 02:18 AM

I think Real Estate Brokers will still be around for awhile. The ones who will disapear will be mostly in residential since many of them just get a listing and then put it up on all the property websites/do open houses.

Investment real estate is much more complicated and requires knowledge of P&L's, rent rolls, cash flow analysis, etc. to determin the value of a property. It also isn't as effective as residential to market it publically but needs a more focused marketing style since the large majority of people are not qualified to purchase such properties and fielding their calls from Loopnet takes up more time than its worth. - my opinion as an investment broker with 6 years expierence (I've never sold a house in my life but I've done $34m+ investment property deals so I could be wrong about residential as I am not that familiar with it)