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Despite the industry historically being slow in adopting technology, Domain’s chief executive officer insists technology is key to unlocking future growth within the industry.
Speaking exclusively to REB, Jason Pellegrino said technology adoption must be adopted across the board within the industry because “customers have come to expect it”. This, he believes, is a direct result of consumer technology expectations increasing through experiences they have with other industries.
“Unfortunately, the real estate industry is a laggard when it comes to tech adoption,” he explained, citing research from the World Economic Forum’s Future of Jobs Report 2023, which indicated the industry is least likely to adopt new technologies.
In an increasingly technological age, Mr Pellegrino stressed training and workplace culture as “fundamental to successfully adopting new technologies”.
“Technology can only ever be as effective as the person using it, which is directly impacted by the training they’ve received, their acceptance and comfort with the new technology, and the environment created around them,” he said.
Referring to Domain’s own example of implementing its Agent Solutions technology, the company’s top executive said the successful adoption of this system has been due to the environment constructed at the firm where “change is embraced and not feared”.
“Employees have been taught how to use it, and they understand the benefit to their customers,” he said.
The changing nature of real estate means home buyers aren’t “comparing the experience to the last they did, so, they’re comparing it to all the digital, instant experiences they have in so many other aspects of everyday life”.
“If we can flip the value proposition to selling a service – the process – rather than a product – the property itself – we can drive more value to consumers,” Mr Pellegrino said.
While a large majority of proptech brought to the industry table are the brainchildren of agents themselves, the Domain CEO believes an aversion to technology exists within many agents who “fear transparency and democratisation of technology and information [as] a threat to their job”.
However, he believes these perceptions are inaccurate, insisting “technology doesn’t replace human interactions or connection, it facilitates them”, especially as it “automates the time-consuming, mundane administrative tasks so agents can spend more time delivering value for their customers”.
He calls on agents to imagine “all the touchpoints and processes” which technology can streamline along a journey he described as “rife with friction and a lack of transparency”.
He believes “agents that are adopting technology to streamline their workflow are those that have invested in their propositions to clients, can articulate their value and see technology as a huge unlock to driving greater growth, as opposed to ‘competitor’ to their business model”.
“Adopting technology is the easiest way agents can meet their customers’ needs, while also building smart, more sophisticated foundations for growth and success.
“The role of technology is to enable [agents] to provide a better service, unencumbered by all the admin of responding to 100 inquiries, where only a handful of which are legitimate,” Mr Pellegrino said.
“If agents are using technology to automatically sift through inquiries or book inspections, they can better utilise their time,” he added.
Despite cyber security threats continuing to grow in prominence, evidenced by recent attacks on Harcourts, Optus, and Medibank that impacted millions of Australians, Mr Pellegrino explained “the collection of personal information in real estate transactions always has, and always will be critical”.
However, as the industry transitions from paper data collection to digital data gathering, how can agents best manage effective tech adoption and ensure their clients’ cyber security is secure?
Mr Pellegrino shared a few simple systems agencies can adopt to ensure the protection of their consumers’ data, including multi-factor authentication, data encryption, and back-up services.
He advised networks to search for tech providers that possess “integrations with global technology providers in these areas to ensure continued evolutions as threats change”.
“With all these safeguards in place, the final step is communicating them to their customers, so they know measures to protect them are in place,” he concluded.
