University of Auckland Agents with Technology Oct 2014 Alistair Helm

AGENTS WILL NOT BE REPLACED BY TECHNOLOGY….

…THEY WILL BE REPLACED BY AGENTS WITH TECHNOLOGY

ALISTAIR HELM

• Founding CEO of Realestate.co.nz (2006-2012)

• Founder Zoodle (2009-2012)

• Founder Properazzi (2012-)

There are around 1,800,000 houses in New Zealand

The market value of the housing stock is around $725

billion

72,000 house sales 2014

down 10% from PY

Total value of residential property sales

$38 billion in 2014

down 5% from PY

9,500 active licensed real estate salespeople

Generated $1.3 billion in commission fees in 2014

The average real estate sales person earned $45,000 in 2014

MarketingListing

AppraisalProspecting FacilitationNegotiation

5 Steps of Real Estate

TECHNOLOGY

impact on real estate

EVOLUTION THUS FAR

TODAY

FUTURE IMPACT

2004

2004

HOME BUYING

AGENT CENTRIC

• Every aspect of real estate transaction

GATEKEEPERS OF INFORMATION

• Printed brochures

• Sales information

• Location addresses

CAR & PHONE

PROPERTY ADVERTISING

• Limited information

• Single photo

• No address

• Agent role as gatekeeper

AGENT RELUCTANCE

• Internet 10 years

• PC’s 20 years

439 Houses for Sale

2004 - 2014

2005

• Maps

2007

• Images

2009

• Social Media

2009

• Social Media - Agent Voices

2010

• Video

2010

• Floorplans

2010

• Mobile

2011

• Premium Advertising

2012

• Tablet

New Zealand

Lagging global innovation

PLATFORM EXTENSION

• Zillow

EXPERIENCE

• 3D - Matterport

EXPERIENTIAL

• Totally immersive experience

TRANSACTION

• Auction.com

UNBUNDLING

• easyProperty

MarketingListing

AppraisalProspecting FacilitationNegotiation

5 Steps of Real Estate

REAL ESTATE IS MASSIVELY INEFFICIENT

• 2/3rd of time spent prospecting

GENERIC FEEL

• Undifferentiated

• Buy the brand?

• Buy the agent?

PROSPECTING

• How do I find an agent?

AGENT ATTRIBUTES• Proven track record

• Local market experience

• Relevant sector experience

“Someone who has sold a house like ours, recently, in this area and achieves a fast sale at or above the market”

WHAT LIES BEHIND THAT SMILE?

• How transparent is the real estate industry?

DATA IS KEY

LOCATIONSIZE

PRICESTYLE

Number of listingsNumber of sales

Asking price / Sale priceDays on the marketQuality of content

Premium advertisingMarketing performance

Social rankingLead generation

Real Estate

It’s all about data

MarketingListing

AppraisalProspecting FacilitationNegotiation

5 Steps of Real Estate

LIBERATION OF DATA

MarketingListing

AppraisalProspecting FacilitationNegotiation

5 Steps of Real Estate

PHOTOGRAPHY

SIGNAGE

• Still relevant

LEVELLED THE PLAYING FIELD

90% OF BUYERS ONLINE

• Trade Me Property

• Realestate.co.nz

DAY 1 IMPACT

• Fast decay meanings timing is everything

TECHNOLOGY

• The enablement of tomorrow’s real estate

MarketingListing

AppraisalProspecting FacilitationNegotiation

5 Steps of Real Estate

FACILITATION

• Persistance

• Emotions

• Persuasive

NEGOTIATION

• Close

THERE WILL ALWAYS BE AGENTS

• They may just act differently and be better informed, skilled, trained

AGENTS WITH NEW SKILLSSUPPORTED BY TECHNOLOGY