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
    joe schmoe, 9 Aug 2007 @ 1:21am

    realtors make too much commission

    I know a real estate agent personally. The actually are very much less than 50 hrs. per week. Thanks a very rare occasion. I'm told by this agent it a few phone calls, plugging pictures onto a web page or two, and maybe putting it into a local newspaper. The most time is spent working with a lender who does not have their stuff together. On occasion do an "open house", 3hrs. max!

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