I am currently going through housing sale myself and I got to thinking.
Wow this is expensive and I seem to be doing the leg work.
What am I truly paying for?
The I got to thinking what is the value of the real estate industry in the UK?
I can tell you it's a lot. House sales alone average at £48bn per year over the last 5 years and house prices are on the up. We have seen a predicted 8% uplift in 2020 alone against the average house price as demand is significantly higher than capacity.
So what does this mean? Well the average traditional estate agent charges c1.5% of the house sale value. That means that as the average 2020 house value is £240k you will be paying a whopping £3,600 on estate agents. Or c£1,000 on some of the other fixed fee hybrid online/ in your house type estate agents.
What are we offering?
We are offering a fixed fee, 3 tiered package deal where we would be simply hosting your property advert and empowering you to manage your house sale. This would start from free but the best deal package would be £75 which could have peripheral add-ons and will be supported by referrals to 3rd parties.
So here's the vision!
Moving house is so expensive!
Expensive offices, cost of cars, cost of fulfilment for just getting a board on your wall and then don't forget needing to make a profit on top of all that. It's exhausting! And expensive.
So why then do we as house sellers get lumbered with:-
- Managing and maintaining our own appointments
- Managing and maintaining our own advertisements
- Dealing with visitors and going through every offer
- Aggressive office staff who are driven by commission to get your house sold regardless of the cost
- Rarely do I see a return back into the community from the estate agent which is at odds given they
I have been there and done it. And I think it is time for a change. So what do we need to do?
Given that e-commerce has seen a surge in popularity over that last few years AND with the advent of COVID-19 this year we as sellers do not want to be going backwards and forwards to the town to go into an office when we can self serve online. The time of being an Introvert has never been better. We can go online, we can self serve, we can be empowered to manage our own destiny without being slaves to the traditions of old.
Secondly, given that peripheral costs are lumbered on you in traditional selling methods I have questioned why bother? So if we strip back and ask what are we actually paying for? The answer for me was simple. We are paying for advertising space. Much like long standing vendors of old for other types of property (cars, etc) why not apply the same logic to housing?
So here's the product offering...
- Get Real Lite - FREE
- 6 months advertising space on getrealestateuk.co.uk
- Share you ad on social media
- Manage the sale of your property
- chat and email support
- Performance report
- Get Real Basic - £75
- all of the above plus,
- 6 months of 3rd party site listings (including your popular property search engines)
- Get Real Premium - £495
- all of the above plus,
- 12 months of 3rd party site listings
- premium listings where available
- interior and exterior photography
- For Sale Board and fitting
- Get Real Add-Ons
- interior and exterior (£250)
- Drone photography (price on application - we will source someone)
- Sale Boards (£60)
- EPC certification (£100)
We will also generate revenue from referrals to mortgage brokers, solicitors and anyone who can contribute towards making our peoples lives easier.
We will provide easy to use login services, simple and clean site navigation and take care to provide you with all the compliance needs.
Additionally any profit generated per year will see a minimum of 10% donation (no questions asked) to do the top 3 voted grass root sports clubs and local projects to help young people get into fitness or keep young people inspired to go on to do great things. Our donations will be determined by input from you as users and by votes from our shareholders.
What's in it for you as an investor?
The business is expected to make an expected average annual return of approx £404k per year (2021 - £305k if we can get started with your help).
If we assume that 60% of that revenue is profit then that means the business will generate c £242k per year.
We are offering the initial 10% of our business to support getting us off the ground a crowdfund. Any investment over £50 that supports us in reaching our target or stretch target will get a weighted share of that profit. But let's say we hit £1,000 and you donated £100 towards that target. What do you get?
Rounding the example down a little to make the math a little easier.
£1,000 target was hit with a £100 donation from you. This is 1% in this case.
£240,000 Annual Profit (ignore tax for this illustration)
1% ownership for you from supporting this crowdfunding campaign
£2,400 annual return to you.
That would be a 24 times return on your investment.
We are also open to bigger investors for a negotiable return. Please contact me direct for more information.
We will use the funding provided by you for one simple goal...
Fund the website development and the foundation release. My team and I will develop the website up from there and respond to your feedback as users through quick releases so you can see a quick and real impact. The more we raise the quicker we can get to the market and help people gain access to the property market and give something back to our communities.