The Internet has turned the Real Estate industry upside down. Many people are turning away from conventional brokers to try their luck in the “For Sale By Owner” market. In fact, more than 90 percent of homebuyers first begin their search without the assistance of a traditional Real Estate agent. They are going with online alternatives such as Zillow and Trulia.
Part of the reason these companies are so successful, has been the inefficiency of traditional brokers. Broker commissions are typically around 5 percent of the selling price, or about $10,000 on an average sale of $200,000. Many believe that the free market of online Real Estate makes these margins unsustainable today.