Not the Oldest Profession: The World History of Real Estate Brokerage

Had Adam and Eve encountered a real estate agent, they might have found better accommodation after their expulsion from Paradise. But in the distant ancient world, this profession simply did not exist due to the absence of private property. The first property transactions were carried out in ancient Greece, where the word "mortgage" became known, referring to a pledge. Property transactions were also quite common in ancient Rome. The fundamental rules of ownership and control over real estate were extremely clearly defined in Roman law; however, the state was the primary administrator, permitting its citizens to acquire a few "jugera" of land – exactly as much as could be ploughed in one day with a team of oxen. This unit of measurement corresponds to roughly half a modern hectare. Yet purchase and exchange contracts for houses remained rare and were concluded mainly by wealthy and respected Romans, sometimes with the help of trusted individuals – the managers of their estates, the procurators.

In the Middle Ages, kings and other, lesser feudal lords owned the land, receiving estates from their liege lords in exchange for military and, less frequently, civil services. The peasants who farmed the land leased it from the lords without having a choice. The feudal lords themselves had little choice either, as they either inherited their possessions from their ancestors or received them from the king. The larger cities, however, led quite an active life, and citizens frequently bought and sold real estate. According to some sources, in Vienna alone during the fifteenth century an average of around 80 transactions per year were conducted, which is no small number for a population of approximately 20,000. That said, the number of property sales per capita in European capitals today is many times higher.

The Industrial Revolution, which gave rise to a new social class – the bourgeoisie – was the starting point for the development of the real estate market. At that time, real estate investors appeared in Europe, and some were highly successful not only in business but also in public life. Such was the case of Anton Gilbert Seydel, who lived in Vienna at the turn of the 18th to the 19th century. His greatest deal was the sale of the Hundsturm manor estate to the Vienna city administration. Did he make use of the services of agents? Probably not, as the profession of real estate agent in its modern form did not develop until the 20th century in the United States.

The first two decades of the 20th century are often referred to in America as the "Wild West of the real estate market," as there were no universally recognised rules or licensing requirements, and there was also no concept of exclusive agreements between parties to real estate transactions. Agents, known in English as "curbstoners," plastered houses with signs bearing sale offers, and the commission went to whoever an interested buyer could reach first. To bring order to the sales process, so-called "open house" events were later introduced, at which prospective buyers were invited to view a property at a specific time. It was not until 1919 that certain rules were established in the United States, most notably the principle of the exclusive listing agreement, which made it possible to avoid chaos and excessive competition among agents.

Probably the most well-known agent of the 20th century is Donald Trump. At the beginning of his career, the current politician managed approximately 14,000 rental apartments that he had inherited from his father. However, he became famous for entirely different activities.

The primary tool of the modern agent is the internet. Most efforts to present a property are focused on various online platforms, both professional ones and social networks. There are many sellers and buyers, and each prefers certain media. Consequently, in order to sell properties quickly and profitably, the agent has had to make use of dozens of different communication channels. Nevertheless, even today we can still see a sign bearing the agent's phone number on a property for sale, just as was the case a hundred years ago when the profession was only just emerging.

Alexander Predein, Doctor of Economic Sciences,

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