High commissions, a lack of personal service, and their apparent bad reputation are just some of the reasons why real estate agents will become redundant in the next five years.
Their lack of honesty and ethical standards rank the profession as the third most disliked profession in Australia in recent findings.
While convenience, routine and precedent are the top reasons Australian’s currently continue to use real estate agents, along with a fear of moving away from the ‘norm’ when selling a property, real estate expert Zaki Ameer believes, developments in the sector will see this turned around.
Five key reasons why real estate agents will soon become redundant
1. The middleperson is facing extinction.
As long as people buy and sell houses there will be a role for intermediaries, however it’s this role in particular that must evolve and change with the needs of clients.
In the current global information era, if a business has the resources to build the relevant alliances, they can enjoy the benefits of a middleperson without having to involve a third party.
Businesses in the real estate industry have started to do this already, and as a result of expansion, they completely absolve the role of the real estate agent.
2. Commission is on the out.
The reasons for paying for the 2.5 per cent real estate agent commission fee are dwindling.
Australians are essentially paying a variable amount – usually tens of thousands of dollars – to have one person make the connection between buyer and seller.
Today, alternative services offer a fixed fee for providing a service that is not only more comprehensive, but removes emotion from the equation when there is no commission involved.
Having this type of mediator throughout ensures a fair exchange of price by avoiding unnecessary inflation based on peoples’ emotional investment.
3. The convenience of a one-stop shop.
In every industry, consumers now look for fully integrated services, and real estate is no exception.
On a basic level, real estate agents mediate the sellers and buyers, and it’s logical that consumers would want more bang for their buck.
Businesses that offer multiple services in-house such as matching sellers and buyers from their pool of clients, effectively streamline the buying and selling process by connecting the dots before they’re even formed.
Demand for a one-stop service has been on the rise in recent years, and it’s a service that real estate agents alone cannot compete with.
4. The need for transparency.
Bearing in mind buying and selling property is a long and intensive process involving continuous communication, the experience is often not enjoyable.
Getting trapped with the wrong agent can not only end up costing you thousands of dollars if your house is undersold, but can also be a massive time waste.
There are endless stories of agents that are unresponsive to their clients or fail to deliver on promises but clients of these newer services know exactly where their money is going.
Also read: Aussies view the housing market as "vulnerable"
5. The need for a personal approach.
Purchasing a property is often the biggest financial investment a person will ever make, and understandably there is a large degree of emotion involved that requires particular management.
Real estate agents have often been slow to adapt to the requirements of the modern client, whose needs are ever evolving and multiplying.
If real estate agents can’t keep up with these changes they’ll be left behind for good.