The Changing Role of the Real Estate Agent

Like the touch of Midas that turned everything to gold, the reach of the internet also has transformed people's lives totally. The way business is done has undergone a sea change. It's hard to imagine any business sector which has not unalterably been changed by the internet, and which does not continue to change as the internet evolves. Real estate is no such exception. In many western countries, the internet now accounts for the vast majority of inquiries, with print media, 'For Sale' boards, and marketing to existing databases of potential customers diminishing fast.

With the emergence of a plethora of new 'For Sale by Owner' portals, the role of the traditional real estate agent is also changing. Many of these portals now provide as part of their service, detailed statistical reports which gives the seller a solid indication of what their own home may be worth. Many 'For Sale By Owner' websites do not only publish advertisements to their own website but also often always publish these listings to the same 3rd party websites which the traditional estate agent would do, and at a fraction of the cost. In terms of negotiations, the seller always has the final say in what they are willing to accept as sale price, and in this respect, the agent's ability to negotiate on the seller's behalf is often over-rated.

Real estate agents do play an important role in the community, and their role should be acknowledged. The concept of having real estate agents will disappear completely. What is to be expected though, is that the range of services offered will change over time. Sellers now have the same access to statistical research with regards to house prices as the agents themselves. They can often achieve the same number of inquiries by using the services of For Sale by Owner websites, and they are, and always have been, perfectly capable of negotiating with the buyers by themselves. In terms of contractual legalities, it is the case that in most western countries that it is perfectly acceptable for a seller to enter into a contract of sale with the buyer themselves. They do not need to be a licensed real estate agent to do this.

One positive outcome of the internet boom is that the whole process has become more transparent wherein the buyer gets to interact with other prospective buyers/sellers in real estate forums on the net and get a holistic view of the current state of affairs before taking a decision. However, the role of agents is still indispensable in the case of high-value contracts like sale of huge commercial spaces.