On the Future of Real Estate Agents
In last Sunday’s NYT Magazine devoted entirely to real estate, the authors of Freakonomics argued for the inevitable extinction of real estate agents: The Internet is a natural repository for the sort of data that drive the real-estate market. New sites like zillow.com let anyone try to figure out (if imperfectly) what his home is…
In last Sunday’s NYT Magazine devoted entirely to real estate, the authors of Freakonomics argued for the inevitable extinction of real estate agents:
The Internet is a natural repository for the sort of data that drive the real-estate market. New sites like zillow.com let anyone try to figure out (if imperfectly) what his home is worth; sites like craigslist.org allow buyers and sellers to easily find each other. As those services and ones like them become more popular, it is hard to imagine that the market will allow Realtors to maintain their hefty commissions.
Trulia CEO Pete Flint couldn’t disagree more:
At the end of the day, we still need a professional to help us make sense of all the information available to us both off and online and to carry out all the duties necessary when buying or selling a home. Ask yourself this, do you really have time to learn an entirely new profession on top of your own life responsibilities to buy or sell one house? How much is your time worth? I have looked at the data and crunched the numbers. At the end of the day, the real estate agent is worth every penny.
Let the debate begin.
Freakonomics in Real Estate [John Cook’s Venture Blog]
Endangered Species [NYT Magazine]
I’m a Realtor in Richmond, VA and I’m in absolute shock to read some of the ignorant comments people have made about Realtors. I have to agree with other agents who have posted on this site. People hate the fact that they get up and punch the clock everyday, while the Supervisor tells them when to take a bathroom break and eat their lunch. People hate Realtors, lawyers, doctors, and NBA stars for one simple reason; they wish they could do what we do! The fact of the matter is I love my lawyer and doctor and I’ve even dated someone in the NBA! Like minds attract! If you think all Realtors are stupid, scum-bags, and worthless, mabye you should take a deeper look in the mirror, because after all, it was you that attracted and trusted that Realtor.
I am shocked by how bitter some of you seem. You sound like you stink at sensing people or you live in a world of stereotypes. Have you been so stupid to get burned by these “sleaze bag brokers” over and over? No one to blame but yourself. Every profession has idiots. Real Estate is a profession. School does not a profession make and some families purses don’t run that deep. Work ethic, knowledge, dedication and heart ,ake a profession. I am a free lance artist, with a BA and an MFA who was told I would never be able to own on my income. I now own in Ditmas Park, Brooklyn and Beacon, NY and half the time I am considered middle to lower class economically. Now I want to help other artists and lower income families find housing and to educate them on how important it is for us. I have a college degree, am very well read, compassionate and truly believe in maintaining a neighborhood’s uniqueness. I bust my butt for every client (my part time job has become full-time) and I devote week after week after week of time, energy, being a therapist and negotiating for people to make sure they have the best possible experience. My homes are all I truly have investment wise and they are my havens in this NYC. I’ve read a ton of great comments and all of those seem like have they a greater knowledge of the business and well, people in general. Please educate yourself on what you’re talking about before you make these sweeping generalizations. Be a true radical.
I think real estate agents earn every dollar they get. Many deals fall apart after hours, days, weeks even months of work.
Boston Real Estate
Main Entry: pro·fes·sion
Pronunciation: pr&-‘fesh-&n
Function: noun
1 : a calling requiring specialized knowledge
Whether it takes two months or two years being a real estate broker is a profession which does require specialized knowledge.
Perhaps you all have dealt with terrible brokers but like I said you probably had a terrible experience with a doctor, lawyer, teacher, or the worst a priest GOD forbid.
WHY THIS DOESN’T APPLY TO NY REAL ESTATE: Keep in mind that New York City (and brownstone Brooklyn) does not have the MLS (Multiple Listing Service) database that realtors across the country use. That means that buyers and the agents working with them have a hard time knowing what’s out there. A lot of the smaller, older realty companies (the ones that would offer to list your property for less than 6%) do not “co-broke†or share your listing with other agencies (that way they hope to make up the extra percentage by bringing the buyer themselves). The smaller companies, however, do not have the money for a decent website (a must for attracting buyers), floor plans, professional pictures, etc. – all of which are vital to getting exposure – and eventually the highest price. For coops – forget it! There much more involved than just getting the price you want. The most important being substantiating the finances of your potential buyer – it is all to easy to let a month or so pass from offer to submission of the board package only to find out that the buyer doesn’t have the money in the bank, etc. Your home is often the biggest financial investment you will make – and there are many horrible, costly pitfalls that can come from trying to sell your place yourself especially in this softening market. My family has been in the business for years, so I know. By the end of the day, a good real estate agent from a good company will more than earn your business -whether by finessing potential buyers into a bidding war or taking your frantic call at 9pm when they’re trying to put their kids to bed. Keep in mind that the huge increases we’ve seen in our property values has in large part been driven by the realtors. Taking 6% off the top for someone who has gotten you your asking price or more (Corcoran recently got me $30K over ask for my coop) is a fair price for their efforts.
Please don’t group lawyers and doctors with brokers. I don’t know that they are all “professions.” Clearly all are occupations, but only two of those are professions. A 2 month real estate course does not a profession make.
Do brokers in and around park slope use mls listings yet??
Well said!
it is fascinating to me how every single profession in our society is castigated and hated. real estate brokers, lawyers, wall street bankers, teachers (we don’t pay them enough), doctors (if they make a mistake), what profession is loved? writers, well james frey showed us what a real liar is, so please please leave real estate brokers alone, everyone is just trying to survive and you will find bad apples in every single profession out there, including stay at home mom’s, priests and rabbis.