Could apps replace agents? Not likely, REC researcher says

​​COLLEGE STATION​ – Technology is transforming how people live and conduct business, including how they make real estate transactions. The online financial website WalletHub recently asked whether real estate agents should feel threatened by new apps and other online tools offering services to potential homebuyers.​

"Online tools will automate the simplest services provided to homebuyers," responded Real Estate Center Research Data Scientist Gerald Klassen​​. "Realtors who rely on providing simple services to clients will feel the biggest impact."

Klassen compared the situation to the days of the full-service stock brokerage charging a $100 fee to execute stock trades.

"​The internet made personal trading possible, and soon discount brokers emerged charging $8 or less per trade," Klassen told WalletHub. "The brokerages that didn’t adapt to the new technology disappeared. The brokerages that embraced the technology and found new fee-based services survived and thrived."

According to Klassen, the big difference is that real estate transactions are much more complex than stock trades. 

"How many homebuyers will have the confidence to execute a home purchase on their own?" he said. "The rest will require some assistance, so there will always be a need for real estate agents."

In WalletHub’s report, Klassen also talked about ​boom-bust cycle protections, interest rates, tips for young real estate professionals, and indicators of strong real estate markets. His complete remarks are posted on the Center’s Mixed-Use blog​.