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New PropTech business leveraging off-market selling surge

With international students set to return to Australian shores next month, new Melbourne based PropTech business, OpenOpen, is predicting a sharp increase in interest and demand  from international purchasers.  

Now itโ€™s providing a platform that addresses pain points for both sides of the transaction; applying a “no sale, no fee” philosophy for sellers, and opportunities for direct and transparent purchases for buyers. 

OpenOpen Vice President Emilie Ouyang explained that the move towards off-market sales has become extremely prevalent in China, Hong Kong and the US, and that OpenOpen had already secured $10 million in seed funding to make a serious dent in the Australian market. 

โ€œWhile the nature of off-market transactions means thereโ€™s no readily available data to accurately gauge the volume of properties changing hands privately, it is clear the trend is real and itโ€™s here to stay,โ€ she said. 

โ€œThere are many reasons why people are opting to buy and sell homes off-market, including quicker sale and avoiding the hassle and cost of a drawn-out marketing campaign and open day inspections. 

โ€œA marketing campaign through an agent can cost in excess of $5000 without any guarantee of results.  

โ€œWe also find that with off-market sales thereโ€™s less of the emotion and mayhem of an auction campaign, where buyers can get caught up in the frenzy โ€“ which is a common real estate trap. 

โ€œPrivacy is another key motivator and itโ€™s not just high-profile celebrities or businesspersons wanting to maintain discretion about their personal lives and fiscal transactions, but everyday Aussies who equally also donโ€™t want family or acquaintances scrutinising their financial decisions.โ€ 

OpenOpenโ€™s initial market research has revealed a general dissatisfaction with real estate agentsโ€™ performance, including: 

โ€ข One-fifth (20 per cent) felt that their agent(s) do not present relevant information about recent sales to sellers. 

โ€ข A quarter (25 per cent) said their agent/s did not estimate the value of properties as part of their presentation/s to sellers. 

โ€ข More than half (54 per cent) reported that their agent/s did not present results of similar homes that had recently sold on the market.

โ€ข Only one-in-five (20 per cent) were provided with expectations about average time on the market. 

โ€œThere is also a general reluctance from interested international buyers to use real estate agents and a huge swing towards non-agency platforms, such as OpenOpen.โ€ Ms Ouyang said.  

โ€œAustralia has the highest number of international students in the world, comprising approximately 20 per cent of the countryโ€™s tertiary enrolments, so with the recent announcement that fully vaccinated foreign students are allowed back into the country, weโ€™re expecting increased interest from parents wishing to buy investment properties on their behalf. 

โ€œPreviously, buyers keen on the idea of off-market opportunities often faced the difficulty of knowing how and where to get involved, so OpenOpen turns this around by being very accessible and transparent. 

โ€œWhen English might be a second language, dealing face-to-face with an agent can be an intimidating and unpleasant experience.โ€ 

While no win, no fee has been a long-term offering in the personal injury law space, OpenOpen is following suit with its approach.  

โ€œSellers pay a 1 per cent service fee only after their property has been sold,” Ms Ouyang said. 

For more information, visit openopen.com.au 

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