Digital Disruption in Property Sales & Rental Market
Digital disruption has become widespread in the property sales and rental market, with varying perspectives on whether it represents progress. Regardless of one's viewpoint, it is clear that this disruption shows no signs of slowing down.
In response to these changes, estate agents have made various attempts to protect their interests in recent years. Those who embrace dynamic and creative thinking have been more successful in adapting to the evolving landscape. One notable attempt at change was the establishment of a national property portal, which now resembles what agents initially disliked. The question arises: why did this transformation occur? Perhaps the industry had overlooked the fundamental principles that guided its operations.
Let's take a look at how estate agency used to function in the past. In earlier days, if someone wanted to purchase a property in a specific area, they would physically visit that location and speak directly with the local agents. Over time, agents would send relevant property listings via mail, initiating the property buying process. During this era, local agents held greater prominence and authority within their respective communities. Extensive networking among agents was the norm, and completing transactions would often involve welcome packs, cards, and other such gestures.
The advent of the digital economy led to the emergence of cocooned consumers who preferred engaging with suppliers through screens whenever possible. The convenience offered by digital platforms is a double-edged sword: while it makes self-service easier, it also brings the expectation of lower profit margins. Surprisingly, profit margins in the industry have not decreased as rapidly as anticipated.
Notably, platforms such as Google and social media thrive on local content. Our housing platform focuses on empowering property owners to market their properties within their local communities.
An effective way to expand the local marketplace is by targeting the low-hanging fruit, referring to those highly desirable properties that are in demand and sell quickly. If your property fits this profile, you can save money by clicking the 'Create Listing' button on our homepage and getting started. Selling your property within a couple of days can result in significant savings, often enough to cover the cost of decorating your new home. Even if your property doesn't sell, a lot of the groundwork has been done, including the decision to sell or rent, photography, property descriptions, and obtaining an Energy Performance Certificate (EPC). All these efforts will help you engage with local agents at a lower cost than previously possible.
The future of estate agency lies in embracing a hybrid model that combines self-service, partial service, and paying for professional advice. The Financial Services Act of 1986 provided consumers with the choice between commission-based fees or flat fees when dealing with solicitors and accountants. It is reasonable to expect that estate agents will offer similar options in the years to come.
In recent years, a few national property portals have captivated certain estate agents, leading some to abandon their local marketing efforts altogether. However, it's important to recognize that although some aspects have changed, buyers now primarily engage with agents through the internet, while other fundamental aspects of the industry remain largely unchanged.
Since the launch of the first national property portal in 2000, nearly every agent considers it the primary platform for selling or renting properties. However, this monopolistic perception prompted a group of agents to establish "On the Market," and the rise of hybrid agencies has further diversified the landscape.
Consumers now have easy access to property prices, and data submitted to national portals can be accessed by unintended entities. Social media has proven to be a more efficient way of reaching a broader audience compared to emails and traditional advertising methods. Many new property portals are backed by estate agents themselves, indicating that not much has fundamentally changed. Furthermore, vendors often commit to paying nearly £1,000 upon completion or after a certain period, even if their property remains unsold.
Amidst these changes, there is an alternative approach. Consumers already possess an understanding of selling or renting properties online, so it is beneficial to encourage them to embrace this method while sharing in the rewards.
