The market can be unpredictable at times, and there is no guarantee how long it will take to sell a home, but that could change with the help of a new proptech company.
Brickfloor works with agents to provide a competitive reserve price, so if the home does not sell after an eight-week campaign, it will buy the house at the agreed price.
Dean Fraser started working on the company more than two years ago as a way of providing certainty and security during the process of selling a home.
“Before we went to agents, we did market research with home owners. We asked them if they would like a product like this, what they would pay for it and what they like about it,” Mr Fraser told Real Estate Business.
He then started talking to real estate agents, and they saw merit in the product being widely used.
Before the product launched back in March, he spoke to many real estate leaders who showed strong interest in the idea.
“The CEOs of those big agencies thought this was credible, and that it could be used as a listing tool. That, together with our market research and home seller feedback, gave me the confidence to launch it,” Mr Fraser said.
“I received strong feedback from agents. It’s a great product for sellers, buyers who need to sell, and for agents seeking innovative solutions for their customers.”
While it helps sellers guarantee the sale of their home at an agreed, market rate, it also helps those who want to buy but have to sell their house first.
Mr Fraser believes agents can use this tool to secure and bring forward listings.
“If you’re an agent, the key thing you want to do is to win a listing,” he said. “If a seller is worried about the downside and the home not selling, the agent can demonstrate innovation and introduce the seller to this product.
“It’s a way for agents to win listings and lock in their commission.”
After the company appeared on Nine News, it has received a lot of interest from people who want to sell, and the company has been able to pass those leads onto agents it has worked with.
“We are not an agency; we provide a home price guarantee product that works very well with agents,” Mr Fraser said. “Our model is 100 per cent agent-friendly.”
As Brickfloor grows its property portfolio, properties will be added to a property fund and rented before they put them back in the market up to eight years down the line.
During those years, it will utilise real estate agents to manage those properties.
“We want to do some interesting things around affordable rental for those in need,” Mr Fraser said. “We intend to allocate 20 per cent of our rentals to those in need.”
Those who struggle to find affordable and secure housing, such as low-income elderly, abused women and at-risk youth, will be able to access cheaper rentals.
“We plan to do something to address affordable housing with our fund,” Mr Fraser said.
He wanted to help people have a roof over their head after seeing people living in the streets of Melbourne. So, he took it upon himself to utilise his business to make a difference.
“If you can make something work, why not try and have a positive impact on people in need.”
Currently, Brickfloor is only available in Melbourne and Sydney, but the company does have plans to expand.
“We just need to make sure we are delivering a beautiful customer experience for sellers in Melbourne and Sydney first,” Mr Fraser said. “We need to get that right before we move into other states.”