Brickfloor, a new proptech company in Australia, has launched an ibuying platform that could transform the home selling process in the country. The platform aims to remove uncertainty and stress for homeowners by providing them with certainty throughout their property sales campaign. This is achieved through a Home Price Guarantee, which acts as an insurance policy for sellers.
Under this guarantee, Brickfloor commits to buying the seller’s home for a competitive price. If a higher offer is received during the sale process, the seller can choose to sell to the third party and keep 100% of the difference. However, if there are no other offers, Brickfloor will buy the home for the agreed price. Sellers are charged a fee of 2% of the offer amount, payable upon settlement of the home.
With the Home Price Guarantee, Brickfloor provides sellers with peace of mind, the ability to buy before they sell, and leverage to obtain higher offers from other buyers. This innovative platform could revolutionize the home selling process in Australia.
ANZi Ventures and Harris Capital are among Brickfloor’s investors, and the company’s advisory board includes Matthew Quinn (former CEO of Stockland), Saul Eslake (former Chief Economist of ANZ Bank), and Geoff Harris (co-founder of Flight Centre).
According to Brickfloor founder and CEO Dean Fraser, purchasing a home first is a smart strategy in a rising market. However, research indicates that less than 20% of people intend to do so due to uncertainty surrounding the sale process. Brickfloor aims to eliminate this uncertainty and empower homeowners to buy first.
Fraser explains that Brickfloor’s Home Price Guarantee is an innovative advancement in the residential property sector that prioritizes the needs of home sellers and removes stress from one of the biggest financial decisions in a person’s life. The Home Price Guarantee is determined through careful consideration of comparable home sales, seller-provided information, market trends, and Brickfloor’s proprietary models.
Customer feedback has been overwhelmingly positive, with many describing the product as a “gamechanger for sellers” and “a revelation,” according to Fraser.
Brickfloor is the second iBuying platform to launch in Australia, with Sellable, backed by LJHooker and RayWhite, launching in 2017. The primary difference between the two models is that Sellable buys properties and flips them, while Brickfloor places them in a real estate investment trust (REIT) for investors seeking exposure to residential real estate.
