ChatGPT answered questions about the value a real estate agent has and about how real estate commissions work. Do you agree with its answers?
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You would have to live under a large rock not to be aware that the real estate industry is in turmoil after the National Association of Realtors (NAR) proposed settlement of most of the commission lawsuits it’s battling. Commissions, agent value and what’s next for the role of the buyer agent are being turned topsy-turvy because of historic and career-changing lawsuit settlements.
Many agents are happy to pass around the NAR’s “179 Ways Agents Who Are Realtors Are Worth Every Penny of Their Compensation,” which outlines all the tasks an agent does for a consumer. Still, if we’re being really honest, a good portion of those items on the list are not complicated or impressive to do.
Instead of being a concise document that consumers can digest quickly and identify value, they have to sort through a laundry list of jargon that they may not identify with or understand. And in my personal and very unpopular opinion, it reads like a list my 16-year-old might create to justify a raise in allowance and not a professional means to communicate value to busy and overwhelmed consumers.
Tech-savvy consumers may even look at that list and say they are more capable of making a phone call or sending an email on their own behalf, rendering a good portion of that list null for value for consumers looking to save on costs.
ChatGPT has been agents’ sweetheart favorite tech tool for the past year or so to create efficiencies in marketing and customer service. Because agent value is under a microscope, we thought it would be fair game (and good entertainment) to ask ChatGPT what it thought about agents, the value they bring to the table and commissions.
So join us for a quick dive into the interwebs with ChatGPT, which often hallucinates but does its best to tell the truth — whether we like the answers or not.
Key questions and similar answers
Q: What value do real estate agents have?
A: Real estate agents provide several valuable services to both buyers and sellers, including:
- Market knowledge: Real estate agents have a deep understanding of local market conditions, including trends in pricing, inventory and neighborhood dynamics. This knowledge helps clients make informed decisions about buying or selling property.
- Pricing expertise: Agents can help sellers determine the appropriate listing price for their property based on comparable sales in the area and current market conditions. They also assist buyers in evaluating the fair market value of properties they are interested in purchasing.
- Marketing and advertising: Agents have access to various marketing channels and tools to promote properties effectively. They can create professional listings, showcase properties online and in print, and host open houses to attract potential buyers.
- Negotiation skills: Negotiating the best deal is a crucial aspect of real estate transactions. Agents advocate for their clients’ interests, negotiate offers and counteroffers, and work to achieve favorable terms for both buyers and sellers.
- Legal and transactional support: Real estate transactions involve complex legal documents and procedures. Agents guide their clients through the paperwork, ensuring compliance with relevant regulations and helping to avoid potential pitfalls.
- Network and connections: Experienced agents have established networks of professionals in related industries, such as lenders, inspectors, contractors, and attorneys. They can provide referrals to trusted service providers, simplifying the buying or selling process for their clients.
- Time and convenience: Hiring a real estate agent saves clients time and effort by handling the numerous tasks involved in buying or selling property. Agents coordinate showings, facilitate communication between parties, and manage logistics to streamline the process.
Overall, the value of a real estate agent lies in their expertise, resources and support throughout the entire real estate transaction, ultimately helping clients achieve their goals with confidence and peace of mind.
Q: Are real estate agents paid too much?
A: The question of whether real estate agents are paid too much is subjective and can vary depending on individual perspectives and market conditions. Here are some factors to consider: