Much is being discussed about the real estate sector and how a combination of softer market conditions, business disrupters and lower profit margins will have on the future of our industry.
These issues plus the introduction of new education requirements and employment conditions are impacting large sectors of the industry.
We foresee these factors increasing the number of agency consolidations and with less sales people working in most businesses. With a more stringent industry entry point, the calibre of people who join the industry, who don’t come from traditional backgrounds, will be a great injection of new talent.
So, how and will these changes benefit the consumer?
We predict these changes will benefit consumers. Some may argue with less active agents this will reduce competition resulting in less choice. We don’t agree.
There are still too many agencies relying on tired, dated and worn out methods of agency practice who focus on top line turnover and not bottom profit margins. Most won’t survive in a changing world.
This means those businesses who are adapting, or transitioning will get stronger by gaining greater market share.
Property owners, be they prospective sellers or landlords, will have a smaller number but better educated and experienced property managers and sales people to work with. Prospective clients are interviewing their potential agents more than ever; they are more informed and their selection processes when appointing their agent are becoming more comprehensive.
Those agents and property managers who provide the prospective client with solution- based services, who ascertain their clients’ expectation, and work in conjunction with the client to achieve their desired outcome will win the business.
We foresee that with lower number of agencies consumers will definitely be the winners.