Dad's agencies: a real estate revolution

The duo of Nice entrepreneurs Frédéric Ibanez and Nicolas Fratini founded the dad agencies in October 2019 with the firm intention of revolutionizing the codes of the real estate sector.The concept ?Disrupt the business business by favoring fixed agency fees of 2,000 euros to allow as many people as possible to become the owner.A year and a half after the start of the adventure, success is there for these two humanist entrepreneurs who aim to become essential in real estate.

Created in October 2019, dad agencies completely disrupted the market and broke the real estate codes.How was the project born?

Frédéric Ibanez: We met at the end of our children's school.Nicolas is a digital keeper and I have, for my part, a course of more than 20 years in real estate in France and abroad.Entrepreneurs at heart, we discovered the desire to shake up the codes of the sector by pooling our respective skills.After several months of reflection around an innovative concept of 100 % digital real estate agency, the click came from a small sentence launched by our children:

"Do you still work on dad agencies?"».We were initially looking for a more codified real estate and/or digital name, but the arrest of our children appeared to us to be obvious.Dad agencies were born!

What are the ingredients for your success?

FI: The simplicity of the offer, the attractiveness of the price and the notoriety of the brand actively participate in our success.The concept of dad agencies made it possible to uncomple the real estate market by providing an innovative solution and in the spirit of the time.We were fortunate to be accompanied and supported by entrepreneurs such as Anny Courtade, Pierre Ippolito or Philippe Renaudi, which left us time to calm our teams calmly.Our adventure was marked by great meetings with entrepreneurs fully aware of the charge represented by traditional agency fees for a couple (more than a year of salary for an employee) and who immediately seized the meaning of our project.

This has instilled a real dynamic to the company and we were lucky that our shareholders support our project.Teddy Riner, who has invested in the project since the start, is part of our family.It is definitely the societal dimension of our vision of real estate that seduced it.

Would you have imagined such entrepreneurial success?

Nicolas Fratini: Originally, we created dad agencies to allow access to property to as many people as possible and at a fair price.Everything was chained thanks to meetings and opportunities, we did not imagine at the start that dad agencies would become a family company listed on the stock market employing 120 employees.Today, we are proud to have created jobs and have become the first employer in real estate in the southern region.

What is the amount of your committee?

FI: Carry out a transaction whatever the value of the property represents the same work, so we had the idea of setting up a fixed commission of an amount of 2,000 euros, all inclusive, corresponding to the average salary of the French.We wanted to democratize access to real estate with a simple and effective offer, implying no exclusivity.

How much do your customers save?

FI: While for the sale of a property, agency fees amount to an average of 20,000 euros, dad agencies are based on 2,000 euros all inclusive, a saving of 18,000 euros inmean.

Where is the real estate sector in its digital transformation?

NF: Digital transformation interferes in all sectors of activity and the real estate sector is no exception.We are convinced that the future of real estate is in digital.New technologies have profoundly changed communication, marketing and transaction modes by transforming the real estate profession as a whole.Now the web has become the main research tool for real estate.The real estate revolution is underway but, to date, only a handful of players is able to offer a 100 % digital offer.Dad agencies are the only ones to have a 100 % digital offer covering real estate transactions and rental offers.

What are the contributions of digitalization?

NF: Digitalization promotes a precious time saving and also makes it possible to reduce commission rates applied by agencies.Like what was practiced in the telecoms sector a few years ago - a telephone package at 200 euros against ten euros today - we wanted to break the real estate codes by promoting a policylow prices likely to open it up to as many people as possible.

What were the main changes in economic model, consumption mode and working method on this market?

NF: The agents (independent commercial agents who play the role of intermediary between buyers and sellers, editor's note) actively contributed to developing the model of real estate transactions.However, the level of commissions has remained identical to that of traditional agencies with rates oscillating between 4 and 7 %.The health crisis has transformed behavior in the real estate sector and favored new practices (telework, virtual visits, etc.).We are very attentive to the qualification of the buying files.

Papa agencies use recognized banking technology (software to automatically check the supporting documents in the file, editor's note) to ensure the veracity of the documents present in the files.A dedicated service also ensures the solvency of buyers to provide all the necessary guarantees and facilitate transactions.We use an algorithm for the estimation of online goods, the new generation real estate assessment now allowing an estimate of much finer goods.We ask our customers to provide as much information as possible in order to obtain the most precise evaluation possible of the property.Our teams are responsible for displaying a price that is the fairest and correlation with the state of the market.

Was the pandemic an accelerator of this revolution?

NF: Assorted by many health constraints, the pandemic has indeed participated in accelerating changes in behavior by promoting virtual visits, as well as contacts and remote transactions.It has made it possible to identify trusted third parties capable of providing the same service as traditional real estate agencies while reducing the overall cost of the transaction.

What are the main paradigms of your offer?

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FI: We offer exactly the same services and professions as a real estate agency (qualification of buyers, property visits, negotiation, etc.) being 100 % digital.The quality of our offer is a capital issue and we are keen to strengthen it on a daily basis by providing new services.The rental offer will allow us to accelerate our development and ultimately count among the essential players in the real estate sector.Our ambition is to promote equitable access to housing by offering transparent, easy -to -use services and at accessible rates for all.We are proud to put our expertise at the service of this project whose societal dimension is essential.

In addition to our offer, we want to offer a bouquet of optional services, accessible to privileged conditions to simplify all the procedures related to a move/development.We are engaged in a CSR approach.Our societal commitment is very strong and remains an element anchored in the DNA of the company.We wish to become the first operator in real estate with a very important social and societal impact, in particular by offering the possibility to the greatest number to access housing by the transformation of the real estate transaction market thanks to digital.

Who benefits the economy of agency fees?

With our fixed agency fees at 2,000 euros, all inclusive, it is "win-win" for the buyer and the seller.The seller thus offers its much cheaper and naturally sells it faster.The buyer, on the other hand, saves money at the time of acquisition by paying his much cheaper than if he went through a traditional real estate agency.Everyone wins.

You often quote the example of Xavier Niel who transformed the telecoms sector with Free.Why ?

FI: When the first phones came out, we all paid between 200 and 250 euros in package per month.When Xavier Niel arrived on the market by offering a package at 20 euros, criticisms have shot from all sides - absence of shops, poor quality network - and no one believed that

would work ... However, he has become the leader!Having a phone is useful, but staying is a necessity.Thanks to a product like ours, acquisition files arrive at the end and faster.This allows buyers to save money and sellers to sell faster.

What added value do you bring?

FI: We aim to simplify the steps of sellers and buyers and to streamline the customer route.Our model makes it possible to democratize access to housing.The amount of the commission to the acquisition can be blocking for the files which narrowly pass from the banks: this strongly penalizes persons with modest income.Lowering the commission rate therefore allows a greater number to access property.This decrease has more resonance with low -income young people and homes, but this also allows people who earn their lives better to save more, to equip themselves or to buy a much larger.This system encourages a virtuous circle: the savings made on this expenses restore purchasing power to the French.

Which customer experience do you offer?

NF: We offer a unique experience since 100 % digital.Our ambition is to offer the best possible experience on our platforms.Our goal is to support our customers throughout their lives and the events that mark it, from their first rental experience to the purchase of a main residence, then secondary ...

Eighteen months after the launch of the company, what assessment do you draw up?

NF: Our offer seduces and clearly responds to waiting for the market.The caps of commissions at 2,000 euros brings a real puff of oxygen to buyers.The feedback from people who are not in the profession are very positive.During our trips, we are often discussed by people who wish to congratulate us on our approach and show us their gratitude.A real family spirit infuses our business.

What are your goals for the future?

FI: We are a young company but we have put everything in place so as not to be deceptive and be able to accommodate a large mass of customers.We have succeeded in the incredible challenge of making growth from the start despite a depressive context.The health crisis which very significantly accelerated the demand for digitalization ultimately carried our development.By the end of the year, we want to be one of the essential actors in real estate in France, and not only in digital real estate.We are therefore increasing our stock, with a significant increase in the number of mandates each month.

We want to be the reference site, carrying a new economic model articulated around a fixed commission system.We estimate that 2,000 euros is more than enough to cover the estimated 152 hours of work to sell an apartment and that the service provided deserves this price.We are convinced that this new transparent and readable model is meaningful for the future.It dethrones an ancestral and obscure system of commission unjustly based on the percentage of a heritage.

What will be your main development axes?

FI: At first, we are launching a rental offer, which is also disruptive compared to the market state.As you can imagine, many projects are also being studied and we will continue to surprise the market.We want to develop new growth relays while remaining faithful to our promise to reconcile real estate projects and purchasing power.We also plan to welcome a nursery from the "Proptech" (start-ups offering innovative, technological products or new models for real estate markets, editor's note) and a coworking space within our next head office atIconic, to create an ecosystem favorable to the launch of new technologies.

Can you tell us more about the launch of your “dad loc” rental offer?

FI: It is an affinity connection solution between owners and future tenants."Papa Loc" is a new service that allows tenants to more easily find the right suitable for their expectations, and the owners quickly target the ideal tenant.The basic service is free and accessible to both parties.

What is your vision of the real estate market in the medium and long term?

FI: The priority is to allow everyone to stay at the right price and put an end to the model based on a variable commission without any tenable justification.In the future, we will also have to take more into account the extended expectations of buyers and tenants by providing them with additional added value to enrich the customer experience.

Interview by Isabelle Jouanneau