Real Estate Investor Magazine South Africa October 2018 | Page 17

TECHNOLOGY
agent involvement.
A view being widely expressed internationally is that
there could be applicability for the pure technology model
in the lowest end of the market, some traction for the hybrid
model in a price segment above this (the so-called mid to
lower end) while the consensus view is that the traditional
model will continue to dominate the market above this –
time will tell if this segmentation is correct.
Internationally the hybrid model has started to gain
traction and has specific applicability in the lower end
of a number of key markets around the world where it is
estimated that it has the potential to become a significant
sales modus operandi in the future.
From a South African perspective, while in no way
detracting from the personal and professional service
and high agent involvement of the existing Pam Golding
Properties offering, this investment into Eazi.com broadens
the group’s access to the South African and African
residential property sector by enabling the group to take
an interest in the high-volume segment of the market,
which comprises over 100  000 transactions annually in
South Africa alone. This is particularly relevant in the price
segments between R500 000 and R2 million, to which the
Pam Golding Property group has traditionally had limited
exposure to date.
Andrew says, “This is not a disintermediation or
cannibalisation play but rather a recognition that in specific
market segments it is possible to give consumers a choice
between a low-cost, fixed fee, low agent involvement,
technology-enabled online service or a traditional agent-
enabled, high touch, personal service with all its inherent
advantages.”
Eazi.com has a well thought through on-line, scalable
platform and a sound business model that they are confident
will add significant value to consumers in the South African
and African real estate market. It is a Cape Town-based,
technology-enabled, fixed-fee service with call-centre
support which enables consumers to buy and sell residential
property for a fixed fee of R29 500 plus VAT which is only
payable on sale of the property.
While Eazi.com is currently focused in the Cape
Town Metropole, and will continue to be managed and
branded separately from Pam Golding Properties, given
the international trends in real estate Andrew is confident
that the two models will co-exist successfully and enable
the company to expand the full service offering of the Pam
Golding Property group locally, nationally and globally.
Andrew says that there is no doubt that technology will
continue to play an ever increasingly significant role in the
residential real estate industry and as a consequence the
role of the agent continues to evolve but certainly for now,
the traditional agent model has a value proposition which
continues to be compelling in many ways.
The residential real estate sale is very seldom simply a
linear transactional process. It is often characterised by
complexities that require the experience, wisdom and
insight of a real estate professional to navigate what is often
a protracted journey, as the purchase or sale of a property is
usually at least a six-month process from start to finish and
can often be complex, is frequently nuanced and is usually
the single biggest transaction clients undertake.
As the industry has developed over the last 15-20
years and residential property has more and more become
respected as an asset class, it is now a highly-demanding
vocation requiring, in addition to specialised knowledge
across a range of parameters including legislative matters,
a professional skillset which is well-versed in the art of
negotiation, project management, conflict management
and financial acumen, not to mention human empathy
and intuitive skills. It is for this reason that there are now
stringent qualifications required before a real estate agent
is able to formally commercially engage, advise and assist
clients to sell their homes.
This is particularly the case when the various market
cycles pose even greater challenges.  Consider the so-
called ‘sellers’ market’, where there is a shortage of stock
and yet many buyers competing for this stock – creating
high demand, which inherently bodes well for a smoother
transaction. Now consider a less buoyant market where
there is excess stock and fewer buyers, this characterised
by waning consumer confidence and sentiment, political
SA Real Estate Investor Magazine OCTOBER/NOVEMBER 2018
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