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That's a bold statement. Still, the NAR has data that suggests realtors are more likely to be involved in transactions than 18 years ago: 87% of buyers purchas

That's a bold statement. Still, the NAR has data that suggests realtors are more likely to be involved in transactions than 18 years ago: 87% of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69 percent in 2001. Source: National Association of Realtors (https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics https://www.nar.realtor/research-and-statistics/quick-real-e...) ... But I'm curious if the definition of "broker" includes online marketplaces or other digital services. It's true that realtors (and other players, including real estate lawyers) do have expertise that can help buyers and sellers deal with the unique issues that come up with each home, not to mention the mandated paperwork. Streamlining those requirements may be extremely difficult. However, I think realtors have a demographic tidal wave about to hit them, consisting of first-time young home buyers and some slightly older home sellers who are used to doing things online and want nothing to do with realtor-mediated transactions ... or will scoff at the ridiculously high fees charged by brokers.

hkmurakami 8y ago
Both redfin and Opendoor go through licensed brokers in each state so is agree with what you posit.
- whitepoplar 8y ago
  I thought Opendoor are themselves agents/brokers, no?
  - mox1 8y ago
    They are, I just opened some junkmail from opendoor and there was something about OpenDoor Brokerage <MYSTATE> LLC.
  - hkmurakami 8y ago
    oops, I realize now that with the way I wrote that post, it reads (inaccurately and unintentionally) to mean that they go through a 3rd party, rather than my intent that one way or another a broker licence is involved.
- kingnothing 8y ago
  Redfin itself has a licensed brokerage sub company in many states.
shdh 8y ago
>I also think realtors have a demographic tidal wave about to hit them, consisting of first-time young home buyers and some slightly older home sellers who are used to online transactions and want nothing to do with realtor-mediated transactions. What platform will facilitate these transactions?
- deleted 8y ago
  [deleted]
brightball 8y ago
It’s a essentially a giant network effect. Practically, the #1 reason to use a realtor is that if there is an issue with the home that should have been known ahead of time, there is a chain of insured entities that provides legal recourse. The shop and decide part is secondary to their value, but that is how they are so entrenched. The local MLS in any given area has the ability to cut off access to anyone. Some are even privately owned. In order to disrupt an area, you have to get a slice of listing larger than what’s available in the local MLS and then get more people’s eyeballs on those listings than the combined circulation that the existing MLS feeds were getting...and then still have some means of showing the houses in person. And you have to do that for EVERY single market you enter. A young buyer is welcome to shop for a home without using a buying realtor...but there are still very high odds that the seller used a realtor on their end. The only difference in that situation is that the selling realtor doesn’t have to split the commission and pockets more of it. This is ironic too, because realtors are more valuable to a buyer in most cases and there is more work involved for buyer representative realtors with no guarantee of a payoff. The entrenchment remains because realtors will often avoid FSBO showings and sellers aren’t interested in experimenting...they just want their house to sell.
- megaman8 8y ago
  Not having a realtor as a buyer really helps, because you can add that 3% to the purchase price of the house saving you 3% which can be a huge amount in expensive markets like the bay area.
  - jpollock 8y ago
    Frankly, if you're worried about 3% on the purchase price of the house, you can't afford that house, regardless of the amount of money. Particularly in expensive markets in the Bay Area, the real estate agent is there to tell you when you're being stupid - unrealistic with your demands (under or _over_ paying) and keeping you from stomping away in a huff during the stressful negotiations. This is buying and selling the most expensive asset most people will ever own. People hire in help to buy and sell their business, this is equivalent.
general8bitso 8y ago
Well, until they coordinate to change laws at the state and federal laws, facilitating real estate transactions as a non-realtor will expose such individuals to legal action. Kinda like Tesla trying to sell in states that require a franchise dealership. Also, the term commission is ambiguous in the context of the headline. Do we mean a percentage of sales or an officiating body that controls an MLS or something at the state level, etc?
- iwantedjusttom 8y ago
  this is not completely true because a seller can negotiate on behalf of themselves for their own home and a buyer can negotiate for themselves as well. Which I suppose is obvious. You can also have an attorney negotiate for you, at least in my state, and attorneys only charge a flat fee for handling a transaction in my area. A small percentage of what it costs to use an actual realtor.
  - general8bitso 8y ago
    That is still a two-party transaction. It is when a third party is involved, that gets you in trouble.
Spooky23 8y ago
> However, I think realtors have a demographic tidal wave about to hit them, consisting of first-time young home buyers and some slightly older home sellers who are used to doing things online and want nothing to do with realtor-mediated transactions ... or will scoff at the ridiculously high fees charged by brokers. No way. Find me the mythical millennial who wants to deal with a first-party negotiation. In some fantasy land where you ride your unicorn to work and shop for pre-fabricated houses on Amazon.com, sure. The reality is that your bank demands due diligence, houses are always in some state of disrepair, and nobody wants to deal with that.
- ilamont 8y ago
  I get the due diligence part, which is where lawyers and inspectors come in. Not convinced realtors have to be the middleman facilitating those necessary transactions, let alone showing a home, making sure offers get to the seller, generating a list of comps from a database, etc., and charging huge fees to do it.
- secabeen 8y ago
  The buyer doesn't see the cost, although 3% goes to the buyer's agent, it all comes out of the seller's proceeds. As such, there's a lot less incentive for a buyer to go without an agent.
crysin 8y ago
I'm a millennial, just bought my first home this past August. It never even crossed my mind not to use a realtor. Sure I did a lot of communication with my realtor over text and e-mail but I never even considered not using one. I had done a lot of research and looking around before going to our realtor but I trusted our realtor more than I trusted myself to make sure everything was covered. It was more of an ease of mind deal and our realtor wasn't pushy and let us choose homes we were interested in for the most part, only occasionally making suggestions.

hkmurakami 8y ago

Both redfin and Opendoor go through licensed brokers in each state so is agree with what you posit.

whitepoplar 8y ago
I thought Opendoor are themselves agents/brokers, no?
- mox1 8y ago
  They are, I just opened some junkmail from opendoor and there was something about OpenDoor Brokerage <MYSTATE> LLC.
- hkmurakami 8y ago
  oops, I realize now that with the way I wrote that post, it reads (inaccurately and unintentionally) to mean that they go through a 3rd party, rather than my intent that one way or another a broker licence is involved.
kingnothing 8y ago
Redfin itself has a licensed brokerage sub company in many states.

shdh 8y ago

>I also think realtors have a demographic tidal wave about to hit them, consisting of first-time young home buyers and some slightly older home sellers who are used to online transactions and want nothing to do with realtor-mediated transactions. What platform will facilitate these transactions?

deleted 8y ago
[deleted]

brightball 8y ago

It’s a essentially a giant network effect. Practically, the #1 reason to use a realtor is that if there is an issue with the home that should have been known ahead of time, there is a chain of insured entities that provides legal recourse. The shop and decide part is secondary to their value, but that is how they are so entrenched. The local MLS in any given area has the ability to cut off access to anyone. Some are even privately owned. In order to disrupt an area, you have to get a slice of listing larger than what’s available in the local MLS and then get more people’s eyeballs on those listings than the combined circulation that the existing MLS feeds were getting...and then still have some means of showing the houses in person. And you have to do that for EVERY single market you enter. A young buyer is welcome to shop for a home without using a buying realtor...but there are still very high odds that the seller used a realtor on their end. The only difference in that situation is that the selling realtor doesn’t have to split the commission and pockets more of it. This is ironic too, because realtors are more valuable to a buyer in most cases and there is more work involved for buyer representative realtors with no guarantee of a payoff. The entrenchment remains because realtors will often avoid FSBO showings and sellers aren’t interested in experimenting...they just want their house to sell.

megaman8 8y ago
Not having a realtor as a buyer really helps, because you can add that 3% to the purchase price of the house saving you 3% which can be a huge amount in expensive markets like the bay area.
- jpollock 8y ago
  Frankly, if you're worried about 3% on the purchase price of the house, you can't afford that house, regardless of the amount of money. Particularly in expensive markets in the Bay Area, the real estate agent is there to tell you when you're being stupid - unrealistic with your demands (under or _over_ paying) and keeping you from stomping away in a huff during the stressful negotiations. This is buying and selling the most expensive asset most people will ever own. People hire in help to buy and sell their business, this is equivalent.

general8bitso 8y ago

Well, until they coordinate to change laws at the state and federal laws, facilitating real estate transactions as a non-realtor will expose such individuals to legal action. Kinda like Tesla trying to sell in states that require a franchise dealership. Also, the term commission is ambiguous in the context of the headline. Do we mean a percentage of sales or an officiating body that controls an MLS or something at the state level, etc?

iwantedjusttom 8y ago
this is not completely true because a seller can negotiate on behalf of themselves for their own home and a buyer can negotiate for themselves as well. Which I suppose is obvious. You can also have an attorney negotiate for you, at least in my state, and attorneys only charge a flat fee for handling a transaction in my area. A small percentage of what it costs to use an actual realtor.
- general8bitso 8y ago
  That is still a two-party transaction. It is when a third party is involved, that gets you in trouble.

Spooky23 8y ago

> However, I think realtors have a demographic tidal wave about to hit them, consisting of first-time young home buyers and some slightly older home sellers who are used to doing things online and want nothing to do with realtor-mediated transactions ... or will scoff at the ridiculously high fees charged by brokers. No way. Find me the mythical millennial who wants to deal with a first-party negotiation. In some fantasy land where you ride your unicorn to work and shop for pre-fabricated houses on Amazon.com, sure. The reality is that your bank demands due diligence, houses are always in some state of disrepair, and nobody wants to deal with that.

ilamont 8y ago
I get the due diligence part, which is where lawyers and inspectors come in. Not convinced realtors have to be the middleman facilitating those necessary transactions, let alone showing a home, making sure offers get to the seller, generating a list of comps from a database, etc., and charging huge fees to do it.
secabeen 8y ago
The buyer doesn't see the cost, although 3% goes to the buyer's agent, it all comes out of the seller's proceeds. As such, there's a lot less incentive for a buyer to go without an agent.

crysin 8y ago

I'm a millennial, just bought my first home this past August. It never even crossed my mind not to use a realtor. Sure I did a lot of communication with my realtor over text and e-mail but I never even considered not using one. I had done a lot of research and looking around before going to our realtor but I trusted our realtor more than I trusted myself to make sure everything was covered. It was more of an ease of mind deal and our realtor wasn't pushy and let us choose homes we were interested in for the most part, only occasionally making suggestions.