eMoov chief executive Russell Quirk says the role of traditional estate agents has been overstated and that their principal purpose in many transactions is to act as a conduit to get properties on to the portals.
Quirk, who has been speaking about estate agency on the US business news TV channel CNBC, says the industry is going through a digital revolution akin to that which has already transformed the recruitment, insurance and travel sectors.
We've got 50 online agency competitors now in 2014. When we started in 2010 there were only four or five he says.
Quirk reiterates his heavily-contested claims that his style of online agency achieves higher sale prices and speedier sales than traditional agents, and in London costs vendors only one twentieth of the fees of high street agents.
CNBC cited unattributed statistics predicting that while 86 per cent of UK residential transactions are now handled by traditional agents, this is likely to drop to 67 per cent within four years.
A business analyst on the channel described the advent of low cost online agents as being potentially beneficial to the wider economy. He was claiming that one of the reasons why the US recession of recent years was so deep and so long was the inability of people to afford the price of moving house to areas of greater employment - something which he believed may be helped by lower cost online marketing of homes.
Comments
One day in the near future, more and more high street agents will start offering a cheaper option alongside the traditional percentage fee. This will appeal to those vendors who are happy to do their own viewings and who will ultimately receive crap offers from time wasters as they will have no experienced negotiators to play hard ball for them. This is a service Martin & Co are already offering. Online agencies such as epoov and house networse will become obsolete. People like to use a proper local agent because a good agent takes all the stress away from what is often a time consuming and traumatic process (if you have ever worked in an estate agency role you should have plenty of stories of nightmare transactions) . Hybrid agencies that give the vendor a choice are the future, and considering that some agencies such as Hatched.co.uk have been around for 10 years plus, the fact that online agencies only have a 5% market share just goes to prove that there is something wrong with their business model.
Why thank you, Yawn - although it was more of a 'guest appearance' than a regular thing. I do, however, continue to read EAT but refrain from entering the majority of discussions. Interestingly, my account hasn't been deleted as it was intimated it would be - which considering they've now got 1850 members they hardly need me to bolster the figures! Mind you, it's a pity that over half of them are spammers... but like I say the numbers look good. It's a bit like having two or three dozen matrimonials and 'ostrich' vendors on your books, isn't it... none of them any use to man nor beast but you can at least claim you've got the biggest register in town! ;o)
You can guarantee that I'll be here from time to time gnawing at the ankles of the Quirks, Days and Hendrys of this world, Yawn. In the meantime I'm over on 'The Dark Side' making a pain of myself to 'The AM Collective'. You should pop in and join the chat - it's fun! ;o)
Have a good weekend!
Firstly, 'PeeBee' great to see you back on the 'other side', some very valid points made.
'James' how do you know we are all 'High Street' agents In fear of the online revolution! What is going to happen in the next few years Is Russ and his cohorts going to take over the world Course they're not! What people fail to realise is that Russ and the majority of online agents offer the consumer nothing more than is already there, the only difference is the cut price fee. What they lack of course is not local knowledge. It is the fact they are not local. I cover an area with a population of approx half a million. I have lived in the area all my life and worked as an EA here for almost 20 years. My firm is the 3rd biggest independant in the city. There are postcode areas in the city that we don't get a look in, such is the strength of the 'local agent'. Now if we have no chance how are Emoov, Hatched or Purple Bricks going to get a foothold all over the UK It ain't going to happen! Unless they all open offices in every town then there is nothing to fear. Even if they do this what if that staff they choose are hopeless I still gain most of my instructions from recommendation or because they like me or member of my team. I've saved the best for last just for James. I run an estate agency without a high street shop! ;-)
BORING< BORING< BORING. The same old same old......................................................
"Seems like many of the above comments..." - erm... that would be [b]"...below..."[/b], 'James'. Which brings me to ask the question if you don't know the difference between your head and your @r$e, should you be commenting in the first place... Actually - don't bother replying to that - your original comment speaks volumes in that respect sunshine! ;)
Seems like many of the above comments are from the "traditional" high street agent. No wonder a lot of them are stressed, anxious the way their sector is going. I wish you all the best of luck over the next few years ;)
So... Mr Quirk is back once more, peddling his billshut in the hope that some of it sticks in the right place. Well, Mr Quirk - please chew on this for a while and let me know which of these two spewings is cr@p and which is complete cr@p:
From the article above - "Russell Quirk says the role of traditional estate agents has been overstated and that their principal purpose in many transactions is to act as a conduit to get properties on to the portals."
From his company website: "We know what our customers want. We always have. "Technology may have changed. Our customer approach hasn't" Russell Quirk C.E.O"
Seems that, according to the above, you are vastly overstating YOUR OWN role also. Not to mention cheapening the efforts of people like your own Grandfather made to establish Estate Agency as a profession when you weren't even an itch in your Daddy's pants.
Shame, really. Making 'news' is an art, Mr Quirk. You're just throwing stuff at a wall.
Another day, another online estate agency story. Russell's back after a short break. On Tuesday we had an online agent with only 3 properties on their books calling for a truce between the warring factions! Call me cynical but how is such a new comer to the industry given airtime I'm sorry EA today this site is looking more like an advertorial for online agents trying to raise their profiles. I wonder how many days it will be before EAT favourite Adam at Hatched makes another appearance!
Why can't these 'alternative' models just get on with it and stop the 'trashing'. As Emily Davison once said: 'deeds not words'.
The one man press release, god love him,
He seems to have an okay business, hes bagged himself a dragon and all that but like the others they are a mildly cheaper up front fee alternative to a no sale no fee offering and all they really do is give their customer access to RM and Z.
He got worked into a lather about OTM because hes not allowed on it while telling us all it was rubbish anyway and he wouldnt have a hope without access to RM & Z
Quick sniff around his Milton Keynes offices stock suggests they arent anything more than one of the crowd
Point is hes not doing anything clever hes providing access to another companys technology (the portals) while having this odd undertone about him that hes some sort of Steve Jobs of estate agency.
Just read Russell Quirk's comments, he and his comments are one of the many reasons why I quit Estate Agency, Mr Quirke, I suggest you do the same as you have no idea or concept of Estate Agency at all.
estateagenttoday is becoming a new advertising portal for emooo I for one cannot stand this drivel and I am unsubscribing from this site, I hope emooo pay the same rate as your other advertisers!
Oh great, Russell Quirk mouthing off again. Does he never learn The reason he gets so much free coverage is because he's 'controversial' and 'edgy' and provides plenty of provocative quotes. Most people I speak to just find him tiresome, and he does his company's image more harm than good with his ill-informed rants.
Following on from Mr Webster's sensible attempts to fan the flames of the traditional v online debate yesterday, today we have Mr Quirk undoing all that with more playground squabbling. It's pretty pathetic, really.
Still disappointed this man gets so much free coverage when everything he says has negative impact on the industry. Whether you think he is right or wrong doesn't matter, talking up what you do rather than slagging off the competition is the best approach - the professional one, and the one that makes the industry look better in the eyes of the general public.
"Well he would say that, wouldn't he"
If as Russell says, the role of the traditional agent is overstated then perhaps there is no role for the online agent other than a private advertising channel to the portals I'm sure his online colleagues would disagree