How Estate Agents Can Increase Their Market Share In A Challenging Residential Landscape

Ireland’s residential market remains challenging. In the fourth quarter, demand to buy homes was up 30% year-over-year, according to research from Daft.ie. January saw a slight increase in available properties, which suggests some green shoots for the market this year, but demand remains high and the pipeline is not delivering homes quickly enough. 

On the rental side, demand has stabilised but remains high. Landlords are still receiving up to 150 inquiries for every home listed, which can be overwhelming for property agents to sort through. 

This level of demand creates challenges for property agents who are keen to establish a strong brand in the industry, Daft.ie Strategy Manager Conor Barrett said. 

“Property agents are all competing to win the next property that comes available,” he said. “In the long term, it's a race to the bottom in terms of fees, which makes it very difficult to run a sustainable business. On top of that, a big challenge for agents in such a competitive market is to create and maintain a strong brand.”

In a well-functioning market, a vendor pays to market their property, not the agent, Barrett said. This is general practice because it is in the vendor’s best interests to attract the most buyers and get the highest possible price. A bonus of vendor-funded marketing for an agent is that it also provides a crucial branding opportunity.

However, to win their next instruction in a challenging market, an agent may be forced to cut the marketing fees to bring on vendors or hold back from offering the full range of marketing options. 

“In this scenario, everyone loses out,” Barrett said. “Vendors aren’t given the opportunity to market their property as well as they might like, while agents lose out on the branding opportunities that come with good marketing. Our research suggests that 75% of vendors would go for a good marketing campaign if they’re given the opportunity.”

In recognition of the need to protect and boost agents’ brands, Daft.ie has worked in partnership with clients to create marketing tools that are both straightforward and cost-effective, Barrett said. In 2021, the company launched Daft Advantage Ads, which sit above property listings. The adverts generate up to 10 times more views while promoting the agent's branding. More recently, the company has launched a Vendor Ad Approval tool.

“Daft.ie’s Vendor Ad Approval tool simplifies the marketing process for both agents and vendors,” he said. “Once the agent has created a draft advert, they send it straight to the vendor to approve, which saves considerable back-and-forth and allows agents to save time and focus on more value-adding activities.” 

Deploying the right technology not only provides cost-effective marketing opportunities but reduces admin time for agents, Barrett said. Daft.ie’s Enquiry Downloader allows agents to automatically reply to every property query rather than having to reply to each email individually. If a property receives 150 inquiries, that is a considerable time-saving.

Another tool from Daft.ie, Online Offers, allows bidding to take place any time of day. It doesn’t replace the agent but creates transparency and immediacy for buyers and vendors. As many people want to place bids out of hours, the tool cuts down the time agents need to spend managing offers in the evening or at weekends. 

Barrett said that Daft.ie has received good feedback from agents who are already using digital tools to simplify processes and amplify their brand. As the challenging market continues, the company is dedicated to working with the industry to take on its challenges. 

“At Daft.ie, we know that agents are at the centre of the property transaction and add a huge amount of value,” Barrett said. “For the industry to thrive, agents need to be able to stand up for the value they provide and market their brand effectively. While technology can’t solve the market's troubles, it can go a long way toward simplifying processes.”

This article was produced in collaboration between Daft.ie and Studio B. Bisnow news staff was not involved in the production of this content.

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