Are Realtors days numbered?

[Jay C.]

I saw an interesting interview on CNBC today of Colony Capital CEO Tom Barrack whose firm has $34 billion under management. He spoke about the many changes in housing but touched on a real interesting point. He compared realtors fee`s to brokerage fees and said its days are numbered. He states that these fee's are the last of this type of fee left in the market place. I have to agree. I think its only a matter of time before this goes away. As a stock trader it would have been unheard of and impossible to have traded without a broker. Now you still have brokers but they are for a select few that need some hand holding or large portfolios. I can certainly see this evolving the same way with Zillow and Auction.com. I know the brokers went away kicking and screaming as all those good paying jobs went away. I would expect the same reaction here but times do change. Some may pop up oh we will need them to open the door and show the homes and all the other things a realtor does but again the same was said of brokers. I for one would like that 6% in my wallet. Some may feel different.

Here is the link to the video if you care to view it. 

http://video.cnbc.com/gallery/?video=3000311073

[Doug Merriott]

Most Realtors do just 4-5 transactions per year and make about $20k. Many, including me, practice real estate in their spare time. My goal is to do 4-5 transaction per month. My goal is to provide a level of service that makes my clients feel comfortable, proud and grateful for choosing to use me as their Realtor. I think that goals separate the 4-5/year, just get by crowd from those that choose excellence. 

Many of my investor friends deride Realtors, sometimes even in good humor. The fact of the matter remains that 9 out of 10 houses are sold using Realtors. I don't see this changing any time soon. A good agent is more than just a robot that enters information in the MLS. A good agent can tell a tale of your home that will interest the internet viewer to want to come by and take a look. A good agent can take photos or hire a great photographer to highlight your homes best points. A good agent can steer you to deals, whether they are on the MLS or wholesale. A good agent looks out for your best interests before their own.

In a world where many folks are more and more overworked I don't see people wanting to take the time to show their home, or figure out contracts and disclosures. I don't see people relocating to new cities driving around aimlessly trying to find a good home in a good neighborhood.

As far as the fees I will just quote a friend of mine who introduced himself at a REIA meeting immediately after a $295 listing service guy, he said; "I am a Realtor and I charge 6%, because I am worth it.". If you don't value your Realtor's service, fire them.

Realtors are not essential, but neither is your car. You can buy a home without a Realtor just like you can get to work without your car but both will make the journey a whole lot easier.