I imagine high end agents will be fine. Agents will certainly be needed for both buyers and sellers interested in exclusive and private listings.

I don’t know how this will affect lower to moderate listings but I do not think it will have a major impact on luxury markets. Would sellers then just let alleged buyers tour their homes without agents- so no vetting, no pre-approval, no proof of funds? I know people do that for open houses (which I have never done) but I just can’t fathom a high end seller attempting to sell a home that way- especially in a major metro area.

Anonymous wrote:I'd rather pay an attorney or settlement company as a buyer than a real estate agent. Ours was useless and only submitted the offer. Didn't even come to closing.

Agents who do not add value to the client will be out of business. I know this kind and also those who would do extra leg work for you,search for properties on your behalf, schedule appointments in a way to maximize your time, help with inspections, do comps, advice, etc.

I'd rather pay an attorney or settlement company as a buyer than a real estate agent. Ours was useless and only submitted the offer. Didn't even come to closing.

Anonymous wrote:

Anonymous wrote:I wonder if at some point it will become more like selling or buying a car. There's a sticker price and that's what you pay, no dithering and negotiating. It used to be that buying a car was a whole art form and it's much less so today.

Carfax for real estate?
I love it!

You mean Carmax?

It’s not happening. The market for cars is too different compared to the market for real estate.

There are always lots of cars to choose from. You can even have one shipped cross country, if you want. Carmakers can always make more cars. That is why prices are what they are.

Homes are different, especially in established markets. There is a finite amount of houses available in any given location, neighborhood, or school boundary. Location is not fungible for many people the way like the exterior color of a car is, or the decision to pay 400 to have the preferred color shipped from a few states away.

A house sells for whatever someone is willing and able to pay for it, end of story.

Anonymous wrote:I wonder if at some point it will become more like selling or buying a car. There's a sticker price and that's what you pay, no dithering and negotiating. It used to be that buying a car was a whole art form and it's much less so today.

Carfax for real estate?
I love it!

Anonymous wrote:I wonder if at some point it will become more like selling or buying a car. There's a sticker price and that's what you pay, no dithering and negotiating. It used to be that buying a car was a whole art form and it's much less so today.

Cars are back to being very negotiable and it’s still an art.

This shakedown has been a long time coming!

On the buyers' side, you could see the rise of business that offer to "educate" buyers on how to approach these transactions -- much as "experts" offer one-shot seminars on personal finance.

"Planning on buying a home this year? Come to our 2-hour seminar this Saturday and learn everything you need to know!"

And, just as with personal finance, these seminars can turn into lead generation vehicles, where would be buyers are persuaded to hire the firm for the "next level" of service in helping them find and buy a home.

Now, would such operators angle for a percentage of the sale price or just charge some sort of hourly fee or a flat rate for the "next level" service, I don't know. (OP here)

Anonymous wrote:I recall going to the county offices to check up information on a house I had looked at. There was another person ahead of me, a real estate agent, and she was checking up the same information on a house for her client. I was so impressed. Here I was, trying to do my due diligence, not sure if I was doing it right, while here was a pro doing the checking for her client and knowing what she needed to see.

I think agents like this one will always have steady work.

But the fact is that you were able to do the exact same task she was doing, on your own...

I recall going to the county offices to check up information on a house I had looked at. There was another person ahead of me, a real estate agent, and she was checking up the same information on a house for her client. I was so impressed. Here I was, trying to do my due diligence, not sure if I was doing it right, while here was a pro doing the checking for her client and knowing what she needed to see.

I think agents like this one will always have steady work.

Anonymous wrote:I wonder if at some point it will become more like selling or buying a car. There's a sticker price and that's what you pay, no dithering and negotiating. It used to be that buying a car was a whole art form and it's much less so today.

Well not quite, because there's a big differential in quality in homes vs. cars. Unless you're talking about buying new construction.

I wonder if at some point it will become more like selling or buying a car. There's a sticker price and that's what you pay, no dithering and negotiating. It used to be that buying a car was a whole art form and it's much less so today.

The Washington Post ran a story the other day about how real estate agents are "fleeing the field" -- and how the exodus will increase once the new rules about buyers' agent commissions take effect this summer. A link to the story is below. It's a "gift article", so there shouldn't be a paywall.

Most of us on DCUM are buyers and sellers, so it makes sense that we're pretty narrowly focused on how much comissions will be, and how they will be advertised, structured and paid, in the new world order.

But a big part of getting to that new world order is the coming decimation of the agent class, and what that will do to market dynamics. I know that's come up in prior threads, usually raised by agents (I am not an agent). The Post story suggests that the best agents, those who provide real value, will survive and may still be able to command high comissions. But it also cites a lot of research about how bloated the agent class is and how big an employment bubble (albeit with many hobbyists and part-timers) is about to burst. I just think it's interesting -- see some highlighted passages from the story below the link. It's going to be a much-changed market a year from now, with far fewer agents swimming in these waters.


Real estate agents are fleeing the field. Is that good for homebuyers?
New rules are expected to dramatically change how homes are bought and sold in America, which could lead to an industry shakeout.
https://wapo.st/3VknKSn

Some snippets:

- The Bureau of Labor Statistics recorded 440,000 full-time real estate agents and brokers in 2023, about 72,000 fewer than the year before.

- With interest rates remaining relatively high, deals have become so scarce that many Realtors now sell only a few homes a year. A survey of about 2,000 real estate agents conducted by the Consumer Federation of America found that 49 percent of them sold fewer than two homes in 2023. And Realtors will soon face new rules that could result in sweeping changes to how they do business and how they get paid.


- The forecast by Keefe Bruyette & Woods projected that changes to the commission structure could cause 60 to 80 percent of U.S. Realtors to leave the profession.

- CUNY Baruch College’s Sonia Gilbukh and Yale School of Management’s Paul Goldsmith-Pinkham estimated that about 56 percent of agents would exit the market if one side’s commission remained at 3 percent while the other became competitive.

- Gilbukh, the CUNY researcher, believes that only the most experienced agents will be able to keep charging high commissions.

Agents that survive the upcoming transition are likely to be better connected within their industry, having deeper relationships with professionals such as contractors, electricians, plumbers and appraisers, and “overall better poised to advise their clients,” Gilbukh said.