Realtors In 10 Years: Will Realtors Become Obsolete?
Will realtors become obsolete? This is a question that many real estate brokers and agents may be asking as technology advances. The answer is no, not yet. Consumers aren’t comfortable with relying entirely on technology for what may be the most significant transaction of their lives. There are many factors influencing whether realtors will become obsolete in 10 years.
Will realtor skills become obsolete? Perhaps not. Interestingly, 90 percent of homebuyers in 2020 were likely to recommend their agents to others or use them again. Hence, at the moment, the role of a realtor is still quite important. In this article, we will discuss how realtor jobs may be affected by future technologies and what realtors can do to avoid becoming obsolete.
What Is a Realtor?
A realtor represents buyers and sellers of properties. They guide their client through the buying process by conducting research, setting up property viewings, and negotiating, either on behalf of the buyer or seller, to get the best price. Realtors make sure that escrow is completed for buyers, and for sellers, they market the property to attract qualified buyers.
Real estate agents were the only way to buy a property in the past. In 1997, the online platform Realtor.com was launched, and thus, started the evolution of real estate. After that, numerous platforms were created, so the consumer now has easier access to property information than ever before.
Will Realtors Be Replaced by Future Technology?
Some realtors’ responsibilities will probably be replaced by future technology. Research shows that real estate agents are still highly valued when it comes to the legal requirements of negotiating an offer on a house. But in the coming years, realtors will need to evolve along with the industry. One important piece of the puzzle is technological innovation and whether consumers choose to adopt those tech products.
US News & World Report reported that there will likely be fewer real estate agents in the future. Hence, there is a need for realtors to be agile and change their usual practices. Moreover, they may need to specialize in a particular area to remain relevant in the real estate business.
Technological advancements and the creation of online platforms such as Realtor.com, Trulia, Zillow, and others have affected the number of realtors, how business is conducted now, and how it will be done in the future. Data science and artificial intelligence represent critical roles in terms of setup and maintenance.
More companies and customers in the real estate industry are approaching homeowners directly to buy homes. These cash-only deals exclude the need for a real estate agent and will ultimately result in a decreased need for them if the trend continues.
Decline in Home Staging and Viewings
It has typically been the job of the real estate agent to stage a home and organize viewings for potential buyers. But the increase in cash-only deals is resulting in fewer homes in need of staging and viewings and, of course, less income for realtors.
Technologies and Trends That Could Make Realtors Obsolete
The real estate market is being affected by several technologies. If this tech is fully taken advantage of, it could effectively render real estate agents obsolete.
Data science is the new real estate expert, as it is feeding customers the data they are seeking through coded programs. Data science has also provided sellers with almost instant rough appraisals based on public data like tax records via certain real estate companies. If you want to become a data scientist and combine those skills with real estate experience, you’d likely be able to keep your job.
Blockchain has brought us cryptocurrencies and a new generation of wealthy corporations and professionals. Some of these people are getting into the industry by becoming real estate investors, either by putting money into innovative companies or by flipping homes to resell.
3D and VR Headsets
Virtual viewings will replace the need for realtors to organize in-person viewing to a large extent. VR headsets are an even more thorough way of viewing a home than simply clicking through a series of photos on a real estate website. Moreover, there is a possibility that in-person staging and viewing will only take place in the luxury market soon as the real estate market changes.
When Will Realtors Become Obsolete?
Realtors becoming obsolete will not happen anytime soon. There is a potential decreased need for real estate agents. However, there is evidence that real estate companies can experience progress. There is also information suggesting that 58 percent of real estate companies have a cyber strategy in place. Those who master and maintain the luxury market will likely thrive as the lucky few to remain traditional realtors.
Adapting and learning new skills could help you offer expert negotiation skills to buyers and sellers and become part of the luxury market. You could also work to create online property listings and earn a stable salary with benefits. Moreover, you can always transition into real estate law, or learn about data science and blockchain.
What This Means for Businesses
Technology and its rapid developments will affect the real estate industry substantially. This is happening due to increasing sales for any real estate business that has an online platform, which results in decreasing sales for in-person realtors. As mentioned above, the luxury market will become an area of focus for realtors.
More Homes Sold due to AI Advancements
AI is considered one of the biggest competitors for real estate agents. It is used to process data and prepare paperwork more quickly, so a home can be sold much faster than through traditional methods.
Reduced Costs for Sellers
Because real estate agents charge 6 percent commission and digital platforms only charge about 2 percent, sellers are more likely to choose the online option. This reduces the number of homes out there for real estate professionals to sell.
Luxury Market Becomes a Focus for Realtors
Luxury housing markets have yet to be conquered by real estate innovations from tech companies. Mainly because there isn’t a lot of information about the size of the market. As a result, more real estate professionals will concentrate on these high-end clients. However, there aren’t enough of them to support the number of realtors working in the US today.
Realtors Job Outlook
For real estate brokers and sales agents, the US Bureau of Labor Statistics predicts slower-than-average job growth of 4 percent. This makes sense, given what we have already seen from available research. But there are opportunities in the real estate industry that could set you apart from the rest.
A real estate transaction that takes place on mobile apps still leaves room for realtors to advise buyers and sellers. These mobile app platforms also need people qualified in data science, machine learning, and AI to create and maintain them. Plus, the luxury market remains an area of opportunity despite other current downward trends.
How Much Money Will Realtors Earn in the Future?
As the market changes, there may be a need to get into alternative real-estate services. For example, you can work for an online real estate platform, convert to property law, or study data science or AI. Salaries range anywhere from $51,220 to $103,930 for these occupations. As a result of the changing market, how much money a realtor will earn in the future depends on what new skills you learn.
What Are the Best States for Realtors Jobs?
The best states for real estate agents pay an annual mean salary of $76,750 to $102,200. These include New York, Massachusetts, Colorado, Connecticut, and California. The rise in employment is between 0,45 and 1,86 per thousand jobs. When looking at the highest concentration of jobs, South Carolina, Virginia, Florida, Washington, and Oklahoma are between 2.09 and 2.90 per thousand jobs, and median salaries are lower.
How to Avoid Becoming Obsolete: The Key to Future-Proofing Your Career as a Realtor
Amid the gloomy forecast for the future of the traditional realtor, there are a few key factors you should consider to avoid becoming obsolete in the future.
Adopt Technology and Integration
Adapting to real estate innovation throughout your workday to increase your efficiency and enhance the buy or seller’s experience is a good idea. Customer relationship management (CRM) tools, networking tools, and using virtual tours to present property details can all help with this. Combined with marketing skills, these can be a formula for real estate success.
Provide Personalized Services
Personalizing your services and delivering a unique or premium experience for the seller or first-time buyer will set you apart. This is especially true as the high-end market rises as an area of opportunity. You can use CRM, networking, and virtual staging as part of your service.
Increasing Sales to Offset Pressure on Commission Earnings
If commission ends up declining due to the lower commission earned by realtors, it will become necessary to increase your sales to offset the decrease in earnings. Given your technology integration and focus on delivering personalized premium consumer experiences and marketing skills, this should be achievable.
Do Realtors Have a Future?
Yes, in one form or another. However, the number of real estate agents will decrease due to the consumer’s wants and needs and technological innovations. There are still many opportunities to remain in the industry, either as a licensed agent or in a related field. You could work for a real estate web company in their data science or AI departments and even learn to code.
Whether you want to become a realtor or you already have some experience, there are reputable courses that you can take to increase your knowledge and skills. This will help you strategically enter and maintain a career in real estate. Over half of real estate companies already have a digital business model in place, so you can expect to keep making money while upskilling and adapting to the market.
Will Realtors Become Obsolete FAQ?
Yes, most work as sole proprietors of their business. They earn money from property sales, and they do not have a regular monthly salary.
The average median salary for real estate brokers and sales agents is $51,220, according to BLS. However, this can vary depending on how many properties they sell and the commission they make.
No. However, the number of realtors will substantially decrease in the future, owing to technological innovations and consumer demands.
In most states, realtors charge between 5 and 6 percent. However, this is not fixed, and consumers can negotiate with realtors to bring this down.