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Thomas Musil Real Estate Queries Column(Tom Hamilton Real Estate Queries Column (KRT) Via Thomson Dialog NewsEdge) Nov. 29--QUESTION: What is academia saying about the future of the real estate agent, commissions, marketing methods, etc. It seems as though technology, i.e., virtual transactions, could happen. Many real estate services are already online. I can imagine going to a web site to buy or sell directly using a virtual site with "live voice" seller and buyers negotiating. It seems buyers/sellers are skeptical of the commission amounts and the veracity of agents. The average home is over $1 million here and $60,000 seems too much to pay for real estate sales services. Could the consumer set the stage for a revolution in real estate transactions? ANSWER: Real estate, like all other aspects of the modern world, is changing. There is no question that technology is leading the way. With technology the real estate consumer is more informed, and market activities are more transparent. This is not enough to limit the services of real estate agent. I see references in the media that the real estate agent is going the way of the dinosaur, travel agent and the stockbroker. While our housing market is slowing down and technology is improving, I disagree with your idea that real estate careers will substantially decrease. Agents bring value to transactions. As technology has developed, so have the complexity, regulation, requirements, and procedures facing real estate buyers and sellers. Many consumers may be comfortable working without an agent representing their interests. However, many consumers are not and will seek full time, experienced real estate salespersons to help with the transaction. Buyers especially need representation, which -- in most cases -- is paid for by the seller through a commission split with the listing agent. Dr. Thomas Musil is the director of the Shenehon Center for Real Estate in the Opus College of Business at the University of St. Thomas in Minneapolis. He has more than 25 years of experience in real estate as a broker, analyst, consultant and expert witness in real estate litigation and arbitration disputes. E-mail questions to: [email protected]. Please include your name, city and state. Copyright (c) 2007, Thomas Musil Real Estate Queries Column Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |