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FUTURE of REAL ESTATE COMMISSION (ponder)

By
Real Estate Broker/Owner with people first...then business Ran Right Realty 636943 licensed to thrill

No one can deny that throughout your entire life, change traveled with you. Some, we accepted without question or hesitation, while other change proved more difficult to grasp. Some change is heaped upon you like it or not! We are seeing change in every category today especially in technology.

HOW REAL ESTATE MAY ENTER INTO CHANGE

Applications (apps) are being developed at an extraordinary rate of progression making certain developers wealthy in the process. An app on how to play checkers better won't pay-off as well as an app that innovates and excels in its use & intention. That's what all the tech nerds are aiming for.

THIS IS WHAT I SEE

There is a shifting attention toward Real Estate commissions & procedures in general that may attract developers who want a tiny piece of the Multi-trillion dollar Real Estate pie. There are things out there already but still much more to come. Some smart, first on the scene tech people stand to clean-up here.

APPLICATION TO PURCHASE REAL ESTATE

Visualize an app that walks you through the buying process checking off the buyer boxes as you go. Today's generation would wield it like they do the thousands of other apps and succeed by following the laid, out step by step process. As I discuss below, there will be available services eager to assist you.

ESCROWS, TITLE INSURANCE, INSPECTIONS & TERMITE

They would all be included & protected in the software application. They would assist the buyer successfully to the end result while helping themselves on the way. They will NOT be touched! The only difference? The buying agent has been eliminated! 

SERIOUS MONEY IS SAVED!

No one is injured, and the process goes on smoothly. The seller would support this 100% considering they pay buyer commissions already. Now, money can be spent & shared as expenses where it is needed only. Hiring an attorney comes to mind. It won't cost what it cost to pay a buyer's agent & the attorney will make sure parties get through the statute of limitations period as well as the transaction too.

LET'S LOOK AT SELLER SIDE of THINGS

An application (app) that walks you through the selling process while checking off seller boxes. Ancillary services as mentioned above (escrow etc.) would look out for your interests as they made their usual fees. Again, an attorney is hired if needed.

ATTORNEY POINT of VIEW

They would charge competitive, one-time fees for services and in effect, replace the fiduciary of a buying agent. Their business would even pick-up as would all the other related services eager to lend a hand & get their chunk of fee in return.

THE SELLING AGENT

Is he/she really needed? Pause here before you assemble an argument. The app is walking buyer and seller through, PLUS outside services that are a part of the Real Estate transaction are contributing and an attorney is called in sort of like a cherry on top of a Sundae or Banana Split. Let's consider what was saved by all involved.

REPAIRS & NEGOTIATIONS

Instead of spending the normal 5% agent commissions, the monies would go toward making the buyer & seller happy or happier. Repairs would not be contested as much as well as negotiations being loosened too! No downsides!

THE OPERATION WAS A SUCCESS...no one lost except

The buying and selling agent. Who won? Almost if not everyone else did! The monies saved by eliminating the agent fees don't even come close to what would be spent under the do-it-yourself apps and those related services involved. 

ONE MORE THING TO PONDER HERE

Some smart software and widget developer will innovate the following perhaps even patenting it in the process. Imagine a small little chip the size of a marble that attaches to the front of a home of an owner and or seller. Consider this...

THE CHIP WOULD COMMUNICATE

All the normal, necessary description of the house and history along with a programmable part that says: Now selling, will consider selling and NOT for sale. Would be buyers or (?) would pass by from their cars, without getting out, read the chip with an app on their cell-phone & proceed or not accordingly. The chip would also have ability for the owner/seller to list their contact data. Other related services would solicit this too. 

SOUND FAR-FETCHED? 

Better, faster and cheaper would argue with you. Making money, profit and reducing expenses just cannot be ignored. Newby gents would be wiped out while the veteran, savvy & experiences ones would still offer consulting services even on a sliding scale. There will be sellers that just want it handled however I believe Brokers would be the finest and first choice for this. Agents go dinosaur!

THOUGHTS? COMMENTS? 

Show All Comments Sort:
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

If the seller is an absentee owner, and the house is in a hard to find location, how will this seller benefit from having no agent?  Who makes sure the house gets locked up and lights off after a showing.  Maybe a super smart house can do these things by itself?  In my market, the listing agent is still very much needed.

Oct 30, 2023 04:25 PM
Richie Alan Naggar

of course to your decent commenting & point made thank you Georgie Hunter R(S) 58089 . Perhaps what I am suggesting will take place over time, which adds or takes away what doesn't benefit. Evolution, which is the evolving of an idea to another level. In with the new, out with the old

Oct 31, 2023 06:29 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Richie I ponder why you do not interact with the community? Just periodically post an interesting read.... or is it just me who you do not interact with? Inquiring minds want to know, Endre

Oct 30, 2023 11:57 PM
Richie Alan Naggar

How good of you to propose such an interesting question Endre Barath, Jr. In my maturity, as I adventure & explore, I tend to sample here & there that which rewards the effort. I seek satisfaction, contentment and mystery, and these dynamics have their own rules & ways about them. One could say, I seek the paradigm of life dynamics having accomplished the basics. Now, to explore not the stars, but beyond...

Oct 31, 2023 06:26 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Richie - change lives among us.  It continues to be interpreted in different ways than originally imagined. 

As a child, I remember watching The Jetsons animated television program about life in the future and also recall a vintage I Love Lucy episode with Orson Welles in a War of Worlds type spoof years after its first airing.  On the timeline of life on this planet, both are relatively new entries.  However, I "imgine" they  are likely unknown to many alive today.   Hmm. . .   

Oct 31, 2023 02:57 AM
Richie Alan Naggar

Thank you for worthy commenting & sharing Michael Jacobs 

Oct 31, 2023 06:20 AM
Roy Kelley
Retired - Gaithersburg, MD

We need to expect many changes in our inefficient industry. 

Have an outstanding 2024!

Dec 31, 2023 07:58 AM
Richie Alan Naggar

You are a class act Roy Kelley ...

Jan 01, 2024 05:08 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

As Johnny Cash would remind his band, let's bring it all home.

Inventory, round up the listings. Volunteer and get involved in your community and promote all the special events and quality of life.

Then communicate with buyers, sellers and help them buy, sell, trade.

Technology enhances the information flow and scheduling. But an agent with heart and soul Richie Alan Naggar will do just fine.

Feb 02, 2024 03:05 AM
Richie Alan Naggar

Andrew Mooers | 207.532.6573 ladies & gentleman

Feb 02, 2024 06:13 AM