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 itโs 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.
โWhile the nature of off-market transactions means thereโs no readily available data to accurately gauge the volume of properties changing hands privately, it is clear the trend is real and itโs here to stay,โ she said.
โThere 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.
โA marketing campaign through an agent can cost in excess of $5000 without any guarantee of results.
โWe also find that with off-market sales thereโs 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.
โPrivacy is another key motivator and itโs not just high-profile celebrities or businesspersons wanting to maintain discretion about their personal lives and fiscal transactions, but everyday Aussies who equally also donโt want family or acquaintances scrutinising their financial decisions.โ
OpenOpenโs initial market research has revealed a general dissatisfaction with real estate agentsโ performance, including:
โข One-fifth (20 per cent) felt that their agent(s) do not present relevant information about recent sales to sellers.
โข A quarter (25 per cent) said their agent/s did not estimate the value of properties as part of their presentation/s to sellers.
โข 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.
โข Only one-in-five (20 per cent) were provided with expectations about average time on the market.
โThere 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.
โAustralia has the highest number of international students in the world, comprising approximately 20 per cent of the countryโs tertiary enrolments, so with the recent announcement that fully vaccinated foreign students are allowed back into the country, weโre expecting increased interest from parents wishing to buy investment properties on their behalf.
โPreviously, 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.
โWhen 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.
โSellers pay a 1 per cent service fee only after their property has been sold,” Ms Ouyang said.
For more information, visit openopen.com.au