In a presentation to the ASX Emerging Growth conference in London on 21 March, REA Group CEO Greg Ellis said that his company is looking to establish a more direct relationship with consumers, suggesting the addition of more housing price data to realestate.com.au over the next year.
“Over the next 12 months in Australia, we will be able to tell every household what the value of their property is,” Ellis reveals. “We will be able to tell every household how many properties are on the market like you at this time. We will be able to tell every household how many people are looking for properties like yours right now.”
The presentation also outlined REA Group’s recent financial statistics and included the following graphs, which compare traffic to realestate.com.au and domain.com.au, and to realcommercial.com.au and commercialrealestate.com.au, since 2007:
Click here to hear more from the presentation.
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{ 3 comments… read them below or add one }
Maybe ALL agents need to advise these major web sites that without our monthly subscription where would they be? There are still skills needed and required when selling a home, it is called people skills. It is not just all about the facts and figures. The anonymity that already restricts us in regards to contacting any buyers from these web sites will compound by also restricting us from contact with the sellers, as they will no longer need our services.
RE: SELF PROPERTY PRICE ESTIMATION
There are millions DYI websites out there, from own health checks to what you should be putting into your mouth for the next 3 weeks, etc.
Consumer awareness is a good thing and whether we like it or not, the internet revolution will mean knowledge will become more and more accessible to everyone. On line banking and retailing has not spelt the end of banks and grocery shopping, but what it means is banks and retailers will need to evolve and continue to bring innovation and value add to consumers.
DIY appraisal will, in majority of situation, give consumers a better idea of what their property is worth, just like median price guides. But that won’t stop people needing an agent. Just like it won’t stop people going to a doctor just because he has the all symptoms of a common cold in a DIY analysis.
Price estimation is only the beginning and a small part of the services and function of an agent. As an agent, I say, “bring it on” and that “you have to have more confidence in yourself or else you need to think it over as to whether you are providing and value add to your client.”
I think this is a very dangerous move as no 2 properties are exactly alike. Some are quite palatial with swimming pools and tennis courts and may be next door to a home of similar size and on a same size block but may vary enormously in price due to the secondary improvements and the condition of the home. The value of a home cannot be determined without a personal inspection. Are you intending to do this?
As far as buyers are concerned they also do not really know if a property is what they are looking for unless they inspect it. If put to a vote I would definitely vote NO to this proposal.