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LJ Hooker the Netflix of Australian Real Estate

lj hooker netflix australian real estate

Is LJ Hooker the Netflix of Australian Real Estate?

The majority of people buy and sell real estate through a real estate agent in Australia. However, in recent times new operators, like PurpleBricks and BuyMyPlace, have made it easier to sell a home either completely by yourself or with some reduced level of assistance compared to a traditional “full service” real estate agency.

These new operators use fixed pricing rather than variable commissions based on the sale price of the property.

The response to new entrants from traditional real estate agents has been varied.

“Purplebricks will find a small niche in the market and I wish them well”, industry veteran John McGrath told The Australian Financial Review.

LJ Hooker, one of the largest real estate agency brands in Australia, has announced the establishment of Settl which will allow people to sell their homes online for a fixed fee.

“These will be two brands – LJ Hooker and Settl – serving two distinct customers,” LJ Hooker executive chairman Janusz Hooker told The Australian Financial Review.

LJ Hooker’s decision to offer differentiated services to compete with new entrants and also their own traditional business is a smart move.

A company that is not prepared to cannibalise their own business to meet customers’ changing needs will eventually fail. Netflix was originally a DVD mail order business with 20 million users at its peak. Now as a streaming service it has 99 million users.

Perhaps LJ Hooker is the Netflix of real estate in Australia.

When comparing the services of new real estate businesses, consumers must compare what is and isn’t included compared to traditional real estate agency services.

Ultimately the most popular new real estate business models will be those which meet customer needs and match what the customer is willing to take on themselves.

AFR: The Purplebricks effect: LJ Hooker launches DIY disruptor

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