Foxtons were in the headlines this week as they want to open a new office in West Hampstead but a local estate agent, who has been in business for over 50 years, has objected citing that the high street is already over populated by estate agents.
This is not particularly ground breaking news but what I find fascinating is Foxtons' ongoing success, which I think says a lot about estate agency in this country.
15 years ago I remember reading every weekend in the Appointment section of the Sunday Times adverts for opportunities with Foxtons. The carrot was the allure of a Mini, followed by a BMW 3 series. Fortunately, these two makes of car acted as a disincentive to me; however Foxtons quickly got my attention as a business to watch.
Living in London one had to watch out for these British Racing Green Minis being driven by the sales-hungry graduates that posed a danger to all other road users. The only people who liked these cars were parking wardens as they collected tickets faster than Katie Price collects husbands.
Foxtons were doing things differently and had discovered a formula that resulted in huge commercial success. When Jon Hunt sold out at the height of the market, which was then followed by the credit crunch, I thought Foxtons might have had their time.
My view was that Foxtons had ripped up the rule book, succeeded commercially but achieved this based on an aggressive style and that this reputation would be their ultimate undoing, as in a recession the public would be less tolerant of this approach.
Seemingly I was wrong, although I do not know the true health of the Foxtons business. However, in many ways I am pleased I am wrong as it highlights an even greater concern that there is a lack of dynamism in Estate Agency.
Foxtons have been setting records for the past fifteen years, like it or not, and yet no one has challenged this, or looking from a different point of view, attempted to raise standards to make it tougher to be so aggressive.
My advice to the local agent objecting to Foxtons' arrival in West Hampstead is to embrace it. Take lessons from what they do, how and why and then raise your own game.
*The Secret Agent has been in property for almost 20 years and trained as a Chartered Surveyor. He enjoys nothing more than being involved in property and has invested in, renovated, developed and sold plenty of property for both himself and clients.
(In between selling property this agent loves nothing more than being involved in rugby and whilst slower and heavier, continues to be as involved as possible.)
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Comments
Part of the secret of any 'aggressive' business's success is to operate in a market (both in terms of service and location) where a negative reputation is less important.
The lack of cohesive community in central London (and other large conurbations) means that the impact of word-of-mouth is virtually non-existent.
Agents therefore need to address ways of countering this 'reputational apathy' - and getting credible reviews (to your own sites and to Google) is a major part of that.
Are agents aware of 'Google My Business' If not, there is an explanation of how it will impact your business [url="http://www.helphound.info/2014/09/google-my-business-no-ones-looking-for.htmlhttp://"]here[/url]
I could not agree more. I visit agents all the time and the business owners just, in most cases, plod along, because "we have always done it that way" . Some are very receptive to new ideas but some struggle to know that the PMA ever existed never mind has been replaced by CPRs. As for succession planning well there is another whole new topic, and what do you mean I will have to offer all my staff a pension with auto-enrolment.