Rightmove has been slammed for producing “damaging, lazy statistics” that are seriously hurting the property market.
Ed Mead, director of Douglas & Gordon, took to Twitter to vent his ire, criticising the latest Rightmove house price survey as “absurd”.
He took particular issue with the claim that asking prices in London have gone up 10% – and accused Rightmove of allowing the media to report that “house prices have gone up 10% in a month”. Mead accused journalists of “poor reporting”.
In fact, the national press release that Rightmove sent out to journalists was headed: “London prices rise unsustainably, beating previous high by nearly £30k.” The release did refer to “asking price”, but under the headline.
In furious exchanges on Twitter, Mead said Rightmove had a responsibility to ensure that it talked about “asking prices” every time it mentioned them.
He said: “Rightmove have a lot to answer for. Their statistics are ASKING PRICES, NOT real ones.”
Mead even challenged Rightmove: “Your stats are meaningless. Talk to those who pay you – us – and we’ll tell you how badly you’re damaging our businesses.”
One poster who agreed, Alan Page, said: “Rightmove stat saying London house prices up 10% a month is absurd, dangerous and completely at odds with reality.” Another, Timebandit, said that Rightmove’s monthly house price bulletin was nothing more than “a greed index” that fails buyers, sellers and agents.
Miles Shipside, director of Rightmove, did not join in the Twitter debate but changed the heading on the Rightmove online blog to: “New seller asking prices soar.” This did not completely satisfy Mead, who said the horse had bolted and the damage was done.
Shipside told EAT: While the world increasingly uses the internet and Twitter to communicate, I picked up the phone and have spoken to Ed personally and we had a very constructive conversation. Ed subsequently updated his Twitter to say that he appreciated the call.
“We always stress that the Rightmove Index reports prices of properties coming to market – a good lead indicator in the property market – though occasionally some journalists are less rigorous with their reporting. A few look for the most sensational angle and ignore much of the commentary.
“I agreed to tweak a blog headline on Rightmove as a result of my call to Ed, again emphasising the ‘new seller asking price’.”
In today’s blog on Estate Agent Today, however, Mead says he remains angry. He tells how one client “with an already stretched asking price” on their house in Chelsea queried why, since Rightmove were reporting a 10.2% house price rise in London in October, were the agents finding the market so difficult.
Mead says: “This is just the sort of thing that reporting like this causes, and to simply ignore it is a travesty. If Rightmove won’t start to try and help the agents they serve, then bring on Agents’ Mutual.”
You can read Mead’s blog online today.
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Comments
Are rightmove not just providing correct information from the actual asking prices which are going on the market? This just sounds like the agents are kicking up a fuss for the sake of it.
Are rightmove not just providing correct information from the actual asking prices which are going on the market? This just sounds like the agents are kicking up a fuss for the sake of it.
Is this not just typical of Rightmove. All they are concerned with is taking money off of Estate agents and increasing their power as the self governing body of all Estate Agents as there is no other choice but to use them. Zoopla are not much better.
As long as Agents keep paying they will not change their ways.
If ever there were masters of misinformation it is Zoopla and everything that it powers.
If anything misleads the public it is the Zoopla random number generator, why has Ed Mead not bothered to mention that or is this just early posturing for Agents Mutual choice of one other?
Big Ted, are you that idiot Rantrave?
EW... that must be a high percentage of vendors ignoring the valuations of agents to make such a marked skew to the whole market.
My point being that agents place a higher value on their "expert local knowledge" than do vendors.
@london agent
Thanks for the link. That was very interesting . I had no idea Allagents were able to break down reviews into categories like that.
Well said EW - it was a stupid comment from @Big Ted. We give advice, some idiot overvalues, so we prove our point by letting them try THEIR price first - otherwise they get an offer and pull out as they assume it was undersold. You cant win!
@ Big ted - No - that is a silly comment one expects from someone who was a star of Playschool.
I have often suggested an appropriate asking price, then a vendor reads a headline and asks to 'test the market' at a higher figure. Within reason, I would offer advice but respect their decision otherwise, if you find a buyer quickly, the vendor may feel they could have got more.
The valuation and the asking price are seldom the same thing. Its the vendors property, so its their call. I have always offered what I believe is best advice but respected my clients instructions, that's not a business model shot to bits, its called service.
EW "agents suggest asking prices but don't set them - that is the seller prerogative".
In other words they ask the vendor what they want and go along with it.
Expert local knowledge in valuing your property = shot to bits.
Killer negotiator and deal broker = shot to bits.
If ever a business model was vulnerable, this is it.
Agents suggest asking prices but don't set them - that is the seller prerogative. When a huge organisation announces such huge price rises, its hard to overcome using historic data and comparable evidence. I agree with Ed that the presentation of these stats can be damaging as they create a false impression that values are rising rather than aspirations.
That said, its good to see that RM took it on the chin and appear to have listened.
I have to chuckle. Agents outraged at RM for quoting “damaging, lazy statistics” that are seriously hurting the property market.
And what are those statistics ? estate agents asking prices.
The punch line for me has to be Their statistics are ASKING PRICES, NOT real ones.”
For a group whos biggest claim to fame is their "expert local knowledge".
LMFAO .
Err why.
sorry just re-read my post and realised it's badly worded.
I meant to say it was put on the market for the price recommended by the agent, which was £15k below my own valuation. My agent said something similar to mark Rowe about property sometimes going for over the asking price.
This is nothing new - Rightmove have always done this and normally the Daily Express repeats it on the front page. It does make a huge difference and vendors when properties are being listed are rightly confused.
The only prices that should ever be quoted are completed sold prices. That is the only true reflection of the state of the property market.
If the asking prices were all increased by 50% across the board, and no-one purchased, the same rightmove headline would apply but it is a totally false and misleading statement.
I agree totally with Ed Mead. This sort of irresponsible hype from Miles Shipside, helps neither buyer nor seller. This is reminiscent of 1985/86 and those in the business long enough will remember what happened two years afterwards.
Phil, why would you put it on the market below what you thought and the agent said?
Wonder what this useless on line val tool would say!
@mark rowe
"....And before I get a load of abuse about underselling, I would like to remind all who have this opinion, that a property sells for what it is worth to a buyer. A property will sometimes go for over the asking price even in this market, so if it is placed at a lower price buyers will fight for it and this will naturally, in some cases, achieve over the asking price...
It's called 'MARKET CONDITIONS'.
I don't agree. I placed my house on the market a couple of years ago for a price £15k below what I thought it could achieve with an agent who said something similar.
However, as soon as the first offer came in at asking price the buyers stipulated that the house was taken off the market and the agent said he advised me to do so as I might lose the buyer. So the agent never had any intention of starting a bidding war and just wanted a quick commission.
Had I marketed the house £15k higher, all interested parties would have bid what they wanted and I may have received a better price.
@Jon Middleton there is already away. Allagents league tables http://www.allagents.co.uk/league-tables/UK/
Very clever mand to get such aplug for AM
Couldn't have said this any better! Well done, Ed!
@Steve I don't think that it's strange that Ed is a founding partner of Agents Mutual at all. Why would you like reports like this to hike asking prices up!?
When are people really going to understand that the prices that are achieved are the benchmark, why would you put your property on the market at an inflated price that gains no interest...? Surely the whole idea of selling your house, is to sell it!!!???
And before I get a load of abuse about underselling, I would like to remind all who have this opinion, that a property sells for what it is worth to a buyer. A property will sometimes go for over the asking price even in this market, so if it is placed at a lower price buyers will fight for it and this will naturally, in some cases, achieve over the asking price...
It's called 'MARKET CONDITIONS'.
Furious.
I think the jist of it is that anyone currently under offer will be likely to want to withdraw from their sale and re-market at a higher price if they are to believe the market has risen 10% in a month. Not helpful to anyone.
If you are an estate agent selling a property at 400k and the vendor rang you to abort and re-market for 450k you wouldn't be happy, and the vendor wouldn't be either in the long run, as 95% of the time it would be a massive mistake and they'd end up not achieving that higher price.
Prices have not risen 10% in a month, therefore it is not helpful to say they have.
Strange that Ed and Douglas & Gordon are one of the founding partners of Agents Mutual and at this point he decides to come out and have a go at rightmove. These reports have been out years and clearly state asking price. Blame the agents for overpricing not rightmove. I like the plug for AM at the end as well.
Hardly a new measured by Rightmove. Looks like someone after making a name fro themselves and people giving them there 5 minutes of fame.
Just looked at the report and it only says asking price and new to market about 6 times in the first 500 words.
You couldn't make this up - How would you suggest measuring Estate Agents performance?
Tell your vendor that I will sell it for them. I am amazed that an agent is blaming rightmove for not being able to find a suitable buyer! There are estate agents and there are ESTATE AGENTS. Its a shame no one publishes league tables on agents performance