Iv'e started my own Real Estate Business in Queanbeyan / Canberra

DJBarnstar

DJBarnstar

OK, so here goes Team!

Hope this is OK, but quite a few peeps on here know me and although I'm a bit of lurker I've been on here some time and am an avid investor.

I've taken the plunge and started my own RE company after being a salesman for LJHooker for 8 Years.

There was a recent merge with a rival company that highlighted the fact that I needed a change.

Not easy with 2 kids under 3 with a full time mother!

So here is my synopsis:

People don't go into shop fronts anymore, so why pay $60K a year + a receptionist + sales admin to run a RE company, when the internet is your shop window.

My model takes points from a successful business here in Canberra named LiveIn. Although I don't know Eric personally, the founder, is a some time contributor here. I watched his success over a few years and decided I would like to do something similar after he was bought out by IPG.

So, I have created a business that cuts down on overheads and passes on the savings to the clients. It's named Mates Rates Real Estate Australia.

www.matesratesrealestateaustralia.com.au

I work from home and deliver the same if not better service and marketing as the big boys.

The point of difference though is that I charge $5500 commission + marketing rather than the standard 2.2%- 2.75% that I used to have to charge (Ave sale price is around $420K). So it's a significant saving.

Here is the style of marketing that I am doing:

http://www.industriemedia.tv/files/20162-w/vr/index.php
(This media costs $899 + Allhomes who charge $875)

No paper advertising unless the client wants it. (and who would at $5000 per page in the Canberra Times)

Anyway, what are your thoughts?

Constructive criticism all good, some won't like it but I think it's the future.

Cheers,

James
 
Just make it REALLY easy to communicate without seeing each other in person and you will do very well.

I rarely see my wider network, we all work via phone and email. As long as you keep people informed and they feel comfortable they know what is going on that is what would keep me around, that's for sure.
 
nhg said:
Just make it REALLY easy to communicate without seeing each other in person and you will do very well.

I rarely see my wider network, we all work via phone and email. As long as you keep people informed and they feel comfortable they know what is going on that is what would keep me around, that's for sure.
Click to expand...

That's good advice NHG. I'll take that to heart. TBH I hadn't really thought of gaining clients interstate.

Usually, I'm really hands on, but with this model I need to deal with peeps off the radar.

Thanks.
 
Good stuff, hope it all works out well.

As an aside, try getting a shorter domain name... ones that long tend to get mis spelled a lot
 
DaveM said:
Good stuff, hope it all works out well.

As an aside, try getting a shorter domain name... ones that long tend to get mis spelled a lot
Click to expand...

nhg said:
Ah yeah. I meant to comment on that. MatesREA.com or something simpler.
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Yes, I realise now it was a mistake.

I had to put the Australia in as there was another Mates Rates in VIC somewhere.

It is now all over my advertising and branding.

Starting your own business has a steep learning curve!
 
DJBarnstar said:
Yes, I realise now it was a mistake.

I had to put the Australia in as there was another Mates Rates in VIC somewhere.

It is now all over my advertising and branding.

Starting your own business has a steep learning curve!
Click to expand...

Totally get it.

I was Casas Property Network, website casaspn.com.au

Nothing more frustrating than "C. A. S. A. S. THEN P FOR PETER, N FOR NELLY. ALL ONE WORD .COM.AU"

I just bought 1stopproperty.com.au makes it much easier and is more memorable I think, tho a little tacky.

*still setting up the website ATM which is why it's not in my signature*

Other things I picked up, EFTPOS services incl American Expres, uniforms, 1800 number (redirects to every manager so someone always picks up), PO Box (privacy) and insurances (tho never had to use that, my years in corporate made me anal about WHS and Quality).

The other big lesson was my target market of investors with residential renovations/construction, totally not the right market for me tho I do the occasional resi project. Commercial maintenance, lower risk higher profits.
 
Good luck. I reckon there is definitely a market for these kind of business models around qbn and act. If the costs stack up, house calls to the clients when face to face is needed / preferred is always popular (Ie, initial consultation) and then just ensuring those lines of communication stay open. It sound like you have plenty of experience with the job in general, so it's really just about reassuring your clients that you can still do as good a job or better at a more competitive rate.
 
First of all, good luck with your new venture!

One thing that I noticed is that it doesn't say for the two listings that you have, where they actually are! The first one (the big house), when you click in the ad it says Queanbeyan, but for the townhouse I can't find the suburb anywhere!

Seeing as you said you'll be selling for both Queanbeyan and Canberra, you might want to fix that.
 
It's just as well you got out of there.

Real estate agents aren't highly regarded- but when they're also Hookers...
 
Btw- the fixed price commission is not a new concept. As Rolf has mentioned it's been done by Gecko, which was set up by a member of this forum.

The internet only part of the business is possibly new.

I know the office you combined with quite well. I imagine it got quite cramped in there. I've dealt with them over a number of years and have a lot of respect for his knowledge of the local market, and did extremely well with one particular deal. I hope that you will be able to match his knowledge. Good luck.
 
luckyone said:
First of all, good luck with your new venture!

One thing that I noticed is that it doesn't say for the two listings that you have, where they actually are! The first one (the big house), when you click in the ad it says Queanbeyan, but for the townhouse I can't find the suburb anywhere!

Seeing as you said you'll be selling for both Queanbeyan and Canberra, you might want to fix that.
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Thanks Luckyone,

I'll look at this. Thankyou for the feedback.

geoffw said:
Btw- the fixed price commission is not a new concept. As Rolf has mentioned it's been done by Gecko, which was set up by a member of this forum.

The internet only part of the business is possibly new.

I know the office you combined with quite well. I imagine it got quite cramped in there. I've dealt with them over a number of years and have a lot of respect for his knowledge of the local market, and did extremely well with one particular deal. I hope that you will be able to match his knowledge. Good luck.
Click to expand...

Thanks Geoff,

Yes, Gecko has been and gone here, however, they still had the shop front model where as I don't and I pass those savings onto the clients while still retaining my profit margin.

I'm glad you did well in a deal, but assume you were the purchaser? I aim to ensure the vendor who pays my fee, gets the best possible price.
 
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