The real estate industry: how it’s changing and why we need to adapt

Published 08-APR-2019 11:32 A.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

The real estate industry has seen many highs and lows over the past decade. Not only have we seen fluctuation in property prices, we have also seen some large changes in the way we operate and conduct business, namely in the customer experience provided.

Customer service is a vital element of any real estate transaction and great customer service is what separates a quality agent from the rest. The way we interact with customers is changing, with technology greatly enhancing the way we conduct business. In the past, agents would meet face-to-face with clients to discuss their needs and build a more personal relationship.

Today it is all about receiving information as quickly as possible, responding to emails as quickly as possible and connecting with customers over other mediums, such as WhatsApp, Plezzel and Facebook to save them time.

Because of technology, customer expectations are changing.

To understand this change we really need to look at what other industries are doing. Brands are increasingly focusing on personalisation, with companies such as Spotify and YouTube learning what their customers want and tailoring songs and recommendations so that similar options appear. It is also about quick response times and appropriate resolutions, with social media allowing customers to broadcast their dissatisfaction for all to see.

Brands need to respond now, they need to respond well and they need to provide an additional layer of service to ensure they are remembered and a step above their competitors. Clothing retailer Mango is trialling digital fitting rooms whereby shoppers can request different sizes and colours of items on the mirror’s “screen”. These added touches are making all the difference in today’s market.

These may be completely different industries, however, for real estate operators to really excel at customer service, I believe they need to observe and learn from other industries to succeed. Agents need to think about how they can make the customer experience as quick, easy and stress free as possible – is it a complimentary coffee in a display home, a tablet used during a property inspection or a virtual reality walk through of their future home?

These changes are only going to increase, but it is important that we don’t forget the value of good old-fashioned face-to-face meetings. Technology should enrich our business, but it shouldn’t take over. Smart agents need to use it to their benefit to make their clients experience a seamless and memorable one, but as buying or selling a property is a large financial and emotional decision, I believe face-to-face encounters will remain key.

Home buyers want to be able to trust their real estate agent. It is such a large decision meaning there is still power in forming a relationship, in learning what your customer needs and in taking care to find what they are after and relieve any worries, ideas or queries they may have.

In a time where the market can be a little uncertain, vendors will appreciate a dedicated customer-driven operator who they feel they can rely on. If property agents are smart about technology and learn from what other industries are doing to create unique and memorable customer experiences, whilst still ensuring they remain personal, they can reap the benefits while building a good, happy client database.

Tony Morrison is the CEO of Harcourts Victoria and Tasmania.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X