Real Estate Investor Magazine South Africa Real Estate Investor Magazine - October 2017 | Page 18

TECHNOLOGY
Amazon’s
move into
property?
Online platforms and real estate
BY MONIQUE DU TOIT
T
he world of online shopping
and social media have, to a large
extent, changed how we do
business. With more services and prod-
ucts available at the click of a button,
consumers are becoming accustomed
to a new normal. Amazon made head-
lines when it announced its purchase of
Wholefoods, signalling its move into
the brick and mortar retail world. Now,
it seems property could be next.
When it comes to real estate, the ba-
sic principles of marketing apply. You
need to know who your potential buyers
are, and find a way to reach them with
your product (or property). It makes
sense, then, that online platforms would
be a good place to start. According to
a 2017 study by We Are Social it was
found that there are 3.77 billion inter-
net users worldwide (equaling 50%),
with 1.61 billion e-commerce users. At
the same time, there are 2.8 billion social
media users.
In July of this year, users noticed a
new button on Amazon’s site: the option
to hire a realtor. The effect was imme-
diate, with online realtor service Zillow
immediately experiencing a stock price
slump of 4%. While no official word has
been received from the online retail gi-
ant, it would fit into the evolving trend
of online businesses moving into the real
world.
A prime example of this is Amazon’s
purchase of Whole Foods earlier this
year. The move lead to widespread panic
16
and predictions of the death of brick-
and-mortar retailers, but experts explain
that this is simply part of a changing
landscape in retail. While online shop-
ping is convenient, retailers are starting
to realise that experiencial shopping – in
an actual store – can have a favourable
effect on shopping.
Whether or not Amazon takes over
the retail world, property investors
should be aware that consumer patterns
OCTOBER 2017 SA Real Estate Investor Magazine
and demographic changes are having a
very real effect on how we do business.
As for realty, it’s been clear for quite
some time that homebuying and the in-
ternet are a perfect match.
SOURCES
Curbed, MarketWatch, GeekWire,
Bloomberg, RE/MAX, Forbes, Vend
THERE ARE MANY ADVANTAGES TO ONLINE
PROPERTY LISTINGS
When buying:
Set specific search parameters, and only look at properties that suit
your needs.
Access information and statistics on the area in which you’re looking
to buy.
Make use of online bond calculators that give you an idea of what you
can afford.
Save time by only going for physical viewings of properties you’re
already interested in.
When selling:
Increased exposure of your property to a target audience of potential
buyers, increasing your chances of selling.
Attracting serious buyers to viewings, meaning less time wasted.