Local real estate agents say there is no place for online agencies in the bush as home buyers and sellers want human interaction during one of their largest investments.
This comes as UK-based online real estate agency Purple Bricks decided to depart Australia last week, following less than three years operating.
Ryan Smith, PRD Nationwide Wagga real estate agent, said people in regional areas want customer service.
"I think it's very much customer service based in regional areas and people want to see the hand shake and deal with a real person," Mr Smith said.
"We still get a lot of our clients coming into the office and we're not at the stage where we've adapted to an online model regionally."
Mr Smith said Purple Bricks' business model did not suit Australia's market.
"Our housing is not all stock standard, where as in the UK they have developed a community that has all identical terraces, which is a lot easier for computer-based platforms to pick a price," he said.
"We're lucky that we have lots of variety in our housing and that's probably their downfall because they were not really able to predict our difference in housing.
"Also reading the reviews, majority of people said there was no communication."
Similarly, One Agency's director Colin McGill said agencies need to know the market to succeed.
"You hate to see anyone in the industry struggle and close the doors after investing a lot of money into a business, but you just need to know the market and where you're investing in," Mr McGill said.
"Their model of selling could work in inner-city, metro areas but certainly out in rural areas, people just want the touch and feel of their agencies because it's a different fit."
Mr McGill said people in regional areas are likely to do business with someone they know, or have connections to.
"There's also a bit more than listing a home; there's a whole process, from selling the house, to negotiating and then right through to the settlement," he said.
"People want to have a safety net when selling their family home and so they are not going to trust someone they don't know."
Purple Bricks announced in a statement the company was unable to make the progress in the Australian market that they hoped.
"With market conditions becoming increasingly challenging, we do not believe that the prospective returns in Australia are enough to justify continued investment," the statement read.
Real Estate Institute of NSW CEO Tim McKibbin said despite the rise of technology, it is yet to make an impact on some areas of the property industry.
"Online services are certainly growing in every industry and this is seen with real estate and property services where an enormous amount of money is being spent," Mr McKibbin said.
"What we're seeing happening is property services are being stratified and so technology is impacting on high frequency, low complexity and minimal human interaction areas of agency practices.
"But tasks with low frequencies that require human interaction are not being disrupted by the technology space."
Mr McKibbin said this will likely continue as computers do not come with emotions that people require during this time.
"Computers don't have humanity or the ability to empathise with somebody compared to a local, trusted professional adviser that will guide you through one of the largest transactions that most of us will make," he said.
"It's usually a stressful time in many instances and people will turn to humans rather than computers."
Like Mr Smith, Mr McKibbin said the state's housing market is not a "one size fits all" scenario.
"In the Purple Bricks' model, you got inserted into the model rather than professional agents designing a suit of services that respond to unique requirements of the property and vendor," he said.
"In this model, the agents were remunerated to list property and the more properties they listed, the more transactions they entered into with vendors and the more money they made.
"Whereas in traditional models, there are incentives to have the property sold for the best outcome possible."
Mr McKibbin said people are likely to turn to trusted agencies that have a high chance of returning the best prices.
"I don't think it took too long for consumers to recognise that what Purple Bricks was offering was an inferior service in a financial outcome to the traditional model," he said.
"The advertising was all about promoting their cost-effective services and that was their point-of-difference, but in my experience with goods and services: if you're cheap as pod, then consumers are rarely going to gravitate towards you.
"The quality provider is where you're going to find the market and the difference between a mediocre and good sales price is many hundreds-of-thousands-of-dollars and saving $10,000 to $15,000 on commission is why I think the market gravitated strongly towards the traditional model."