The Uberfication of Real Estate
Image Credit: Business Insider
Uberization is at the heart of all debates and generates paradoxes. It is accused of precarious employment in the service sector, but we recognize its decisive role in entrepreneurial innovation. What is certain is that the Uber-revolution affects all sectors, from transport to catering, through the hotel industry. And real estate is no exception, the field of PropTech explodes with the emergence of more and more collaborative real estate platforms. Real estate uberization enchants customers with its many advantages; reduced search time, fewer agency fees, and faster real estate process. Real estate agents, this is not the tragic end of an era, but rather the sign of the positive renewal of your profession! This socio-economic transition is fraught with anxiety, but it is above all a carrier of the future. In a society where everything is to recreate, the possibilities are endless for real estate professionals!
1- Uberized real estate: destroying traditions to better create innovation
The principle of creative destruction is simple. The technological revolution of the 2000s involves an inevitable remodeling of traditional trades to meet the customer's demand. In other words, the customer has new expectations that can only be met by creating new services. The very definition of uberization leans towards this idea; it is "a rapid change in the balance of power thanks to digital technology, which will impact all sectors of the traditional economy of services."
Image Credit: Uberisation.org
The problem is that ‘The Uberfication Effect’ has bad press; the technology is pointed out by different television series, like Black Mirror, which anticipates the potential drifts that could generate a totally uberized society.
The Black Mirror series addresses the fear of falling into a society where everything is rated (Season 3, episode 1 "Nosedive"):
Image Credit: Black Mirror (Netflix)
Recall that at the base, the German word uber means "above" or "better." Ideologically, therefore, uberization has a positive connotation. It is to propose an improved version of a service or to innovate by creating a new one. Let's stop demonizing uberization!
The real estate sector is not in danger, it is precisely undergoing a reorganization. To offer an innovative service to your customers, we must reinvent the real estate market by following the trend. Do not be overwhelmed, become a player in the real estate uber revolution!
2- The rise of PropTech in real estate
First of all, what is Proptech? According to Forbes, "property technology" would be a term used to refer to start-ups that provide innovative products, technologies or new models for real estate markets. In other words, these are companies that actively participate in the digitization of real estate. Most of the time, Proptech are real estate platforms such as The Zillow Group, which is the leading real estate marketplace, OpenDoor which makes the property visits standalone, Compass which is taking a new approach to property search, focusing on giving brokers the best tools available to streamline the buying process. Americans are very fond of these new tools that simplify the acquisition of real estate. For example, Zillow had 498 million page views in one month and 44% of Americans purchased a home from the internet.
Image Credit: OpenDoor
From now on, the algorithmic selection is at the heart of all uberized start-ups. The Uberfication Effect is very practical, it makes it possible to optimize the connection between sellers and buyers and it saves time for everyone by guaranteeing to each one a service of quality.
Eight out of ten non-homeowners indicate that owning a home is part of their American Dream. Also note that 83.1 million Millennials make up 66% of new home buyers. To conquer this new target, it will be necessary to adopt an Uber-like communication strategy. Nothing should prevent you from gaining inspiration from Proptechs in order to adapt to the new demand of your customers.
3 - The B2C: the customer experience at the center of "Uber-Real-Estate"
The service sector today is entirely consumer-oriented. If the company has become uberized, it is under the influence of the customer who wants an even faster, more efficient and lower-cost service. Don’t disparage the customer because the customers are us! In order to know how to satisfy them, these real estate platforms use the principle of evaluation and rating. They take into account the opinion of the customer, their suggestions, their complaints, and their requests, to offer them a service built almost to measure.
According to a study by Accenture, 66% of American people switched companies because of unsatisfactory customer service. Be careful to maintain your good reputation! Look after your customer relationship and do not underestimate the power of your image. In this time of uberization, impeccable uniform on your network is fundamental in order to preserve respect from the customer. Now, the service you offer must be both quantitative and qualitative.
The keys to “Uber-Real-Estate:”
Your website must be ergonomic, easy to use and pleasant to the eye
The pictures of the goods you sell must make you want it
Your service must be efficient, fast, and delivered with enthusiasm
Make it a point of honor to listen to your client and adapt to him constantly
Some agencies don’t hesitate to appropriate the methods of real estate platforms to success. For example, the real estate guru, Century 21, which now offers open-ended properties like OpenDoor. Other online real estate agencies have relied on the quality of their image, such as Book a Flat, which has developed easy-to-use sales portals.
Image Credit: Book-a-Flat
Airbnb has reinvented the hotel sector, Postmates has imposed its home-based restaurant design... What form will take the Uber version of real estate? Every industrial revolution causes concern. Just as Fordism shook the small craftsman industry in the twentieth century, uberization will upset all professionals of our time. Pierre Veltz, sociologist, and economist, acknowledges that this new model is quite distressing but that we should not be afraid of it. The uber-real estate revolution has begun and you should be part of it!