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Wikipedia - Disintermediation - Real Estate Industry - "Still in Progress"

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Real Estate Agent

Wikipedia says that the real estate industry is "Still in progress (due to legal or structural obstacles)" of being disintermediated.  Is it right?  What would happen if 90% of the real estate agents retired in the next six months?  

Would housing prices go down?

Would the 'time on market' go up?

Would transaction costs (commissions) go down?

My first reaction is that housing prices would not decrease.  Time on market may actually decrease because with the lowering on transaction costs people would be less concerned about losing money if they needed to sell sooner than anticipated. Real estate investments will be considered more liquid.  

So that leaves me wondering, would service levels experienced by consumers go down? 

The average 'top agent' handles at least 10x as much business as the average mediocre agents do.  Does the service levels provided by the industries top agents meet or exceed the service levels provided by our mediocre agents? 

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Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker

An absolutely excellent and timely question. One we would all do well to study and be prepared to offer an answer.

There is no doubt that "flat fee" or "limited-service" brokers are here to stay, and we will always have to deal with their affect in our respective markets.

The onus on our industry (and I'm speaking to premium, full-service brokers/agents here) is to do a better job of justifying our existence and creating more demand for the viability of our services. Differentiation Selling.

The problem is that too many times we short change ourselves. In our willingness to compete, we devalue the level of our services and force ourselves to do more for less.

Sep 05, 2006 11:09 AM
Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Yes, top agents get the job done, right.  Getting a home sold is not just about the cost.  It's about getting it sold right the first time, on time and without issues that will come back later to haunt someone.

Sep 05, 2006 12:01 PM
Jon Washburn
Seattle, WA

Leslie, I don't really think agents have anything to worry about.  At least in the short run.  What I am contemplating is whether or not the industry, how it is set up now, is the best for the consumer.

Could it work differently?  Better?

Kristal recently wrote addressing the issue.

Rich, I agree entirely with your comment!  Although the average consumer doesn't care enough about real estate commissions right now.  I do sense that the sentiment is changing.  

Sep 05, 2006 01:23 PM
Gerhard Ade
RSVP Real Estate - Seattle, WA
What sets me apart, will set you apart.
Ade HouseJonathan - If you mean by "average mediocre agent" a lack of volume I must count myself among them. When it comes to the quality of service I will compete with the best.
Oct 08, 2006 07:04 PM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent
Jonathan,  the person in the comment thread above me is possibly some sort  of a scammer spammer.  Check his comments.  
Aug 07, 2007 10:55 PM
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