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A new online platform aims to help first home buyers get into the housing market by redistributing the $10 billion spent annually on selling property.
Launched last month, property website ReValu8 is bringing optimism to first home buyers by providing them with thousands of dollars in incentives.
ReValu8’s COO Chris Wisbey explained to REB that each property on the platform has differing buyer incentives attached to it and the amount is determined by the seller on a ‘no sale, no fee’ basis.
“The seller will determine both the advertising and commission budget. This figure is limited to between 0.5 per cent to 2 per cent for advertising and [between] 1.5 per cent and 3 per cent for commission,” Mr Wisbey elaborated.
“The maximum combined amount or ‘Success Fee’ a seller can set is 5 per cent (2 per cent minimum) of what the property ultimately sells for,” he said.
After the first 10 per cent of the fees is disbursed to the listing agent at settlement, the buyer receives 30 per cent of what remains, according to Mr Wisbey.
The remainder is then distributed to other parties involved in the transaction, including the agent’s office, broker and the ReValu8 Social Media Affiliate Rewards Program (SMARP), with the breakdown of the distribution fully transparent to all involved.
Mr Wisbey explained that ReValu8 collects the payment from the seller upon the sale of a property and disburses the fees to the appropriate parties at settlement, including the buyer’s share, which is deposited directly into their selected account.
Overall, according to Mr Wisbey, 80 per cent of the commission and advertising revenue from the sale of a property through ReValu8 goes directly back to the parties involved in the transaction.
He explained that the balance is then used by ReValu8 to promote the website and run the business.
[Related: New portal set to reshape industry]
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