Downward Pressure on Real Estate Fees A Global Trend
As more innovative, flat-fee and digital-focused companies enter the New Zealand real estate market, the traditional way of doing real estate will need to evolve if it is to survive.
Mike DelPrete is a global real estate strategist and Tall Poppy Board Member. He believes disruption in the New Zealand real estate market will be slower than the immediate impact Uber and Netflix had on theirs but could ultimately have the same result.
“As more new players enter the market, New Zealand real estate companies could fall victim to death by a thousand cuts, rather than one big punch to the face. While industry change is happening at a slower pace, there’s no doubt real estate companies will need to adapt to the changing market to survive,” says Mike DelPrete.
“I believe the centralised model is the way of the future, to ensure companies keep their costs down, are agile and to allow agents to focus on building relationships, using their expertise to help customers buy and sell houses. The traditional real estate model of an office on every high street is too costly to sustain for the future.”
Tall Poppy is the largest disruptor in the New Zealand market but has one Head Office on the Kapiti Coast. Our team of business partners and sales consultants are based around the country, giving them the freedom and autonomy to work from where they like. This means they can focus on being out with their clients, instead of working from a physical office, with all the associated overheads which come with that.
Mike DelPrete says flat-fee real estate has to be about more than just fees to succeed.
“Successful companies need to focus on technology adoption as well as offering exceptional customer experience,” says Mike DelPrete.