Will Brick-And-Mortar Real Estate companies work in the future?
So, that’s a very frequent question I am being asked by agents. The pandemic of 2020 has changed the way of real estate brokerage. Now day agents no longer need to go to the office, they can work from their home, thanks to the internet. That’s why well-known companies like Coldwell, Banker, Re-Max, Century 21, etc, are dying and no longer able to keep their savvy agents, as these agents know that these brokerage companies are not able to give them anything that they can get themselves by working online.
Thus, there is no longer any reason to give a big chunk of the agent’s commission for only some free business card. But that is being said, there will still be the old school agents who have gotten accustomed to giving away 10% ~ 50% of their commission where they can feel secure sitting at a cubicle. The flat fee virtual companies are the same as the storefront real estate with all the same services, only without the parking lot and office policies. I’m very surprised to see that the old Brick & Mortar real estate business is finally converting to the online format. It also converted to a 100% commission method.
In this new business model, the winner is of course the agents, who are able to keep all his commission. In this way agents don't have to work under brokers, don’t have to follow office rules, don’t have to follow office timing, don’t have to attend meetings, and don’t have to drive to the office, there is nothing to dislike about it?
As the 100% commission virtual real estate model gets popular, the old Brick & Mortar model will not work in the future because everything is shifting to online business. Real estate Brokerage is also influenced by the internet and will work online.