Whatshot
Property Talk
Property Talk
Date: 2016-12-23
The disruption the personal computer brought to the computing industry is a classic example. Steve Jobs disrupted the music industry with the iPod. Uber, the lift sharing app, has forever disrupted the taxi industry. When technology provides for an innovation that makes a good or service more affordable and accessible to more people, disruptive innovation is likely.
The Estate Agency and property industry is changing. The information age has fundamentally changed the way in which people are accessing and searching for information. For those innovating the world has become an exciting and constantly changing adventure. For those clinging on to traditional ways of doing business in an industry facing disruption, the future looks bleak and filled with uncertainty. Where you choose to place yourself along this spectrum depends on the decisions you make and the attitude you adopt to changes within your industry.
Initial property searches typically start online through large aggregated websites such as Property24 and Private Property, the two biggest property web-portals in South Africa. As good as these websites are to provide useful information to prospective buyers within a property market, they do have certain shortcomings.
They struggle with keeping their information current as they rely on thousands of different estate agents for this and they also cannot provide the detailed insight into a market or the subtle differences between properties within the same price range. With information immediately and easily accessible the value-add that an estate agent brings to the property transaction goes far beyond this superficial level.
The real value-add that an estate agent brings to the table is twofold. Firstly a professional agent is skilled in negotiating and closing a transaction. This is not something that happens automatically in most property markets and requires a specific ability by the estate agent to gently guide a buyer and seller to an eventual win-win outcome. As the two parties typically have opposite ambitions from the outset in terms of pricing, to guide the parties to a positive final outcome requires skill, patience and perseverance. The second key value-add an estate agent brings is the facilitation of the entire property buying process.
A great agent will develop the respect and trust of both the buyers and sellers he has the privilege of representing. The agent becomes the oil within the engine to ensure a smooth and hassle free experience. Having witnessed thousands of buyers and sellers of residential property transactions over the past 21 years I have often seen how the interaction between the two parties can be like mixing oil and water. Normal well-meaning individuals can change into sandpaper when under pressure or faced with an aggressive counter-part. Sellers that are emotionally invested in a property are particularly vulnerable and require a professional to facilitate the transaction.
For further information and an interactive analysis of this article follow my blog: andreaswassenaar.blogspot.com.