There's a big shift towards using tech to make things easier and cheaper. The PropTech market is growing at cool 16% per year (research), mainly due to the redistribution of sales commissions: old-school businesses earn less and less, automated ones earn more and more
- 20 years ago, both the seller and the buyer paid commissions. Then online classifieds replaced the job of a buyer's agent, and commissions fell in most countries (nobody wants to pay for surfing spitogatos.gr or index.cy to buy a house)
- Developers offered up to 15% on the sale of new buildings in Cyprus in the 2000s, while today it’s 5-10%
- Cloud brokerage platforms (eXp, Real, LTP) can close deals three times cheaper than a traditional real estate agency, so we might see commissions drop again
- An AI assistant (like Placy Pro) can do half the work of a real estate agent, so the agent can close more deals and charge less commission to be competitive
I combined these trends in the pic👆above. Give me a strawberry 🍓 if my assumptions make sense. And vote/comment below👇
#Commissions
