Their names slam: Hosman, Liberkeys, Proprioo, Welmo, Homki or, more explicitly, Les Agences de papa. All want “revolutionize the sale and purchase of real estate”, “reinvent the market” with their cut-price or fixed-cost commissions, their all-out digitization for a virtual visit, an appointment, or a remote signature. Their founders, who almost all come from start-ups and online sales, are surrounded by highly qualified executives. All are convinced of being able to quickly conquer a preponderant place in a profession, that of real estate agent, which they consider dusty. But so far, none of their models have made a significant breakthrough.
“When buying my apartment in Paris, I found the real estate agents unavailable, imprecise, and their mediocre service for an exorbitant cost, a percentage of the sale price unrelated to the work provided, and I concluded that there was progress to be made and a place to be taken”, says Stanislas de Dinechin, co-founder, in 2017, of the Hosman agency, whose trademark is, precisely, the fixed cost commission of 4,900 euros, recently increased to 5,900 euros, regardless of the property sold: a serious discount compared to the average amount of an agency commission of 10,000 euros (5% of an average property price of 200,000 euros).
Flat fee
Drawing on his experience as a “start-uper” at Jumia Travel, an Internet travel agency in Africa, Mr. de Dinechin uses all possible digital tools to improve the productivity of his employees. Hosman has around a hundred employees, more business school or Sciences Po graduates than from the real estate community, and aims for nothing less than first place.
In the meantime, the agency concluded 1,200 sales in 2021, mainly in Paris and the inner suburbs, which remains modest in a national market of 1.2 million transactions. Hosman is counting on the 6 million euros raised in May 2021 to develop in the region and attack the most flourishing networks, such as Century 21 (922 agencies, 40,000 sales per year), Orpi (1,336 agencies, 32,000 sales) or IAD and its army of 15,000 agents (50,000 annual sales).
In October 2019, Les Agences de papa landed loudly on TV screens, with Teddy Riner featured boasting a flat commission, per transaction, of 2,000 euros all-inclusive. The two founders from Nice, who came from the catering industry, floated their company on the stock market on May 10, 2021, raising 10 million euros the same year – while 2020 turnover did not exceed 28,000 euros – then 2 million euros in 2021.
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