Ever since the new model of 100 percent commission brokerage has been introduced in the market, more and more licensed real estate agents and brokers are now shifting to this model and creating their virtual offices.
As compared to the traditional brokerage system, this new model is working well and is also found to be a more cost-effective option. If a company can bring in revenue that is the same as before and can reduce the infrastructure cost then surely the owner will prefer to pass profit to its agents.
In both upmarket as well as down market, this model can work equally well. We have seen in the last 7 to 8 years that the real estate market can often go up and down, as a result, many agents quit the company and the owner has to pay the rent of his big office space.
The model suggested by 100commissionrealestate.com can allow the business owner to increase the revenue like the agents.
If we try to evaluate the future of this new model, perhaps, it is easier to see what will not change shortly. As per a few experts in this business, both consumers and banks can always count on data, and information that consumers have access to will remain the same.
Consumers have now realized that when in their life they are going to make their biggest economic decision, the more they will know will be better for them. Earlier days this data and information were not easily available before the great recession that took place in 2008.
These days, both banks and consumers demand that information, which is not going to change. That is because all this information will help the consumers as well as realtors more careful about the kind of properties they represent.
Those properties having certain infrastructure or structural problems will now get exposed while making the deal and as a result, buyers will be more cautious and can take an informed decision.
- Those consumer protections gathered from that data will make sales difficult to achieve. A few other things that brokerages will have to live with are as follows:
- Lesser need for any real estate agents because most of the information is available online.
- Technology will be more used rather than the services of real estate agents
- Only a few real estate agents will be available on the market who are very professional and can manage well. Also, more money they can earn since more property will be on sale.
- Some people will always be there who will prefer to work with third parties who is someone other than the owner of the property
- Real estate agents will have a better understanding of the need of the buyer and hence their communication will be much better
No matter how much technology is improved but there will be a need for human interaction, however, with a reduced number of real estate agents, their earnings will surely be much better with this new model.
This model will encourage the estate agents to get more training and be more professional.
