BuyMyPlace.com.au, an Australian online real estate portal which allows vendors to sell their house without the services of a traditional agent, made a strong debut on the ASX this week, raising over $4 million.
The company opened Friday's trading at 22c, respectably above its 20c price at listing earlier in the week.
BuyMyPlace claims 2800 homeowners have used its services to sell their home, saving in the order of $15,000 in agents' commission fees.
Vendors sign up for a package of online services, including signs to put in front of their homes, and listings on classified ad portals at a minimum cost of $650. The company says three new value packages have now been launched at $895, $995 and $1295.
A strong marketing push prior to listing launched January 28 in Queensland and Western Australia resulted in a spike in property listings of 20 per cent with leads increasing a massive 245 per cent nationally.
Site conversion also rose 12 per cent following web site and user experience improvement with average revenue per listing up 14 per cent on the back of strongly maintained gross margins.
CEO Paul Heath says he is delighted with the results of the test marketing campaign which exceeded expectations. He adds there is clearly a strong desire in the Australian community to save money by selling their property themselves.
"These results provide a strong foundation and learnings for a national roll out of the (marketing) campaign in the future which will be funded by the recent public offer," Heath says.
According to industry figures quoted in the Australian Financial Review, 30 per cent of people customers cite their experience with a real estate agent as "poor" or "disastrous".
Last year BuyMyPlace.com.au turned a revenue of $934,000 and a $283,000 EBITDA.