This London online property agent is using group buying power to disrupt how flats are sold to overseas investors
- UK online property agent Dot Residential provides discounted investment properties targeted at overseas investors
- Model also enables investors to save on opportunity costs involved in analysing the market and making a transaction
London-based online property agency Dot Residential is seeking to disrupt the traditional British agent model by offering to negotiate directly with developers for group discounts on behalf of overseas investors.
The online realtor is brokering commission free sales of properties in Manchester, Birmingham, Liverpool and Leeds featuring guaranteed mortgages and three -year fixed rental income.
“At Dot we work with leading lawyers, accountants, financiers, builders and manufacturers on our investors’ behalf, negotiating wholesale pricing and service-level agreements,” said Gray Stern, chief executive and co-founder at Dot Residential.
An example was the renovated 12-unit Dot Spectrum in Manchester offered for £350 (US$431.67) per square foot, 12.5 per cent lower than similar properties in the market, according to Stern.
“For new builds, we look to negotiate a discount for bulk purchase, whether a small block of apartments or multiple units within a larger development,” said Stern. “This discount varies depending on how motivated the vendor is, but the goal is to offer our investors a better deal than they can get individually so it's a bit like group buying.”