Openn Negotiation Ltd (ASX:OPN) is moving forward on its path to North American commercialisation with the signing of binding agreements with two real estate brokerage firms to participate in its pilot program in the US and to prepare for the Openn Platform’s entry into their respective markets.
Through its wholly-owned subsidiary, Openn North America Inc., Openn has entered into an agreement with Century 21 All Points Realty in Connecticut and RE/MAX Revolution in Massachusetts, for their participation in the program and subsequent market entry of the Openn Platform into the two states.
Path to North American commercialisation
Openn North America Inc president Duncan Anderson said: “The pilot program is intended to test and evaluate the potential market demand for the Openn Platform, in pilot states specifically, and in the US market more generally.
“Openn has established a strong relationship with the Century 21 All Points Realty team, including leveraging their advice over the past year, and culminating in the release of the US-specific pilot environment last week.
“The signing of these agreements is just one further step on the path to North American commercialisation, and reflective of the good work done by our North American director of operations, Eric Bryant and the Openn US team to implement the plan.
"There is more for us to do, but this step consolidates important relationships in key North-East US markets and aligns with the strategy for successful market entry into the US and in Canada.”
Transparency and efficiency
Century 21 All Points Realty owner and broker, Kelly Petersen said: “The real estate industry needs transparency and today’s market has brought it to the forefront.
“Openn allows us the opportunity to provide that transparency and efficiency to our clients.”
RE/MAX Revolution director of marketing Mike DelRose Jr added: “We are always exploring opportunities that will potentially benefit the homebuyer, the seller and the agent community. The Openn platform provides efficiency and transparency to the offer process, which can be a difficult part of the real estate transaction to navigate.
“We are happy to align ourselves with organisations that are looking to make transactions more transparent and easier to understand."
Key terms
Both agreements are structured as binding letters of intent.
The pilot brokerages are required to allocate between four and 10 realtors to train and test the Openn Platform in their respective markets.
They are also required to assist with further tailoring of the Openn Platform for the US market, including assistance on functional, operational and compliance matters, excluding legal advice.
Both agencies/brokerages also agree to assist with the commercialisation strategy, including pricing, and assist with raising market awareness of the platform in their respective state markets.
In turn, Openn is required to provide pilot brokerages and their realtors with access to a US version of the Openn Platform and train their realtors.
Openn is also obliged to deliver enhancements, terms of use and contract addendums to ensure compliance and functional suitability for market in the respective states.
Openn will support pilot participants with promotional and training materials for buyer brokers from other real estate brokerages they collaborate with on property sales.
The agreement also allows for Openn and the pilot broker to negotiate discounts and other incentives to reward the brokerage for their participation in the pilot when the Openn Platform launches commercially in the US.
The agreement is for six months and may be extended or closed early depending on the outcome of the pilot trials.
Following a minimum trial of 60 days, either party can terminate the agreement with 30 at least days‘ notice.
At this stage, an estimate of the value of the binding agreements and Pilot Program to either party is not yet determinable.
US brokerages
Century 21 All Points Realty is licensed in Connecticut and is a large brokerage with 800 realtors and 10 offices across the state.
RE/MAX Revolution is licensed in Massachusetts and serves the greater Boston market.
It is a boutique brokerage with eight realtors in the Boston area.
Proprietary cloud-based software platform
The Australian property technology company offers a proprietary cloud-based software platform to support real estate agents in selling property online with greater transparency.
The Openn platform facilitates a negotiation process, featuring streamlined digital contracting and automated communication tools, which enhances a property transaction.
This solution provides buyers with real-time feedback through their device on how much competition exists and where their price stands in the negotiation, resulting in an optimal sales outcome.