Disrupting the Real Estate Sales? Will RE Agents be extinct?

[Chuck Kramer]

I am curious on what BP members think the impact that growth in real estate investing, wholesaling, and direct-buy practices is having on the old agency-model of buying/selling? Has anyone come across any articles or research on the subject?

I heard, about a year ago, that 38% of all residential real estate transactions occur without involving an agent. This is a big number but I have been unable to find any supporting information.

Of course, there are some areas of the country that still operate like it is 1990 and agents/brokerages are just terrible. I was in one market where NO agency would accept any paperwork that was not originated on the state Association of Realtors forms/documents. Not even LOI and other docs we, as investors, use and rely on. Based on observed changes, are these folks dinosaurs destined for near-term extinction or will there always be a big part of the RE industry operating this way?

Thoughts? Empirical evidence of information? Opinions?

[Russell Brazil]

92% of transactions are run through agents. 8% roughly do not involve agents, and half of those are family to family sales. 

If no agency would accept your paper work, maybe the problem then was on your end and not on the 100% of people who were in agreement to not take your paper work.