Why Real Estate Agents Have Good Reason To Fear The Web

from the marginally-useful dept

There have been a number of stories lately about real estate professionals lashing out against online real estate services like Zillow and RedFin, which are seen as threats to their traditional business. A new study done by two economics professors sheds some light on why they might be feeling embattled. In an examination of the housing market in Madison, Wisc., the pair found that homes sold using brokers did not fetch sellers any additional profits after commissions were taken out. What makes Madison interesting is that it has a thriving website of for-sale-by-owner homes, so sellers there don't have to do much legwork if they want to sell on their own. This means that real estate agents may still add value in communities where such services aren't popular, but it's value that could disappear as services like RedFin startt to take hold. Thus the agents' fear seems to have a legitimate basis, and their behavior conforms nicely to the rent-seeking tactics exemplified by similarly organized professional groups.

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    martketingman (profile), 10 Sep 2015 @ 2:15pm

    I feel this topic is subjective

    Honestly i am not by any means educated in the real estate process, i do however provide plenty of realtors online marketing. I have to cold call these people, who typically aren't too thrilled to speak to me.(Like i enjoy calling them, HA!) What i can say is that compared to the price of our service and the money they make, its crazy that any agent on here will try and pretend that they don't cut corners any way they can for their own monetary gain. They say any price is too expensive, and i know for a fact we have the most affordable campaigns, just blows my mind how they treat someone trying to make a living, not a completely honest one, but still a living so bad. We only exist, because they exist, so in short, "Have no fear consumers! for every on of you they piss off, we probably piss off an additional ten!"

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