Agents should not lose sleep over the new Spicerhaart cut-price sales offering it has launched in association with Tesco.
Leading London agent Eric Walker, managing director of Bushells, yesterday urged an end to panic mongering over iSold.
He says the savings it offers vendors do not amount to much and that too many gloom merchants are prophesying the end of the industry.
“The name isn’t even original,” he said. “ipod, iPhone, iTunes, iSold, iWant to scream.”
But, said Walker, he acknowledged that agents getting their feelings off their chests was cathartic: “Every little helps,” he said.
“OK, so it seems great value for money for the seller. It isn’t.
“People forget good agents more than cover their fees.
“So, sellers have a choice: iSold value a house at £350,000 and charge less commission than a Tesco value pizza, plus double Clubcard points, or Foxtons promise you £400,000 and enough waiting buyers to fill Wembley, all of whom they will accompany in their annoying little Minis and browbeat into submission. Not a tough call, really.
“The average house price is £165,000. The average agent charges 1.5%. We don’t charge up front. iSold charge around £1,000, so the vendor saves £1,500. But how many would quibble over an offer of £1,500 below asking price?
“All agents try and value for the highest figure to secure the instruction.”
Walker added: “The public also seem to forget that the service we offer buyers is free. We find them a property, we negotiate, help with lawyers, conveyancing, surveyors, removals, schools, workmen, ferry them around – and often their parents – all of whom appear to have degrees in structural engineering.
“Buyers buy from the agent who has the property they want – simple.
“So let’s be honest – let Tesco join the market. And let Spiceraart support them, thus admitting their own business is a sham as they have produced a cheaper alternative which denigrates agents’ fees.”
Yesterday, EAT invited Spicerhaart to make a statement on iSold, as the company has yet to make a comment after we broke the story. We hope to carry this when available.
Comments
Eric. Your comment was "All agents try and value for the highest figure to secure the instruction." Your trying to justifie your comment by saying that you try and get your vendors the best price. Not the same thing and you know it.Yes Eric i maintain your a dinosaur, doing the same thing estate agents have done your years. If you had to start a buisness now you wouldnt last five minuits. A few photos and a floorplan that looks like its been drawn by a 5 year old dosn't cut the mustard anymore, so good luck going up against foxtons. Yes im a small independant out in essex and have been going for just 2 and a half years but the whole thing about this iSOLD thing is that estate agency IS changing like it or not. You keep being traditional Eric
www.henryward.co.uk by the way.
Wardy - so, I am a dinosaur. Odd - I use my name and company name and openly express views. I dont hide behind the anonymity of a username. Which dynamic forward thinking company are you with Wardy? Will you nail your colours to the mast? If you think the values of service, local expertise, forcing the best possible price are from the jurassic era, then I am indeed a dinosaur and proud of it. If you think anonymous websites and long distance selling for cheap fees are the way forward, then good luck. Come on Gavin - which company do you represent?
The biggest danger to Tesco and Spicerhaart is that they will find it very difficult, if not impossible, for their telephone contact with potential vendors to create the format of a call centre. We must all know what that's like. It could work out that the client will form the opinion that Tesco are 'VERY LITTLE HELP'
Why would Spciers post, they must be laughing at the panic and ignorance shown? First time they get one up.
Sell out idiots,,,play with fire you get burnt petal,,,keep away from tescos,
New story please, i think we are done here.
how about connells being interested on hIPs because it protects their business from competition.
I am really more of a letting agent nowadays even though I am very experienced in sales. We are about to traverse into the selling market again to strengthen our position and I have no problem with Tesco as I believe their plan will backfire on them. They are a big brand and they can't afford bad press. Doing agency they will get loads because it is a highly charged thing to go through. I can't wait for them to have a try at lettings they will son go back to groceries! Don't worry yourselves.
Here's a question for EAT.
Have you heard from either Spicerhaart or iSold yet about this post ?
I knew a agent that opened its offices next to a supermatket. They then dominated the whole of that area. What we have to remember is that iSold will be charging a upfront fee. (never going to work in my opinion) If on the other hand they provided a normal EA service i.e fee paid on completion then maybe we should all be worrying. as it stands i'm not bothered at all and nor should any of the other normal EA's.
"You can do so and remain realistic by being candid with your vendors and manage their expectations." Another free lesson from an indudustry dinosaur. Thanks for the advice.
I think there are a lot of fundamentals here.The Supermarkets are becoming too powerful, mainly because whatever happens in the economy everyone still has to buy food. So your main overhead expense of premises is already covered and you have a walk through audience to die for. This is too much of a privileged position and their powers to enter new markets should be curtailed by the monopolies commission - similar to Microsoft and the Europen Union. We all assume that people will continue to want what they have always had, but then didn't yahoo first let google advertise on their site, and we all know what then came about. Taken to its potential conclusion I do think Rightmove will also rue the day if they let this on their portal. As more and more local agents are driven out of business they will have one major customer getting bigger and bigger and bigger. Inevitably there will come a point where Tesco's control Rightmove and if Rightmove don't play ball with prices etc. will just be able to withdraw and open up their own portal.They will do the same to Rightmove as they do currently to the farming and food supply industry - drive prices down to what they want,rather than whats viable. If we are not careful in this country we won't have high streets left anymore - just 4 or 5 big supermarkets, because you always need food and they can cover premises overheads and advertising from this. Why do Tescos need to do this anyway,putting pressure on small local businesses with comparitively high overheads, and putting local people out of jobs. If Rightmove insist on letting Tescos list perhaps all small Estate Agents should take one months subscription, which totaled together could amount to anywhere between 5 and 10 million pounds, and set up their own portal where only small independents (and reasonable chains or franchises)can list. The only way to combat the enormous potential threat of this is to club together to become bigger than they can ever hope to be. Strength is in numbers.Everyone could start by making it clear to the portals what they think about this and why it is clearly not in the portals long term interests anyway. Rather than whinging to each other we should be fighting for our businesses together.Tescos believe us all to be weak, insignificant and easy fodder where there are corporate profits and shareholder dividends to be made. First the banks,now the supermarkets!!
Some fascinating comments here.I have been in the business for a very long time and one thing I have learned is that Agents adapt better than many businesses. I am not concerned by this challenge. I actually think its positive. As for the sarcasm over my comment that all agents value high - I take it back. I was wrong. I meant to say all GOOD agents value high. Our job is to achieve the BEST possible price for a property. You can do so and remain realistic by being candid with your vendors and manage their expectations. Frankly, those of you who worry about Spicer - Tescos are at liberty to do so. We will focus on providing local expertise and service. Business is very exciting at the moment. But if the worriers believe that the cheapest is best, you will fail.
Wardy,
Thats the mystery of this web site.
I couldn't reveal that information. I work in a area in the South East of England covering Berkshire, Hampshire and Surrey.
We have several agents who are multi officed and some of them have over ten offices.
The competition is very agressive and i wouldn't be surpised if there was blood on the street when two or three agents met in a local shop.
All i know; is that i need to do what i do to survive.
I've been in this game for ten years now and yes some of you may have been in the industry for longer but i have seen my market go from okay to excellent to terrible over the last 4/5 years.
I'm just earning a living like you are.
So, who is going to drop Apple an email. I'm sure they have copyright or trademark protection over using an 'i' in front of a word.
Be nice if a court ruled they couldn't use 'iSale' and had to change it after spending a fortune on branding.
come on then top neg, put your money where your mouth is. Who are you and whats the firms name?
Legend
As long as i'm able to sell my clients houses in 10 weeks, charge 2% and have a bigger market share than any other agent in my area i'm happy.
I've never gone to Tesco for insurance, a phone or a loan. They may be good value, I've no idea. I see them purely as a supermarket.
Good relationships with your local community is essential, put up local posters, support the schools and nearby businesses, get to know everybody. Be the font of all knowledge in your area (but not the gossip). That's something they can't compete with.
Try not to over value to much eh Top-Neg?!!
At work I concentrate on one thing ! MY BUSINESS AND NOT ANYONE ELSES !
This web site is great to discuss and share opinions, thats all and i love it.
I'm off to do another valuation. Have a good day everyone
Top-Neg
Top Neg....Its never been done before by such a big brand name with a bottomless pit of a advertising budget. If you think Tescos and iSOLD and Spicer are your typical 0.5 percent monger that im sure we have all had to deal with then your in for a shock.
Agents and others.
How many times have we all seen this type of internet business before ?
LOADS...
The public want a personal service dealing with humans beings and anyone who has a high street office or equivalant will continue to do a bloody good job for them.
Lets not fight over this silly iSold thing and lets carrying on proving to the public that we are all better than iSold.
Peace.
Agent Orange.
It was an example for a higher valuation scenario. But, if you do what i also wrote (selling houses is about picking the phone up and talking to people.) then yes you can do this.
If you explain to your potential vendor what your stratergy is and they agree, then fine. Who doesn't want as much money as possible for their home ?
This is only my personal opinion and i find that i now have a greater market share in my area than the other 5 agents and that my reputation in the eye of the public is very positive, needless to say the other agents must hate me but thats life. Also that the publice are coming to us to sell and i'm not complaining at all.
I dont think the Tesco here is any rush to start iSold as I have just had a phone call from them asking do I want to advertise in their store?
Hear hear
The words "Flash in the Pan" spring to mind. I for one am not bothered in the slightest....how many times when working on a sale that the buyer and seller start blaming each other when things start to get tricky?? Who's always available to offer advise and calm any situation? Who can the public vent there frustrations on? But more importantly who is there to keep everything moving in order to hit completion dates? There are very few solicitors that will chase chains, surveyors, mortgage lenders etc...so lets stop moaning and let them have there moment as we all know the public will come back to us with their tails between their legs.
I have asked isold to value my house via the website. Four days on still no contact, cannot see how it is going to work if they cannot follow up thier valuation leads.
Sometimes the posts here make me wonder if people are cable of running their own business. The market has and always will change and those that dont die out. Yes it is possible to get a higher figure by being a good salesperson, otherwise there would not be estate agency! People dont get on - look at queues, road rage and so on. How will they progress a sale? Internet conveyancing hasnt destroyed traditional high street forms and neither will this, but of course it will have an impact
We have been established since 1985. We are not making a million a year just getting a living out of it.After taking the instruction to sell we prepare all the property particulars - after measuring up taking photographs - doing research on the local facilities etc. -to comply with ALL the legislation- we pay to advertise - deal with enquiries and take prospective purchasers to view - when we have an interested party - negotiate the best possible price. Having got this far we then have to instruct solicitors and negotiate with the bank or building society - surveyors - financial advisors local authorities etc. etc. and motivate all these different departments to get the sale through to exchange and completion. All this is very time comsuming. Good agents really work hard and earn every penny they get, which is not appreciated by those who think it is "money for old rope". It is a specialised industry and we do a professional job - we don't sell clothes or groceries along with it - just do the job as above!!!
Just had another vendor not be able to use me to sell her house because coneels have tied into a rip off£500 quid hip pack if she leaves them....is this a case for trading standards yet??
Top Neg - you would value, and go to market at, £120k if you expected to get £105k?
How many buyers/viewers WHO CAN AFFORD £105k will be looking at houses priced at £120k? They'll think they can't afford it.
Top Neg, we are talking about over valuing in order to gain the instrution, Over valuing a property for no other reason than to win an instuction over your competitors is silly. Your valutions should be based on fact, and what you think you can get for the property.
Wardy,
I think that in Estate Agency we try to get the vendor the best possible price. If that means valueing it 20k more than you do then so beit. At the end of the day that vendor may take a 15k offer but will still be 5k better off than a lower valuation. Plus how many times do you get asking price offer ? That means that the agent who has valued it for more will get a bigger thank you from the vendor and that the reputation of that agent will be better ....
As Eric has said everyone is entitled to their own opinion.
As ever, there is a common theme running. All good agents, who know how to sell properties and do not just put a board up, put it on rightmove and then just hope, realise that this is a 'PEOPLE' business. The internet has been expected to put all of the high street out of business for years and there have been various on line agencies trying to do the same for years.
I agree with Top-Neg.
PEOPLE PEOPLE PEOPLE
Eric, where did you dream up the line “All agents try and value for the highest figure to secure the instruction.”? Is that what you do to win? are you advocating over valuing? I dont get it
Good to hear from Top Neg that the climate is getting cheaper. Literacy doesn't appear to be high on the agenda.
Let Tesco/Spicerhaart/iSold have those vendors who want cheap fees! We don't want them - Aren't they ALWAYS the ones who give you more hassle and ultimate demand more of everything than any 'normal' fee paying vendor, and then don't move anyway!?!?
Let them waste Tescos time and money, not ours!!
PEOPLE PEOPLE PEOPLE ! ! !
Please remember that most of the public are reluctant to pay upfront for a HIP. If they have the choice of deferring the payment then they will. I can’t see the public in this depressed economical climate paying over 1k to sell their property.
Any way all we have to do is say no sale no fee, those poor vendors who use iSold will be locked into a contract as they don’t want to incur an agent’s fee and a silly upfront iSold fee.
Work it out? They will have no chance against any established agent who has a very good reputation. Forget rightmove and other advertising portals, selling houses is about picking the phone up and talking to people.
That’s my thought anyway.
Thanks
Be as scathing as you like. Being called 'greasy' from someone who has the user name Douchebag is quite funny. I have worked in an areas where Foxtons opened with 0% commission and over valuation. We survived on reputation and service and off the back of our success. Get a sense of perspective and a sense of humour. As regards iPhone and iTouch being successful - you are spot on. BUT they are great products. This isn't. Still, only time will tell. Remember the days when the internet spelled the end of Agency? You are entitled to your opinions, as am I.
I wouldnt say im worried about it Jakie, but i think we are going to have to react, im sure it will change the way i talk to potential vendors about marketing. To the general public this seems like a good deal, mainly because they (and some agents i might add) think that all you need is rightmove, if you want the instruction you have to convince them otherwise.
Eric Walker.
You quote:
“Buyers buy from the agent who has the property they want – simple".
Yes, it is that simple and it is the real point, instructions are the life blood. Agents should discuss and make contingency plans just in case iSold does make a significant impression on their local market.
"All agents try and value for the highest figure to secure the instruction."
Really?? I don't think so!!
And who in their right mind is worried about this Spicer Haart offering???
I would gladly charge £500 per property because 1/2 the idiots we deal with dont even move. Trouble is these same idiots know that we are free and so use our goodwill against us.....cant see why everyone hates us,,what other industry gives you something for nothing???
Most people think agents get too much money - but just accept their fees as they get lost in the whole deal.
We've had cut price agents before - but most people choose one of the most successful agents in town (that's why they're the most successful) and make a decision based on a gut feel on who will get the best price.
So, if SpicerHaart/Tesco play the 'let's do high valuations to get the instruction' game - it's going to be a brave vendor that ditches them after 6 weeks (having paid out £299 of their hard-earned) for the opportunity of giving someone else perhaps 5 times as much to sell their house.
They already have a good idea of what it is(or isn't) worth - why would you change agents, drop the price and pay the other agent a lot more.
No, if SpicerHaart/Tesco market aggressively (value high) - they are going to wipe the floor with the rest of the industry.
Is the author really so gullible as to believe that, somehow, Foxtons can extract more money from buyers than other agents?
Both commentator and EAT should be ashamed for publishing this. All the commentary is playing into the hands of iSold
I imagine this guy is as greasy as an oiled shark in a fat fryer. Made my skin creep just reading it... Bet you use the word "Synergy" a lot.
ipod, iPhone, iTunes... three of the most successful products in the history of marketing. Nothing to worry about there then.
Well thank you for that insight into modern estate agency, I hope these comments are an EAT exclusive. Is this guy on the Foxtons payroll?
and as always, it is EAT leading the way with the panic mongering.
"All agents try and value for the highest figure to secure the instruction."
Has the author spoken with all agents in the country to verify this....?