Huge changes await estate agency as the internet generation fully arrives

Sweeping changes to the whole estate agency industry have been predicted because sellers are finally becoming fully internet-savvy.

And high street agents will win the day if they fully seize the opportunity to offer a “great online strategy”.

None has, however, yet done so.

The claims are in a piece written for the Huffington Post by Adam Day, of online agent Hatched, in which he says estate agency is 15 years behind the times.

He said: “I believe both online and traditional agency has a place in the industry.

“Much like John Lewis and Thomson Holidays have proven over the last five years, it’s achievable to have a successful high street operation, complemented by a great online strategy.

“However, that is what high street agents are yet to do.

“Until someone gets that right, online agents will continue to get huge traction and take market share from their high street cousins.”

Day is very critical of last week’s mock funeral publicity stunt staged by easyProperty.

He said: “I am bemused that easyProperty are appearing to lead on fees alone and think this shows their inexperience in the sector.

“More established online agents, such as Hatched, used to lead on fees many years ago. We’ve since learnt that it’s not solely about price, but also about the overall service and the online experience that the client receives.

“The stunt may catch some headlines but I’m not so sure easyProperty will find this industry as easy to crack as they may think.

“Also, isolating themselves from the way other industry players operate certainly won’t help.”

Day says online agency is a generational thing: “The average first-time buyer today is in their mid to late 30s and the first-time seller slightly older, perhaps late 30s or early 40s.

“So we have finally reached the point where first-time sellers are all fully aware of the benefits of using the internet (anytime-anywhere, speed, ease of use, and mostly, significantly lower costs).

“Not only that, but with the ever evolving safeguards being put in place for users, they are becoming more and more familiar with online transactions, they’re savvy when it comes to security and privacy issues, are embracing internet phenomena such as the sharing economy, and are simply no longer afraid of buying and selling online.”

Day makes some other bold predictions.

For example, agents will no longer blanket-leaflet entire areas, but target individual properties based on algorithms showing who has recently married, had children or retired.

He also forecasts: “Home owners will begin listing their own properties, using their iPhone to take the photos, infrared lasers to automatically create a floorplan, and auto-generating 3D images of each room for example.”

Property owners would also be able stream online viewings to an audience of multiple buyers using the likes of Periscope.

As for today’s cumbersome process of applying for mortgages, instructing surveyors and getting the conveyancing done, this too will become highly automated.

“My prediction is that my three-year-old daughter will exchange contracts on the purchase of her first home simply by tapping a button alongside the property she wants to buy which she will be viewing on mobile device or monitor,” writes Day here

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4 Comments

  1. Tristramboris

    These predictions are reasonably uncontroversial…whether Hatched is still around as its competitors hoover up investor cash while it languishes is another matter

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  2. Blue

    One area where the online boys are ahead…  PR and generating publicity for themselves.

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    1. NewsBoy

      Yes they are but like snow as Christmas the girls and boys of the press will get bored with them eventually.

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  3. livingproperty

    I love how Mr Day releases so many press releases about ‘traditional agents soon to be eclipsed by online agents’ as well as ‘online agents being the future’ – contradictions much? I’m sorry, but didn’t Hatched just have to get investment from crowdfunding because it’s business model isn’t sustainable? How can you be running 10 years and still be unsustainable, yet be shouting that your idea is the best? Obviously not…..

    Yes, more stuff is happening online, but this just means agents need to employ social media teams. It’s as simple as that – give it to a member of staff to do each day and rotate (unless you work on a personal consultancy basis, which I know only a few do) if you can’t hire more people.

    Yes, we’re moving into a digital age where everyone is glued to their smart phones, but people are also savvy to having great service. Majority of call centres don’t give great service because their staff are paid peanuts – much like most online agencies.

    Just get the balance right, be flexible and leave people that contradict themselves behind.

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