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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  1. identicon
    Sean, 8 Jun 2007 @ 1:04pm

    Re: Real Estate Agents

    First of all, they do not make $12,000. The 2 Realtors involved split the commission.

    Secondly, lots of money is spent on advertising and office expenses. A good realtor will at the very LEAST have ads in the local Homes magazines, and most now have a good comprehensive website which is easily found by Google.

    Realtors work just as hard as anyone else at what they do, and they never get anything but the same old "scum of the earth" nametag.

    How many of you who posted how sleazy and awful Realtors are have even purchased a house? Did you purchase it alone? Doubtful.

    You shouldn't post a comment about something that you are obviously completely ignorant about.

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