25 - 50% of all estate agencies will go out of business in the next 5 years, but those that remain will make more money than ever before.
A recent study by accountancy firm Moore Stephens shows that almost 5,000 estate agents are showing signs of “financial distress” and this is just the beginning of a brand new era in estate agency.
Mark Burgess, best selling author of the book ‘Where did my industry go?’ which is all about the transformation of the estate agency industry and how existing agents can deal with the change, spoke recently at an event called Estate Agency X, which focuses on the future of estate agency. Mark says:
“Our estimation is that over the next 5 to 10 years around 30-50% of estate agencies currently in business today will no longer exist”.
However, it’s not all doom and gloom as Mark, who is also the CEO of Iceberg Digital, went on to say:
“Everyone knows the market is overcrowded but the problem for many great businesses in agency is that they have not moved with the times. This does not mean offering a Purplebricks style offering, but they do need to get smart with their systems and marketing. It’s no surprise that we’re seeing the opposite trend with our clients, who are now experiencing growth and improvement in their businesses as opposed to consolidation and decline.”
Mark knows better than most how this new approach can work, having previously turned declining businesses into a more successful, data driven business himself, while increasing sales by 300% with no sales team. Mark says
“In the new world of estate agency you will have the ability to charge far more for your service led approach than ever before, but only if you begin to put the right systems in place now as it’s a longer game than just property matching and sending out leaflets. There is a new generation of marketing tools and a new approach that is required in order to thrive in this new world, and our clients are paving the way to a more successful future in estate agency. The old rules are gone, the road ahead is full of challenges but if you can accept the pain of change now, you can build a business that is beyond your current one and more sustainable in the long term.”
If you are interested in finding out about how Iceberg Digital can help your estate agency be in the 50% of agencies that survive, you can make contact with them by clicking HERE or filling out the form below.
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We provide marketing automation and artificial intelligence estate agency software to estate agents. We work with thousands of traditional estate agents to transform them into more digital and data driven businesses, as this is the only way we believe they will exist in the next 5 to 10 years.