Originally Posted by
AdironRider
Having lived in a ski town, like 50% of my social circle has their realtors license (slight exaggeration but if you know you know). Every single one of them is delusional in their thinking that this isn't going to radically change the market for not just buyers agents, but also sellers agents as well.
Buyers agents are done. Everyone has zillow or realtor.com, and the idea that realtors were "fiduciaries" and pointing out anything of importance to a buyer just isn't the case. That has always been the lawyers and title guys doing that work. The only people arguing otherwise are realtors. Second, now that hiring a realtor is not a requirement to get on the MLS, sellers agents just lost the moat around their business. In a seller's market, a FSBO can now get on the mls and bypass all of the seller side bullshit. On an average home, there is no reason a sellers agent can justify 15k for a couple open houses or showing up to open a door.
I bet dollars to donuts, this is what you will see:
99% of the buy side will now be handled by the lawyers and title companies for flat fees. These already only cost a couple grand, at most, and are typical closing costs. No change here in terms of cost to the buyer.
On the sell side, you will see ala carte pricing for photos, admin work like placing the listing on the mls, etc. Lets say thats a grand or two. Commissions will drop significantly with pressure from FSBO and discount brokerage firms (redfin, etc). I bet within 5 years the standard is 1%.
Exceptions: ultra-luxe locales like Jackson, Aspen, Hamptons, which will still justify the network of a realtor that hustles and a nice marketing package. But that average 450k home in the burbs, yeah no. The only thing propping up the realtor industry was collusion and the moat surrounding the mls. Both are gone now.
Market price of a home is market price of a home, I don't think you will see much change in overall cost of real estate, but it is going to get cheaper for sellers, and at worst, stay the same for buyers. Within a few years people will realize that there is little a 1k real estate lawyer can't tell you within an hour of research at the town clerks office or just reading p&z regs for the area, and this "fear factor" of buying a house because it is expensive will recede substantially.
