A new agent group, Refund Real Estate, is set to share its commission with vendors and buyers, prompted in part by a survey which found the majority of property buyers were eager for a better deal from agents.
In what Refund Group claims is an industry first, the company has begun its charge into the real estate market with a new Refund Real Estate office in South Brisbane. It hopes to have at least 50 new franchises up and running by July next year.
Executive chairman of the Refund Group, Wayne Ormond, said similar to its Refund Home Loans mortgage broker business, customers who buy or sell property through Refund Real Estate will each receive a cash refund, to be taken from the agent’s commission.
“We believe people are essentially demand driven and choose to do business with a particular company because they get a better deal," said Mr Ormond.
“We conducted a survey of real estate customers in capital cities and regions through the well-credentialed Marketshare Company which clearly indicated that as many as 70 per cent of customers were not satisfied or were unhappy with their experience [with agents]," he continued. "There was also a strong feeling that agents are preoccupied with their vendors and seem to have forgotten their 'other customer', the buyer.”
"In fact, throughout our survey, many people said they would like to see Refund offering a refund in the real estate market.”
Refund Group, which has appointed Stan Crook as general manager of Refund Real Estate, will operate the new business as a shopfront operation. Each store will share the space with the company's other professional franchisees, which include mortgage brokers, financial planners and insurance specialists.