A new style of portal agency is crossing the Channel and is poised to break into the UK estate agency market.
Optimhome is this week starting to recruit a national network of self-employed agents who will work from home.
They will earn “exceptional” commission and also referral fees for conveyancing, mortgages, insurances and utilities.
An advert appeared with Reed, the recruitment company, at the weekend. ‘Agent information days’ are being held tomorrow, Wednesday and Thursday in Birmingham, Leeds and Newcastle.
Optimhome launched in France in 2006 and according to its French website “upset the French real estate market” with its new approach to business.
It claims to have nearly 1,300 agents in France, explaining that its concept lies in the absence of a shop window: “The store is replaced by internet shopping.”
The French website operates as a portal which is fed with both sales and lettings listings by its network of agents, who receive admin, business and legal assistance, plus IT. The public can use the portal to find properties and agents, and to register their information for valuations.
The agents receive training and are said to offer sellers highly competitive rates made possible by low overheads to win listings.
The UK Optimhome business is now up and running, although it as yet has no properties or agents on it. It is based in Solihull and run by Charles Hargreaves, and makes clear that as well as property listings on the Optimhome site, properties will also appear on other sites including Rightmove and Zoopla.
Hargreaves has agency experience and was director of a firm based in Droitwich called Ezlet.
It is not obvious from either the French or UK Optimhome websites exactly what the business model is and, if it is a franchise network based on local territories, how much it costs.
Anyone interested is asked to attend an information meeting, receive a phone call or get an information pack.
While the concept of agents working from home is not new – Hunters have their Personal Agents franchise scheme, and in the Thames Valley, Davis Tate have tried something similar – Optimhome says it will be the UK’s first national home-based estate agency network.
One industry figure, Robert May, told EAT: “I don't think it will be long before Rightmove and Zoopla are trying the same thing
.
“This is slightly different to online agency because this is the portal itself building a network of property valuers, listers and viewings escorts to do the bits of agency that cannot be done by the portal remotely.
“Effectively the portal is the agent, and the self-employed ‘agents’ that Optimhome is looking for will be the minions that are essential to make it work.
“Most agents cannot understand this as a threat but it is happening, and traditional estate agents need to work together to keep control of their data and their industry.
“I have no interest in working for this crowd, but if I did, my local knowledge, reputation, and knowledge of the strengths and weakness of the competition, mean I could decimate traditional estate agency in the area.
“I don’t know if Optimhome would be the ones who make this work in the UK, but Rightmove could and so could Google.
“I have been warning that this would happen. If traditional agents do not wake up soon and stop pulling in umpteen different directions, they will not be a strong enough force to repel this latest invasion on our shores.”
More at the links below.
https://www.optimhome.co.uk/
https://www.reed.co.uk/profile/optimhome-real-estate-limited
https://www.facebook.com/optimhomeuk
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Comments
A really great concept flawed by no investment, no foresight & an MD thats basically an EA that wanted more. It's never going to work here without a big relaunch & a new MD. Poor, very poor!
The website is poor, no pre launch marketing. Just looks like very little money has been invested for the launch.
Concept is good just poor execution.
@@@really said "It will be interesting to see what Scott Creasey has to say about this, presumably he is competing against them already he might be able to say how they are nothing to worry about."
No I can't say we feel we have much to worry about, but then we are not an estate agent. As far as I can see they are offering a full online estate agency, with no high street shops and their agents working self-employed from home.
What I do see, as has already been mentioned in this thread, is many sales negotiators who want to work for themselves leaving the companies they work for to start up online with little or no overheads. The internet as I have said many times before is the future of the estate agency industry.
This business model already works in Australia, New Zealand and Canada.
Rather than considering them a threat we feel their self employed agents won't only use the French portal aspect of the business to advertise their own properties, but instead will still utilise the other portals available.
Look at it like this if you are a self employed agent working for this French company, you will still want to maximise the exposure of your listings but by using the most affordable portals available, but I'm not sure a self employed one man team working from home on a commission only basis, will be able to afford £600 per month with RM, even if they were allowed to list.
That of course is where we come in, because we are the most affordable portal anywhere in the UK, you can't get more affordable than free.
And as all listings on our site link directly back to the agency who listed them, whether they be on the high street or online, the French portal itself would have nothing to lose by uploading all the listings from all its agents to Finders and Sellers.
The website of Optimhome in the UK is www.optimhome.co.uk
@Mark Wallace, he resigned from CFP, his achievements there are well documented especially if you look at how successful and market dominant CFP was when he left.
The work at Jupix was only ever going to be for a limited period ; to help them with their property management system , he left when that job was done.
One (exceedingly biased) industry figure appears to be using EAT as an alternative to LinkedIn to try and get a job, somewhere, anywhere....
If by exceedingly biased you are acknowledging how much Robert knows and cares about the property industry and traditional agents I won't disagree. In respect of him wanting to get a job, I think you have misread why he would be signed up with the recruitment agents. He never applies for anything and politely turns down most of the work that is offered to him.
Just like this story, developments in any industry tend not to be announced till after everything is in place. However every new and expanding business needs staff so inevitably there is quite a lot of market intelligence to be had from recruitment Agents. Without this particular story many disgruntled negotiators and managers would probably be pulling sickies this week with their bosses blissfully un-aware what is going down. It is also an opportunity for Agency principals to go along for themselves and get a heads up on what Optimhome are planning, saying and paying, after all fore warned is fore armed. That goes for Agents and portals, whoever owns them, however big, however small.
Personally I don’t think any of us should miss out on investigating emerging competitors, Thanks Ros thanks Robert.
Like garlic breath, chain smoking, wine at lunchtime and keeping a mistress some things from France don’t work here but this sort of thing might, looks a lot like Hunters Personal Agent thing and if you can get people of the right calibre it will help a lot
For ‘High Street’ agents this principle also offers the potential to expand without taking on more retail space – id love to cover the surrounding areas from here, get a good chap / chapette working from home and reporting into the mothership when needed. Trouble is the residents of the neighbouring towns like to have someone local, and im not.
Here’s a challenge for the online guys – for 1 month only cover an area no wider than 5 miles of your registered address and see what market share you can get with your business model. That will separate the men from the boys.
Jonnie
@Lou P Garou what exactly did he achieve at CFP & Jupix? Clearly not enough for either of them to keep him.
I only ever post on these types of topics.Same thing each time;
I don't know if this is the company that will make a success of this.....but like it or not this IS DEFINATELY the FUTURE of our industry. NO ifs NO buts. I don't like it but it is FACT.
This will definitely work as I work for an estate agent in a good town in a prominent position- however we get 1 walk in a day and they can be time wasters! The agents can pick and choose their hours and work at time to suit. The amount of rightmove enquires we get out way the people who drop in.
Unlike the UK online agencies who rely on the main two portals this lot have their own ’portal' an which will supplemented by listings on the main two. Perhaps Rightmove and Zoopla will move to ban Otimhome listings to protect their Agent clients, maybe someone should ask them for a comment?
@Yawn, you might not like Robert’s posts but they demonstrate he isn’t one to shy away from a fight no matter how outnumbered he is. You are right about his age and when he started but you will find he is always ahead of the game rather than stuck in the 80’s and he always fights for agency itself rather than fighting against it. It is a pity not more of those supplying services and support to agents share his experience and knowledge of Agency. Certainly if you look at what he achieved at CFP and again at Jupix it is little wonder EAT describe him as a game changer in their Who’s Who. It seems with just you and ‘tiny tim’ trying to bad mouth him most have enough respect not to join in your trolling. This story isn’t about him, agree or disagree with his comments it is right that we know about this, heaven knows it is more relevant than some of the PR’vertorials that pass as stories.
http://www.optimhome.com/
How are they a portal? are other agents going to list properties on their site, I see no evidence... just their own franchises.
The bit you are missing is that this isn't just another online Agency, they are the portal too. Just as Rightmove are making profit in the UK this lot are making money in France, they are investing that money in the UK to upset the way things are done here as they have in France.
The first to feel the effects of this are likely to be the UK Online Agencies, why would their staff continue work for an agency when they can be their own boss?
It might come to nothing but it will cause business leaders to rethink their business strategies in case it does work.
It will be interesting to see what Scott Creasey has to say about this, presumably he is competing against them already he might be able to say how they are nothing to worry about.
Am i missing something or is this not just another Online estate agency concept, work from home agents, no shop front costs etc? So basically they're just building an online estate agency and would be reliant on the likes of Rightmove and Zoopla to market their properties. Unless they are proposing to pump millions into rivalling Rightmove then they won't get anywhere, the business model is either build a portal where everyone comes but you need all the properties for that, so first of all they need to take over the agency market and you've seen how long Housenetwork and co have taken to get to even 1,000 properties, I can't see this taking off very quickly and it would only ever be a portal for a few 1,000 properties. Rightmove would never shoot themselves in the foot. it's crazy to suggest they would.
Possibly they (RM Zoopla) would not want to upset their client base by building a rival system but if Europe's largest property portal sets out to rival their clients' business model do you think they (RM Zoopla) are going to ignore the new competition hoping it won't happen or will they look at the merits to protect their own profits?
Good story, lots to think about.
Why are you guys attacking someone who has commented on a story? you might not like the bloke but from what I can see there is no benefit for him in this story at all.
Ros Renshaw always finds someone to comment on stories like this, perhaps you ought to read the story without the animosity/fear you have for Robert. This doesn't seem to benefit him or Radar Homes in any way but I can see how it would affect them and Agents.
Would Rightmove and co. really risk upsetting all their client agents so much by effectively building a rival to them? Sounds unlikely to me...
Hardly the first, but still I think the comment about Rightmove or Zoopla doing it should scare us all.
Both Rightmove and Zoopla are well respected by the general public and ALWAYS deliver to them exactly what they are looking for in terms of user experience (very important) if not a property in their price bracket (less important).
Since 50% of all buyers are also sellers and 90 something percent of all property moves start on the internet, usually at either RM or Z.
On that basis if either or both switched their business model most high street agents would go out of business very quickly.
It is the logical conclusion of where the internet is leading us.
Doom, doooom, we're all doomed!
"No doubt there's a room for the model but its exceedingly niche"
FSBO + Online Agency + Portal is hardly niche, this scheme fills the gap that allow passive intermediaries to function.
I agree it should dent the decent agents too much but the trouble is not all Agents are good and after 5 years of reduced sales not all are financially sound. I can see redundant negs and managers viewing this as an opportunity to work from home as a viable way to compete with their boss.
As for May, he probably has a job, this story just went out to the entire EAT distribution list advertising the Opitmhome Agent information days across the country, if it weren’t for that very few would known about them.
Another boring post from "Bob" May...... lets all split our fees which in turn will drive them down as we will all be fighting each other to secure a sole agency on a long term contract.
Never met the bloke but from his outdated ideas guess an agent in his mid to late 50's - started out in the 80's and not really progressed.
Radarhomes not been mentioned, they not come up with this months payment for a plug?
One (exceedingly biased) industry figure appears to be using EAT as an alternative to LinkedIn to try and get a job, somewhere, anywhere....
I'm sure that there'll be take up and like all of the others mentioned the decent agents will go on regardless as they are no threat at all other than being a drag factor on fees.
No doubt there's a room for the model but its exceedingly niche.
This will hurt the online Agencies who employ staff before it will affect High Street Agencies.
Why would any area lister want to work for anyone else when with the same amount of effort they can be supported in being their own boss and earn more?
There are too many Agents in the country already with the market not in a hurry to recover this will be of interest to anyone who loses their job or who considers themselves not paid enough.
The best bits of a franchise with the best bits of a portal certainly make one think how traditional Agency can react to this. It also presents a bit of a quandary for the portals too, how are they going to face this? If they were planning this themselves the game is up, they have lost first mover advantage, and if they hadn’t thought of it all of a sudden they have to decide which way they are going to jump; with agents or against them.
Then there is all the for the Agent, by the Agent offerings, they actually are best placed to help traditional Agency but are any of them ready to nip this in the bud before this invasion establishes a beachhead? Perhaps it ought to force them into talks with each other.
actually sounds like a good idea