This might not be one of my more popular blog posts with Realtors, but there is a harsh reality to face. The days of six percent Realtor commission is in real trouble. As a real estate agent no matter the market, you are likely already fighting for your full 3%. In the DC/Northern Virginia market, 2.5% (or less) is very much normal. There are many factors that go into why Realtors are being asked to lower commissions and I will dig into them shortly. The truth of the matter is technology and other factors start to erode profits and how others make money. We have seen this in other industries. The mortgage industry, for example, was completely revamped after the housing crash. The main changes were in terms of mortgage pricing and how loan officers received compensation. I feel the same type of change is already occurring in the real estate industry.
I think we all can admit changes and disruptions have been making their way into the real estate industry. It seems every few months some innovation is trying to change how we do business. The move to the internet and technology–which I’ve talked about for the last 7 years on this site seems to be leading the way. The difference is I talk about how to leverage and use tech to expand your footprint and grow market share. This new form of tech disruption involves getting rid of the Realtor all together. This affects everyone in our industry in many major markets and soon to be nationwide. The iBuyer pandemic is sweeping the country, so much so, that it was the “item of value” mailer for all Brian Buffini coaching clients this month. If Buffini is telling his clients to push this information to their databases, that means something. Here is what Realtors need to know about ibuyers and how they can best educate their clients.