Buying a house is everyone’s dream especially in an environment in which the price of the house keeps escalating. There is some sort of pressure especially for the young worker to start buying a house lest that they would not be able to afford it in the future. Those who still cannot afford a house especially in Kuala Lumpur opt to rent one. Nonetheless, whether one is buying or renting a house, the process can be tricky and long winded, leading to fatigue among the buyers. On the agents’ side, the competition is getting stiffer and thus higher pressure to close as many deals as possible through better leads. Bumbung aims to help parties from both sides of the aisle by disrupting the property technology market.
Property technology market is not a new thing as we have seen platforms in the past that help buyers and renters by listing out all the options available for them. Agents can buy advertisement space on these platforms to give exposure on their listings to the buyers. Although there is usually a filter function to suit the buyers need, more often than not the filter is not granular and exhaustive thus the listings suggested can either be too broad or too niche and do not meet buyers’ requirement. The process of filtering can also be considered manual.
Bumbung is trying to solve this problem through a matching algorithm and system that matches tenant or buyer requests to listings from agents. All the buyers or tenants have to do is answer a few questions on their preferences and they will be given top 5 listings. By doing this, the filtering process is automatized, time is saved as buyers do not have to go through all the listings to be able to find what they want while agents benefit from the fact that there is a higher chance of closing deals.
Although they have only been 2 years in the market, Bumbung is quite mature in the sense that they always innovate and think on how to do things better. In 2017, they deal with a lot of peculiarities in agents’ behavior. Agents do not want to spend money on leads if they do not think that they will be able to close the deal. Therofore, Bumbung has to think other ways to encourage agents to take more leads and convert them into closed deals. The idea is not to limit the agents on their platform but rather give them tools and incentive to focus on what they do best.
Bumbung is introducing two new products which are proprebate.com and propdiy.com. The former is to entice buyers by giving them rebate, which will help especially the cost sensitive buyer. The platform offers cash back for any property that buyers want to buy.
“Every year there are around 360, 000 buyers who transact in the market. By adding one more layer on top, we are asking these buyers to tell us what they want to buy. We work with the sellers to get rebate for the buyers”
Agents benefit from this platform as it encourages them to close more deals on a consistent basis. In the past, agents have to pay for leads but it turns out that Bumbung discovers some agents are not willing to spend on leads if they think they would not be able to close deals. Therefore, with proprebate.com Bumbung is offering free leads to agents and they will only be charged once the deal is closed.
“We charge them a fee once the deal is closed, they pass the fee to us and we pass back the fee as a portion of rebate to customers”.
In a competitive market with many players in the prop tech, Bumbung positions themselves differently as they choose to focus on the demand rather than the supply side of property so that they would have a better control of how they want to dictate their business.
“Many players think that just by tackling the listing would help. However, in a world with infinite supply a lot of listings and limited demand, we want to be closer to the demand side”
This different way of thinking enables them to bring unique products to the market while bring value such as help the customers save more money and help agents close more deals. Looking at the products that they have now, Bumbung is already on the right track and only time will tell what other exciting products that they will bring to the table in the future.