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A newcomer in the real estate industry scene is flipping the script on the traditional commission splitting model that looks to benefit all parties in a transaction.
Grounded on the abundance mentality approach — which prioritises collaboration and mutual benefit over competition and scarcity — the newly launched Conjunction Realty unveiled it will operate under a 60/40 per cent commission split.
Notably, this is a shift from the typical, with director David Buheka stating that "most agencies tend not to conjunct at all and if they do, on occasion, it is typically 20 per cent."
"We have been offering 40 per cent to other agencies since day one."
While the firm acknowledged the scheme is a “bold move”, it underlined the non-traditional model is designed to “open up the entire market” by boosting the chances of property owners to get the optimal price while helping buyers find their desired property at a quicker rate.
Directors Brian Washbourne, David Bugeja and Glenn Hankinson, who have over 100 years of combined real estate experience between them, said the new approach comes after observing the typical mindset among agents when closing out a transaction.
“We believe that some agents put themselves first and are reluctant to share commissions with other agents,” Mr Bugeja stated.
He added the real estate industry is “sometimes only focused on its own profits” while often overlooking the needs of its clientele.
The founders of the new firm are optimistic the new system would spread a “people-over-profit” mindset when it comes to providing real estate services, which they claimed was “long-overdue and welcome” in the industry.
Mr Bugeja called on the industry to “start collaborating together as one” for the “benefit of sellers and buyers”.
“It’s time for change. Let’s collaborate, not compete,” he said.
Further providing evidence of the firm’s belief that agents must work together instead of competing, Mr Washbourne cited data that showed there is plenty of business to go around for the estimated 133,000 real estate agents across the country.
In Queensland alone, where the firm operates, Mr Washbourne said embracing the abundance mentality in doing business can work given the predicted surge in transactions in the near future.
“Recently, an article circulated in Queensland predicted that there will be a million more people moving to the state between now and the 2032 Olympics.
“This expected population growth is unparalleled in other parts of Australia and, together with the influx of 400,000 overseas migrants over the next two years, is driving demand for housing on the Gold Coast,” he stated.
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