One of the verticals with an excessive quantity of websites is real estate services. There are tens of thousands of websites that list flats and villas. Does this, however, imply that this internet-based company model generates a commensurate quantity of revenue? No, not exactly! Great post to read
Real estate services is one of those businesses that is well-suited to a web-based strategy in many aspects. On one hand, there is a seller who wishes to sell his property, and on the other hand, there is a buyer who wishes to purchase a similar property. The property is listed for sale on a website by the seller. Prospective buyers discover it on the site, and if it is deemed suitable, the buyer and seller reach a selling agreement. There’s no need to look for an agent, and there’s no commission to pay. Everything appears to be so straightforward. However, this is a rare occurrence.
An agent commission of 2.5 to 6% of the sale price is charged when a property is sold (depending on your country, location, and agreement with the agent). The seller will just have to pay a minimal listing charge in the instance outlined above. Consider the online recruitment industry, where a situation comparable to this exists. Unlike real estate websites, it has done exceptionally well, and sites like monster.com and hotjobs.com have a great brand recall. Real estate services websites, on the other hand, have not had the same level of success. Consider loopnet.com and costar.com, both of which have been successful in the commercial real estate market. The truth is that the seller data and other information is closely guarded by the real estate multiple listing service (MLS) and agents. However, there are also other factors to consider.
Unlike a job listing, a real estate listing requires more information to appear genuine to a potential buyer. Collecting the essential data, including images of the property (and, in some cases, videos), recent sales data, and, most importantly, eliminating obsolete data from the database, all demand financial investment.