Why are our fees lower than other agencies?
We don't cut corners, we don't compromise on service and we certainly don't compromise on marketing. We simply take a smaller profit margin, avoid unneccessary overheads and pass the savings on to our clients.
Typical AgencyWhat's the most we can charge for our service?
SparrowWhat's the best price we can offer for our service?
The number 1 reason that Brisbane real estate agencies still charge 2.50% - 3.00% commission is simply because vendors don't challenge it. Agents can go to an appraisal, say 'this is the price that everybody pays', and vendors sign on the dotted line.
We take a lower profit on each sale in order to deliver a better result to our clients. What's in it for us? Any business that consistently delivers a better product than it's competitors is going to grow and succeed. That's the type of agency we've set out to build.
Marketing Fees & Risk
Typical AgencyGet the vendor to pay for marketing upfront, so that the agency can't lose.
SparrowThe agency takes on the marketing risk, so that the vendor can't lose.
Most agencies require vendors to pay for marketing upfront. This is great for the agency – it means there's no way they can lose. Plus, it puts additional pressure on you to lower your price in order to avoid losing your marketing investment.
In no circumstances do we want our vendors to be at a loss. Which is why we as an agency absorb all of the risk. If you property doesn't sell, we make a loss, not you.
Overheads & Offices
Typical AgencyMultiple offices attract more vendors, but increases fees.
SparrowOne central office dramtically reduces overheads and fees.
Running a real estate agency is expensive! Rent, licencing fees, compliance, Realestate.com.au subscriptions - they all add up. And for any agency, these costs must be recovered through the fees they charge.
Every physical office that an agency runs duplicates these fees, which then duplicates the costs that must be recovered. By running one central office, our overheads are much lower, so there's less cost to pass on to our clients.
Typical AgencySell few properties, charge large fees per property
SparrowSell many properties, charge lower fees per property
Agencies have two choices when it comes to pricing their services. They can either charge high fees per property, and sell a small amount of properties. Or they can charge lower fees, and sell more properties.
Both strategies offer the same exact product. The only thing that changes is the price. Think supermarket vs. corner store. Yes, we make smaller margins property, but we deliver superior value every time.
Typical AgencyAttract customers through brand recognition, networking & cold-marketing
SparrowAttract customers by offering a genuinely better product
Because most agents are offering the same product as everybody else, they rely on personality, branding and networking in order to obtain listings. This is hard, time-consuming work. It takes many hours of labour just to get each lead, time which then must be recovered in fees.
We operate much differently. By offering a unique product that is genuinely better than other agencies, we can rely on the merits of our product in order to obtain listings. As you could imagine, it's much easier work. Which means less wasted resources spent 'prospecting' for leads.