Can online disruptors and agents co-exist under one brand?
Until recently, low-cost, fixed-fee online real estate services were in direct opposition to the traditional real estate model. But, is it possible to merge these two approaches under a single brand, and will more traditional real estate services adopt this approach over time?
The former seems to be similar to the approach hybrid real estate brands are following. In these kinds of models, full-service traditional real estate agents will handle the more complex, luxury market sales while the low-cost online service will cater to the needs of the simpler affordable housing sector.
Personal, ongoing support
With the consumer in mind, this model still presents problems. The notion that selling less expensive real estate requires less guidance is somewhat flawed. The stakes involved in the affordable housing market transactions might be fiscally lower, but not in the mind of the homeowner who is most likely selling their largest financial asset, especially if this is a homeowner’s first time selling. It is therefore likely that these sellers will need as much (if not more) personal and ongoing support from their real estate professional as an experienced real estate investor will.
It is therefore unlikely that other real estate agencies will follow this hybrid approach. The traditional real estate model still offers value to consumers who are willing to pay for a higher level of service. If online disruptors become a more popular option, real estate professionals will be forced to be on the top of their game in order to remain a desirable alternative – which is great news for consumers. Real estate agents should therefore join a brand that goes above and beyond to support and enable them to become the best in the business rather than undermine their value.
Source: bizcommunity.com