Agents aren’t always organised with their database. You need to use the technology available to allow you to be predictive about information that matters, such as who is selling in the next 6 months; who needs to discuss property management opportunities; who will be bidding at an auction and how you cultivate the appetite.
Artificial Intelligence and Bots
Traditional home opens will be challenged; use of outsourcing, adaptability will be key. Traditional roles such as PA, Office Admin, Trust Accounting, are already being replaced by Artificial Intellignce (AI) methods or outsourcing to improve margins.
Personal relationships aren’t what they used to be
Consumer habits are changing everywhere and it is evident this will be the same in real estate. As people change their retail shopping habits (Amazon, Alibaba, etc) this also transpires to real estate. How will an agent get more credibility online?
New entrants challenge the traditional agency
The traditional agency model will come under serious pressure from models that are innovative and seek to challenge the reason why they currently operate the way they do. Businesses will need to merge to create bigger, more efficient business models. The use of efficiencies will be key; the relocation from prime retail outlets to cheaper office space and collaboration to reduce overheads further will be critical. Technology companies are selling properties and they will continue to grow their market share in Australia.
Sales and Property Management Commissions
According to industry research, sales and property management commissions are on the decline. This is mainly due to technology and the technology companies offering cheaper options. Agencies will need to counteract by reducing commission rates and offering superior services, which will impact the profitability under the current business model.