Welcome Guest [Log In] [Register]


Reply
  • Pages:
  • 1
Commission-free Hello Real Estate wants to become the Uber of the real estate industry; oh dear
Topic Started: 12 Sep 2015, 09:22 AM (2,094 Views)
Rastus2
Member Avatar



Not convinced it will overthrow the entire industry completly and rapidly, but it will certainly disrupt greatly.


http://www.news.com.au/finance/real-estate/commission-free-hello-real-estate-wants-to-become-the-uber-of-the-real-estate-industry/story-fndbawks-1227523776828

Commission-free Hello Real Estate wants to become the Uber of the real estate industry

FIRST they came for the taxis ...

Last week, the biggest names in Australian real estate joined Sir Richard Branson in Brisbane to discuss the future of the industry.
The key theme? Real estate is a “ticking time bomb waiting to be decimated by an outside force”. According to a recent mystery shop, “less than 20 per cent of agents chosen at random in any way came close to showing value for their $10,000-$15,000 commissions”.
“Is this industry just a sitting duck waiting to be picked off by a well-trained sniper?” was the question posed by the Titans of Real Estate conference to its line-up of heavyweight speakers.
Well, they may have an answer sooner than they hoped.
A new company billing itself as the Uber of real estate is aiming to disrupt the $6 billion home sales industry in Australia by abolishing the lucrative commission structure, potentially saving sellers tens of thousands of dollars.
Hello Real Estate, which plans to list on the Australian Securities Exchange next month, charges a fixed fee of $9,900 to sell a home from start to finish. It’s not the first flat-fee agent, but it’s got some big names and big bucks behind it.
When some agents charge up to 3 per cent commission, selling your home can be costly.
When some agents charge up to 3 per cent commission, selling your home can be costly. Source: News Corp Australia
Based on the latest CoreLogic RP Data for Sydney sales over the four weeks to Sunday 6 September, real estate agents pocketed an ‘extra’ $68 million in commissions. Hello claims it could have saved sellers an average of $12,939 in that period.
Unlike most real estate agents, which work on appraisals, Hello provides independent home valuations, as well as conveyancing and legal services to see the sale through to the end.
It’s ditched the stuffy old ‘agent’ tag, instead calling its agents ‘mentors’, there to gently guide the seller through what it calls a “hi-tech, high-touch”, semi-DIY process. Help us to help you, sort of thing.
Josie last week sold her Terrigal home on the NSW Central Coast for $1.25 million, saving $22,625 in agent commission fees, based on the traditional real estate model of 2 per cent plus GST ($28,325), marketing and advertising costs ($2,640), and conveyancing and settlement ($1,650).
Crucially, that extra $20,000 has greatly increased her spending power, equating to almost an extra $180,000 on her new home loan.
Brett, an ambulance driver also from the Central Coast, recently sold his Wamberal home for $770,000. He says he and his wife used the $15,000 they saved to go on holiday.
Hello Real Estate wants to tap technology to become the Uber or Airbnb of the industry.
Hello Real Estate wants to tap technology to become the Uber or Airbnb of the industry. Source: Supplied
“By my reckoning it was nearly $22,000 I would have had to pay in agents’ commissions, plus the costs of conveyancing, plus all the brochures that would have had to be made up,” he told news.com.au.
“And the agents I did talk to were talking a couple of thousand in levies on top of the commission. All rolled in, it figures to $15,000. That’s a big difference. We went on holiday. We wouldn’t have been able to do that before.”
Brett said he had sold houses in the past, and found the experience “miles better”. “I suppose once upon a time you had to book your ads in the paper and all those sorts of things, but now with most advertising and everything being online, there’s not a lot really that you can’t do yourself,” he said.
But you still need some support with the uncomfortable “to-ing and fro-ing”, he said — the part the mentor takes care of.
Hello currently has 12 licensees — some former real estate agents, others mortgage brokers — who are assigned postcode territory. Each own 70 per cent of their business, with Hello holding the other 30 per cent.
After developing the pilot model in South Australia, Hello is now operating across NSW and Victoria, and will soon roll out in the ACT and Queensland.
Fast-food pioneer Bob LaPointe is chairman of the board and helped develop the model.
Fast-food pioneer Bob LaPointe is chairman of the board and helped develop the model. Source: News Corp Australia
Hello Real Estate founder Phil Horan says the industry knows it’s vulnerable.
Hello Real Estate founder Phil Horan says the industry knows it’s vulnerable. Source: Supplied
Advertising agency Y&R also owns a 10 per cent stake in the company, which has the high-profile backing of business guru Bob LaPointe — the man who brought KFC to Australia in the 1960s, later followed by Pizza Hut and Sizzler.
Mr LaPointe is chairman of the board, and helped develop the model along with founder Phil Horan. “We see the appraisal model as quite outdated,” said Mr Horan. “We’re quite different in that all of our clients get a valuation by a licensed valuer.
“We mix that valuation with all the latest RP Data market sales, and somewhere between those two pieces of info is the price of the house. We’re not discounting anyone’s house, we’re getting the best market prices we can.”
Mr Horan said the idea came to him several years ago when he was trying to sell his $2.5 million Adelaide Hills home through an agent.
“It had been on the market for about a year, and one day I asked the agent what the open house was like,” he said. “He sat there and in absolute detail described the five groups that had gone through the house — one was a teacher, and so on — what he didn’t realise was I’d been sitting in a car just down the road. No one had come.”
He sacked the agent immediately, and sold the house himself a month later to someone who lived just down the road. “The industry themselves realise it’s game over in terms of how they’ve been doing it,” Mr Horan said.
frank.chung@news.com.au
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
Profile "REPLY WITH QUOTE" Go to top
 
Loki
Member Avatar


Next stop on the Technology Disruption Express: Mortgage Brokers.


“Talk sense to a fool and he calls you foolish.” - Euripides
Profile "REPLY WITH QUOTE" Go to top
 
Terry
Member Avatar


Loki
12 Sep 2015, 02:20 PM
Next stop on the Technology Disruption Express: Mortgage Brokers.
The whole industry's broken. The industry used to be an opportunity for people who had failed at everything else to have a stab at middle class respectability. Now I know people with law degrees shifting property. I know a REA who was a trance DJ in a former life and now makes bundles by working in a realty in the leafy suburbs.

Next to go should be the mortgage brokers. This should all be handled by algorithms.
Edited by Terry, 12 Sep 2015, 02:33 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Trollie
Member Avatar


Terry
12 Sep 2015, 02:30 PM
This should all be handled by algorithms.
In theory anything can be handled by an algorithm.

As you demonstrate every day, the people writing them aren't so smart as they think.
Profile "REPLY WITH QUOTE" Go to top
 
Loki
Member Avatar


Trollie
12 Sep 2015, 08:48 PM
In theory anything can be handled by an algorithm.

As you demonstrate every day, the people writing them aren't so smart as they think.
How do we know you aren't an algorithm designed to sound like a complete moron?


“Talk sense to a fool and he calls you foolish.” - Euripides
Profile "REPLY WITH QUOTE" Go to top
 
Trollie
Member Avatar


Loki
12 Sep 2015, 08:50 PM
How do we know you aren't an algorithm designed to sound like a complete moron?
Because I'm not the one who sounds like a moron.

Profile "REPLY WITH QUOTE" Go to top
 
Terry
Member Avatar


Trollie
12 Sep 2015, 08:48 PM
In theory anything can be handled by an algorithm.

As you demonstrate every day, the people writing them aren't so smart as they think.
An algorithm can probably do better than a mortgage broker as it can analyze multiple variables from any number of solutions. Also, by removing the human lost, the savings can be passed on to borrowers. Relay that back to the puppet master and see what he thinks.
Profile "REPLY WITH QUOTE" Go to top
 
Loki
Member Avatar


Trollie
12 Sep 2015, 09:15 PM
Because I'm not the one who sounds like a moron.
Wow, AI has advanced quite considerably. You could almost pass as human!


“Talk sense to a fool and he calls you foolish.” - Euripides
Profile "REPLY WITH QUOTE" Go to top
 
lonewolf
Default APF Avatar

Trollie
12 Sep 2015, 08:48 PM
In theory anything can be handled by an algorithm.

As you demonstrate every day, the people writing them aren't so smart as they think.
Ha ha ha..yeah..I guess Larry Page would do much better if he invested in real estate rather than writing algo..wait..did you just google Larry Page?
Profile "REPLY WITH QUOTE" Go to top
 
Loki
Member Avatar


lonewolf
12 Sep 2015, 10:59 PM
Ha ha ha..yeah..I guess Larry Page would do much better if he invested in real estate rather than writing algo..wait..did you just google Larry Page?
:lol :lol

Trollie just googled Larry Page and algorithm and got something about a Panda ...

Now he is more confused than ever.

Posted Image


“Talk sense to a fool and he calls you foolish.” - Euripides
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Enjoy forums? Start your own community for free.
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy