An increasing number of independent operators and boutique agents are ditching the traditional bricks and mortar real estate model in favour of tech-based platforms, according to digital real estate network @realty.
Peter Powell is one of many @realty agents to have turned their back on a physical office, after finding the running costs did not equate to an uplift in business.
Mr Powell, who is based in Trafalgar, in the West Gippsland region of Victoria, has worked in real estate for a decade.
He said he recently “‘experimented” with opening an office, which confirmed to him how much the real estate landscape had changed over the past 10 years.
“Over the past decade I have worked predominantly through digital platforms, but recently decided to see what would happen if I opened a physical office,” Mr Powell said.
He said he initially thought the move to a traditional office might result in more walk-in business he wouldn’t have otherwise received working solely online.
“What I have learnt from the experience is that while people may have dropped in to an office for a chat 10 years ago, now clients reach out via phone or email,” he said, adding that purchasers were also more comfortable with online inspection.
“The physical office is now completely redundant in real estate in my opinion. Not only is it costly to upkeep, but it can actually limit productivity by tying you to one location for the majority of the day.
“Without this limitation, I can spread my work much further afield, taking listings up to 50km away and running a schedule that best suits the client’s needs rather than mine.”
Mr Powell also said the way people choose an agent had changed with the times.
“Ten years ago people would look at listings in a shop window – now they look at your listings online and decide if they like the way you are marketing your properties,” he said.
“The digital marketplace is very competitive – people want to see that you are able to offer a full suite of services, including virtual tours on all your listings, to help capture a broader audience of potential buyers.
Mr Powell said he recently sold a $3.5 million property using digital-only marketing.
“I don’t think this trend can be solely attributed to COVID-19 and physical distancing – I think the preference for and benefits of going digital are here to stay.”
James Taylor, CEO of @realty, said the company had launched a new platform, OASIS, last year, which allows independent operators and boutique agencies to run their business under the @realty brand.
“There are still a lot of smaller operators struggling with the overheads for a physical office that doesn’t necessarily result in an increase in listings,” he said.
“What we have done is make it easy for these people and brands to come on board with us – they can keep their business name if they wish – and gain access to all of our custom-built technology, marketing tools, subscriptions and admin support.”
Mr Taylor said the model was gaining popularity among those looking for an alternative to traditional office environments.
