Written by Brendan Simpkins
A member of Adelaide’s real estate industry has called for disruptors to focus on improving the industry, rather than making a profit.
“Our industry can beat disruptors, but only if we don’t discredit them,” he said in his post.
“The industry needs to work together to improve our public image; franchises should constantly work on new ways to provide value for fees, independents should always look to provide a boutique, specialised service, agents should always put the client first and we should all be constantly looking to improve ourselves.”
Realestate.com.au is the first real disruptor to the industry after it was established in Victoria way back in 1995.
Today the website is worth $629 million having revolutionised the way real estate agents do business.
Innovative companies such as Uber and AirBnb have brought the idea of ‘industry disruptors’ to the public’s conscience having shaken up their respective industries, after relatively overnight success.
Mr Clarence said that websites like realestate.com.au differ based on their business models.
“Real estate industry disruptors like realestate.com.au appear to be less revolutionary than Uber & AirBnB were in their respective industries, as it has more of a profit-centric business models for agents – promising that agents won’t have to share their commission with a principal or franchise group.,” he said.
“The ‘Be your own boss franchise business models are targeted more at unhappy agents whose agencies have not delivered on fees or commission splits.”
Clarence said that the industry could potentially see the rise of “seller-to-buyer apps”, which would cut out the middle man and save the vendor upwards of $8,000 and as a result, agents would risk losing the industry to someone who does not see value in their commission.
Clarence made the following suggestion to the “disrupters”;
“Treat agents like we treat our clients: put us before anything else, and the money will follow.”