|GICS Sub-Industry||Real Estate|
|Market Capitalisation ($M)||$14.54|
As of 11/08/2017 11:00AEST
buyMyplace (ASX:BMP) runs an online real estate business that provides real estate agency services to customers who wish to sell their homes but commission-free when completing the transaction. The business is growing strongly based on the success of its customers and streamlined process of customers purchasing homes.
Customers have a choice from a large variety of service bundles, with a basic package which includes a listing of the customers’ home on each of Australia’s largest real estate portals, such as realestate.com.au, a “For Sale” board that is delivered to the customers, and direct access to professional over-the-phone consultancy. Additional services include professional photography and property valuations.
Using BMP can allow vendors to save significant amounts of money, namely $19,000 in real estate commissions and fees on the average home value of $630,000 in Australia and savings of $23,000 on the average home price in Sydney. In other words, vendors are able to save approximately 3% of the sales price, which would have otherwise been paid to a traditional real estate agent.
BMP’s business model revolves around eliminating the real estate agent in the traditional process. This is naturally appealing to buyers and they can interact directly with the owner of the property of interest, rather than having to go through the tedious negotiation process with an agent, who usually focuses on commission.
BMP has partnered with companies that share similar philosophies, such as Movinghub and AFG, both of which are also distruptors in their industries. Movinghub is a leading services provider in connection services, and connects utilities such as energy and water accounts, telecommunications and broadband internet, streamlining the way customers can undertake once tedious processes. AFG on the other hand, is one of the largest mortgage broking groups in Australia, and one of the country’s leaders for financial solutions. This partnership allows BMP customers to access more than 1400 financial services products from more than 50 of Australia’s leading lenders, providing numerous advantages in terms of scale and efficiencies. Overall, the partnerships allow sellers to mortgage and insurance, and utility connections.
Glennon Capital does not own BMP in the portfolio.