Expert predicts real estate agents could become obsolete as internet usage increases

The National Association of Realtors (NAR) has recently settled a $418 million lawsuit over allegations of a conspiracy to inflate commissions. This settlement comes at a time when the real estate industry is facing significant challenges and changes.

Award-winning finance professor, Dr. John Smith, has predicted the demise of real estate agents due to the easy access consumers now have to online information. Real estate agents are being compared to travel agents, once seen as “gatekeepers” of information, who have been largely replaced by online booking platforms.

The internet has revolutionized the way people buy and sell homes, providing consumers with access to MLS listings and property details that were once only available through agents. As a result, real estate agents now primarily provide assistance with the transaction process and reducing stress for their clients.

With concerns over high commission rates being addressed in the NAR settlement, there is the potential for a decrease in earnings for real estate agents. Analysts suggest that Americans currently pay around $100 billion in real estate commissions annually, a figure that could see a 30% decrease post-settlement.

Some experts are predicting a downsizing or compression of the real estate profession, especially with the current 1.5 million realtors in the U.S. However, other experts believe that the industry will find a way to continue business as usual.

Overall, low inventory levels and the potential decrease in commission earnings may lead to fewer profits in the real estate industry and a compression in the number of agents. The industry is at a crossroads, facing challenges that will likely shape its future in the years to come.