Emergence and Development of online Estate Agencies

If you are buying a property then you may well start your search by looking at properties for sale on various websites. Our surveyors are here to help you save time and money with a building survey as you don't want to buy a problem property.  All our surveyors are independent and are therefore 100% impartial working for you and only you unlike the estate agent who works for the seller.

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Electronic Commerce

Get-a-quick-quote-300x298Electronic commerce has already been existing more than 30 years ago. However, the term has only been popular with the public only two decades ago. Nonetheless, the proliferation of electronic commerce is continuously on the rise as more traditional businesses are expanding their distribution over the internet. Electronic commerce or “E-commerce” has been perhaps one of the most prevalent terms in the digital era. Originally conceived by entrepreneurs as a path to wealth building, e-commerce has transformed how people conduct business.1

The first generation of e-commerce, enabled companies to exchange information and conduct financial transactions using the internet. The second generation is the e-commerce that we know today which is characterised by the exchange of services and goods through the internet.2

 

Online Estate Agents

The efforts of the estate agency industry to optimise its activities and services, paved way for the use of the internet to create and capture more value. To add, distance and time constraints gave consumers the reason to carry out their purchasing activities online. The estate agency industry is not a stranger to this trend. 4

Internet estate agents or online estate agents is the concept of publishing estate and property for sale or for rent over the internet. Estate agents and property owners may list the properties, and purchasers may or search for them at the convenience of their home or anywhere where there is an internet connection.6  Online estate agencies have allowed customers to look for homes on sale, view property through online photos, take virtual tours, watch videos related to property, research neighbourhoods and check access of property to nearby services, review property values, and even perform calculations using online mortgage calculators.7

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Online Estate Agents embracing information technology

It has been predicted decades ago that e-commerce threatens the role of market intermediaries like the estate agents. This has already happened to travel agents who were replaced by online services such as Expedia and Orbitz. Retailers were almost rendered obsolete by online shopping sites like Amazon. 8

Baen and Guttery in 1997 predicted that the increased use of the Internet and information technology would cause the entire industry to downsize. However, recent trends and statistics show that the estate agency sector as well as majority of other industries has been experiencing steady growth.9  Baen and Guttery’s prediction did not manifest for most industries including estate agencies. This is because competition in the estate agency sector is not based on price but reliability and confidence. Estate agents are still preferred over websites who are competing on price alone. Consumers in the estate agency sector also require a relationship with a professional estate agent who they can trust because estate agency transactions involve an expensive investment and complex transactions.

Also, far from being threatened by technology, estate agents have learned to embrace the advantages of information technology and the Internet. Estate agents were able to utilise the internet in establishing a competitive advantage and as a strategic differentiator.

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Advantages of Online Estate Agencies Services

The internet has allowed the reduction of time and cost spent on traditional estate agency transactions through the internet. Internet estate agencies have allowed reaching out to a greater number of consumers in contrast with traditional methods. The disadvantages of the traditional methods of contacting and meeting up with an estate agent cost more money and time, are eliminated through internet estate agency transactions.10 11 In traditional estate agency transactions, the purchaser is responsible for the estate agent services charges including the purchase transaction cost. Through the internet, buyers and sellers can search for and list houses online, bypassing the costs entailed when going through traditional estate agents.12

Why use an online estate agency website?

Information related to estate agencies is freely available in the internet. However, the complexity of the transaction, and the size of the investment in purchasing property would still require a professional agent involved in the process.

An online estate agent can provide you the convenience you need, and the trust and confidence that you can get from traditional estate agents.

Online estate agencies offer the convenience of providing for your next property needs whether you are a buyer or a seller, and at the same time utilises the knowledge and experience of estate agents to ensure that you have a holistic estate agency experience, all the relevant information you need related to legal processes and requirements, and the best value you can get when purchasing or selling a property.

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References

1 Tian, Y. and Sterwart, C. History of E-Commerce. Retrieved from http://www.irma-international.org/viewtitle/9447/

2  Tian, Y. and Sterwart, C. History of E-Commerce. Retrieved from http://www.irma-international.org/viewtitle/9447/

3  Delcoure, N. and Miller, N.G. “International Residential Real Estate Brokerage Fees and Implications for the US Brokerage Industry”. International Real Estate Review. Vol 5. No. 1 (2002) pp 12-39. Retrieved from http://www.umac.mo/fba/irer/papers/past/vol5_pdf/012_039US.pdf

4  DePillis, L. Why do real estate agents still exist? The Washington Post. (22 August 2013)  https://www.washingtonpost.com/news/wonk/wp/2013/08/22/why-do-real-estate-agents-still-exist/?utm_term=.d6d4b97a80aa

5  Delcoure, N. and Miller, N.G. “International Residential Real Estate Brokerage Fees and Implications for the US Brokerage Industry”. International Real Estate Review. Vol 5. No. 1 (2002) pp 12-39. Retrieved from http://www.umac.mo/fba/irer/papers/past/vol5_pdf/012_039US.pdf

6  DePillis, L. Why do real estate agents still exist? The Washington Post. (22 August 2013)  https://www.washingtonpost.com/news/wonk/wp/2013/08/22/why-do-real-estate-agents-still-exist/?utm_term=.d6d4b97a80aa

7  Cherif, E. “Analysis of the Internet Impact on the Real Estate Industry.” International Journal of Service Science, Management, Engineering, and Technology. 4 (3) (2013) pages 17 Retrieved from https://www.igi-global.com/article/analysis-of-the-internet-impact-on-the-real-estate-industry/101791

8  DePillis, L. Why do real estate agents still exist? The Washington Post. (22 August 2013)  https://www.washingtonpost.com/news/wonk/wp/2013/08/22/why-do-real-estate-agents-still-exist/?utm_term=.d6d4b97a80aa

9  Muhanna, W. and Wolf, J. The Impact of E-Commerce on the Real Estate Industry: Baen and Guttery Revisited. Journal of Real Estate Portfolio Management. 141 (2) (2002) Retrieved from https://www.researchgate.net/publication/228792547_The_Impact_of_E-Commerce_on_the_Real_Estate_Industry_Baen_and_Guttery_Revisited

10 Delcoure, N. and Miller, N.G. “International Residential Real Estate Brokerage Fees and Implications for the US Brokerage Industry”. International Real Estate Review. Vol 5. No. 1 (2002) pp 12-39. Retrieved from http://www.umac.mo/fba/irer/papers/past/vol5_pdf/012_039US.pdf

11  DePillis, L. Why do real estate agents still exist? The Washington Post. (22 August 2013)  https://www.washingtonpost.com/news/wonk/wp/2013/08/22/why-do-real-estate-agents-still-exist/?utm_term=.d6d4b97a80aa

12  Cherif, E. “Analysis of the Internet Impact on the Real Estate Industry.” International Journal of Service Science, Management, Engineering, and Technology. 4 (3) (2013) pages 17 Retrieved from https://www.igi-global.com/article/analysis-of-the-internet-impact-on-the-real-estate-industry/101791