Will Real Estate Agents Become Obsolete?

 

The question now is, will real estate agents become obsolete? The answer to this question will likely depend on a number of factors, such as the availability of new homes, technology, and the low commissions offered by real estate agents. In the Fairfax VA market, for example, half of all homes were sold in just a week and almost a quarter in three days. Check it out here !! While competition remains high and interest rates continue to rise, fewer people are buying homes in the region.

Low commissions

Realtors make their money on commissions. When a home is sold, the homeowner pays the realtor a percentage of the sale price as a commission. But this isn't paid directly to the agent; it goes through brokerage firms and agencies. Individual agents are not paid directly by the homeowner. In most states, commissions are paid to individual brokers or agencies. However, they work hard to earn their paychecks.

Realtors charge a commission of around 6% of the final selling price. Even though they're not paid until the home sells, the cost of advertising and marketing a home can add up quickly. In Virginia, homes have sold more quickly than the national average in the past decade, and listing prices are up more than 10% since 2020. There is a lack of inventory, so prospective buyers are vying for the same small number of homes. As a result, the market favors the sellers.

Lack of availability of homes

A shortage of available homes is pushing up prices and slowing home sales in Fairfax and Arlington counties in Virginia. The data from the Virginia Housing Commission, the state's major housing association, showed that the number of homes for sale is lagging behind demand. The shortage has only recently begun to shift as prices have increased by nearly three times over the past five years. A lack of inventory is making real estate agents in Fairfax and Arlington obsolete, says Virginia REALTORS president Ryan Price.

In addition to increasing prices, the scarcity of homes is increasing racial disparities. According to federal statistics, Black Virginians are less likely to own a home than White Virginians and are less likely to get a mortgage loan. According to U.S. Census Bureau data, this racial disparity has grown wider over the past few decades. If the lack of homes in Virginia continues to grow, real estate agents in Fairfax County will be rendered obsolete.

Technology

If you think that technology will make real estate agents obsolete in Fairfax VA, you're not alone. Many agents have expressed frustration at the outdated public perception of their profession. Property search portals, such as Zillow, Trulia, and Yahoo! Real Estate, are one of the latest ways technology is changing the real estate industry. In fact, these tools are making agents more indispensable than ever.

While technology is changing the real estate industry, there are certain factors that will remain unchanged. For instance, in-person realtors will be replaced by online platforms, and the luxury market will become a focus for realtors. Artificial intelligence (AI) is widely considered the biggest competitor to real estate agents. AI can process data and prepare paperwork more efficiently than human agents and can sell homes faster than traditional methods. However, there is no reason to fear that AI will make real estate agents obsolete.

Future of real estate agents

While most people still wonder if waiting to sell your home is worth it, you can actually increase your home's value by waiting a few months. Not only will this increase the number of potential buyers looking at your home, but it will also reduce competition for buyers. Timing the market is a tough job, and with the current economic climate, timing the market is even harder. Home prices can drop when there are fewer buyers and fewer offers, but if there are more offers, you can pick the best one!

The real estate agent Fairfax VA market will continue to be strong. Interest rates are low, and home buyers are reporting interest rates as low as 2.5%. Despite this low-interest rate, sales of condos will remain slow for the first two quarters of 2021. However, sales will pick up later when the virus is contained. So, it's never too late to invest in real estate. If you have been considering buying a home in Fairfax, consider making a move. If you have a family, a new home, or an investment property, there are plenty of opportunities here.