An online sales property purchasing system generating buyer competition and selling properties faster has the potential to “break the industry in half”, according to one Principal using the system.
McGrath Geelong Principal Will Ainsworth has sold 18 properties using Openn Negotiation, which enables buyers to submit flexible terms for the vendor’s approval, allowing more people to participate in bidding and lead to greater competitive tension.
The process also allows bids to be made and revealed to the market from day one of the campaign, as all buyers are pre-contracted. A low opening bid naturally generates a lot of interest from potential buyers, while a high bid can reduce interest and educate the vendor as the price nears market value.
Mr Ainsworth first used Openn Negotiation in July 2019 on a property in Rippleside, Victoria, at a time when the banking Royal Commission was wreaking havoc on buyers’ abilities to secure finance.
“I made it clear to the seller that I’d never used Openn Negotiation before, but they trusted my knowledge of real estate and my confidence in the process,” he said.
The property sold within eight days for a great price, leaving both the buyer and seller impressed with the process.
Within a few weeks of using Openn Negotiation, Mr Ainsworth realised it was having a profound effect on his business. To better understand the impact, he compared his first nine sales using the process, to his previous nine sales with traditional methods.
The results of the case study were compelling — Mr Ainsworth doubled his average number of bidders on a property and halved the number of days on market.
“I am blown away by the numbers,” he said.
“With Openn Negotiation, we are dealing with more buyers and more potential sellers.
“It’s so good for our business. We invite potential sellers to our open homes and they can see for themselves how many people we’re getting through the front door compared to our competitors.”
Mr Ainsworth has continued to achieve results following his first sale on the platform —listing 25 properties with a clearance rate of 90 per cent and an average of 19 days on market.
According to Mr Ainsworth, the transparency of the process is a key selling point.
“Every day, sellers know how much interest there is, significantly reducing the anxiety associated with selling a home,” he said.
Openn Negotiation has transformed the way Mr Ainsworth’s agents operate, delivering better work-life balance.
“Openn Negotiation is going to break our industry in half,” he said.
Those who use Openn Negotiation are going to continue on an upwards trajectory. The other half, at best, will stagnate. I know which half I want to be a part of.”
For the full detailed analysis on Will Ainsworth’s results with Openn Negotiation, download the case study here.