The real estate industry ready for disruption?
Everybody knows the current procedure for selling or buying a house. Let’s say you would like to sell your house. You’d go to a realtor and list your house. When there is someone interested in buying your house, he makes a bid to the realtor. The realtor notifies you about the bid. You have the choice to accept or to decline. Imagine you accept the bid and your house is sold. How does the real estate agent get paid? The real estate agent responsible for helping making the sale receives a commission of approximately 3% of the home’s price. This might not sound too much but this can actually be a lot of money if the agent helps selling an expensive house.
The real estate industry is a very traditional industry where technology does not really take an important role. The only technological aspect in the real estate industry is websites where all the properties of a real estate agency are listed.
I think that the real estate industry is ready for disruption. In my opinion people who want to buy or sell their house do not longer need a real estate agency as intermediary. Why aren’t houses being sold on online market places or panels? Cars are being sold on online market places so why not houses?
Imagine there is an online market place for selling and buying houses without an intermediating real estate agency. A seller creates an advertisement providing a detailed description of the house with information such as the number or rooms, number of square feet and number of bathrooms. In addition, the seller places photographs of the house in the advertisement. If people are interested in buying, they reach out to the seller to set a date for the inspection.
It is as easy as that and we no longer need real estate agents receiving ludicrous fees.