Innovation key for future real estate practices

Buying and selling properties over the last 25 years has changed and estate agencies and agents must evolve accordingly.

This is according to Sandton analyst Gary Segal, CEO of Real Analytics 101, who has spent a year refining its artificial intelligence (AI) and statistical modelling to make more information available for today’s buyer and sellers.

“In the 80s and 90s the world was a far different place than what it is today. There were no seismic changes to our way of life (Covid-19, shutting down economies and dramatic bond reductions), and there was no internet so estate agents were king when it came to valuations and what properties were for sale.”

He added that as the industry changed over the decades, it highlighted deficiencies in the services that agents offer their clients.

“The commission paid is not equal with the work done. Today, low-cost commission companies have a place in the industry as sellers and buyers become more educated due to information that was not available 25 years ago, that is now readily available.”

According to Segal, agents now need to find more information to add value to the seller, to substantiate their commission and convince sellers and buyers that they are still area specialists.

The benefits of an AI and statistical model include:

• Having knowledgeable agents who know the area before consulting with sellers and can hence discuss realistic pricing of that property.
• Agents can offer a proper marketing plan that has built-in milestones.
• Sellers don’t have to rely on agents for valuations.
• Buyers can prove how much equity is available after all costs have been provided for, so they don’t over-capitalise on the property.

Free example tools are available on www.realanalytics101.co.za

Related articles:

https://www.citizen.co.za/sandton-chronicle/310784/real-estate-agency-predictions-for-2022/

https://www.citizen.co.za/sandton-chronicle/285282/the-state-of-south-africas-property-market/