Own It - Your Property Partner

The Rise of the Building Broker

• Locale Property Group

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Are you thinking about building your first home but not sure where to start or whether you even need a building broker?

In this episode, our host Adam Schaal sits down with Daniel Dinelli, General Manager Sales at Move Homes, to unpack the rise of the building broker and why it's reshaping how Australians buy and build their first home.

They break down exactly what a building broker does, why Move Homes made the bold decision to ditch their internal sales team and go broker-only, and why the shift in consumer behaviour mirrors what we've already seen with mortgage brokers, Uber, and Netflix.

We cover:
• What a building broker actually is, and what they do for first home buyers 
• Why the shift to brokers is a natural evolution, just like mortgage broking and ride share 
• How to be sceptical of online forums like Building in Perth, and why they don't always tell the full story
• Why Move Homes chose brokers as their preferred sales model and what that means for clients
• What separates a great broker from an average one 
• Whether clients pay more going through a broker
• What COVID taught the building industry about communication, accountability, and trust

Whether you're a first home buyer or a first time investor, this episode gives you the honest, unfiltered picture of how the building industry really works, and how to use it to your advantage.

Don't just take what you read online at face value. Get educated, ask the right questions, and build with confidence.

Locale Homes | Helping West Australians buy and build new homes, minus the overwhelm.

Don't forget to like, comment, and subscribe for more!


ABOUT ADAM SCHAAL
Adam Schaal is the Founder and Director of Locale Property Group, a leading name in Australia's property and construction industry. With decades of experience and billions in property transactions, he's known for his integrity, leadership, and commitment to transparent, client-focused service. Adam is passionate about helping people achieve their property goals through honesty, expertise, and long-term relationships.

See more from Adam: LinkedIn: https://www.linkedin.com/in/adam-schaal/ Website: https://localefinancial.com.au/ https://localehomes.com.au/ https://localewealth.com.au/


ABOUT DANIEL DINELLI
Daniel Dinelli is the General Manager Sales at Move Homes, the first home buyer division of Prime Group. With 18 years of experience in property, Daniel grew up surrounded by the industry — it's been in his family for generations. Starting out in account management and land acquisitions, he now combines his passion for people and property to help first home buyers build a home they're proud of.

See more from Daniel:
LinkedIn:  https://www.linkedin.com/in/danieldinelli/
Company Website: https://www.movehomes.com.au/build-with-daniel/
Instagram: https://www.instagram.com/movehomes/
TikTok: https://www.tiktok.com/@move_homes


ABOUT OWN IT - Your Property Partner
Real stories. Real lessons. Real talk. Buying your first home, upgrading, or investing? It's a big move and you don't have to go it alone. Hosted by Adam Schaal, the founder of Locale Property Group, Own It is where we discuss property journeys, wins, mistakes, mindset shifts, and everything in between. No jargon. Just honest, empowering conversations that shed light on all things property.

To know more about Own It Your Property Partner, you can visit the links below:

Podcast/Blog: https://open.spotify.com/show/6mJ6RDV
Presented by: Locale Property Group
Facebook: localewealth
Instagram: localewealth
TikTok: localewealth
YouTube: @localepropertygroup


FOLLOW US FOR MORE
Locale Homes Helping West Australians buy and build new homes, minus the overwhelm.

Instagram: @localehomesau
TikTok: @locale.homes
Website: localehomes.com.au

Locale Wealth Smart property strategies, simplified for rentvestors, investors, and future-you.

Instagram: @localewealth
TikTok: @localewealth
Website: localewealth.com.au

Locale Financial Home loan experts who work for you, not the bank, so you can buy with clarity and confidence Instagram: @localefinancial
TikTok: @localefinancial
Website: localefinancial.com.au


Locale Property Group is the team behind Locale Homes, Locale Wealth, and Locale Financial, on a mission to help Australians build, grow, and own their futures. From securing your first home to growing wealth through property or navigating finance with clarity, we're here to simplify the journey and deliver real results. As client advocates, we offer honest guidance every step of the way, not just selling homes or loans, but reshaping how Australians experience property.

SPEAKER_01

Well they called them back in the day middlemen unregulated and unethical. Now finance brokers are the most common way to get a home loan. And I feel COVID was the catalyst our industry needed to open up to the idea of a building broker. Banks are the most profitable they've ever been. That's because they've handed over control and allow customers to dictate on what they need and brokers are championing that.

SPEAKER_00

If you get good people with a good culture, you'll get good outcomes.

SPEAKER_01

We're not here just to say yes. We're here to tell you what you need to hear a lot of the time, not what you want to hear. My name's Adam Schall and I found a low-carb property group to help fix what's wrong with the housing industry after working at some of the biggest building groups. We started this podcast to share insights, real stories, help clients navigate the industry with real confidence. Today we're welcoming Daniel Donnelly from Prime Group. So thank you for joining us, Daniel. We'd love to hear a bit about you and um your background and your career.

SPEAKER_00

Yeah, thank you. Thanks for having me. Um so uh been in property for 16 and a half years. Um, property's been in the family. Um, so uh my grandparents were in property, my parents were in property, so it's a natural fit for me. Um I'm very passionate about it. Um and yeah, I've I've held a variety of roles with the Prime Group. Uh for the last seven years I've been uh heading up Move Items, which is a first owned buyer's division.

SPEAKER_01

Nice, love it. What do you love to do outside of work?

SPEAKER_00

Tell us a bit about your on a personal side and yeah, so uh love cooking, specifically pizza.

SPEAKER_01

Um I've heard about these uh these pizzas, they still haven't uh delivered for me yet. I'm gonna I'm gonna take you up on a one day.

SPEAKER_00

Absolutely. I'm trying to uh do a backyard reno at the moment. So once that's done, you're more than welcome to come over. Yep. Um passion for travel, uh absolutely love traveling. Um, probably uh not something that the bosses enjoy so much, but every opportunity I get, I try to get away. Um and just yeah, hiking. Hiking is just something that I find it's really nice being in nature, trying to disconnect a little bit. Um, you know, this could be a very fast-paced industry at times, but it comes with lulls as well. So taking the lulls and taking the time is important, I think, to recharge and reset.

SPEAKER_01

100%. So our first segment is where is a lie? So you have to prepare two truths and a lie, and you have to uh try to pull one over me and I'll have to try to call you out. Sure.

SPEAKER_00

So I thought I would uh go with the theme of travel. So I've got three things. Um I've run with the Bulls in Spain, I've been to a football world cup, and I met my wife in Amsterdam. Uh the World Cup. No. No, no, no, went to the uh World Cup with my dad, father. That's right. You told me that as well. Jesus Christ. That was probably over a couple of beers. Absolutely. I've forgotten what was it? Uh running with the bulls. That was number two for me. I'm not that crazy and I'm not that agile. Fair enough.

SPEAKER_01

You look agile to me, mate. Thank you. I appreciate that. So our next segment is building without the bullshit. So um today it's the rise of the building broker, and obviously the Prime Group has been a big advocate for building brokers and done an incredible job, and one of the leaders in the space. So, firstly, we'll talk about what a building broker actually does. From our perspective, you know, we launched um just about three years ago, and we saw an opportunity to get in the market to really represent clients and their best interests, and also just provide choice and make the whole buying process a lot easier for people as well. Um, and obviously we've seen huge uptake and we've seen a big shift in the industry. Um, but love to hear your perspective and um how you've seen it positively impact Prime, how you've seen it positively impact uh the industry, and what are some downsides?

SPEAKER_00

Yeah, look, I think it's all about providing clients choice. Um, just like uh uh when you go for a mortgage, you can go to a bank or you can go for a mortgage broker. Um, some people know which bank they want to use, they're comfortable with the bank, they're happy to go straight there. Others, uh, because it can be quite complex, need a guiding hand that has a bit more choice and a bit more impartiality towards it. Um probably I feel the rise of it really came out of the grants and post-grants in that it was quite hard for uh customers to work out, you know, what are the true build time frames, what are the true admin time frames, what is the financial viability of this builder? Um, and I think that created an opening for someone to work on behalf of the client, not just on behalf of the builder. Um, I know you're a bridge between both, um, and you can see both sides. So um saw that forming quite early, um, had an internal sales team. Um now we don't. We've decided to focus purely on brokers. Um, comes with pros and cons for us. I feel um not that builders don't want to do the right thing, but it keeps you accountable because every uh client coming through the door is a referral client. If I do the if I don't do the right thing by one of your clients, it's gonna have a massive impact on our relationship. So, you know, it's it's a bit of a leap of faith to kind of take that punt and and put your business in that position that you don't have control over that. Um, but I'm a true believer that if we've got good people in house um trying to do good things for our clients, it'll work itself out.

SPEAKER_01

Absolutely. It's like you said, it's a leap of faith and um it's the ultimate test of accountability, right? Because people don't have to necessarily sell for you. They want to be able to sell homes for you and recommend clients uh going to you based on you doing a really good job. What are some examples you've seen from your business point of view that you've evolved and improved, that building brokers, I guess, have championed and and made you adapt um to become a better builder?

SPEAKER_00

I think the best thing that's come out of it is it really helped us drill down to exactly who we want to build for. Um with an internal sales team, you always feel the pressure to say yes to the reps. You don't want them to have to say no to a client, so you kind of maybe stretch a little bit more than you normally would. Um but right now we're very laser focused on what we can offer and what we can't offer. Um, I'm sure you'll um be familiar with it and you'll have some of your in-house uh people, you know, going, why won't Prime do this or why won't move do that? Um, but we just want to make sure we're delivering on time and quality, and we've just really decided to focus on this is what our ideal customer looks like, and we can match our product to suit, and then we can get great efficiencies because we're just staying in LA.

SPEAKER_01

Yeah, and what sort of efficiencies is that create and what's what's the benefit for the end user?

SPEAKER_00

Yeah, look, I think um so for a very tangible um example is we saw a rise in uh freestanding baths being requested by clients. Um our focus is on trying to create the best value home for our clients, not necessarily the cheapest home. Um so we're able to do a deal with one of our suppliers, SEMA to put freestanding baths in all of our homes. Um, so that's just a very tangible one item thing, but you multiply that by 10, 15, 20 items and you can start getting some really good value into the homes for our customers. Absolutely.

SPEAKER_01

And what about um like peace of mind, surety, price holds, things like that? Is that something that um you've seen you've had to adapt to with the rise of a building broker?

SPEAKER_00

Yeah, absolutely. I think um price holds are important for clients. Um, you'll notice when you're not hitting the mark, um, the the volume of clients coming through the door definitely dips. Um so the brokers are a very good barometer on if you're um being competitive in the market, if you've got the right offer in the market. Um and the feedback um you give to us is very important as well. Um we got quite a very open, honest relationship. So if we're not doing something right or something that doesn't hit the mark, um you're very free to talk to me and you regularly do. So that's very helpful.

SPEAKER_01

Yeah, likewise. And the accountability goes both ways. We want to do a really great job and make sure that we're delivering the best outcome for customers and we're making sure the customers feel really valued and supported through the whole process. And if there's a customer that doesn't feel that way, obviously we can talk to each other and make sure that that's something that we can um, I guess, enhance and fix. So um it's definitely a really positive reciprocal relationship. And um, you know, you've certainly benefited our business and vice versa. And it's um it's yeah, it's it's really positive, I think, for the industry. Yeah, I agree. So there's been a pretty big shift in consumer behaviour um and more people leaning towards brokers, not just in the building industry, but just in general. You know, with banking, nearly over 70% of um home loans now go through brokers, and we're seeing more and more of that with the building industry. Um, why do you think that's the case?

SPEAKER_00

I just think it's um to be honest, for me, it seems a natural evolution of our market. Um, you know, you'll go buy a car from John Hughes, you'll buy a Mars bar from Coles or Woolies. The majority of products you consume day to day are not direct from the manufacturer, they are through a wholesale agreement and a distributor. Um, so I don't think our industry is any different to that. Um, and it's all about, like I said, giving clients their choice.

SPEAKER_01

And why do you think it's taken so long, I guess, if every other industry pretty much is like that? Um, why do you think it's taken so long for this industry to evolve and become, you know, uh providing choice and customer first?

SPEAKER_00

I just feel we needed a trigger point for that. Um, and how I relate it to right now is um there's a fuel crisis going on, fuel prices have increased, and the popularity of EVs has gone through the roof. And I feel COVID was a catalyst our industry needed to open up to the idea of a building broker. Um, as a builder, you're giving up control and you need to be comfortable with that. Um, and it's a big part of the business because if you don't have a client coming through the door, that's usually impactful. Um but with fear also comes opportunity, and that if you're brave enough to take that on and be accountable, the rewards are great as well.

SPEAKER_01

So with the shift, there's always um sentiment out there, and there's certain people that are sort of protecting the old model. There's people that are pro the the new model, and there's opinions around that, and everyone's entitled to opinions, and there's pros and cons in that. Um, we're seeing some uh things on public forums that aren't necessarily complementary to building brokers, but conversely, it's very similar towards building companies. They've also copped a lot of heat over the years in the on the uh the building forums. Um I guess your opinion on that and and why you're seeing that.

SPEAKER_00

I just think with anything that's new to an industry and threatens the status quo, there's always going to be people um who aren't comfortable with that. Uh for us, change comes naturally. Um for others it doesn't. Um we see that with um you know, when Uber first came out, uh all the taxi drivers were in protest, Parliament House. Um now Uber just seems like a normal thing. Like my mum and dad catch Uber. We've all embraced it for the positives.

SPEAKER_01

Yeah.

SPEAKER_00

Correct. Ten years ago, there's no way they would have jumped in a ride share.

SPEAKER_01

So yeah, it just evolves 100% at times. The fear of getting into a stranger's car. Um, and I guess that's a sentiment now. Why is a middle person needed? And um very much with the finance broking industry, that was the same as well. They called them back in the day middlemen and unregulated and unethical. Um, and now finance brokers are the most common way to get a home loan and um you know exceeding over 70% of home loan. So it's uh it's something that um like you said, uh change is always scary for an industry and for people, and there will be pushback, and there's certain people with certain agendas that they're pushing to push back. Um, but I think there's enough opportunity for everyone in an industry. Yep. And we certainly wouldn't talk negative we certainly wouldn't talk negatively about a building company um and their internal teams. You know, it's certainly necessary and we embrace that. I think there's a way that we can all work harmoniously.

SPEAKER_00

Yeah, it's uh and like it's it's just about creating choice for clients. Um and to be honest, for a industry as well, we're seeing similar with our construction technique. Now it's always traditionally been double brick. Um even a couple of years ago, there was a lot of um negativity around alternative methods. Yep. But now that most builders have embraced them because we've got no choice, the brick supply isn't keeping up. That's really died down. So you'll find the online uh communication around this comes in waves as well. Uh and it wouldn't surprise me as brokers get bigger. Some of the um companies maybe not happy with you right now will be opening the doors in a couple of years' time anyway.

SPEAKER_01

Absolutely. And like you said, with the building methods, um, you know, I worked at a building company previously for a long period of time and they were um, you know, big innovators and embracing uh Brick Veneer, but there were certain builders out there that were saying it was a subpower product and a negative product, and you should never buy one and they don't stack up acoustically and thermally. And those same builders are now doing brick veneer and selling the benefits of it. So um there's always opinions when it doesn't necessarily uh support their agenda, uh, but when things change and evolve and then they you may end up embracing it. Yeah.

SPEAKER_00

It's very easy to jump online when you don't need to put your name to anything as well. I think um that's part of just a broader issue society-wise. Um very easy to throw shade when you're not accountable for it. Um and I feel um particularly some of the online forums um don't help people um with building a home. I think it creates too much fear around the process. Um look, building a home is not perfect. You're doing it in the environment with humans, it's not a factory-controlled thing. Things will go wrong, but I think you'll struggle to find a builder in Perth who wants to do the wrong thing by a client.

SPEAKER_01

100%.

SPEAKER_00

So I don't think the negativity around it when we're in a housing shortage is particularly helpful. I feel um builders need to be held accountable, um, not shying away from that. Um, but you just look at the communication around building brokers, all you're doing is providing an alternative for a client and you're getting um you're getting some really negative comments online, there's no basis of reality to it. It's very easy to be a keyboard warrior, um, and I just feel that it's not helpful for our industry at all.

SPEAKER_01

Being on the other side, uh being in a building company, um working in a building company through really challenging periods like COVID and having our reputation hammered on these online forums. And I was so protective of those companies at that period of time because I represented those companies, and I sat in front of countless clients through COVID periods when the building companies weren't delivering, and that wasn't through a fault of their own, it was just supply chain and pressures and trade supply. Um and I think if uh people sat down and understood and she empathized with them and you communicated the reality, and like you said, every builder actually really does want to do a good job. Sometimes they just don't, based on people, processes, um, environments, um, doesn't make them a bad person, and you should always give people the opportunity to probably um have a fair crack. And that's where I do struggle with some of these forums. Um they're not really representing the truth, and uh they can gravitate towards negativity versus positivity because every negative, we've seen it in the industry. Yep. Every negative client we have, which is pretty little, there's probably a hundred positive. Yeah. But you don't hear from the a hundred positive clients. They're generally just moving into the home, they're really happy, they're sending friends and family to work with us, um, and they get on with their lives. Um, but there might be one disgruntled one, and you know, sometimes we should be held accountable and we probably have done something wrong. Um, but they're usually the most vocal and the most loud. Like we said, we're all human beings in this industry. There's plenty of work to go around and we're all trying to do a really good job for our customers. Um, just because we represent customers in slightly different ways doesn't mean one's worse than the other. It's we live in a um in a country that embraces innovation and and technology and new ways of doing things, and we should never, I guess, shit-can a new way of doing things, because that's how our country and our and our world has evolved over the years. So um yeah, it's I'd love to see a bit more positivity on those forums. And I understand over time as our model normalizes a lot more, that a lot of this is just gonna go away. And we probably will see some of those builders and um potentially building reps um that are making these comments that um they'll quieten down or they'll embrace it.

SPEAKER_00

And then you made an interesting point there. You don't know who is commenting they could be an industry player. They could be just trying to be, they could be an in-house rep just trying to protect their livelihood. Absolutely. Um but without a name behind it, you're free to to do what you want.

SPEAKER_01

Absolutely. So you touched on it earlier, but why do builders uh choose to work with brokers?

SPEAKER_00

It's um it's an interesting thing because building a house and finding and nurturing a client are two completely different disciplines. They might as well be in opposite ends of the earth. So um lots of good builders aren't scaling because they don't know how to do the front end. But likewise, lots of okay builders, I don't want to call anyone bad builders because like I said, I think everyone tries to do the right thing. Okay. But you can have an absolutely amazing sales team which drives scale in your business, but you might not be able to keep up from a builder point of view. So um for us and for myself personally, um I've been in account management previously. I'm comfortable in the B2B space and the B2C space, business to consumer space is just a different world. Um marketing is getting more complex, it's getting more difficult, it's hard to get cut through. Um nurturing a client, training a sales team is completely different to uh building a house. So uh we saw an opportunity to focus on what we were really good at and seek assistance for what we weren't good at.

SPEAKER_01

Have you seen other building companies? You know, obviously you guys are one of the first to embrace this. Have you seen more building companies um, I guess, turn up in the space and uh starting to embrace the space and and how's that look? It was a landscape for you.

SPEAKER_00

Yeah, look, um we have. Um and to be honest, whenever um we vet a new building broker, because we go through a process of making sure we want to work with those people, um, I generally point them in the direction of our biggest competitors because they'll get there eventually. And I think the stronger the industry can provide a service to the building brokers, the better experience for everyone. So um I'm not shying away from competition. I think competition is healthy, I think it's gonna drive us to be a better builder. Not that we're not always striving for improvement, but sometimes you need an external impetus to change the status quo. Um, so I think it's important that other builders embrace it. Um I'm not shying away from that, and I think it's gonna be healthy for the industry long term.

SPEAKER_01

So, what are the benefits you've seen with a client using a building broker and why does it work for clients?

SPEAKER_00

Um, going back to you know, we like to stick in our lane, I think that's the number one benefit. If we had a client come through the door and say, Oh, you know, I want to build a a back block in Morley, or I want to build a double story, or you know, I want to build something with a uh or a luxury home, or I want to build something with a giant rake ceiling in it, we just can't facilitate. So I think um going to a broker assists those clients because you'll be able to go, I know the builder that matches what you want to do and it matches what they want to build. I think that's just such a benefit instead of the other way around, where maybe you go to an internal sales rep, they've only got one thing to sell. Um, and they're gonna try to convince that client to fit into the box instead of trying to facilitate exactly what the client wants.

SPEAKER_01

Absolutely. And there's certain builders out there that, like you said, are incredible builders, but they don't have the retail arm to necessarily support people through that process. And a big part of what we do as brokers is uh obviously pairing them with the right builder, but also getting them into the right financial position to be able to maximize what they're trying to achieve as a first-hand buyer or a second-hand buyer as an investor. So I think it's super important you work with someone that's not just looking at the builder product, it's like they're looking at your holistic plan on what you're trying to achieve. So really breaking down the numbers. Um, you know, we have clients that come in that, you know, this is where I want to be, and these are the reasons why. And we go, we challenge them on that. And, you know, what's your motivator? What's your long-term goals? What are your aspirations? And do you mind if we challenge you on that and provide some other solutions? And they're like, yeah, absolutely. And we never even thought of that. So I think that's super important that you have um that skill set challenging your buying process as well. Um, obviously, we want to work with you and provide the best solutions, and we're not here just about just we're not here just to say yes. Um, we're here to tell you what you need to hear a lot of the time, not what you want to hear. Um, and building home is very, very complex. Um, there's a lot of variables, um, there's a lot of marketing out there that's, you know, it's not necessarily false marketing, but it uh omits certain level of information and you haven't got your full um You don't have full transparency over it.

SPEAKER_00

Um and that's something, you know, when we were in the retail space, I really struggled with. Yep. Um I I'm kind of a what you see is what you get kind of guy. And I really struggled with, you know, the online marketing, stretching the truth to get the number to make the call.

SPEAKER_01

Uh just didn't sit right. Absolutely. We've seen it many times over the years with countless promos, and I won't I won't call them out. Um, but they're incredible builders um that are using promotions that we all know that are probably just they're just marketing spin. Um It doesn't mean they don't deliver a great product, but it's you shouldn't get pulled in just for that marketing campaign because there might be a better option out there for you. For a builder that isn't really great at marketing and saying that we've got all these different promotions, um, often you go to a builder that uh is what you see is what you get, and you actually get better value for money through that. So um sales and promotions aren't necessarily the real thing. Like any industry, uh, some are better than others. Uh, what defines a good broker versus an average broker?

SPEAKER_00

Great question. I think um from my point of view, a great broker uh always thinks client first. Um I think that's imperative. Um for us when we vet um a broker, we generally talk to land agents. Um getting land and build and finance all together is is part of the gig. Um, and if you're not treating your land partners correctly, that's a red flag for us instantly. Um and I just think it's about being a good human and a good person. Um so um Carla and myself, um, when we bring on a new broker, we kind of sit there and go, could we have a beer with them? Like, do we like them? Like you still want to like the people that you work with. Um, but yeah, we're we're pretty selective now on who we want to work with and who we don't.

SPEAKER_01

Absolutely. Um, how do you see the different levels of operational um management of clients? Obviously, uh some brokers are doing high volumes, and um, how do you see certain brokers managing clients versus others and I guess the level of support and staff and um overheads that some brokers have versus others?

SPEAKER_00

Yeah, I think um, you know, there's big brokers like yourself who've scaled um and have support teams around them. Um there's also um sole operator brokers who do an excellent job. Um I don't think the size matters as much as the person and the intent. Absolutely. And I think it all comes down to will they represent us fairly, will they represent the client fairly and find a great solution for all parties?

SPEAKER_01

So what's post-COVID, um, which is nearly six years ago now, which is wild, what's that taught us about uh the building industry?

SPEAKER_00

Um I think uh it's taught us to be brutally honest and truthful with clients, um, not overpromise, um communicate better. I think that's probably the number one thing. Um communication during COVID when things were uncertain. Um, lots of um builders and people inside building companies struggled to communicate. And I think I'm a fan of communicating to a client, even if you don't know the answer. Hey, I actually don't know the answer, I haven't forgotten about you, we're on it, we're chasing a solution, we'll come back to you. I don't think you always need the solution, but I think you always need to communicate.

SPEAKER_01

Absolutely. Often if a client's coming to you, um, it's probably a little bit too late because they're anxious. So it's like communicating irrespective if there's an update. And building is complex, it does take time, and there's a lot of variables, and um sometimes there are extended periods of times where it feels like nothing's happening. A lot of things are happening behind the scenes, but it's not tangible um from a contract or a pre-con or a construction point of view. Um, but yeah, like you say, communication is key. And I think um that's really what sets um I think a good experience from a bad experience apart because often the end result, most builders are pretty much delivering a fairly similar outcome. In the end, it's just how they handle their customer experience and the person representing them on the front end that has set it up correctly, has not overpromised things, has told them what they need to hear, not what they want to hear. And if you set the standard early, often the experience is really positive. So that's why it's choosing the right person you feel really comfortable with, that is really open and um transparent with you and doesn't just give you sales spin and is just there the whole way through the process. If you get signed up and feel like you've been dropped, um, that's a bit of a red flag. So um, as a customer, I'd recommend that you bring that up early and go, I'm feeling like I've been dropped. I need more touch points from you and communicate that early versus stewing on it. It's like any relationship. I think open communication is really positive. Yeah, I agree. So our next segment is do you think you're ready? And these are some questions that we've collated from social media, and we're gonna throw them at each other and just quick fire and see if we can share some info for our clients. Perfect. I love this first one. Um, how do building brokers get paid? So we get paid by the builder. So uh, no different to how a finance broker works, um, we represent a client, find out what their aspirations are, what their budgets are, source them land, help them with finance, and then we place them with a building company that's going to be best suited to them. We have a panel of builders, so we're going to put them with a builder that's best suited. All builders pay us the same. It's a flat fee across the board. So if they go through uh, you know, Prime Group or if they go through another building company like La Vida, um it's the same. So we've we're not uh financially motivated to push them any certain way. Um also if they go to us or go to the builder direct, it's gonna be the same outcome price-wise.

SPEAKER_00

I I always find that question so crazy, right? Because an internal sales rep gets paid by the builder. Correct. You get paid by a builder. Why is it such a big issue? I don't understand. Like as a builder, if we had an internal sales team, I would need a marketing team, I'd need a marketing agency, I'd need to pay Google, social media, like CRM systems, realestate.com, YouTube ads, like the cost that goes into finding and nurturing a client is huge.

SPEAKER_01

Significant.

SPEAKER_00

So the fact that we've just partnered with someone to help us with that, it doesn't actually change our cost base at all.

SPEAKER_01

No, it doesn't. It segments, and I've run building companies, large ones, and the some of the biggest overhead in those companies is the sales and marketing overhead. Um, so all the industry's done is now separated it, but the outcome's still the same for a customer. Yeah. Uh the only difference is that one's really, really good at the um sales and marketing and customer nurturing point of view, and the builders can do what they do really well is build homes. So it's a partnership made in heaven, and it's exactly what's happened with banking as well, where banks had branches everywhere, they had home loan specialists drive around in their cars everywhere. Um, home loan specialists was trying to push one product onto these clients versus now it's gone to broking. Banks are the most profitable they've ever been. Um, and uh that's because they've handed over control and allow customers to uh, I guess, dictate on what they need and brokers are championing that. Um, but it is a really positive thing for an industry if it's embraced. Okay, so next question. Are clients not just paying for the cost of marketing? No. So if you go direct to the builder or if you come through us, it's the same outcome for a customer. Builders are now not having to pay for marketing costs, sales reps, um salaries, uh marketing team salaries, marketing budget with a really significant, I guess, office space for the sales team. So that is partially being passed on to the building broker, and the outcome for a customer is the same. So if they come through us or go to the builder direct, it's gonna be the same outcome price-wise. Can a building broker save a client money? Absolutely. Um, like we discussed earlier, if they go to if they go direct to a building company that's not necessarily the right fit, that consultant is representing that building company and they're gonna do the best they can to try uh push their product, A, because they believe in it and they don't know what alternates are, and they're gonna say that's the best product for them. There might be a product next door in another building company that is really, really suited for them and what their aspirations are. So absolutely, we can save the money because not all builders are strong in certain areas. Some are really great in the smallest product, some are really great in the middle market, some are great in the complex, more boutique space. Um we also champion uh guarantees as well. So price hold periods. Um, you know, we've been a squeaky wheel with you in the past and go, we want to we want a price hold period, which is really tangible savings for a customer. Uh build time guarantees, we push for those as well, which again, it gives clients certainty that they're not gonna be paying rent and trying to pay for a mortgage at the same time, which costs them money. So there are various ways that we can save them money. Um, we also find them the best home loan that's gonna be suited as well. We have an internal finance team, so it's shopping around and finding the best home loan. Uh, there are a ton of ways where we can save the money. How do you vet your builders and choose your builders? Look, uh it's it comes down to track record. So um generally you can see uh how long a builder's been around, what their financial stability is, um are they paying their trades, are they paying their people, um, what their, I guess, reviews are like as a company. Um, and generally, like you said, what are the people like inside that business? Are they good humans to work with? And I think that's a really good measuring stick on how the experience is gonna be for a customer. If they're great people with really good values, you know they're gonna do a good job. Nothing's ever perfect. So I think you always rank a building company on if they make a mistake, how they address it, because there will be mistakes. As a broker, we'll make a mistake. As a building company, you're gonna make a mistake. There's so many thousands of touch points in building a home. It's just how we deal with those. So that's really important to us. Um, the industry is very small in West Australia. Everyone knows everyone, and everyone generally knows who's a good operator, who's not, and how they're performing. So um, you know, we've got our uh ear on the ground constantly on who's performing, um, and we generally make sure that we put our clients for people that are proven, trusted, and know that they're going to deliver.

unknown

Cool.

SPEAKER_01

How has a building broker uh model um shaped your business processes, um, your customer experience and your accountability as a building company?

SPEAKER_00

Yeah, look, I think um we just have really tightened what we can and can't offer clients. Um you have been a big advocate for price hold guarantees and build time guarantees, and I think that has to go hand in hand with doing one thing and just doing one thing very well. Uh it's very hard to uh deliver a pizza in a 30-minute guarantee if you also try to make burgers and french fries and cakes and everything else. So I think from our point of view, um the biggest benefit is it's just allowed us to be us, be what we want to be. Um, and you know, we put all that time and effort that used to go into the sales side of the business goes into training staff, finding the right staff, making sure our culture internally is correct. Because if you get good people with a good culture, you'll get good outcomes.

SPEAKER_01

So why wouldn't a client just go direct to a builder?

SPEAKER_00

They can. I think it's as simple as that. They can. They can go to a building broker, they can go to a builder. It's about providing choice. Some clients will know exactly what they want, others will have no idea, um, and it's just different horses for different courses. Absolutely.

SPEAKER_01

We're whilst we're um broker and that's our business, um, some clients are best to go direct to the builder. If they know what they want, they know the builder they want, they know the design that they want, that's okay. And we're not trying to represent that um there's no no need for building representation and building reps within the industry. It's uh we provide a choice and our service isn't for everyone. Um, we really believe in what we do, but we're not gonna fit every client, and that's totally okay. Yeah.

SPEAKER_00

I think it comes down to as well, um, just like a builder, um, you know, you're trying to find your ideal client. You're trying to find the client that suits what you can produce, um, is going to be happy with the outcome. Um, some clients will feel more comfortable going direct. Um, lots will feel more comfortable coming to a building broker, and that's what we've seen happen over the last five years. The growth in this space has been huge.

SPEAKER_01

In a few words, how would you want to describe the experience clients get with a building broker?

SPEAKER_00

Uh look, I think um supported, uh advocated for, and transparency as well. Um, we're very clear in our communication with you about what we can and can't do. Um, and I think that helps give the client some peace of mind, um, makes them feel supported. It's all transparent. They know exactly what they're in for.

SPEAKER_01

We've seen comments out there where as a building broker, we just sign them up and drop them to the builder and we don't ever talk to them again. Is that the case? And what have you really seen on the other side?

SPEAKER_00

Uh, not the case at all. Um, if anything, you guys are more involved than uh the internal team we used to have. So I can only just talk about my experiences. Um, but no, I find um generally building brokers are a lot more involved. Um, just like I feel we have more accountability, likewise you have more accountability with the client, you've made the recommendation, um, you've picked the builder on their behalf. Um you now need to follow through on that as well. So I think it it's mutually beneficial for the client, for yourselves, and for ourselves.

SPEAKER_01

Absolutely. So we're seeing a lot of our team and it's encouraged now and potentially mandated where they go to um all the clients' PCIs and be there the whole way through that process. And having run building companies and having run sales teams with many hundreds of sales consultants, it's very uncommon that a sales consultant goes to a PCI, and that's something we really love to do. So um, we are genuinely there all the way until we hand over the keys, and um, yeah, it's a really exciting part for us. We'd love seeing what we've worked on early days, you know, 18 months later, what they're moving into. It's it's really, really special. Will a client pay more going through a building broker?

SPEAKER_00

Absolutely not. So um the cost um to um have you help us find clients or the cost to run an internal sales team is exactly the same. As a builder, fundamentally, there's no difference in the cost base. Um, so clients can come direct or go to you and get exactly the same product at the same price.

SPEAKER_01

So our next segment is bring it to a table. It can be a tangible product or some piece of wisdom that you want to share. Yeah. Um, so over to you, I'd love to hear what you've got to share.

SPEAKER_00

Yeah, I think um I thought about if I should bring something, and there's lots of things I was considering. Um, but I kind of rested on uh, and this is the theme of this podcast. Um, it's I find it's always um valuable to have an abundance mindset. There's lots of people out there who need help, um, whether that be direct to the builder or through a building broker. Um, we've spoken about as well. You know, I encourage competitors in this space. I think the more builders who help building brokers, the stronger it's going to be, the more accountable we're all going to be, and the better outcomes for clients. So um it's just about not being afraid of competition. It's healthy, it's natural, it's how you get the best outcomes. And there's plenty of people out there who need help.

SPEAKER_01

Absolutely. I think if I see a competitor coming into the market, I genuinely in the broken space, I genuinely get excited and I look at what they're doing and I go, how can we be better? And what are they doing that we're not doing? And keeping ourselves um accountable. And if someone is doing a really, really great job and we're not, you know, meeting their standard, that's something that I beat myself up at. Um it's it's about um always looking inward, always trying to try and do a better job for your people and for your customers. And like you said, there's plenty of opportunity for all of us out there. So it's um keep keeping our mindset accountable and making sure that we are focused on customer outcomes, not what our competitors are doing or what um a consultant next to you is doing. It's focused on how I how I can show up and be better each day as an individual and how can I make my clients' experience better each day and not focusing on all the other noise. So to lock it up, uh we've covered some ground, but I think as we discussed, it's always a natural evolution for our industry for broking uh to become a big player like it has in every under like it has in every other industry. So um there's a lot of positives. It's uh we need to embrace change, keep ourselves accountable, making sure we're delivering a really great outcome for our teams and for our clients. And um, yeah, I'm really excited to see what the industry does over the next few years. Yeah, me too.

SPEAKER_00

Look, I think um this has been very helpful. Um it's all about choice for clients. That's what it comes back to for me. Um, all about choice and trying to get the best outcome for them.

SPEAKER_01

A huge thank you, Daniel, for coming along and sharing all your insights and wisdom. And um we really love working with your company. You do an incredible job and your team are amazing. So thanks for sharing your insights and your time.

SPEAKER_00

Thank you for having me. And um, we really enjoy working with you and the team, and we hope it keeps going on for years and years to come. Thank you for listening to Own It, your property partner.

SPEAKER_01

If you found today's chat helpful, share it with a mate, subscribe, and leave us a review. Today we're reporting on the land of the Wujak Nonga people. See you next time.