From 19th Century Brokers to Smart Homebuyers: The Changing Role of Real Estate Agents

The real estate profession has deep roots in the United States, evolving alongside the growth of cities, suburban expansion, and the American dream of homeownership. From its informal beginnings to the establishment of professional organizations and the digital transformation of recent decades, the role of real estate agents has significantly shaped the property market. Connecticut has played a pivotal role in this history.

Early Beginnings: The 19th Century

Real estate transactions in the early United States were largely informal. Landowners relied on local knowledge and word-of-mouth to buy or sell property. As urban areas grew during the 19th century, demand for a more organized process emerged. The Industrial Revolution spurred rapid urbanization, and the need for intermediaries to help navigate property transfers became evident.

During this time, real estate “brokers” began to appear. These early brokers acted as intermediaries for buyers and sellers, helping negotiate deals and ensuring legal compliance. However, the lack of formal training or regulatory oversight often led to inconsistent practices.

The Birth of Professional Real Estate

The late 19th and early 20th centuries marked the formalization of real estate as a profession. In 1908, the National Association of Real Estate Exchanges (now the National Association of Realtors, or NAR) was established, setting ethical standards and professional guidelines. This was a turning point, as it provided a unified voice for real estate professionals and ensured greater trust in the industry.

Connecticut, being one of the original 13 colonies with a long history of property ownership, mirrored this trend. By the early 20th century, the state began to see the rise of real estate firms catering to the burgeoning suburban markets, particularly as railroads and highways made commuting to New York City and other urban centers more feasible.

Post-War Boom and Suburbanization

The mid-20th century brought a real estate boom fueled by post-war prosperity, government programs like the GI Bill, and a cultural shift toward suburban living. Real estate agents played a crucial role during this era, helping families navigate the growing housing market and secure financing.

Connecticut experienced significant suburban growth during this period, particularly in towns like Fairfield, Westport, and Greenwich. Real estate agents became indispensable in connecting buyers with properties that matched their needs, helping establish Connecticut’s reputation as a hub for affluent suburban living.

The Digital Age and Modern Real Estate

The rise of the internet in the 1990s transformed the real estate industry nationwide. Platforms like Zillow, Realtor.com, and local MLS (Multiple Listing Service) systems provided unprecedented access to property listings, empowering buyers and sellers with information.

These tools have democratized access to property listings, allowing buyers to browse homes, compare prices, and even schedule showings—all without relying on an agent. For many buyers, this shift has reduced the perceived need for a traditional agent, as much of the initial legwork can now be done independently.

As a result, the role of real estate agents has shifted more toward negotiation, transaction management, and providing local market insights. However, some buyers question whether this level of service justifies the full commission typically earned by agents, especially when much of the home search process is now driven by buyers themselves.

Smart Homebuyers and the Rise of Commission Sharing

For smart homebuyers, the solution lies in partnering with real estate agents who offer commission sharing. By sharing a portion of their commission with buyers, these agents provide a tangible financial benefit that can offset closing costs or other expenses. This approach not only helps buyers save money but also aligns the agent’s compensation more closely with the value they provide in the transaction.

In competitive markets like Connecticut, where home prices often exceed $2 million, commission rebates can represent significant savings. For example, a buyer purchasing a $2.5 million home could receive tens of thousands of dollars back, making the collaboration with an agent far more cost-effective. For those willing to take charge of their home search using online tools, choosing an agent who offers commission rebates is a smart strategy to maximize both service and savings.