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Growth remains steady at Upside Realty after it marked its 1,000th listing since opening shop two years ago.
This achievement is a milestone for the flat-fee real estate agency, which has experienced growth of 20 per cent month on month since January.
Since the unsuccessful stint of Purplebricks, the flat-fee aspect of real estate has been viewed with a critical eye. This has left many agents to ask whether it has a place in the Australian market.
“This is a positive disruption,” Upside Realty CEO Adam Rigby told Real Estate Business. “We see the opportunity to do it differently, and there is room for it.”
However, when the flat-fee model gets brought up, the conversation is easily directed to the failure of Purplebricks. Mr Rigby was quick to point out that Upside is “one part similar, and 99 parts not the same at all”.
Unlike Purplebrick, Mr Rigby built a company in Australia, by Australians, for Australians.
“We embrace what is working well in the market,” he said. “We have great agents, and we support the industry... we think there is an opportunity for a different pricing model.”
Whether you are listing a bungalow or a mansion, the fee does not change. Vendors will only pay $8,900, with $2,900 up front to cover costs.
The package includes all the marketing costs, so vendors do not have to fork out more cash to attract eyes to their listing.
The company has focused on hiring agents who have been in the industry for a long time, and they have a track record with a good customer base they can leverage.
Additionally, it creates an environment where agents can focus on selling.
“We take the administration work from them and give them the best technology,” Mr Rigby said. “We find once an agent joins us, they are blown away by the technology and support they get.
“We give agents more of the job they like to do. We remove a lot of the administration, and the mundane stuff, such as putting up signboards — we have a team that focuses on that.”
Without the extra red tape, Mr Rigby believes his agents can manage twice as many listings. He also has a mentor for every 10 agents, so they have the opportunity to stay on their best game.
“The agents work from home, so they get to structure their week and their day around their life,” he said. “We don’t have an office, which is why we can offer better value to the vendor — they don’t have to pay for the high rental costs of an office.”
When it comes to what an Upside agent gets paid, Mr Rigby said most of them are paid more than their previous jobs.
“Those that don’t joined us because of the lifestyle... they have more time to focus on earning and capability.”
The agents get a base salary, but the bulk of their income comes from commission.
To be able to get to where Upside is today, it has continually sought feedback from vendors and agents to see how it can improve its service.
“And we embrace it,” he said. “A lot of companies don’t do that; they get in a rut.”
When it comes to the flat-fee model, Mr Rigby does not see it being any more than 20 per cent of the market. He believes it serves part of the community who wants fair and transparent pricing.
“We are not here to tell the rest of the industry they are wrong; they are able to do what they want to do,” the CEO said.
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