March 21, 2017 (STLRealEstate.News) The Age of the Internet has disrupted life has we know it. Every single industry has been streamlined and digitized to benefit from the productivity available to us when using the Internet. The amount of change and growth that has hit our country in the last 20 years is equivalent to decades of change before that.
But, despite all these changes created from the world of digital, one thing still remains: the human-to-human connection element. This is the very element that ensures realtors are still just as relevant today as they were 50 years ago.
Steve Murray, president of consulting firm Real Trends, has been tracking for 40 years how U.S. real estate agents do their jobs. Over the past decade, more real estate information is available to everyday people now more than ever; leading one to believe the demand for realtors would go down. Real Trends has found, however, as new home-buying season kicks off shortly, one thing remains unchanged: the traditional 5 to 6 percent commission paid to real estate agents when a home sells.
If anything, Murray announces, the average commission paid to a real estate agent has gone up slightly since 2005. In 2016, it stood at 5.12 percent. “There’s not a shred of evidence that the Internet is having an impact,” said Murray.
Experts have been predicting the demise of real estate agents for years. Back in 1997, people started claiming that real estate agents would be insignificant with the rapid expansion of technology today. Fast-forward 20 years, and their relevance is more prominent now more than ever. Despite Redfin, Trulia, and Zillow, though people are able to get their hands on listing information and prices, those apps aren’t able to provide the most crucial element of all: one-on-one human interaction and conversation. It clearly matters.