Homely is one of our favourite Australian PropTech platforms. It combines property search with neighbourhood guides and agent ratings wrapped up in a beautifully designed, easy to navigate site. Jason Spencer, Co-Founder and CEO, explains why Homely’s success is no accident.
Two brothers in the real estate tech business?
We come from a very entrepreneurial family with a strong history in the Australian mortgage industry. Our family business, called Interstar, was a pioneer that helped introduce the concept of non-bank home loans in the 1990’s. While companies like Aussie, Wizard and RAMS were the retail brands, we were the wholesalers behind the scenes funding the mortgages for thousands of businesses. It was a very successful business, ultimately sold to the Challenger Group. Later we launched several other B2B technology businesses in the financial services space but this all changed for us in 2007 when we had the idea for StreetAdvisor.
What started StreetAdvisor and is still operating?
So StreetAdvisor is a business that actually started with a poor experience that I had with real estate. It dates back to 2007. I had been quite disappointed with our home or more in fact the street, it was noisy, lots of traffic and we really didn’t get along with the neighbours. I’m sure many can relate to disliking their street in some form. So we decided to build a website called StreetAdvisor.com.au that would be like Tripadvisor, but for streets and suburbs.
This quickly took off here in Australia and also in the USA and became the biggest community of its kind where people could talk about what its like to live somewhere. Eventually the community started to ask us to add homes for sale and we built homely.com.au on top of the original StreetAdvisor community launching in early 2014.
Give us a sense of your growth since launch?
We have seen fantastic growth over the first three years, traffic doubling every year and over 90% of all listings submitted nationally. We are on track to have at least 10 million people visit our site in the next 12 months and we have over 90% of all agents signed up to our service. It’s been a lot of hard work to get the business where it is today. We believe no other portal has grown at the rate we have in the first three years.
Why the emphasis on design?
Our design team will tell you it’s not just about design, its also about the user experience. With the maturing of the internet consumers are used to seeing beautiful things often so it often comes down to a sub-conscious level whether something is designed well or not. We want consumers not only to look at homely to see a beautiful real estate search, we also want them to have a well designed experience. When consumers line our search experience up alongside the competition it’s important they can tell and feel the difference. And we think our recent international multiple Webby nominations validate our work.
Why did you move into agent reviews when the main function of the site is property search? Was it monetization and was that always your plan?
We think reviews are a great way for agents to highlight their success, but more importantly consumers want to know as much as they can about who is representing their most important asset. It’s so important to be able to get more than just performance statistics and so late last year we launched our own agent review platform where vendors, buyers and landlords can review their experience.
We also worked with agents to ensure some level of validation of the person who is reviewing the agent. We see the problem with reviews on sites like Google is that anyone can write a review – competitors, trolls, the agent’s mum, you just don’t know and the agent often doesn’t know. So we don’t have anonymous reviews, we ask for the property address and we have a team of people doing moderation. Reviews for us were never about monetisation, they are about transparency.
Sites like ours and other ratings sites give agents so many ways to better promote themselves online backed up by qualitative content instead of just typical sales data. I know the industry is cautious about agent reviews but we believe with our 10 year experience in the reviews space we can protect the agent while still giving transparency to the consumer.
How ready are agents for the digital age and how prepared are they to pay to enhance their online reputation?
I think the majority are ready for the digital age, they really have no choice if they want to stay competitive. Of course we see some agents who really are too flat out selling homes to bother with online but most acknowledge that with vendors and home buyers doing the research online you need to be there. Providing they can see ongoing value, agents will be happy to continue to pay to promote themselves online.
Homely has definitely pushed the mark in terms of building a beautiful product and we have shown agents that a free-to-list portal can work in Australia, that there there is an alternative to promote your home online. We tend not to think about the competition or what they think, our team is focused on creating something special and unique in the industry.
Have you received external funding or plan to raise it?
No external funding, all privately held.
Finally, any other exciting Australian real estate tech platforms you like?
No response from me on this one, don’t wish to leave out any number of our current or future partners!