Why hasn't the Internet put real estate brokers out of business?

Question

If there was a site for real estate sales it would easily bring seller and buyer together. There would be no commission. Negotiations could take place by E-mail without delay. The idea is so obvious and timely how could it not have happened already? Everything else is bought and sold over the Internet. Why is real estate the exception?.Why not E-bay?

edit:
What kind of moron can't spell moron? Certainly not a doctor. His questions show he can't grasp the concept. Mailing the land? Does he think the agent brings the land to the buyer? By the way, I not only have been involved in real estate transactions, I started in the real estate title insurance industry thirty years ago.

Answer 1

Internet does virtualize everything.

The more involved real estate sites that I have helped put up lately use the new 3D panorama cameras to take pictures of the house. Then on the internet the customer can walk thru the home using their mouse to move, zoom in on things, etc. Its very nice. And very popular for people who are shopping for a home in a place they havent moved to yet such as going thru a job change. Check the examples here...
http://manoto.com/toolbox/web/virtualtours/index.aspx?gclid=CLiH1Jq0tZACFQ8nawodz0fFLw

You might also consider that Virtual Real Estate is picking up. Not just virtual selling of real land and homes, but the virtual selling of virtual lands and homes. Dont sneer. Some online properties have sold for $1000 real money. We are talking about homes created in online worlds such as Ultima Online or Second Life.

One of my sayings in my internet lectures goes like this.
Virtual means "almost as good as" as in "he is virtually a genius". Reality is the world we know and touch. Virtual Reality is almost as good as reality. Both the good and the bad things. All of the real things virtually. If you find something that DOESNT have a virtual version of it then JUMP ON IT QUICK!

Answer 2

The market is putting real estate brokers out of business just fine - it does not need the net to help.

It is my understanding it has put a pretty big dent in the buyer's agent market - because anyone can get easy access to listings on the net and call the seller's agent.

I would still hire a seller's agent, esp right now, so that there is no advirtising cost without a sale. With no agent you have to pay regardless for your advirtising.

Agents also have access to other resources due to their networking and efforts. For example my home is listed on the many Green MLS sites (which have produced all of my showings and inqueries by the way, not the regular MLS) due to my Green Agents and their connections.

Negotiation is a tough interaction. Too much verbal or lax offering and the deal falls through. Having that representative allows a buffer for your reactions. If all goes well you only see numbers and terms, not emotions.

Answer 3

the majority of buyers that come from the internet are people with big dreams and no money. Same to be said for the sellers, many of them do not even own the property they are trying to sell. Its like a big interactive video game with quite a few scams thrown in. Generally anyone truly serious about purchasing property hires an agent to make sure all the legal interests are properly represented.
Ebay did not put local retail stores out of business. It had its fad but as anyone can see now ebay is losing interest from the public because of the online scams. Online if fine if your looking for a purple with blue spotted wigit for $2 and willing to take the risk that you may never get it.


i just posted a lovely large home on pennsylvania ave in downtown washington dc. It is currently white in color but seller will consider repainting with a significant wired escrow deposit into my nigerian bank account. You need to place your deposit today I do have many buyers who are offering more but i discussed this home with you first.

Answer 4

I can tell you why it hasn't happened.

1. People can already negotiate their own sales over the internet via Craigs List, Classifieds, etc....people hire Realtors because both sides get very emotionally charged in the transaction, and it's better to have a representative.

2. E-mail..is not a legal contract in the majority of states....people will deny getting them and then you have the signature issue.

3. E-bay does list homes for sale.

Keep in mind, that sometimes even a Realtor will get another Realtor to represent them (as a professional courtesy) during negotiations when selling their own home.

Answer 5

each state has their own real estate rules/regulations. so a nationwide selling wouldn't work.

online selling of your own house wouldn't work because that would require you to upload private information that aren't allowed to be uploaded/seen.

realtors are licenced people to conduct the selling of real estate. it's like saying... why have lawyers if i can represent myself? brokers are there to make sure everything is legal. personal online transactions won't be able to screen those legalities for you.

Answer 6

there are hundreds of real estate web sites - they act as advertising portals with the agents posting their ads of what is available

so, the net is actually expanding their businesses rather than taking it away

also doo't forget that real estate agents do other things as well, such as property valuation, rental managements etc

Answer 7

I still want to walk through the house and see everything, in person, before buying.

Some sellers do not want to do that themselves.

Answer 8

to many legalities involved that most people do not know about.
that's why you need to get a license to sell real estate.
alot of people get into trouble when buying by owner.

Answer 9

Somebody still has to take you around to the house and show you the place.