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Originally Posted by CoachKandSportsguy
thanks BrianL for all the knowledge from actually running a brokerage.
I am wagering that the technology bros want to eliminate the Selling agent and the MLS platform and make the real estate sales platform an open platform fight between Zillow, redfin, and anyone else with listings by owner. The owners will do all the self marketing of pictures and descriptions. The buyer's agent starts going through the listings and works the showing for the potential buyer with the owner. Since the buyer and/or the buyer's lawyer wants a clean title and keys, in exchange for the money, the buyer drives the closing.
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"Sales people" are likely to never completely disappear from the American scene. There will always be people who are willing to lead the horse to water, for a fee. This is why I believe the "Listing Broker" is doomed to extinction.
I can foresee a scenario where their are "Listing Agents" that go take pictures, help stage homes if necessary, help prepare disclosure agreements and then manage the online visibility of a listing. In fact, that's primarily what Listing Brokers do these days. The "Broker" is out soliciting business, while the Broker's assistants are doing all the heavy lifting on the selling side. Let's face it, they're not writing "real estate ads" like the old days. In most markets, "Open Houses" are out of style and everyone knows what's on the market, 5 minutes after it shows up online. Listing brokers have little or nothing to do and quite honestly, are vastly over-paid these days.
On the other side of the equation, the "Selling Broker" does all the heavy lifting. Has to babysit the buyer, educate the buyer, show 20 houses, help arrange financing and sometimes insurance and other facets of the sale. The Selling Broker does the hard work and it's time intensive. I think they're entitled to the lion's share of any commission involved.
I think you're going to see total commissions settle in the 3%-3.5% range and the Selling Broker will get most of it.
The internet and the real time availability of information is taking over businesses we never thought would become "personless". Tesla has sold 4,500,000 cars, without ever paying a sales commission. Who would have thought? Carvana is selling vehicles from vending machines and some of those cars, cost more than homes did 15 years ago. Whoever thought women would buy clothes, without trying them on? Online women's fashions are now the norm.
I think the Listing/Marketing is going to become a nearly automated "clerk's job" and Selling Brokers are going to become "Sales Consultants" for a fee and probably operate the Title Company, in the next office over.