Ninety one percent of all houses in the United States are still sold through a real estate agent. Interesting statistics right? They have different names too. They can also be called intermediaries, middlemen or channel. The statistics are interesting more so because many investors and financial analysts predicted the timely end of the middlemen with the onset of the world-wide web. In fact Bill Gates in his bestseller book ‘The Road Ahead” wrote that the internet will be the only intermediary we’ll need. He went as far as labelling the internet “The universal middleman” But how come then that still a large percent of real estate property transactions still happen through middle men?
Who are middlemen and are they important?
Middlemen play a vital role in ensuring that the distribution channel between the producer and the consumer is complete. The more intermediaries there are in the supply chain, the higher the distribution channel. Intermediaries are very important players in the market. In the real estate world, both the buyer and the seller benefit immensely from the middleman who ensure there is a seamless flow or transaction in the market by matching supply and demand. It doesn’t end there, middlemen provide feedback to real estate agencies thus influencing the decisions of property management firms. Buyers and sellers on the other hand gain largely from middlemen as they are able to broker good deals on houses and sales since they understand each of their needs.
How do they help in higher selling price?
With the creation and development of sites like sell my house Zillow or Trulia, middlemen may seem to have lost their power but not so fast. These sites have the exclusive lock on listings but they cannot function without middlemen so they hire middlemen to advertise. Of course the cost of production of advertising and marketing is high ultimately raising the price on your property to match your needs and those of the middleman.
Just how much can that property you’ve been thinking to sell fetch? The middleman’s got the answer you need to hear. Just remember it comes with a little fee.