Are Real Estate Agents Becoming Obsolete?

In the past, real estate agents were looked to for most property information--information that was not readily available to sellers and buyers, such as what homes were currently on the market for sale, the price at which homes were sold for, and the time it took to sell those homes. In addition, real estate agents were virtually the only way prospective buyers could see a home for sale.

With the increasing capabilities of technology-the power and popularity of social websites such as YouTube, Facebook, MySpace, and Twitter, and real estate websites such as Zillow and Trulia-many sellers wonder if they can sell their own homes without the help of a real estate professional.

Here's the bottom line: the majority of recent real estate buyers and sellers used a real estate professional at some point during their transactions in 2008. According to a recent report issued by the National Association of Realtors, the following trends were noted:

- More than 80 percent of home buyers purchased their property through a real estate professional.

- One in ten buyers purchased their homes directly through a builder or builder's agent.

- Eighty-three percent of home buyers who used the Internet to search for a home still relied on real estate professionals to manage the transaction.

These trends show that consumers still rely heavily on the expertise of real estate agents to navigate the market.

So why do you still need a Real Estate Agent anyway?

An old caution for those that intend to sell their homes "For Sale by Owner" (FSBO) is, "You can get rid of the broker, but you cannot get rid of the broker's work."

Professionals in the field of real estate provide invaluable knowledge and expertise on market trends and selling techniques. Sure, many sellers and buyers could research this information on their own, but who has the time and patience to do this? In addition, there are many legal forms involved in real estate transactions. A professional real estate agent is able to provide buyers and sellers with the appropriate forms for their transaction and explain the implications of the contract (and addenda).

Real estate agents partake in many educational courses and seminars and spend countless hours in the market to gather the information they provide to their clients. Just like hiring a financial planner for your money needs, employing a stock broker for marketable securities expertise, looking to a Certified Public Accountant to manage your business finances and taxes, or hiring a general contractor to execute your home improvements, hiring a real estate professional should be a priority before engaging in a real estate transaction.

While the use of technology in real estate is very effective, the use of this technology alone does not replace the subject matter expertise of a real estate professional. Whether buying, selling, or both, consulting with a real estate agent can be the best move you ever make.