Pashouses and Their Strategy to Simplify the Solution for Buying and Selling Second-hand Houses

Even though platforms listing Property has been mushrooming in Indonesia for a long time, but the buying and selling process is still chaotic because it has not been integrated with one another. The experience is not as comfortable and fast as when shopping on an e-commerce platform.

These conditions prompted Junghans Tasani and Bin Anindita to start pioneering Pashouses amid the Covid-19 pandemic. Passhouses here to help people who want to sell their homes quickly.

Armed with experience in previous companies and educational background in the real estate world, both of them have a big vision to make an impact in the environment that everyone should have a home. Bin also brings brilliant ideas to support Pashouses in making business processes more extraordinary and continuously growing.

Different from proptech mostly, Pashouses plays in the realm of buying and selling landed houses (landed house) resale in big cities, such as in the Jabodetabek area. With the support of the latest technology to determine the price of a house, it allows Pashouses to quickly provide price quotes for anyone who wants to sell their house.

In a joint interview DailySocial.id, Pashouses General Manager Shirley Pranoto explained the reason companies play in used homes, is because there are many positive angles from the consumer's point of view when deciding to buy a house.

First, consumers buy what they see. When buying a second hand house, they can see the building and feel the atmosphere of the house instead of guessing what they got from the developer when buying a new house. Consumers can immediately enter and occupy the house once the buying and selling process has been completed according to the agreement between the seller and the buyer.

Second, existing properties may be in established communities and better locations for local amenities, such as schools, shops, places of worship, and commuter routes. Third, the price of houses being built is often higher than existing houses with a price difference of 30% or more, because the construction of new houses is more expensive than used houses.

"Quoting from Zillow, the average selling price of second-hand homes in the United States is $391.200 as of April 2022, while the price of new homes is $450.600. The difference is almost $60," he explained.

Pashouse Solutions

Pashouses provides comprehensive services, ranging from marketing, offers, buying and selling transactions, to applying for Home Ownership Loans (KPR) from partnerships with various banking institutions. The company targets young buyers, with a selling price range of IDR 500 million to IDR 3 billion with a house building area of ​​no more than 200 square meters.

Further explained, the company acts as an investor who buys houses from sellers. Then renovate it before selling it to the final buyer. The house is also sold under the seller's name to make it more attractive to the buyer without having to worry.

This step is also considered an added value for the seller, because the buyers who come from this young generation are the practical generation who buy a house and want to move right away, without having to bother with renovations that must be done before the house is occupied.

"We sold the house at a price all-in, includes administrative costs required related to property transactions, including taxes, notaries, to financial institution administrative costs. They don't have to worry about the 'hidden' fees involved in a property transaction as they are all included in the price listing," he said.

In addition, there is the Booster Sell program, which allows home sellers to obtain home renovation funds of up to IDR 20 million. The renovation process and all marketing activities until the house is sold are handled by the Pashouses team.

In less than two years, Pashouses has received more than 10 seller submissions analyzed for sale. It is claimed, these figures have helped sell hundreds of homes. "In order to sell the houses, at least 10 buyers have contacted us with an interest in buying."

The company also has a business partnership with Sinar Mas Land, through Living Lab X (Incubation & Partnership Division of Living Lab Ventures), to create a project Rumalaku.id. This collaboration is directed at absorbing the second hand landed house market located in the BSD City area and its surroundings.

There, sellers can interact directly with potential buyers. It is also made easy for prospective buyers with a wide selection of ready-to-live landed houses. The Pashouses team will assist all transactions within Rumalaku, including marketing and obtaining mortgages.

The Pashouses mission itself succeeded in bringing confidence to investors to invest their funds in the company. A month ago, the company secured $5 million (over 78 billion Rupiah) of pre-series B funding from QED Investors. This investment also marks QED's debut in Indonesia.

The fresh funds will be used by the company to build technology and teams so that Pashouses can be trusted by the public. QED itself has invested in 12 protech startups around the world. Overall, QED has a portfolio of more than 200 companies across 18 countries.

“Currently, most property transactions in Indonesia are still the same as before the internet era. The process is opaque, and with the digitization we've built, it has the potential to remove a lot of this friction. With a big vision of becoming a center of trust for home ownership, we want to enable convenient and transparent home buying and selling transactions in Indonesia," concluded Shirley.