Property tech company Openn Negotiation (ASX: OPN) is set to enter one of the world’s most lucrative real estate markets with confirmation they will commence a 6-month Pilot Program in the United States for their online auctions platform that offers transparency to buyers – the biggest complaint from buyers dealing with the traditional seller-friendly model.
Prior to the societal outcrys from buyers that the real estate market was too far skewed in favour of vendors, Openn launched its transparent online auction platform where all prospective buyers can see the current bid price and agents are encouraged to disclose reserve prices.
This comes in stark contrast to the current model of on-site auctions where agents have been called out for underquoting, and vendors for placing reserve prices much higher than the agent’s quote.
Openn has gained steady traction in Australia to have listed more than 8,000 properties while building a database of more than 77,000 users on the platform. With that growth and proven demand in the Australian market, Openn has confirmed their US Pilot Program launch which will see Openn partner with real estate companies Century 21 All Points Realty and RE/MAX Revolution.
“The Pilot Program is intended to test and evaluate the potential market demand for the Openn Platform, in pilot states specifically, and in the US market more generally,” said Openn North America President, Duncan Anderson.
“Openn has established a strong relationship with the Century 21 All Points Realty team, including leveraging their advice over the past year, and culminating in the release of the US-specific pilot environment last week.”
The program has been formalised with Binding Letters of Intent between Openn and both real estate companies where Openn will provide agents with assistance on functional, operational and compliance matters.
The agreement also allows for Openn and the pilot Broker to negotiate discounts and other incentives to reward participation in the pilot when the Openn Platform launches commercially in the US.
Commenting on the Pilot Program, Owner and Broker of Century 21, Kelly Peterson said,“The real estate industry needs transparency and today’s market has brought it to the forefront. Openn allows us the opportunity to provide that transparency and efficiency to our clients.”
Since listing on the ASX in July 2021 with an IPO Offer Price at $0.20 per share, OPN shares have regressed despite the platform having shown strong growth across all its key metrics for mass adoption. This has included the certification of 3,982 licenced real estate agents to list properties on the platform in Australia.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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