One of next week’s “Provoke” panels at the Inman Connect New York conference asks the question, “Will technology kill your commission splits?” You bet they will -- if you’re not prepared to adjust your value proposition to fit the tidal wave of new artificial intelligence (AI) real estate tools that are already dramatically transforming our industry. Not registered yet for Inman Connect New York? The history of 'technology replacing agents' For close to two decades, tech gurus have claimed that advances in technology will increase the number of for-sale-by-owners (FSBOs) would drastically reduce commissions for most agents -- and could even replace real estate agents entirely if sellers shift toward an FSBO mentality. None of these predictions has occurred. Instead, buyers often become so frustrated with all the online pictures, video and other data that they happily hire an agent to navigate the search process. These technology advances have made it esp...
- For close to two decades, tech gurus have claimed that advances in technology will increase the number of for-sale-by-owners (FSBOs) -- but this hasn't happened.
- However, the agents’ role as gatekeeper of the listing data has already been eliminated.
- Artificial intelligence is already transforming the home-search and pricing processes.
- The real work has always been on the back-end of the transaction, and agents will need to redefine their value propositions for consumers.