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September 29, 2018

The Future of Commissions in Real Estate Transactions

Oh, how the times do change! Have you spent some time seriously considering how commissions in real estate will be impacted in the future? You should!

Considering the Future of Commissions

• Is the current sales transaction model cost-effective for consumers, the buyers and sellers of real property? If not, what will the future real estate sales transaction model look like? How will costs be cut from the current model? How can the transaction become more cost-effective?

• Can showings be arranged by “showing companies”, companies with bonded employees who are present when a potential buyer wants to view a property (and hold open houses)?

• Because loans are an essential part of most transactions, might it be possible for lenders to form an “association” and create a data sharing arrangement with each other that has the effect of providing what an MLS provides, exposure of properties offered for sale?

• In the age of information and technology, is it possible and even probable that the future needs of buyers and sellers involved in the purchase and sale of a home may be fulfilled by a new type of “professional” under a new real estate sales and transaction model; a real estate sale transaction model that is more cost-effective than the current model?

• Might there be more than one successful new business model? What are some of the potential models or job descriptions of real estate professionals and what is the potential amount of compensation and methods of compensation that will become commonplace? What method will consumers prefer and demand?

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