Strike: Revolutionizing the Real Estate Industry
When it comes to buying or selling a home, traditional real estate agencies can come with hefty fees that can quickly add up. Enter Strike, an online real estate agency that aims to revolutionize the industry by reducing costs and providing faster transactions.
In this article, we will delve into the benefits of using Strike, its founding story, and its growth and expansion. What is Strike?
Strike is an online real estate agency that allows individuals to buy or sell their homes without having to pay high agent fees. By operating entirely online, Strike is able to reduce costs by eliminating the need for costly branches.
Its user-friendly website and mobile app also enable faster transactions, making the home buying or selling process much more efficient. Strike also offers additional services such as moving services, mortgage advice, and conveyancing all at lower costs than traditional agencies.
Benefits of using Strike
The most significant benefit of using Strike is the lower cost. Unlike traditional real estate agencies that charge anywhere between 2% to 4% commission fees, Strike charges a flat fee that starts from as low as 0.10% for its basic package and goes up to 0.50% for its premium package.
This results in significant savings for those buying or selling homes. Additionally, Strike does not have costly branches, which further reduces its overheads, allowing them to pass on the savings to their clients.
Another perk of using Strike is its ability to facilitate faster transactions. With everything carried out online via their website or mobile app, individuals can buy or sell their homes without the need for time-consuming appointments and in-person meetings with agents.
This not only saves time but also gives individuals more control over the process of buying or selling their home.
Strike Accessibility
Another significant advantage that Strike offers is its accessibility. As an entirely online agency, anyone in England can use Strike through their website or mobile app.
The convenience of being able to engage with an online real estate agency is especially valuable for individuals who may not have easy access to traditional agencies or prefer to conduct business from the comfort of their own homes.
Founding Story
The story of Strike begins with Housimple, which was founded by Alexander Gosling, an architect and property developer, and Sophie Cronin, a marketing specialist who previously worked for Pixar, Vodafone, BT, Lloyds TSB, Vauxhall, Ralph Lauren, and LOreal. Housimple was an online estate agency that operated under the same principles as Strike, with its low pricing, efficient processes, and user-friendly approach.
Pricing and Success
Housimple was successful from the start. Its low pricing and three different packages offered at 0.10%, 0.25%, and 0.50% fees respectively, quickly attracted attention from individuals looking to save on agent fees.
In contrast, traditional estate agencies charged around 2% of the total house value. Housimple’s success was demonstrated when they sold a 3 million home in Essex at a fee of 0.67%.
Growth and Funding
The success of Housimple led to its expansion and increased revenue generation. The company enjoyed steady growth, doubling its annual revenue year-on-year and becoming the second-biggest online estate agency in the UK, behind PurpleBricks.
Other online estate agencies such as easyProperty and eMoov also made waves in the industry. A whopping 5% of all UK homes were being sold online by 2017, with a drop in both prices and agent fees.
Housimple, however, experienced something of a setback when they got carried away with a controversial advertising campaign called “Who’s Derek?” that was widely criticized. Despite this, Housimple secured 20 million in funding.
Rebranding to Strike and Expansion
In 2019, Housimple rebranded to Strike, which immediately positioned itself as a competitor to PurpleBricks. It was able to build on Housimple’s success to capture over 10% of the home sales market.
Strike was also able to raise a further 11 million in funding, proving that it had tapped into a growing trend towards new and innovative ways of buying, selling, and renting homes.
Conclusion
Whether you’re looking to buy or sell your home, the use of an online real estate agency like Strike can save you thousands of pounds in agent fees and make the process more efficient. Strike is an excellent example of how technology and innovation can disrupt industries and offer better solutions to consumers.
Its rebranding to Strike and expansion is testament to the continuing success and growing popularity of online real estate agencies.
3) Strike Revenue Model
Strike’s business model is centered around reducing costs for customers while also providing excellent service. The company is able to achieve this by removing standard agent fees associated with traditional real estate agencies.
Strike’s volume-based business model and leads acquisition strategy allow them to operate as a loss leader, ultimately attracting more business.
Removal of Agent Fees
One of the primary advantages of using Strike is its lower cost. The volume-based business model implemented by Strike allows the company to do away with traditional agent fees.
Instead, the company operates on a model that relies on a lower percentage cut of the home value when selling. This percentage varies depending on the package chosen, with the basic package starting at 0.1% and the premium package topping out at 0.5%.
With this model, the more the company sells, the more money they make. This model also eliminates any agent fees for home sellers.
This stands in contrast to traditional real estate agencies like PurpleBricks, who still charge an agent fee despite their online-only approach. Strike’s model has helped them capture a growing share of the UK real estate market.
Premium Services
Strike’s premium services provide add-on packages for customers looking for additional value. One of the most popular premium packages is hosted viewings, where customers can have attended viewings conducted for them, increasing the number of potential buyers and allowing for more exposure of the property.
Approximately 60% of users opt for this service. This helps Strike increase its revenue streams, making it less reliant on volume sales.
The company also offers mortgage advice and a refinancing service that provides borrowers access to better rates and services. Doing this helps retain existing customers, providing additional value and helping them achieve their real estate goals.
Strike has plans in place to keep innovating and expanding premium services. This includes creating products specific to real estate agents, to better equip them to work with customers with differing needs.
4) Strike Funding, Revenue, and Valuation
Funding for Strike has been secured through various avenues, with a total of 33 million in funding. The company received 15 million in funding from Freston Ventures and Toscafund Asset Management in 2019.
The 11 million raised from backers, including Greenspan, Harry Hill, James Thomson, Stelios Haji-Ioannou, and Neil Woodford in 2018 has helped the company expand its services. Strike’s revenue and valuation figures have not been disclosed since it is still a privately owned company.
This is primarily because Strike operates as a private company, therefore they are not legally required to share their financial figures publicly. There is a possibility that the company may choose to disclose its revenue and valuation figures in the near future.
If and when this happens, it would provide investors and the public with insights into the performance of the company. This information would be useful in determining the company’s market value and deciding whether or not to invest.
In conclusion, Strike’s online real estate agency model offers a refreshing alternative to traditional real estate agencies, providing customers with lower costs, faster transactions, and additional services. Its business model, centered around the removal of agent fees, has allowed it to become a volume-based business with increasing market share in the UK.
Premium add-on services, such as hosted viewings, have helped it expand its revenue streams. Despite being a privately owned company, Strike has secured significant funding.
The success of Strike demonstrates the potential for technology and innovation to transform industries and change the way businesses operate.