Internet changed all information based businesses
For almost 100 years this toll gate to real estate information worked without a hitch. But then the Internet changed how all information business operated. The Internet made vast quantities of information available free or at little cost.

Poor quality real estate information initially
The quality of Internet real estate information at first was very poor. So it was seen as no threat by most real estate professionals at the time. The Internet was hard to use, Internet access was slow and computers were expensive.

The Internet evolved faster than older established business
Real Estate was slow in adopting Internet technology. Most extroverted sales agents are not comfortable with Internet technology so they ignored or discounted the impending Internet threat. Even today the largest real estate franchise organizations seem to be caught by surprise as new web innovators enter the real estate market.

Commission Rates Slide
Only a few years ago the average real estate firm charged a commission of 6% to 7% of a home’s sales price. Today the average commission is only slightly above 5% and this rate in most markets continues to fall. But don’t feel too sorry for the real estate profession. The average commission per sale has probably increased due to the appreciation of real estate prices.

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