Here is more from the recent research, conducted through EYE, on high street firms’ attitudes towards online competitors.
The survey was carried out by independent researcher Mark Notari and was a follow-up to one he did 20 months ago as part of a thesis for a Masters degree.
While the new survey shows that agents are concerned about a drop in service levels if they go down the online route, this is slightly less of an issue for them now than previously.
I Have not switched to the Online only business model because I don’t believe it’s what sellers actually want or need
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looking at a hybrid to run alongside traditional and give seller’s the choice, at least they know that it is a local expert if they wish to go down that route. They can get the same service as they get from other online listing firms (i.e.none) or pay the traditional route and obtain more for their property – it really is the consumer’s choice! At least it will give us another option, luckily we are only a small agency so can diversify with ease.
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Those joining the property ladder (millennials) are now hard wired to the idea of making choices online. But this is where it gets complicated, most services bought and sold online are instant transactions…I want something, here’s the best price, I will pay for it and it arrives in a white van. The property transaction spans many months and involves so many elements including ego or if things go wrong in their personal life, matters will become very emotionally charged and irrational. They will soon realize there is a need for a ‘choreographer’ to guide and smooth the way. Stand up all committed agents!
The hybrids will evolve after many fail to realize this and they will be in the market place against those that have committed to a non call centre business model….unless of course Rightmove realize they have opened the floodgates for the online call centres to live off their own sites without needing a portal and morph into the countries biggest online agent!! Many High Street agents will come under pressure as the cake is not necessarily getting bigger in any given market area…unless you have a big land and new homes operation. Not all will survive, as even though the population gets bigger, the average number of transactions hovers at the same levels seen in the 1980’s yet the population is considerably bigger. Not everyone can buy…fact of life.
So here’s a thought for you all including Mark Notari who I feel is trying to understand things but is a statistician after all. There will be small agents who are there through lifestyle choice and passion and can’t work in a corporate environment. There will be scaled down Corporates including those who are franchise based, there will be tops 6 online agents of which only a couple may have size (think of what happened in the car rental market Enterprise Hertz Budget) and there won’t be 20,000 odd estate agency offices nationwide. The big agents who are in the large cities or urban areas will have a better pronounced hub and spoke operation, where the main office, probably on the High Street will exist, with a virtual set of offices run from there with gel haired pointy shoe’d bearded yoofs sent out for valuations and viewings, but the secondary office premise costs will be cut out.
In other words…everyone looks for a golden bullet solution when making predictions, the reality is the world is not so clear cut! The British property owning democracy is irrational! An Englishman’s home is his or her castle; anyone that forgets this does so at their peril.
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Alright hands up who “hasn’t switched to the online model as they don’t believe they have the skills* to compete effectively”
*Unlimited trough of investors cash.
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