The real estate industry has evolved over the years, with numerous changes questioning the role of the traditional agency from time to time. However, the agency has stood the test of time and has constantly refined its practices to reflect the changing consumer needs.
What has the industry learnt from its own history, and what is in store for the future?
Traditional agencies beat budget offerings
As with most industries, the real estate agency has been fraught with newcomers who offer solutions for lesser fees, such as charging a flat fee in place of percentage of the value of the property sold. However, there is an inherent flaw in this claim of charging a flat fee towards reducing costs for homeowners.
A flat fee instead of a percentage of the home value takes away any incentives for the agent to sell properties at a higher price, thereby reducing home prices for customers. Further, traditional agency has the advantage of extensive local knowledge of its agents. This comes in handy where the agency engages its team of multiple agents towards leveraging the best price possible for the property, a feat virtually impossible for new entrants working with minimal staff.
Constant adaptation is the key
The demography and consumer needs have been changing constantly. With a changing population and evolving needs, real estate agencies have seen constant changes in their operations, the marketplace, and the services on offer.
One of the key changes in the real estate industry over the decades has been the proliferation of data. Both buyers and sellers have much more information in their hands before they make their move.
However, it still takes an informed agent to help them make the right decisions. Further, the traditional real estate agency has found the opportunity to rediscover itself for the information era – with information being the common denominator across the entire industry, those who make the cut and strive to take the lead, go beyond their call of duty to provide exceptional customer service, and stay connected with their clients.
Genuine attention and care delivers results
So, what makes a good real estate agent tick?
It’s certainly not the flashy cars, nor all the money invested in capital or borrowed to make the brand name work. It is the people who could make a material difference to the lives of clients.
Consumers value the basic tenets of honesty and integrity, which mere investments in information technology would not be able to provide. It takes the ability to build good relationships with customers at a basic level and display genuine attention and care to deliver results.
The most successful of the traditional agencies invest considerable time and energy in developing their human resources with values that translate into unbeatable customer service. Empathy to understand the client’s perspectives, passion at work that motivates agents to constantly network and build a brand, and the discipline to be organised and deliver results are the values that make the traditional agencies thrive in a changing environment.
How much is the right fees?
The commission paid to real estate agents forms an important part of the amount realised in a sale. So, how much commission is right?
To be sure, there may not be a single right price that would apply to properties across the board. Commission and fees in the Australian real estate market tends to vary across the states; and this depends on the population in the state, the level of economic activity, the volume of activity taking place in the real estate space etc.
Commission rates are the highest in Tasmania at 2.96%, while South Australia features the lowest rates at 1.99%, making the state the most affordable in terms of commission paid to the agency. However, despite the differences in commissions as reflected in the statistics, the actual commissions and fees that homeowners end up paying depends on the actual property itself.
Consumers have their unique circumstances and needs, and it takes genuine care and professional guidance from an informed agent to get them through an uncertain market. Speak to the team of experts at 4one4 Real Estate & First National McGregor today.
Guest Author: Ben Hugh Student of Bachelor of Communications (Journalism & Digital and Social Media)