The Evolution of Real Estate

**florida real estate** · 02-07-2010, 09:38 PM

The internet has arguably not had a more significant impact on any industry more so then real estate. It has effectively changed the way prospective home buyers find the property they ultimately purchase.

The internet has effectively leveled the playing field - homebuyers simply do not need a Realtor as much as they used to, this fact ultimately puts pressure on Realtors to justify their commission rates. Supporting this outlook is the fact that real estate commissions have dropped to an average of 5.1%, down from the long-standing 6%, according to Real Trends.

As in any industry the less you do, the less you are paid, why should Realtors be any different? The curious thing is that as home prices go up so do commissions - unless of course you engage a "Discount" real estate broker. These brokers recognize their reduced role and workload and simply offer their services at a reduced rate. But don't underestimate the powerful NAR lobby (remember they have 91 BILLION reasons to protect their industry). Realtors have helped "persuade" about a dozen states to pass laws limiting the ability of real estate agents to give rebates to home buyers or to offer a la carte services at low prices to home sellers. The Justice Department, in an effort to protect competition laws, has pressured some states to reverse plans to pass such laws.

**minnesota-mls** · 02-08-2010, 12:52 PM

I would propose that real estate brokers are paid (especially now in this market) to help guide their buyer or seller to a successful closing.

At least here in Minnesota, we see frequent delays, questions with underwriting on buyer's files, title issues, etc.

Having a top real estate agent that guides the buyer or seller to the closing table is invaluable in my humble opinion.

**BucksCountyRealEstate** · 02-08-2010, 01:28 PM

I once walked away from the seller who thought that a 5% commission is too much. He asked me "Why should I pay you 5% just for taking care of the paperwork?" Just the paperwork?

I started explaining what goes into successfully taking the transaction to the settlement table and started explaining why I deserve the 5% commission or more.

Eventually he apologized, but I still walked away. I figured, if that's how the process started, nothing good will come out of it.

**icondos** · 02-09-2010, 02:17 AM

That's how Real estate has gone now. Internet make's it possible for buyer to act as an agent on his own. And for over millions of house for rentals/sale on internet, it will be easier for buyers to look what they want to purchase ultimately.
But, in some way, it has make the industry agents commission dropped into 5.1%. And that's the bad effect of internet.

**Moore** · 02-09-2010, 07:01 AM

The Internet made our lives easier and the process of buying a house easier too. As you can find everything what you need on the Internet - an agent, to see a house, some data about the area and so on. You don't need to travel so much.

**matthew** · 02-11-2010, 05:37 PM

The internet has effectively leveled the playing field - homebuyers simply do not need a Realtor as much as they used to, this fact ultimately puts pressure on Realtors to justify their commission rates. Supporting this outlook is the fact that real estate commissions have dropped to an average of 5.1%, down from the long-standing 6%, according to Real Trends.

**Bones** · 02-12-2010, 07:22 AM

Given the fact that it is so difficult to sell a home in this market and very hard to close transactions, it seems that the commissions are more justifiable than ever.