About changes in the market for providing intermediary services

New standards for realtors and real estate agents
Published at 31/01/2020

About changes in the market for providing intermediary services — Advices from experts and reviews of real estate on GEOLN.COM. Photo 1

Dear readers, in this article the experts of GEOLN.COM write about how the real estate market is changing all over the world.

In this article, we share observations and recommendations with everyone who works in real estate, as well as practical advice on how to avoid being left on the sidelines of technological progress tomorrow, feel confident and continue to build relationships with customers and stay in the market. 

The market has changed. Work models, too. 

    Digitalization processes are taking place at a gigantic pace, which undoubtedly leaves a mark on all analog processes, making logistics, services, and communications faster and more accessible. Since we worked yesterday, we will not work today or tomorrow. Never. Due to such transformations, it becomes easy for the manufacturer to get access to the customer. And in this chain, the intermediary is not implied.

    In production markets, the logistics supply chain from the manufacturer to the buyer is reduced, since the increased number of intermediaries and even the fact of their presence affects the final price of the product. The same process is taking place in related areas and in other markets.

    For example, in taxi services, hotel booking services, etc., intermediaries from business models are reasonably removed, since the fact of their presence increases the final cost of the service or product, and with the advent of digital tools, the function of intermediaries-informants is performed by online services and perform this task much better and accurately. With the advent of digital tools, the manufacturer or service provider can easily access the customer.

We must recognize that the real estate and mediation market is being transformed into a service provider. Forever. 

Transformations are global and they are already happening 

This kind of transformation is not a process that is waiting for us, it is what already happens in the market and in particular in the real estate market.      

Remember, the emergence of the Internet, mobile communications, personal sites, cryptocurrencies, blockchain, social networks, service systems like airbnb, booking, uber, all these technologies and services are transforming the global market, which means that the rules of interaction are changing and what worked effectively yesterday today will not work at all... especially tomorrow.

The market has changed, and have you changed? Your business and approach to work? Have the tools and attitudes changed?  

As an example, let us look at all the intermediaries who previously provided services for rental housing... Where are all the intermediaries who were chaotically present in the market and settled tourists and residents?

    Who will you contact about accomodation in the hotel? Let us guess - your loyal assistant, the mobile booking app. This is your search engine and information system in the world of overnight rentals, right?

And what happened to all the intermediaries, agents who previously provided such services?  

    We would not like to say now that there are no private specialists as such, but to dispute the fact that the model of agents' work has changed forever is simply meaningless because it is so.

    With the advent of digital tools and services in their field, short-term rental agents were forced to change the model of their work, began to use booking-level systems (as a partner) and increased their professionalism in customer service, usually focusing on point-of-sale services, many began to provide consulting services, specialize in programs of tourist private settlement, etc.

    The same process occurred in the taxi service sector and in hundreds of other sectors. The same process occurs in the intermediary market in real estate.

The attitude of the realtors.      

We respect all the professionals and experts in the market. Moreover, being recognized experts in the real estate market, we are well aware of the complexity of the realtor's work.  

    Situations where customers turn to a realtor who provides intermediary services, learns all the information, provides it to the customer, and then learns how the buyer is looking for an opportunity to meet with the developer or owner, bypassing the intermediary, is absolutely not new to everyone who has worked in this sector at least once.

    To understand all the comicality of the situation, and the actual trend, we turn to a third party-the GOOGLE search engine. Let us see the results on requests to buy an apartment, apartments from the owner, etc.

About changes in the market for providing intermediary services — Advices from experts and reviews of real estate on GEOLN.COM. Photo 2

The trend of purchases from the developer and owner as an agent is growing dynamically  

   So it turns out that on the one hand, global digitalization and market transformation, and on the other hand, the desire of customers to bypass intermediaries and use the services of an agent as an information guide, lead to the fact that the real estate market is transformed. And this process is irreversible. It is already too obvious that it is not difficult for the customer to contact the developer directly.

About changes in the market for providing intermediary services — Advices from experts and reviews of real estate on GEOLN.COM. Photo 3

Do you want to stay in the market when you are, to put it mildly, disrespected? 

The work of a realtor in such conditions becomes unpredictable, nervous, stressful and very often ungrateful. And in this turbulent time for a realtor, an agent, it is necessary not to deal with a globally arisen situation, but to adapt and acquire skills to work in new conditions.  

 Imagine the situation of a strike, people who were typing on typewriters... Good old, big typewriters. What did these specialists do with the arrival of personal computers?

What can we expect from the market transformation, what changes will occur and how to act today so that we do not end up on the sidelines of the technological process tomorrow?   

When your work is not appreciated, when the results of your work are tried to accept and circumvent-this leaves at least a moral imprint in the mind and an unwillingness to grow in the profession and develop in it further.

However, as we can see, the professional market for consulting and real estate services is being transformed into the provision of consulting services, transaction support services, and a high-margin approach to serving private customers.  

 A similar process occurred with all taxi services. UBER has changed the model of interaction in the market of taxi services, in the same way, GEOLN.COM in different markets changed the model of interaction between the customer and the buyer to different degrees - directly, without an intermediary.

However, both in the first case with a taxi, and in the case with a real estate search engine GEOLN.COM for market professionals, there is a place in the new rules and conditions, if you do not fixate on the old models of work, but accept the new ones.

One of the key changes that affect all real estate agents in the urgent need to use a new generation of online tools in their work that allows them to

simplify and systematize the customer base

take into account individual requests of each customer

own an extensive up-to-date, real-time updated database of offers, with prices, etc.

build trusting, professional relationships with customers, having established itself as a professional of the market, able to provide legal and consulting support.

To keep up with the times, GEOLN.COM offers free real estate agents such tools for free.

Submit an application to open a personal account from an agent, and if your customers have entrusted you with real estate objects with the right to exclusive sale, you can add their offers to the search database GEOLN.COM. As a bonus, you will be able to use the online catalog of verified offers from all over the world and features for customer service.  

Learn more on the page - https://agent.geoln.com .  

With respect to you, 

the team of GEOLN.COM

Average rating: 4.20. Votes: 5

Diana Kabakci

The leading expert of the real estate market in Georgia
Education: MBA
Sphere: Real estate / Investments / Lawyer
Consultations made: 250
Expert on countries: Cyprus, Georgia, Kazakhstan, Poland
Known languages: Russian / Georgian / English / Turkish
Experience: 13 years
Expert publications: 546