Will there be independent Boston real estate companies 10 yrs. from now?
Boston Condos for Sale and Apartments for Rent
Will there be independent Boston real estate companies 10 yrs. from now?
I’ve been asked this question several times recently, as more and more Boston independent companies team up with the big box real estate offices. I plan to stay independent until I retire, and even then I’ll probably do a Boson real estate blog post every day.
I’m not goin’ down, as I told this to a Seaport condo broker. Here’s funny video on big companies going after smaller companies and their Boston condo for sale agents.
Boston condos for sale and the bottom line
To answer question, will there be independent Boston real estate companies 10 yrs. from now? Yes, but the market will change dramatically and that will impact both large and independent real estate offices. And I’m certain the ranks of Realtors will be much smaller than we have today as the Boston real estate market will be upended.
The word on the street is that the industry’s commission structure could soon change forever.
To be specific about real estate agents, there are federal regulators and a couple of lawsuits coming down the pipeline that at worst case could be an Armageddon for real estate agents. You might see regulators uncouple the commission structure where the seller is now essentially paying for the buyers’ and agents’ commission.
Two home-sellers filed a lawsuit [Sitzer et al v. National Association of Realtors (NAR)], alleging that several NAR rules violate the Sherman Antitrust Act, an 1890 law which prohibits activities that restrict interstate commerce and competition.
One of the NAR rules in question requires listing brokers to offer buyer brokers a commission to list a property. The lawsuit alleges that this practice inflates sellers’ costs and, therefore, is anticompetitive.
Traditionally, it takes two agents to sell a Boston condo: a buyer’s agent and a seller’s agent. However, if NAR loses the suit, the real estate industry would effectively see buyers’ agents removed from the equation. That means the number of real estate agents in the U.S. (there are 1.5 million right now, according to NAR), could drop precipitously .
Source: Yahoo Finance News
Filed Under: Am I goin’ down, down, down?
