Traditional Real Estate Brokers VS Online Brokerages
With a poor housing market and the availability of listings and everything you need in purchasing a property online, professional real estate brokers continue to decrease in number.
The number of real estate agents corresponds to the lack of demand in the housing industry. Hopefully their number will increase once the market recovers. But the internet-based brokerages are reducing the need for more real estate brokers.
Based on the National Association of Realtors, there is a 13 percent decline in their membership since 2006. This is seen significantly in the hard-hit California housing industry where there are only 2,030 potential real estate brokers who took the licensure examinations last March, far below 2005’s 18,000.
Real estate brokers say that they lost their control of the market supply of realty information. Traditionally, only home brokers had the necessary information about property listings then they will personally accompany their clients to see the potential buys.
Home sellers used to depend to their real estate broker to research other property prices to establish a good price listing. Brokers used to do all the talking.
But now, at no cost, websites can give property listings and their prices. Some websites can even allow transaction to be possible online.
To save themselves, the National Association of Realtors tried to limit the availability of internet real estate-information. The Department of Justice gave them an antitrust lawsuit. This settlement meant that brokerage websites can post the same detailed information as traditional home brokers.
Online-brokerages can eventually decrease the number of real estate brokers, but many would still prefer the professional touch of a broker.
If the internet has decreased the need for travel agents, remember that purchasing a home must not be taken as lightly as paying for a vacation. The legal paperwork alone can be a bit if a struggle for the inexperienced.
Real estate brokers are saving themselves by spending more of their precious time for personal service. They also provide some information, like problems that may be encountered, that a non-professional will not tell a buyer.
But some buyers would choose the web-based brokerages for they are not as commission-oriented as traditional home brokers.
Real estate brokers defend themselves and say that they settle a price that will please both the buyer and seller. Sometimes, they just need to give some trust and not to feel swindled.
