One of The Property Market’s great selling points is our low commission fee (just 2 per cent + GST). The reason we can charge so little is because we’ve been a bit clever about the way we run our business. Many low-fee agencies are based on the traditional real estate model (which has high attendant costs), and low fees are their attempt to gain market share. These agencies are fine when the market is buoyant, but when the market slumps they can really suffer – just look at The Joneses.
The Property Market isn’t a traditional real estate company.
When I was developing the business model for The Property Market, I looked at how we could create an agency that was light on day-to-day expenditure. One of the main costs I identified was the running of high street branches.
In the deep, dark past, before the arrival of the internet, high street visibility was essential. But in our digital age, a “virtual” presence is far more important (and cheaper) than an office on main street. Engaging with clients online means we don’t need to pay for expensive office space, desks, computers or an admin person to chase up paperwork and do the filing. This leads to lower overheads, and this is reflected in our fee.
Another way in which we have cut costs is by choosing to use voice over IP technology, and we make our calls over the internet. This significantly cuts the cost of calling, and means we don’t have huge monthly phone bills to worry about.
By being a little creative, we have developed a way of doing business that’s far more efficient and cost effective. Our lightweight, sustainable business model future proofs us against downturns in the market, and means we can pass savings on to our clients.
It’s a win-win situation!