An estate agency is asking clients to pay only the commission they think is deserved on the basis of the service they receive.
London-based agency Strawberry Star, which officially launched this week, makes a point of sharply criticising others in the industry saying in its launch announcement that 76 per cent of the UK propulation are failed by their estate agent.
It then goes on to quote statistics from what it calls the National ombudsman claiming that 26 per cent of national estate agent complaints are over alleged communications failures. A footnote to the launch announcement makes it clear that this comes from The Property Ombudsman's 2013 annual report.
The announcement continues by saying that a document called the Estate Agent Evaluations report - which Strawberry Star commissioned - reveals that just over 7.5m people across the UK feel the number one frustration towards agents is become of their overriding interest in receiving commission over finding the right property for their client.
The agency is also critical of lengthy contracts that only account for the performance element of a transaction. It says these contracts must be adhered to if the agent achieves a sale or let, regardless of whether the client's requirements are truly fulfilled or if the calibre of customer service was acceptable or otherwise.
The firm's launch statement is not given to understatement, claiming that all global operations [are] driven from a Central London head office and a further 25 UK offices in the pipeline. It also refers to a Singapore office opening this month and to having facilitated over £500 million of investment into the London property market.
The agency's website pledges that it will not tie clients into contracts and allows sellers to be free to vote with your feet and sell your property elsewhere. No questions, no ifs, no buts as well as pledging that if we don't deliver the levels of service you expect, you get to choose how much of our fees you pay.
Comments
overriding interest in receiving commission over finding the right property for their client.....
sorry, but please remind me... who is the client again After 10 years in the business, I thought I knew who the client was... Maybe these guys know something I don't
Blimey, they don't think these things through first, do they
It's a good idea in principle, but I don't think it's very feasible in reality. If people want lower fees they'll either shop around a bit, opt for an online agent or forgo the estate agency model completely and do it themselves (the latter being a very inadvisable move, I should add).
You'll find that allowing the vendor to decide on the fee means that the agent is potentially in breach of the Estate Agents Act 1979 Section 18.
This is not a new thing. It's been done in the past and it's not worked out particularly well.
I like the idea that Vendors decide on the fee they pay but we did it years ago and Vendors just don't get it, we tried it to show we did a good service and was not out for the last penny but Vendors never bought it thinking there was a catch, it was so alien to them that an agent might actually be honest it never worked. Most Vendors prefer to be told an actual figure from the start. We have also never had a tie-in period which Vendors do like. So nice to see that Agents are trying to think outside of the box, bit I am sorry to say its all been tried before!!
Original... Er, no... ten years old...
http://www.underhillproperty.com/index.php/unique-estate-agency/
Original idea. What puzzles me is the quote "that just over 7.5m people across the UK feel the number one frustration towards agents is [become of] their 'overriding interest in receiving commission over [b]finding the right property for their client[/b]' (emphasis added). I thought the job of an estate agent was to find the right [b]buyer[/b] for the vendor. It's the job of a property finder or buyer's agent to find the right [b]property[/b] for their client. Maybe it's this lack of clarity regarding who "the client" really is that lies at the basis of the public's distrust towards estate agents.
"... the Estate Agent Evaluations report - which Strawberry Star commissioned - reveals that just over 7.5m people across the UK feel the number one frustration towards agents is become of their overriding interest in receiving commission over finding the right property for their client. "
Erm - just a small point. An Estate Agent's "client" is THE SELLER - who expect their property to be SOLD.
Note to Strawberry Star - the Agent [b]earns their commission[/b] that way - and the better job they do - the more commission the client pays them.
Look it up.