The industry should be like other professions. Who is going to disrupt the doctor, the airline pilot, the engineer, the architect? With all of these and others, you need to be trained to get to that point.
So in a free market economy and everyone abides by the rules and regulations, then one would guess that there should not be a problem or issue.
There have been many private sale websites, no commission websites, aggregation websites that have popped up over the years and the industry has seen them come and go. If you get down to the point where you cannot make money, then you won’t exist. If you look at the groups that charge 1%, soon they cannot pay the wages, the rent and it is not a business.
In the US where commissions run at 5%-6% it is interesting that local consumers complain about Australia’s 2%-3% commission rates for a much more efficient service. So this is a case where the US does have an issue with disruption, when you compare cost to service.
So what is the “UBER Style Disruption” model going to look like? There have been a few flawed start ups that were supposed to bee operating now and be revolutionizing the industry.
Some offer a mentoring style operation and some so secret that you will never see them coming. So they say.
Yes, it is true that certain UBER Style operations have made small but noticeable inroads in the US real estate market, but again there is a greater margin there to preverbaly, clip the tickets of the industry.
So yes the future is neigh and the industry needs to be mature enough to adapt to disruption. And the best way to do that? Up skill. Training and learning. Provide value for service. Maintain the highest level of ethics and be as transparent as you can.
With all the information around, if the consumer knows what you know, then you are not a professional and you will not survive.
In the next edition of Real Estate Juice Magazine we will get the insights of how some of these disruptors will carry out their revolution.
"The real estate industry is being watched by big business more than ever. This disruption means that agencies and agents need to continually provide world class service to their clients. No website or app can compete with incredible product knowledge, face to face negotiation and cutting edge marketing to get a seller the best price for their home or the best management for their investment. "
Damien Cooley