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A new eBay-style platform which allows vendors to bypass agents has attracted the ire of industry professionals, with many questioning its ability to attract the best price for someone selling a property.
The new service, intouch Real Estate, was launched by former Wizard Home Loans co-founder Paul Ryan. It forms part of intouch Group, a non bank and financial services business.
intouch has developed a LiveOffer system which will allow the vendor to control the sale process. Vendors can set a maximum or a reserve sale price and buyers can make offers online and in real time.
“The advantage of the LiveOffer platform is that both the buyer and the vendor know exactly where they stand," Mr Ryan, CEO of intouch Group, said last week.
Mr Ryan claimed that real estate agents ‘cloud’ the negotiation process.
Industry professionals were quick to post comments on www.rebonline.com.au about the new service, questioning Mr Ryan’s claim that vendors would do better using this service as opposed to selling their property with an agent.
“Well, what next?,” asked Nathan Mainhof. “It is blatantly clear that after 20 years in the mortgage game Mr Ryan hasn’t learned one bit about the art of selling or buying real estate and the process associated with it. It is obvious that the assumption is that every listed property will attract an offer…Well, I have a question for Mr Ryan…what happens if NO OFFER is made on the property?? And, as agents, we know that it happens all the time. Then I guess Mr Ryan will have to call the vendor and explain as to why his ‘magic’ software did not attract a bid… Good luck.”
Sam Joseph added the following comment: “Looks easy - what happens next? Does the vendor get some of his cousins to submit offers online? Talk about dummy bidding - I thought this was outlawed but looks like it's coming back!!!”
Brenton Wilson questioned whether the new service was largely designed to generate business for the financial services arm of intouch Group.
“Mmmmmmmmm ... and this ‘no experience as an agent mortage broker’ will just happen to get all the details of a whole lot of buyers who are looking to buy who will probably need finance. Oh, but it’s all about 'transparent ' buying and selling don't forget … I'd love it as a buyer though. I may be able to secure the property for thousands LESS than I would have been prepared to pay.
"Transparent for the buyer perhaps, but not a smart way to sell for a vendor.”
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