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11/02/2021 | Broker Tips

Meeting Laurent Pannatier, C.E.O of PROXIMMO real estate agency in Lausanne and Lookmove partner

Meeting Laurent Pannatier, C.E.O of PROXIMMO real estate agency in Lausanne and Lookmove partner

Laurent Pannatier PROXIMMO real estate agency

Who are you Laurent Pannatier?

I am the C.E.O of PROXIMMO real estate agency in Lausanne. I founded it more than 10 years ago ; I still work as a real estate agent there, accompanied and supported by my colleagues, in order to stay close to my clients. More personally, I grew up in Lausanne and still live there. It is a city and a region that I particularly like. I’m also the father of baby Elias.

What geographical area does your agency cover?

We are mainly active throughout the canton of Vaud and particularly in the Lausanne region. We also operate in French-speaking Switzerland, in particular for our investors and professional clients.

Our agency is specialized in the brokerage of residential property and the sale on blueprints via the real estate projects which are entrusted to us in marketing. We also support our professional clients in the development of real estate projects and transactions related to investment real estate.

You are the C.E.O of a « traditional » real estate agency. So-called “low cost” agencies and platforms are popping up everywhere. What is your opinion about that?

The sector has always seen new players enter the market by offering models at low prices. However, the digitization of businesses has led in recent years to the arrival of « low cost » solutions in the real estate sector. In my opinion, there is room for all types of services but it is important to compare what is comparable. Most “low cost” agencies have as their main argument the low cost of their (limited) services, while traditional agencies focus on the quality of their overall services above all. We see here two distinct models and therefore two different markets. If the price argument is obviously central to any sector, I believe that sellers are not fooled and that they are aware of the important issues that arise from the sale of their property and from what a total and professional support brings as added value. It should also be noted that most « low cost » agencies do not come from the real estate world and develop business models focused on the cost of the service without real knowledge of the sales and investment professions. The needs of each seller and buyer are unique and the real estate market is a complex, constantly evolving ecosystem. Calling on a professional well established in a territory and with proven skills remains the best way to make your real estate project a success.

What is the fundamental difference between the service you provide to your clients and the one from a « low cost » agency? Actually, are you doing the same job?

On the one hand, what do “low cost” agencies put forward? The low prices of their services rather than their services themselves. These mainly boil down to enhancing the value of their clients’ assets via internet distribution. Their models are based on quick sales where professional intervention is not deemed necessary. This is how they keep costs down.

On the other hand, the traditional agency provides full and professional support, from setting the price to completing the sale, including the management of visits, negotiation and solutions to be provided during the sale process. The role of the real estate agent is then central to the achievement of the mandate because his experience in the field will make it possible to determine a fair price in line with the market, to identify the peculiarities and advantages of the property, to organize and lead the visits by providing specific answers to clients, to support them in their efforts and to put his/her network of skills at their disposal, to negotiate for the seller and to organize the sale at the notary. A good real estate agent will take care of these steps for the client, to optimize the sale and above all, to sell better and on better terms.

It should be noted that a traditional agency usually only charges for services in the event of a result, unlike « low cost » services which generally charge fees from the beginning of the process, regardless of how successful it will be.

So it is not the same approach and the expected result is of course not the same for the seller.

How to justify the higher costs of a traditional real estate agent?

The traditional real estate agent offers a 360° service. It combines training, experience and quality of service. It’s a professional in the field, not an algorithm or an online solution. He/She offers a real marketing service, a follow-up of his/her customers and is constantly involved for sometimes several months. He/She is paid only by result and if he is unsuccessful the costs are therefore borne by the agency. This is for example comparable with the support of a specialist doctor and advice obtained on an internet forum… The two approaches provide a response to a request, but the service and the result will undoubtedly not be the same.

USPI Geneva (Swiss Association of Real Estate Professionnal) in a video assures us that a «low cost real estate agency is always too expensive?» Is this your opinion?

Who says « low cost » says savings and this is generally done to the detriment of the customer. In the same way that a craftsman cutting prices will have to save on the quality of his/her services or his/her working time. The « cheap element » can indeed sometimes be very expensive. The sale of real estate raises significant issues. You only sell once and it is important that this process is carried out in the best possible way. The approach of « low cost » agencies is based on algorithms and other computerized solutions. However, to set the price of a property, it is essential to take into account a multitude of factors (orientation, view, nuisance, type of property, condition, quality of finishes, adequacy with the market, supply / demand, etc.) that a software can only partially take into account. Finally, the real estate agent is a sales specialist who bases his/her expertise on his/her knowledge of the market and his/her sales history, giving him a precise comparison allowing the value of a property to be fixed at the right price. Poor pricing can therefore mean a considerable loss of money for the seller. Finally, supporting the buyer, helping him in the search for financing, of negotiating and finally of providing solutions to each problem encountered, make the real estate agent’s role valuable in the sale of a property and allows to sell better, without constraints and without financial risk, the latter being remunerated only in the event of obtained result.

Computers provide useful tools but do not replace the key operational and technical role of a professional.

In your opinion, are «low cost» agencies a threat to traditional agencies in the long term?

These solutions undoubtedly meet the expectations of certain customers who wish to benefit from an enhancement of their property but who assume their sale alone with the challenges and risks associated with this approach. Conversely, traditional agencies are recognized for their skills and the concrete solutions they provide to real estate sellers. If the arrival of these models may have raised questions, I think that today they underline more than ever the difference with the services offered by traditional agencies, especially in the face of an increasingly narrow and demanding market where the expertise and the experience of a professional are central and make the difference. By defending their status as established professionals in the real estate sector and by providing high quality services and facilities, traditional agencies can therefore be confident about their place in the market.

How will the profession of real estate agent evolve?

Agencies must adapt to the market and its challenges. Brokerage has become a profession for specialists. Skills, experience and operational capacities are necessary in the face of a demanding market. The quality of the services offered by a traditional agency must therefore be in line with the expectations of the market and of customers. The real estate agent’s profession is thus becoming more and more specific and the real estate agent now acts as a specialist, expert in his/her market and able to provide concrete solutions to carry out the sales mandates for which he/she is responsible.

 

Find the properties for sale managed by PROXIMMO on Lookmove

 

Laurent Pannatier
C.E.O of PROXIMMO
Real estate agency

http://www.proximmo.ch/

PROXIMMO real estate agency
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