Will the portal become the agent?
The next big housing disruption could be who gets paid when you sell
Synopsis
Portals like REA and Domain now dominate Australia’s property market. AI is automating agent tasks, while overseas flat-fee models spread fast. REA’s new “AI partnership” claims to empower agents — but I reckon that’s marketing gloss. Surely it’s only a matter of time before the portals do most of the home-selling work - and get paid directly. The middleman isn’t dead, but they’re definitely on notice.
Introduction
There was a time when real estate agents held all the cards. They controlled the listings, the buyers, the databases, and the market gossip.
Now? REA and Domain run the show.
With more than 12 million Australians visiting realestate.com.au each month - and both portals now turbo-charging their systems with AI - the big question is: why would a seller pay an agent 2–3 % when the portal already does 90+ % of the work?
Listen
The portals have eaten the agents’ lunch
REA’s latest quarterly result said it all: revenue up 4 %, earnings up 5 %, and an AI “revolution” underway.
Then came The Australian’s follow-up on 3 December - REA’s new deal with OpenAI.
They’re rolling out “RealAssist”, a chatbot-style feature designed (quote) to help buyers and sellers work better with agents.
I call that weasel words.
Let’s be real: if REA can automate valuations, pricing insights, property descriptions, buyer matching, and seller prompts, then “helping agents” is just step one.
For mine, it’s the PR version of “nothing to see here while we quietly build the tools to replace you.”
The same article notes that “homeowners may be prompted to update their property attributes” and that over 140,000 homes have already done so. That’s not helping agents - that’s training REA’s data engine.
They already own:
The eyeballs - every serious buyer starts there.
The data - every sale, suburb trend, and price tweak.
The dependence - agents can’t sell without paying them.
What REA and Domain once sold was advertising space. Now they’re selling control.
The next logical step? Cut out the middleman. Let buyers and sellers transact directly - powered by AI, under the comforting glow of the REA and Domain brands.
The seller’s rational question
If I’m a seller, I can:
Pay REA directly for premium placement,
Get AI to write my copy,
Use smart pricing tools for an estimate,
Let verified buyers message me, and
Use digital conveyancing to handle the paperwork.
So again - why are I also paying an agent $25,000 on a $1 million sale?
That used to buy negotiation skill, marketing reach, and market access. Now it mostly buys a middleman between two parties who can already find each other online.
The real cost of selling
Let’s put some actual numbers on this.
In 2025, the average agent commission across Australia sits around 2 %–3 %, depending on the state and region.
Metro markets in NSW and Victoria tend to hover near 1.6 %–2.5 %, while regional and rural areas can push 3 %–3.5 % or more.
That’s before the extras.
Once you include marketing, styling, conveyancing, and logistics, the total cost to sell a home in Australia ranges from $15,000 to $40,000+, depending on the property’s value and the local market.
Here’s the kicker: most of that marketing spend flows straight to the portals.
Sellers are already paying REA or Domain - they’re just doing it through the agent as the middleman.
So why keep paying twice?
The last defences of the agent
Agents still have three defences - though they’re shrinking fast:
Negotiation and psychology. A skilled agent can coax a nervous buyer a little higher or keep a twitchy vendor calm.
Risk management. Contracts, building reports, and finance clauses still scare many people.
Trust. Sellers want reassurance that someone has their back.
But those moats are narrowing.
Once REA or Domain add digital conveyancing, verified buyers, and AI-driven vendor advice, even trust becomes a subscription service.
The hybrid era (for now)
Agents aren’t extinct - yet.
I think we’ll see this hybrid phase over the next couple of years:
Agents using REA’s AI pricing, chatbots, and buyer-matching tools.
Flat-fee and “pay-per-service” models replacing the standard percentage.
“Property coaches” charging for advice and strategy, not just transactions.
The old-school listing agent becomes part consultant, part counsellor - but far less essential.
Oh get real Michael!
Well it’s already happening overseas
Australia isn’t the first market to stare down this change.
In the U.S., the once-sacred 5–6 % commission is collapsing after a major recent National Association of Realtors (NAR) court settlement. Flat-fee and a-la-carte platforms are rising fast. Listen to this Freakonomics Radio podcast for more. Well worth a listen peeps!
In India, companies like NoBroker are eliminating agents altogether - charging small subscription fees for direct buyer-seller connections.
Across Europe and Canada, hybrid online models mix AI pricing, virtual tours, and automated contract systems for a fraction of traditional fees.
The pattern is clear: when platforms dominate the buyer funnel, the agent’s cut shrinks - or vanishes.
The real disruption
The threat to agents isn’t AI itself — it’s platform power amplified by AI.
The portals already control where every property is seen. Once they control how properties are sold, they become the agency.
The Australian’s recent coverage makes it obvious — REA’s “AI for agents” talk - again to me - is just the soft-sell phase. When the tech matures, those same tools will enable buyers and sellers to do the whole thing themselves.
And when that happens, the portals won’t just list homes. They’ll sell them — and pocket the fee.
My wrap-up
Australia’s property portals have built the perfect disintermediation machine. Agents fed it for decades - uploading listings, client data, and marketing dollars.
Now the machine is smart enough to run without them. The only question left is when - not if - it decides to.