Research by one of the world's top financial advisory and asset management firms shows that individual vendors would be willing to spend £250 to market their homes directly on Rightmove or Zoopla - and many believe agents already pay that much to do so.
Jefferies interviewed almost 1,500 home owners across the UK, 36 per cent of whom were planning to move within the next two years.
Estate Agent Today has seen the 19 pages of results from the survey and some of the key findings are as follows (those in quote marks are directly from the report):
- 61 per cent of owners listed Rightmove as a brand that they know, with 60 per cent listed Zoopla, 2.8 per cent listed the Scottish Solicitors' Property Centre and none listed Agents' Mutual;
- 74 per cent said property portals as the most useful source of property information clearly showing, in our view, where the industry power now lies according to the survey;
- "Though Rightmove was the most useful source 41 per cent of the time (Zoopla 33 per cent), consumers appear to adopt something of an all or nothing policy with few people listing it as the second or third most useful source. In contrast, Zoopla was named the second most useful source 41 per cent of the time and third most useful 37 per cent of the time;
- Awareness of Rightmove was stronger in the north of England, and Zoopla in London;
- 75 per cent of interviewees thought agency fees were too high and 79 per cent said that, given the chance, they would choose to list directly with portals;
- "The consumer perception of the portal's value was put sharply into focus when we asked homeowners how much they thought it cost agents to list on Rightmove and Zoopla, and how much they would be willing to pay to list themselves. 47 per cent thought it would cost an agent more than £250 to list a property, circa seven times an agent's average cost of a Rightmove listing and circa 15 times the average cost of a Zoopla listing;
- Intriguingly, some 54 per cent said they would spend over £250 to list directly on Rightmove, 52 per cent to list directly on Zoopla and 45 per cent to list directly on Primelocation.
The research was an example of what Jefferies calls a deep dive - intensive research for clients and would-be investors into market segments. Last week, as reported on Estate Agent Today, Jefferies gave Zoopla a Buy' rating and a price target of 325p
Jefferies worked with Zoopla on its recent Initial Public Offering and floatation.
Comments
However much I agree with all the comments on here ('leading questions' etc.) do bear in mind that Jefferies are not going to put their name to just any old tosh: there is a strong wake-up call for agents in the figures: if over 50% of vendors see the sales process simply in terms of cost, then agents (and their marketing) are failing to show added value.
Sophie makes this point admirably, and as long as agents' marketing fails to demonstrate that there's more to selling than simply listing on portals and waiting to show the buyers round, then we'll continue to see killer comments like this: "75 per cent of interviewees thought agency fees were too high and 79 per cent said that, given the chance, they would choose to list directly with portals."
Agents that take this seriously will thrive.
I agree with much of the comment, phrase the question correctly and you will get the answer you want. When they asked how much a seller thought agents pay for Rightmove they should have also asked how much they thought agents charge to sell their home and how much they would pay their agent to sell it. They should also have asked the same question about solicitors and stamp duty. This would have made the figures more comparative.
Property portals are merely a supporting role to an overall house sale. Agents are seriously undermined these days as money grabbing, villain type caricatures and it's getting ridiculous. The portals are never going to upload properties directly because 1. they will lose all of their business from local agents, which they rely on, 2. they'd lose their rep when unreliable sellers upload dodgy looking properties etc. 3. it would never go ahead due to unfair competition.
@Guest (Kevin).
Get your point. However, there is maybe a lesson here for people in the industry. So, 39% of people could be not interested in property, prices, selling, buying or moving - they are not thinking 'property' 24/7 but are just getting on with their lives
I wonder what the results are of their survey asking 'Is the Pope Catholic'
[i]61 per cent of owners listed Rightmove as a brand that they know, with 60 per cent listed Zoopla, 2.8 per cent listed the Scottish Solicitors Property Centre and none listed Agents Mutual;[/i]
So 39% of people owning a home haven't heard of Rightmove Morons.
This survey is far to simplistic. The results depend very much what the question was and how it was put. 'Do you think agents fees are too high' produces a very predictable result. Also, in the main, the general public have little idea of what agents actually do - that is the fault of the agents themselves Agents Mutual not listed - it has not been launched yet!
The portals are the most important source of property information and an invaluable research tool, this is also true of Google Streetview. However, when it comes to actually buying a property portals only play a supporting role. As a buyer, you don't just want to know what's on the market, you want go know what's about to come onto the market and if it suits you, you want to know first. The only way to get a jump on the competition is to chat up the local agents and convince them you are a serious reliable buyer, that way they might call you first. Previews are the most powerful weapon an estate agent has in achieving the highest price for a vendor and that's one reason why Rightmove instant is the antithesis of what agents need. If anything, holding back a property for a period of time is a more sensible strategy, it adds to the value of their service creates a spence of urgency and makes the serious buyer put their best foot forward. Portals are great but the star of the show will always be the agent.