So in parts one and two I’ve covered off the model that we operate in the UK and where it differs to the one you are familiar with locally. This post is to complete this series by outlining my thoughts on the strengths and weaknesses of our model, our ability to change with the times and areas where I think the UK and US models might be converging.
The threat in terms of the model we operate is that with the growth of the internet, the perceived value an agent adds to the home moving process is eroding.
Estate agents used to be valued for their intricate knowledge of house prices that wasn’t accessible to mere mortals. We would know what sold and for how much and it’s only in the last few years that this information has been available to the general public – this has taken away some of our superhuman powers.
Estate agents also used to hold a valuable list of people wanting to move home. The general public would call and register with all of the estate agents in the town so that they could be alerted when a new property became available. Now they can register on the property portals and get automatic alerts when a new property becomes available
Property portals are like kryptonite
So as a result, property portals that also list house price information are to estate agents what kryptonite is to Superman, and what were traditionally our main powers are significantly reduced. They give so much control to the home sellers and buyers that many of them feel they don’t need estate agents, other than to get their properties listed on the portals for sale.
As I mentioned, the main portals don’t allow FSBO listings and this is clearly good news for agents. But now is the time that agents need to seriously look at where we add value to the process, because there is no guarantee this will continue.
Any good agent knows that they do a hell of a lot in the process that isn’t appreciated by the home seller. In no small part their negotiation skills are often what make deals happen that otherwise wouldn’t and also holds many deals together through the rocky process leading up to completion.
I see a similar threat to way you operate in US, with some alternative models emerging. A tech savvy generation coming through who can see the traditional model isn’t perhaps as valuable as it previously was and social media sites advocating the FSBO model in a new guise.
It seems to me that there may be as many similarities as there are differences between our two models and after all, we are both working in a customer service driven, people business. Clearly on both sides of the pond we need to work at presenting a model to the vendor that demonstrates where an agent adds real value.
