Analyzing the Internet-based Changes in the Finnish Residental Real Estate Market. Case: Igglo (Track 3, Session 4)
Author(s) :
Anne Sunikka (Helsinki School of Economics, Finland)
Johanna Bragge (Helsinki School of Economics, Finland)
Abstract : This paper is about real estate industry in Finland, and the Internet-based changes that have turned a collection of static pictures and text into a more interactive search and decision making tool for home hunters. The novel e-services and marketing model of Igglo, a newcomer to the Finnish real estate industry, are described. In addition, several US exemplars of innovative ways of offering real estate services are presented. Finally, different ways of providing real estate services are compared in order to judge whether the Internet is now ready to fulfill its promise of more efficient and nearly friction-free markets. The real estate industry is an information-rich service industry � the information that was previously owned by agents is now openly presented on websites. The services can be divided into online and offline components. Online services focus on providing comprehensive and rich information to the customers, with easy to use and attractive user interfaces. The purpose of the offline services is to offer elements that are lacking online, most importantly on-site viewings, and thereby providing high-touch information to aid buyers in their decision-making. The information provided on real estate websites is manifold. For example Igglo�s proprietary picture database has made innovative services like silent sale and earmarking possible. The silent sale service presents a clear change in thought � the sellers that have previously stayed passive have now a possibility to initiate the selling process by silently �test-selling� their apartments. This means that the push mode has turned into pull. Other innovations include that the users serve as content creators, they are offered more search options and more versatile price information on the websites. The process phases after finding the potential buyer (i.e. servicing, negotiation and agreement, and closing) will most probably face changes in the form of digital innovations in the future. Some of these future prospects also discussed in this paper.

Menu