WORLDWIDE TRENDS IN PRIVATE REAL ESTATE

In a plethora of industries worldwide, there’s been a collective push to eliminate the middleman. Through massive technological advances, we’ve been able to empower the consumer. Think Uber vs cabs; AirBnB vs hotels; Carsales.com vs dealerships.

 

This magical entity (the Internet) has given we regular folk access to tools and markets that were previously available only to professionals.

 

If global trends are anything to go by, the next traditional industry to concede to digital disruption in Australia will be Real Estate.

 

Right now, an increasing proportion of homeowners are abandoning traditional real estate agents. Stepping up to the plate are private real estate platforms that allow vendors to sell their own properties. The benefit? Potentially saving thousands of dollars that would otherwise be paid in commissions to traditional real estate agents.

 

In Canada, 45 percent of houses are sold independently. In the USA, Europe, and the UK, this figure is at 30 percent.

 

So what’s driving the change?

 

As tech-savvy, globally connected millennials begin to enter the property market, it’s only natural that there will be those digital disrupters looking to reimagine business models and drive cost-effectiveness.

 

In Britain, celebrity property gurus such as Sarah Beeny from the popular television show ‘Property Ladder’ are promoting private real estate.

 

With a flurry of websites popping up with advice, tools and marketing options, price-conscious homeowners looking to save a buck are taking it upon themselves to ditch traditional agents and sell their own houses.

 

So, is it time for Australia to catch up?