Like travel agents, real estate agents need to rely less on relationships and offer more value to those willing to pay.
When I was looking for an apartment in Manhattan, my broker was my best friend. Not only did I tour scores of places with him (this was during the pandemic, so I saw him more than anyone else), but when I finally found one, he managed the drama when the seller backed out — twice. My BBFF also spent many hours putting together my application for the co-op board, including strategizing with me about how to present myself, from what to wear to which promises to make.
As a first-time buyer with unpredictable income, I needed lots of support. And it helped that the seller paid his fee — if I’d had to pay him myself, I probably would have been a little less needy. The next time I buy an apartment, however, I may not need so much hand-holding.
The internet has transformed the market for services, just as mechanization changed the production of goods. There was a time when you could not buy a plane ticket without a travel agent. Now that you can shop flights yourself, there is less need for their services. Travel agents still exist, but there are fewer of them, and those that remain have to offer exceptional service and expertise.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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