Purplebricks only lasted 18 months in Australia on a fixed-fee model; now, a start-up thinks it can embrace the scheme.
Upside Realty is successfully attracting quality candidates as it grows its national footprint.
The model differs from traditional real estate agents who charge a commission on the sales price. Upside Realty charges a flat fee of $8,900 for private treaties or $9,700 if it goes to auction.
The company already has listings in many states. And it claims its model increases job satisfaction by cutting time spent on admin by 75 per cent and provides a pay structure that leaves most strong agents better off.
Like many agents who watched Purplebricks fail, Victorian-based sales agent Robert Taleski was dubious of the model. However, he decided to join Upside earlier this year.
“I was particularly drawn to the small business model Upside offers; not only are you no longer dealing with traditional franchise databases, which can at times be cumbersome and clunky for external use, but you are essentially set up to run your own office and business from the very start,” Mr Taleski said.
In his first three months, he completed eight sales, and business does not appear to be slowing.
Before joining Upside, Mr Taleski spent 10 years in a traditional office, and he believes the Australian fixed-fee model has stronger prospects than what Purplebricks was offering.
Adam Rigby founded the company because he wanted to create a real estate model that would benefit all in the sales process.
“To that end, we are confident that more Australians will continue to sell their properties via Upside for a fairer price, while the proposition we developed to support this will continue to appeal to agents looking to join the next wave for property within a tech-minded global community,” he said.