Future of Real Estate

[pacificfame]

Just wondering what your guys' thoughts are on the future of the real estate industry.

ABC and 20/20 have had some programs showing how "easy" it is to sell your house by yourself online. Also with companies like RedFin with their commission refund to clients.

What do you think the future is going to be like. Will the traditional 6% commission still be around? Will Realtors still be a career that is profitable?

[radreality]

well, it sounds like you are talking about more than one industry actually.

The real estate industry will do what its always done. go up, go down a little, go up, go down a little, go up, crash, go up, go down a little, go up, go down alittle, etc.

The mortgage industry is what we should be concerned about. I'm no expert in this industry, all I know is from my experience (recently) with these companies. A lot have gone out of business lately. When an industry such as this makes most of its money from kickbacks from underwriting companies, but there are certain criteria for them to get those kickbacks; and when they get people into a mortgage who then foreclose shortly after, they end up not being qualified to recieve those kickbacks and if it happens enough they have to close their doors. Whats the future? harder to get a loan, higher rates, higher fees.

I think its something that everyone should keep a close eye on.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

[pacificfame]

Well I was reading how some realtor's are scared that the 6% commission will no longer be around in the future. The access of selling your home online to some takes the place of a Realtor, however I believe selling a home should be in the hands of a professional.

I don't know topic was on my mind thought I would shoot the shit with you guys about it.

[radreality]

as with everything, things change over time. As technology increases we have seen a change in traditional businesses. It only makes sense to assume that the average real estate agent will be affected by this as well.

The key to being successful with anything is don't be average. Always look on how you can improve your services, be more competitive, be more creative, and increasing clients.

We already see a decent percentage spread, anywhere from 5% to 10% depending on the property being sold and the agent. it has been this way for years. Why have the agents that charge more been able to survive among those that charge less? No matter what happens with the rates, the winners will last and the wanna-be's will lose.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

[mnt11592]

Real estate will always increase in value over several years. Whether the market softens or skyrockets, it doesnt matter because over several years the value of real estate will always increase. There will always be a need for real estate brokers and agents, therefore they will always be around. Selling and buying homes can be extremely stressful whether you do it on your own, or use a real estate agent. Realtor careers will always be around. If their commission drops, they will still make money. Some real estate agents make extreme amounts of money, others make next to nothing depending on the agents experience and location.