Steven Levitt, Coauthor of Freakonomics, Comments on the Future of Real Estate Agents

“I think real estate agents are probably an endangered species. Just like travel agents and full service stockbrokers… the access to the information on the Internet is devastating to real estate agents. In Madison, Wisconsin, “for sale by owners” are something like 25% of homes…  Real estate agents are paid a fixed fee, but if you go to the dentist, you pay by the hour or by the procedure. You don’t pay them a percentage of your income. I think what’s going to happen is in the future is real estate agents will be paid by the hour. They do provide an essential service: they show people your house and help find you clients. But the model will change to choosing from a menu, a la carte real estate.”National Post Interview 


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