Entrepreneur sisters Rhonda Wong (left) and Race Wong founded OhMyHome, a mobile application that allows HDB buyers and sellers, landlords and tenants to transact directly without agents. Photo: Koh Mui FongBY LEE YEN NEE leeyennee@mediacorp.com.sg,
SINGAPORE — After being hit by a lean spell that saw the number of licensed agents in the Republic fall to its lowest since 2011, the real estate agency business is set for another shake-up, with the entrance of a mobile application that seeks to eliminate hefty agent commission fees.
OhMyHome, founded by sisters Rhonda and Race Wong, provides a platform for Housing and Development Board (HDB) dwellers — sellers and buyers, landlords and tenants — to transact directly with one another without going through an agent.
If they require help with paperwork or prefer the full services of an agent, they can choose from either a S$1,688 or S$2,888 package — significantly lower than the 1-2 per cent commission typically paid in a HDB resale transaction.
“Eighty-two per cent of Singaporeans live in HDB and this is (a market segment that) our other companies are not serving,” OhMyHome’s executive director Race Wong, the elder of the two, told TODAY in an interview. The sisters are also behind Anthill Realtors, a real estate consultancy firm serving investors.
“HDB dwellers often don’t transact as much as private property owners and because of that, they probably have less information and less access to the best agents,” added Rhonda, the company’s chief executive.
The idea behind their latest venture is hardly new in an era where technology and innovation are disrupting the traditional way of doing business. In Malaysia, Speedrent was birthed as a platform to cut out the middlemen in the housing rental market and in the United States, Allre allows buyers and sellers to handle real estate transactions completely online.
Mr Lyon Poh, head of digital + innovation at KPMG in Singapore, said that while all start-ups aspire to disrupt the “inefficiencies in the market”, few have been able to replace existing market participants entirely.
“In the case of property agencies, the role of such intermediaries extend beyond just ‘matchmaking’ but will also include the ‘trusted adviser’ element of the agent-and-client relationships,” he said, adding that incumbents’ expertise and experience can continue to be relevant if they become more innovative and agile as well.
However, some agents told TODAY their livelihoods may be negatively impacted given that disruptors such as OhMyHome are entering the scene at a time when transaction volumes are hit by cooling measures and loan curbs.
“I think the app will attract some market share because of the no or low fee. In this market when there are fewer deals to go around than before, it can be tougher for us. There are already people leaving the industry because of the tougher competition these days,” said a property agent, who asked to be known only as Adrian.
Mr Marcus Chu, chief operating officer of Singapore’s largest real estate agency ERA, said the emergence of start-ups in the industry underscores the need for existing players to re-invent and future-proof existing business models to serve today’s savvy consumers.
“Over the years we have seen many new start-ups trying to tap into the property market. Some are targeted at consumers and some are targeted at real estate professionals ... Today’s tech-savvy consumers expect to be more informed in a transparent market and they want ease of access to genuine property listings and data,” he said.
Since OhMyHome was made available for download in May, it has seen its listings grow to more than 300 and facilitated around 10 transactions so far. The Wong sisters hope that as the business gains greater traction, they can double the company’s headcount in a year from the current 10, which includes management, agents as well as design and IT staff.
But attracting agents to join the company can be an uphill task, especially when the commissions they currently earn are significantly higher than the fixed salary that OhMyHome can offer.
Mr David Ng, a senior real estate adviser at the company, is a veteran property agent that took the plunge despite having to take home 40-50 per cent less income.
“I’ve been around since 2003 and I’ve seen people having to pay their agents even though services were not up to par. There were also people who have difficulty footing commission because it can be a lot of money. I don’t think OhMyHome will eliminate agents, but I hope it can play a part in improving service standards of the industry,” he said.
What exactly are the services provided by the real estate agent?
For resale, we provide the full agent service or just the documentation service at a flat rate. Please call us at 61001009 should you wish to enquire more. : )
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If anything happen between the buyer and seller, the agent will be come to resolve it.
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Many a times it boils down to having peace of mind, especially when you are not familiar with the process. The real industry shakeup, and reason why fewer agents are entering the field, is that the the government has definitely tighter control over how agents are qualified through the establishment of the Council for Estate Agencies (CEA). The minimum entry level exams for being in the industry is stringent and tests the competency of new agents thoroughly. More importantly, it protects consumers and acts to mediate property transactions that have gone wrong. Unlike CASE, CEA does and has disciplined rogue realtors who bring ill repute to the industry.
What this means to the layperson is that you now have a much higher chance for Realtors who broker your properties professionally, spending their time and efforts to ensure that you get right seller/landlord and buyer/tenant relationships. The service that you are expected to get, and should expect to get, is your property being transacted in accordance to your best interest and best effort by your appointed realtor.
Of course at the end of the day, whether transacting on your own or getting a realtor is up to the individual.
For sites such as these, I do have a question whether they are also accredited by CEA, and that consumers stay protected should a property transaction go wrong. Perhaps OhMyHome would care to comment?
With sisters looking that good, I see them lifting the entire real estate industry out of the doldrums!
Sign me up now!
Thanks for the support! You can download the app on your phone now and get started! Available on both App Store and Google Play. Or you can call us at 61001009 or email us at help@omh.sg should you wish to enquire more. Wish you have a good day ahead :)
yes i have been wondering since day one what exactly is the value delivered by property agents that warrant 1-2% of transaction...??
over-priced admin fees ?
this industry is overdue for a over-haul...
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I just completed my own transaction and its not difficult at all... Let me know if anyone needs help... Just treat me for a simple coffee after that... 😊😊😊
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Dear ignorant Eric, its not difficult at all when you are transaction your own property. Thats bcoz you won't sue yourself if you mess up your own deal. If the person you offer to help will hold you liable for any mess up, I am sure you won't settle for only a cup of coffee.
Treating your own cough and common flu is also not difficult, why do you pay $40-$50 to hear a doctor tell you what you already know?
Its about a piece of mind and accountability.
Of course if you are familiar with the law, you don't need to pay high legal fees to lawyers. But not everyone is familiar with the law. Likewise, not every owner is equipped to handle their own deal without hiccups.
You may criticise a particular salesperson. But please don't criticise a trade you are not familiar with. Thank you.
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I sold my HDB.without agent. HDB website provides detailed info anyone who read English can understand the procedure, and a leap of faith to DIY. Nothing to lose and much to gain. I even convinced my friend to DIY and saved her thousands in commission.
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No lah, they the DirectHome charge S$800 for listing. This OhMyHome is completely FREE.
I dont think there is any charge for listing in DirectHome. Maybe you want to check with DirectHome.
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I sold my HDB without agents and many people have done it. Tons of info on HDB website and online and it is actually quite easy. Even the paper work is not difficult at all !!!
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Stacy Teo, is it true without an agent a buyer can easily change his mind midway thus leaving the seller in a lurch?
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Seller keeps the deposit lor. Even with agent buyer can still change the mind. That's what deposit is for.
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That app asked for too much info.. NRIC number for what? Address for what?
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To check if you are the owner of the house you're selling?
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Is good too have all this additional service but why are you all still charging?? I feel is just another online portal services by another agent trying to go for mass business..
Any problem can actually call up the HDB Hotline which is more reliable.. And is FOC..
Else I find DirectHome is much cheaper..
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DirectHome you have to pay to list. Ohmyhome is free to list.
And the good thing is they provide flat-fee agent services which they are very transparent about the fees; its all stated online.
Nope, I just checked its website. Listing in DirectHome is free.www.DirectHome.com.sg Check it out.. or you can call them! Make the industry clean and clear
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Great. Been waiting for such.
Property agents are indeed ridiculously overpaid, redundant and dont add values at all.
Will agents post as home owner or the price n commission been added to the price of the flat??
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I am not sure they are slapping own face as they said cut away middleman but actually they also provide agent fee @ discounted rate?? Correct me if I read it wrongly??
In that case just said cheaper agent fee la😂😂
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Think of it like the stock brokerage business. Stock brokers used to be kings in the financial world. Ease of access and transmitting information killed them. But when you buy and sell stocks now, you still pay a fee, much lower one.
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This doesn't cut out the middle man, this just provides a cheaper one at a fixed rate. This is in fact the very essence of what a middle man is.
DirectHome This really cuts out the middle man..
Seriously we live in a country that is clear and upfront law, simply go yo hdb and make as many enquiries as you need to know the procedure. People who engage agent because the have no time, every process can be done by your own without agent. I had done it before on buying and selling I save load of money. I just pay for my advertisment which cause me less then $50.
This new ohMyHome is a great thing and am sure can help alot of buyer or seller to save the cost and can help them pay or buy things that can be usefull for their home or life rathen that agent fee that sometimes I think the agent dont deserved that money for an easy job.
same sentiment.. but just let the market normalise.www.DirectHome.com.sg is another one. Got to know this a few months back. so far so good!
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Is there any website or app for buyer who look for residential or commercial without listing fee? Pls advice thanks
Source:http://www.todayonline.com/business/new-app-cuts-out-middleman-could-shake-property-market
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