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Three Ways to Flat Fee Real Estate Success

Flat-fee real estate has to be about more than just fees - it also needs to focus on smart technology and offer exceptional customer experience. 

Mike DelPrete, is a global real estate strategist and a Tall Poppy Board Member. He believes focusing on service, technology and fees is important.

“We think there is a bright future for flat-fee real estate, but it can’t be just be about offering a lower price. It also has to deliver an excellent service, with smart technology - the lower fees are a bonus. We are laser-focused on these things and Kiwis are responding to what we offer,” says Mike DelPrete.

Meanwhile, around the world, other companies offering flat-fee real estate are withdrawing from key markets.  Purplebricks offers a flat fee to sell homes, with limited service.  This fee is charged whether or not the home sells. Vendors also pay the agent’s commission once the home is sold.

The company recently withdrew from the United States and Australia - its losses doubled in the US and shared dropped by 75% in two years. Experts believe the flat-fee disruptor expanded too quickly into new markets. 

Mike DelPrete believes Purplebricks not adjusting its model to meet the markets they operated in contributed to its withdrawal from Australasia.  

“This teaches other flat fee operators some valuable lessons - you need to adapt to the local market, and have time and money up your sleeve to play the long game (if required),” says Mike DelPrete.

Year on year, Tall Poppy Real Estate continues it’s rapid growth in the New Zealand real estate market, with a 77% increase in sales and 84% increase in revenue. This is achieved off the back of a 75% increase in franchise ownership with the brand now active from Auckland to Invercargill.

If you’re keen to find out more about our fairer flat fees, and the benefits we can deliver to you with our customer service and technology approach, you can read more here or call 0800 82 55 76 to book a free appraisal.