Agents vs Brands: Real estate’s power shift begins

• Consumers are increasingly choosing trusted agents over large real estate brands as technology reshapes the property market.
• Commission pressure, AI and property platforms are forcing agencies to rethink traditional franchise and sales models.
• Industry leaders believe specialist expertise and human relationships will become more valuable, not less, in the future.

The South African real estate industry is entering one of its biggest structural shifts in decades.

For years, large estate agency brands dominated the market through national footprints, franchise expansion and strong corporate identity. But today, consumers are increasingly choosing people over brands and technology is accelerating the shift.

As AI tools, property portals and digital platforms place more information directly into consumers’ hands, buyers and sellers are starting to question what they are actually paying estate agents for, whether traditional commission structures still make sense, and how much value agencies truly add to the process.

According to Grant Smee CEO Only Realty Property Group, the industry is now being forced to confront uncomfortable realities. 

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“Consumers have access to more information than ever before.”

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“Online property platforms control enormous amounts of property data, attorneys can provide much of the legal expertise, and AI tools are answering many of the questions buyers and sellers once relied on agents for.”

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The result is an industry under growing pressure to evolve.

A structural shift in real estate

‍Technology is fundamentally reshaping how property transactions happen. Consumers can now search listings instantly, compare prices, research suburbs, estimate property values and even access legal and financial information without ever speaking to an estate agent.

At the same time, social media and personal branding are giving top-performing agents their own direct influence with audiences, often stronger than the brands they represent.

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Smee believes this is changing the traditional balance of power inside the industry. “The difficult truth is that in sectors like sectional title property, it’s becoming harder for agents to justify high commissions if they’re not adding meaningful expertise or guidance to the process,” he says.

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The pressure is already visible in declining commission structures across the market.

According to Smee, average commission rates have fallen from roughly 5.5% five to eight years ago to closer to 4.2% today, while operational costs continue rising and agents increasingly demand stronger commission splits.

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“Many businesses are trying to solve that by hiring more agents or expanding rapidly, but that often creates even bigger problems,” he explains.

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An industry under pressure

‍Smee warns that rapid expansion and franchise-style growth models are becoming increasingly difficult to sustain in a market where trust and personal relationships are driving transactions.

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“Too many businesses grow too fast into regions where they don’t have the right people or support structures,” he says.

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“You can’t simply franchise and expect the same level of value-add. Real estate is still fundamentally a people business.”

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He is also openly critical of rigid corporate structures that rely heavily on sole mandates and restraint-of-trade clauses to retain income and control agents. “There’s no need for a sole mandate if you’re not adding meaningful value to the client,” says Smee.

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“It becomes a mechanism to lock in income rather than serve the consumer.” He argues the same principle applies to restrictive restraint clauses.

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“If your brand genuinely adds value to agents, you shouldn’t need restraints. Strong agents stay because they want to, not because they’re forced to.”

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Supporting the individuals behind the brand

‍Rather than focusing purely on scale and headcount growth, Smee believes the future belongs to agencies that build long-term value around individual agents.

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“The focus needs to be on building people - developing skills, talent and knowledge that create value for agents and clients,” he says.

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He argues that too many people still enter the industry chasing quick commissions instead of building sustainable careers. 
“If you treat real estate as a long-term career and focus on genuinely helping clients, there is still enormous opportunity.”

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Importantly, Smee believes the strongest future brands will be those that allow agents to build personal influence while still maintaining professionalism, systems and consistency.

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“The individuality of agents should strengthen the brand, not compete with it,” he explains. 

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This is becoming increasingly important as top-performing agents grow their own audiences through social media, podcasts, digital marketing and personal networks.

In many cases, consumers are now following individual agents long before they engage with the agency brand itself.

Expertise may become more valuable, not less

‍While technology is disrupting the industry, Smee believes it will ultimately increase the importance of specialist expertise rather than eliminate agents altogether.

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“There’s a misconception that joining a large brand automatically guarantees success,” he says. “High performers succeed because they constantly upskill themselves.”

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Negotiation skills, communication, relationship-building, emotional intelligence and deep market knowledge remain critical in complex property transactions.

Smee believes the future of the industry will increasingly favour specialist operators rather than generalist, high-volume agencies.

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“The future is going to be in areas where agents can provide real expertise - developments, luxury property, commercial real estate and investment structuring,” he says.

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He expects the market to gradually shift toward fewer dominant agencies and more independent, high-performing professionals building specialist reputations within niche markets.

The rise of the informed consumer

‍One of the clearest warning signs for the industry is the rise in for-sale-by-owner activity. Consumers are increasingly questioning why they should pay full commissions when digital platforms already provide access to listings, marketing tools and buyer networks.

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“We’re already seeing more for-sale-by-owner activity because consumers are questioning what they’re actually paying for,” says Smee. “If the industry doesn’t adapt, the traditional agency model will look very different in 10 years.”

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That does not necessarily mean estate agents disappear. Instead, the role of the agent may evolve from simple listing facilitation toward high-value advisory, negotiation and strategic guidance.

Real estate’s next Chapter

‍The South African real estate industry is clearly entering a period of reinvention. Technology, AI, changing consumer behaviour and rising competition are forcing agencies to rethink long-standing business models that have existed for decades.

But amid the disruption, Smee believes enormous opportunity still exists for professionals willing to evolve.

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“Real estate can absolutely still create incredible careers and change people’s lives,” he says. “But the businesses that survive will be the ones focused on creating real value, for agents and for clients.”

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As the industry moves deeper into the digital era, one thing is becoming increasingly clear: the future of real estate may belong less to the biggest brands and more to the people clients trust most.

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