Could real estate go the way of the travel industry? Not quite yet

Technology has revolutionized various aspects of daily life, including travel, grocery shopping, and personal finance. However, the process of buying a home has remained largely unchanged. This may soon change due to a settlement between the National Association of Realtors and home sellers, which could lead to buyers and sellers paying their agents separately. The settlement opens the door for technology to reshape the role of real estate agents, similar to other industries like finance and travel. The use of technology could simplify the work of buyers’ agents, leading to potential innovations in the housing market. Despite the changes, some experts believe that buyers will still value the expertise and support of real estate agents for such a significant financial decision. The settlement essentially separates the buyers’ and sellers’ agents, and this may influence how buyers view the necessity of an agent. Technology is expected to simplify the real estate process, and agents will have to emphasize their long-term value as consultants in a specialized industry. The real estate industry can learn from the transformation of travel agents, as technology enabled people to independently search, compare, and purchase flights. Real estate transactions could be digitized, reducing costs and providing impetus for further tech advancements in the industry. However, fully automating the real estate market on a computer is still seen as complex and distant. Agents are expected to pivot towards becoming consultants throughout the home buying process, offering insights and expertise. Ultimately, the value of a real estate agent lies in their ability to provide reassurance and guide buyers through significant financial decisions.