The Australian commission-free real estate platform buyMyplace says it has experienced an upsurge in its business, reporting a FY17 first half revenue that’s up 129% on the previous corresponding half in 2016.
The company, which formed in 2007 and gives vendors control of their home sales without charging a commission, says it reported strong growth in all key metrics, including: listings, revenue, gross profit and average order value.
BuyMyplace CEO Paul Heath said the portal’s business model accounted for its revenue increase.
“We are very pleased with our first half results. The fact these results have been achieved in a declining market shows the buyMyplace business model is somewhat anti-recessionary and has achieved significant growth, regardless of whether the total market is expanding or contracting,” Heath said.
“While total market new listings are reportedly down 25% in January 2017 on prior corresponding period nationally, buyMyplace has experienced strong growth with listings up 93% and revenue up 173% on prior corresponding period,” Heath noted.
In January 2017, buyMyplace added a fixed fee Full Service package with a dedicated real estate agent, effectively able to offer everything a traditional agent can, but at a flat fee and without commissions.
The Full Service package costs $2,995 upfront with the a final payment of $1600 only payable on a successful sale. Initially launched in Melbourne, the Full Service package will be rolled out across other states in Australia in the coming months.
Heath says the the company’s business model offers greater choice to BMP customers.
“We offer an expanded choice for vendors – everything from a DIY model right through to our new full service offering, where our vendors have access to an agent and all the services they have previously only been able to access via a traditional agent. We estimate our latest full service offering increases our addressable market to more than 90% of vendors.”
