Internet agent House Network has claimed that it has saved sellers over £13m in traditional estate agency fees since it launched.
Calling itself the UK’s largest branch free estate agency, it says it has had six years of success in selling residential property throughout England and Wales.
Co-founder and NAEA member Graham Lock said: “We started without branches initially to see if there was any appetite for the service and had a strong gut feeling that buyers were beginning to really embrace online searches using portals, and we had to question the need for a high street presence at all.
“Myself being from a high street agency background, I knew this was a gamble, but also knew that footfall in my branches locally was drying up fast due to growth in the portals sector.
“However, we did try at one stage opening a branch in a high street just to test the water but it made no difference to our business – all it did was increase our overheads as we were paying more rent on the high street than off it. So now we are completely branch free and we have never looked back.”
With commission fees starting at £425, although they go up to £890, House Network emphasises to the public that it is not a private sales site.
With properties listed on Rightmove, Primelocation and Zoopla, it uses local NAEA-qualified estate agents to make valuation visits.
The company has agents in Manchester, Birmingham, London, Surrey, Yorkshire and South Wales, but says it covers the whole country.
Lock said: “The fact that we no longer operate an expensive high street branch service means that we can cut our commission fees significantly and pass that saving on to the client.
“The saving of £13m on fees so far has shown that people are genuinely beginning to gain confidence in using a hybrid estate agency and the steady realisation that having a high street presence is perhaps not what it used to be, particularly with the emergence of the online portals decorating most high street doors and windows in this ever-changing market place.”
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Comments
james: Okay - APART from being a southerner, I still like you! Always did have a knack of pulling the best out of people - and I have done exactly that with you ;)
Now your comments here are very interesting. I wonder what Agents make of these:
"I DON'T like being sold to. I think the majority of British people DON'T like being sold to." ... "I had to on more than one occasion ask politely for the agent to just let me look around and not to tell me about the wonderful storage cupboard, for example." Now this may be how London Agents perform their job role - Lord knows we see plenty of it on comedy shows - but how they should act in the real world is completely different. I would wholeheartedly agree with your train of thought. The trouble is, those who make a living out of Estate Agency training are who need educating first!
So, people - should you be listening to the jameses of this world? Do you hard-sell your properties; or is it softly, softly catchee monkey?
Sometimes, a view from outside shows up things that you miss on the inside...
PeeBee, yes I'm a londoner, and Saturday is football day, and I met a few pals before watching the game and it's difficult enough typing on a smart phone!
With regards to the agent situ, I was selling a property that me and my wife had bought with the intention of refurbing and to be honest it was an area where we just didn't know anybody to make a recommendation. We just went with the one that made the biggest impression (and they turned out to be all mouth and no trousers). A bad choice, but proof too that perhaps the better agents are the quieter ones that just get on with their job, perhaps?
If I am to be honest, I'm quite into the on-line agent idea. I've actually done my own viewings before when I was selling a residence (the agent although charging a 10k fee had double booked and asked nicely if I could do three viewings). I replied that I would if they reduced their fee, and they almost laughed at me!
I actually felt comfortable doing the viewings myself. I simply said have a look around and ask any questions afterwards.
I DON'T like being sold to. I think the majority of British people DON'T like being sold to. At the same time when I was viewing properties in the area that I was looking to buy I had to on more than one occasion ask politely for the agent to just let me look around and not to tell me about the wonderful storage cupboard, for example. Whilst not every agent acts in this manner, certainly in parts of London, where there is a high staff turnover, you seem to get annoying oiks that don''t understand why they have two ears and only one mouth!
Anyway, I've totally lost my train of thought. Oh yeah, I enjoy the banter that the online v's high street creates, I just wish people when making claims or an argument would also supply a little reasoning as to how they came to their opinion.
james: I am sorry that you have decided to call it a day at the point that you put forward some intelligent and constructive comment.
I DO actually accept and appreciate most of what you have said by the way, as what 'yer average' homeseller would do. However, two points come out of this. Firstly, there are other, better, more 'traditional' ways of choosing an Estate Agent. Ask friends and family, first of all - someone will know at least one bad one, and maybe even one good one! Secondly - don't go for a 'For Sale board count. The only measure of an Agent's capability to sell (the REAL important bit of the job...) is to look at the 'SOLD' boards. If 'Agent A' has 100 FS boards and three Solds, that means that 97 customers remain unsold. If 'Agent B' has a board count of 50, but 25 are Sold, then their success speaks for itself.
Last suggestion - and by far the measure of the office - GO IN! See what treatment you get when you enter; how keen they are to actually engage with you; and do they give you the impression that they are good at what they do. This is the barometer - as how they treat you, is probably how they will be treating your potential buyers! If buffing their nails or reading the sports pages are more important than greeting you and trying to sell you something - THEN THEY ARE NOT YOUR FUTURE AGENT!!
My comments that you should shoulder the blame were perhaps harsh - but nevertheless true. As an employer, it is up to me to decide who is the best candidate to fulfil a particular job. If the person is totally inept, then I did not do my job of selecting correctly. ANYONE can apply to be a brain surgeon. Whether they can do the job, is up to the employer to ascertain BEFORE handing over the scalpel. Now do you see where I am coming from?
By the way - when I said I like you I was not being sarcastic. I actually liked your persistent attitude - and your lack of fear to come back fighting. The namecalling and vitriol isn't important. I've been pushed up against walls in the past by people I now call friends. It's how you handle the situation - how you go on from there - that counts.
Your last post proves that there is some mileage in you sticking around. As a 'service user', Agents need to listen to people like you - although you will have to be constructive and don't let your temper run away with you - alcohol-induced or not! (by the way - are you actually admitting you were wazzed at half one on a Saturday afternoon??)
You must be a southerner... ;oP
Peebee, I agree that I wrongly assumed you were an agent.
I simply cannot be bothered anymore, as this whole thing has digressed too far from the original article.
I am neither an agent, nor an affiliate of HN nor any of their affiliates. So you assumed wrong also!
My point is a reactionary one. You earlier made it clear that I should shoulder the responsibilty for choosing a poor quality agent, yet I did what any 'non-expert' person might do, and choose the agent based on the factors I previously listed.
The whole point of that rant was to highlight that looks can be deceiving. Biggest = isn't always best. Most expensive = doesn't equate to the most thorough service.
I have used poor agents in the past and still paid (with a certain resent) their fee, which I didn't consider good value.
I read the posts (that interest me) often and I find the articles that question on-line agent V the high street always tend to get the biggest reactions.
Most of the comments are from admittedly agents defending their trading model however it's ludicrous to assume that you understand a Companies turnover, profits or quality of service just because they charge a much lower fee.
I know of a person who used HN (and they were pleasantly surprised about the service). For all I know this was a one-off, a fluke. I can't be sure. The same way that I'm sure that only a small percentage of high street agents actually offer perceived good value for money. Value, nonetheless is in the eyes of the consumer paying for the service.
I suppose the whole rant was in response to those claiming that an agent offering a sale service for £495 cannot surely do the job properly. I would agree that with some of the smaller on-line firms with just a handful of properties this is likely to be the case (just as it is likely to be the case with a high street agent who has just a handful of properties). However an online firm that instructs 500 or so properties a month can likely to afford to have a team of people responsible for ensuring their sellers get a decent post sale administrative support. I's be really surprised if this wasn't the case. Bearing in minf the business is 8 years old and NAEA registered, I'd guess they know what they are doing.
Peebee I work for myself, I have no reason to defend HN other than as somebody that admires the fact they have become the UK's largest online agent (which is no mean feat). To get a Company, any Company as big as they are right now, takes dedication, faith, ability and likely some pretty good customer refers and recommendations to other willing clients.
I no longer wish to argue the case any further.
Respectfully
James
PS my spelling was bad as I' d had a few too many beers, and reacted to your email. It was a little out of character.
james: lol. I think I'm getting to like you. Not a lot - but I like you. You amuse me.
So then - to your latest rantlets. I'll use that word, as it doesn't allow you to have had a full-blown rant. You see, to rant, you need to have a valid argument, which you fail miserably to bring to the table.
By your own admission (cleverly hidden within every word of each response you post - but there for all to see...) you know less than nothing about Estate Agency. Let me guess: you are a net-head. I would hazard a guess you work for this House Network outfit (you definitely appear to get a little moist when referring to them. Note, however, that in your second-last rantlet you tried to make a positive comment about your employer but actually turned it into a negative - sloppy work - hope the bosses don't read this... ) - but obviously on the IT side as you're not safe to be let loose with human contact of any form.
SO - you come on here in defence of the hand that feeds you (possibly even a couple of you - or maybe just one, trying to pretend they are a crowd. Happens a lot on here when two-bit companies and fanatic factions seek to fluff up their feathers in order to look like bigger birds than they actually are...), and just because someone has the damn impudence to query YOUR competence to choose an Estate Agent (be honest - you are apparently pretty hopeless at it...) - and shockingly admits that they prefer to do their business with Agents in a traditional manner, you resort to extreme childishness and insults (Again - employers note...).
Tell me, james - after reading this, am I expected to change my opinion and give all my future business to either this (your?) company or another "interent" (sloppy, sloppy...) company? I don't think so. Just compacted my beliefs, thank you. And unfortunately for the likes of you, I AM FAR FROM ALONE IN MY WAY OF THINKING!
Your whole fatally flawed (both in context AND content - your spelling and grammar really went to pieces in the last two rantlets, pal. Employers will be REALLY unimpressed by this point...) argument is based on your assuming that I am an Estate Agent. Every barbed comment is aimed at me being one of your little pet hates (although I am sure that you would be just as poisonous in manner to someone in any profession if you thought it would score brownie points with your employers...). So - allow me to repeat for you a fact I mentioned in my first response to this story; one which went waaaay over your head (obviously as it was stuck somewhere mighty dark and unpleasant at the time) – and one that anyone who has frequented this site for more than a couple of weeks will be already aware of.
I AM NOT – REPEAT, NOT - AN ESTATE AGENT. Your embarrassingly amusing rantlets were wasted on me. Your petty words neither hurt me nor changed my way of thinking. But thanks for the entertainment anyhow.
So - where does your argument go from here...?
Oh - you still haven't answered my question...
Another thing Peebee. Please let me know how you do choose a local agent for furture reference when you are selling a property in an unfamiliar town. I'd rally like to know how you choose one.
I choose a reputable brand who had considerable customer comments *which actually wer'e provided by an third party provider and accessed from the third party providers website, not the agents own. They were NAEA and ARLA registered. Had more properties for sale than any other agent. Had the biggest adverts. Glossy magazines. Charged fancy fees, had fancy offices. Talked the talk and turned out to be pretty typical agents. IE bullshitted incescently and embarrasingly. And when it came to 'sale administration' I made most of the calls to my solicitor as it was pretty clear they hadn't a clue what was going on with my sale!
What is this method of choosing a reputable agent that you know all about, but us mere mortals get wrong and should shoulder the blame for?
You cretin. Typical agent. Spouting utter tripe.
PeeBee. You just carry on as you are. You are the most knowledgeable estate agent in eixstence and have special powers to put down anyone that doesnt confrom to your way of thinking. You carry on selling your houses from your office, as you are right. This 100 year old method will never change or develop into more modern methods using technology to create a far better value for consumers. Just like Amazon hasn';t changed the face of retail people will always prefer to use a 'dickhead' who bullshits for a living to sell their property for an inflated cost (when you take into account the comparitive low cost of advertising it as after all isn't RM about £500 for a 100 properties per month). The whole article was about the relative merits of a Company, House Network and how they have the accolade of biggest internent agent in the UK before a mutiple of 'thats not the way to sell a property' Estate agents as usual purported to slag them off in any capacity possible. Its not worth noting that its likely that House network instruct more new properties everyt month than all of your offices added together. No lets criticise them for daring to be different, and offering the public an alternative for a reasonable cost. Surely they cannot do the job properly because they are based in an office and to do estate agency 'properly' you have to deal face to face. The less I see of them, frankly the better, and they can keep their insipid phone calls with little white lies to cover up their in-effectiveness.
Rather than talk about you anymore because fgrankly you are the rudest and most unlikable ego on here, I'd rather listen to the commentors who had something worthwhile saying. You input is pretty useless. You hate online estate agents (we get that), you think they'll never affect your business (we get that too). So carry on as you are.
I think in the longer term we're very likely to see some internet based operations from some of the leading names other than Haart's I-Sold, as the interent will quite frankly take over every retail based trade in the end (excep for the obviousm hairdressers and the like).
" And for your information smarty pants mr put down anybody who doesn't agree with me..."
ARE YOU SEVEN YEARS OLD BY ANY CHANCE?
james: WOW - you're NOT an Agent? That takes pole position in this week's 'No Sh!t, Sherlock' award...
Thank you for evading the only question I asked. proves the point further - your knowledge of property runs into negative equity.
ANYONE who admits making the choice of who handles the transfer of their biggest asset by reading 'customer testimonials on their own website' deserves EVERYTHING they get, pal. Good old 'Mr B' from High Street - he NEVER has anything other than glowing praise to bestow upon the Agent who handled his property so professionally - especially as he was traumatised following the untimely death of his beloved budgerigar. I wonder which Agent ORIGINALLY thought that one up, and when? WAAAY before your birth, I suspect - but it still fools the weak...doesn't it?
Oh - and as far as the condescending bit goes - No it doesn't come naturally. I have to practice and practice - which is why I am so grateful to chumps like you for giving me ample opportunity to do just that!
Muchas gracias, james. You made my day. How do you expect to top that one tomorrow?
Peebee do you actually practise at being so condescending or does it come naturally? I suspect the latter.
When I instructed a local agent I didso based on the 'customer testimonials' on their website as there really is no other method of you don't actually know anybody personally. And for your information smarty pants mr put down anybody who doesn't agree with me, you don't actually really know how good an agent is at administrating your sale until you get to that stage and if they aren't much cop your hardly likely to cut your nose and lose a buyer just being stubborn to prove a point!
The next agent several years later fared no better even though I purposely used a different brand. Your comments about my ability and shouldering the blame are frankly nonsense.
I can't even be bothered to comment on the rest as I lost interest reading. I'm actually not an agent for the record. But it isn't hard to value property with the resources available, something my last agent couldn't muster when after putting my property on the market for 30k too much it didn't attract a viewing. After changing agents and putting it on at the price I originally thought it should be marketed at it promptly sold for almost asking price within 4 weeks and a dozen or so viewings.
james: EAT ‘losing’ my previous responses won you a whole 48 hours thinking you’d got away with what you said. Assuming that this is third time lucky... sorry – you didn’t.
Firstly, allow me to congratulate you. By your own admission, you have, in recent times, successfully chosen the WRONG Estate Agent on SEVERAL occasions. That takes some doing, in my opinion. Most people tend to get the hang of it by the second go – or third attempt at the very latest. But you can’t blame them for not working to your standards – YOU employed THEM! You should have ensured – particularly following your first unfortunate experience – that subsequent Agents could meet your exacting standards of care and attention to the job in hand. You obviously didn’t - therefore you have to shoulder the blame.
So – you now consider yourself up to the job of being an Agent – albeit a remote Agent. You are, again by your own word, SURE that you can accurately value a property. Please, then, tell me how you would go about valuing MY home for sale purposes? By personal visit and appraisal, having previously inspected others in the locale which had subsequently sold and could therefore reasonably confidently assess how my property would fare compared to those? Or - how’s about desktop ‘valuation’, maybe? Or just tell me to get three ‘locals’ out and see what they suggest before slapping it on your website?
You may be surprised to know that I DO agree with you that sales progressing is not rocket science. Neither is negotiating. OR valuing, for that matter. It is not a science at all – because it involves HUMANS interacting with other HUMANS – much of which is FAR better done face-to-face; and ALL is better done by someone who knows the idiosyncrasies of the local market; understands the needs of the vendor; and who gives a shizzle! I doubt very much that any of the above can be offered from a call centre or online negotiating equivalent of a battery farm. Especially YOURS – given your previous poor record of employing competent persons for the job in hand...
You say” It's really down to the seller asking the right questions to ensure they use a knowledgeable agent with firm business principles.” (sorry – I had to correct your spelling but didn’t change the wording…). I couldn’t have put it better myself. With you 100% - every syllable. What a pity that you have so far failed to follow your own preachings
Over to you, Sir…
TEST
I'm not sure that I garee that only a 'local estate agent' can accurately value a property. I'm sure I can do this using tools provided for the agent and consumer on Rightmove. Also it's a recurring comment that an agent administrates the sale from offer to completion. Again I beg to differ. This can be done from call centre providing the staff have the necessary skills for the task at hand. It's hardly rocket science progressing a sale. I can also say confidently that with the several properties I've sold in the past, not one agent has done this part of the job to a degree I'd call satisfactory. In fact I did most of it myself, by calling my Solicitor and asking for them to update me (the agent got involved as little as possible). I even have heard of a major London chain that charge pretty big fees and their agents progress their own sales (so that's a given its done badly).
Providing a seller is happy to allow potential buyers to view their property, I really can't see just what it is that a 'high street agent' does any better than a reputable online agent. Of course many online companies will spring up that offer very little (just like high street agents did). It's really down to the seller asking the right questions to ensure they use a knowledgable agent with firm business principles. It's also worth noting that many of the online agencies being started are being done so by experienced agents.
Chris, sir, with all due respect, the scare mongers have got you well and good.
A good estate agent, who offers an excellent, value for money service, will remain in demand. Fact.
Your (or 'RM's' theory) revolves around every single seller having the motivation to do it all themselves. Flawed.
I bought a new car over Christmas and the transaction itself (forms, payment etc) took 20 minutes. That is why people sell cars themselves, the work involved is minimal. It simply is an advert online and then sit back and wait for the calls - is this how you think selling a house should work? Selling a car is not a fair comparison to selling a house. It's a foolish one.
A house can take months to complete. IF all sellers went part time, they would then perhaps have the time to dedicate towards selling and buying their own home and doing EVERYTHING in between.
Would a buyer rather deal with a complete stranger, one to one or have the services of an experienced estate agent, who will assist them all the way?
An agent can keep a chain together, where a private string of individuals is nothing short of disaster.
While 'Rightmove' feel that their stock and subscriptions will decrease by 2020, this does not confirm that the estate agency sector becoming extinct.
Don't sell your office furniture just yet.
Move In Move Out online estate agents are soon to launch a franchise opportunity. Email info@moveinmoveout.co.uk if you are interested in becoming a Move In Move Out franchisee.
LetPropertyRentProperty:
"The writing is on the wall that's why there has recently been an explosion of online agents." Really? Is that the same reason there was an explosion of HIP providers? And the same for DEAs - except of course some have stuck at it - and charging the meagrest of fees that make a mockery of their worth - so yes, just like online Agents I suppose!!
There was a time when we never thought we would do most of our banking over the internet, but now most do this as a matter of course. Similarly with online letting and estate agents, with the advancement of technology more and more people will be using online service to meet their needs. The writing is on the wall that's why there has recently been an explosion of online agents.
I agree with Chris - Rightmove are certainly making hay whilst the sun shines and don't seem to care if they are pricing some smaller agents out of the marketplace. But it makes me laugh when other portals start up trying to charge similarly ridiculous fees, as to me it defeats the point. One day, will there be a super portal to link all the portals once there are 50 of them?! Might as well go back to the old days of buyers looking at agent's individual sites.
For me rightmove is the one to stick with but don't they know how to charge! If they are interested in protecting their industry they should be very careful about letting some of these online 'agents' who have no agency experience, from advertising with them. Rightmove is in danger of being filled up with property listed by glorified private sale sites which may be drastically overpriced, poorly worded and possibly inaccurate as it's difficult for a national firm to police their own details for the Property Misdescriptions Act. This could lower the confidence of buyers looking at stock on their site and damage their good reputation...
Something to think about...
It doesn't matter whether your a traditional estate agent or one onf the new internet estate agents, the writing is on the wall for our industry according to a Rightmove Account Manager I spoke to yesterday!
As many of you know, Rightmove have just increased their rates by 20% with effect from the 1st of March 2011. When I challenged him about this, his response was that Rightmove are grabbing the cash while they can because they fear that within this decade, selling houses will move to owner selling rather than Estate Agent selling!
Lets face it, the general public can already sell their own household goods on ebay, their cars and motorcycles on websites like Exchange & Mart etc. so why should selling their own homes be any different and Rightmove know this. As they have shareholders to pay, they raising prices to give a great return and ride this gravy train for as long as they can.
The role of estate agents will change from selling agents to photography agencies where we produce and sell photos & floorplans.
2020 will look completely different from today!
They also predict that many estate agents will close this year as the outlook looks grim.
Currently they 14,000 estate agents on their books, which is at record levels, but when I pressed him on this, he did say that the increase was on the lettings side, than the resale side.
We are bracing ourselves for a tough 2011.
After 10 years in the industry – as an estate agent and on the other side of the wall in property development, I am well experienced in the property sector. My business Property Parrot.co.uk is a local agency dealing with Leeds and the surrounding area with a similar business model to HouseNetwork who I have a lot of respect for. There are a few differences though...
I sold with HouseNetwork a couple of years ago before launching my own company. It was an easy sell – a derelict house on at a price to sell quickly... all I needed was the help of the major portals like Rightmove, and it worked.
Buyers however thought dealing with HN was a little 'weird,' perhaps because it was a detached process and they hadn't heard of them. There were no updates during the sold STC period from HN – I updated them, but they were cheap so I didn’t care. In fact I didn’t expect they would be on the ball in that way – how can you be from a call centre?
As a vendor I didn't need valuation advice as I've been valuing property in Leeds longer than most of the established high street agents, or for that matter skilled negotiators (I’ve sold many houses). I wanted a lower fee than the 1.5% local agents tried to charge me.
In setting up Property Parrot I wanted to deal with those problems – lack of knowledge about you as a client, and certainly your property – their staff will never see it (apart from the chap who comes to do your photos). And that’s the same with any national online firm.
Property Parrot therefore deals with Leeds – my local area so I personally can offer a face to face service. We offer the same flexibility in fee options as the online agents. The difference? I know my area and know the properties I sell - I've actually seen them, valued them and can talk about them to buyers. I run my own mailing list (not just relying on Rightmove) and can develop a rapport with buyers and sellers.
No online company can do that on a national basis. No call centre can discuss the potential planning problems with the Chapel I am selling at the moment, nor describe the area (I lived opposite for 15 years!). These are the advantages of a local agent but I am convinced powerful portal marketing means independents like me have the opportunity to compete with the big boys at lower fees and do a better job if you’re customer focussed. I’m contactable 7 days a week 9.00am to 8.00pm because I like the job.
If you want lower fees but a personal and knowledgeable service, Property Parrot can offer this for the Leeds area. Take a look at the website http://www.propertyparrot.co.uk and comment.
I agree choice is good.
Businesses grow on word of mouth and the bad ones will not survive for long.
I’m sure Housenetwork don’t think they have discovered the golden egg and I can’t see in that article any bashing of local agents methods.
Anna I would say that the good register of purchasers you claim to have, a lot of those will also be registered on all the major portals. So i’m sure that list isn’t 100% exclusive to your branch.
To use an example of 2 properties in your area that haven’t sold is a bit feeble as an argument what if another 10 have been sold by them that you do not know about?
There are advantages for both types of agents and as always the customer will decide on what suits them and their situation.
James and Jonathan
Please do not put words in my mouth. I re-read my post and nowhere does it say that HN or any other online agent is useless.
I merely pointed out some of the benefits of being a local agent as James requested.
What I did point out was having a good register of potential purchasers is really useful especially if you are spending time talking to them over a coffee.
we've only taken on two HN properties as that's all they've had in our area, both failed to sell.
We have a more local online agent (not in our area but within the region) who is hugely successful and very well respected.
It's about choice and I don't think this kind of 'tit for tat' in the business is good for anyone.
Believe it or not Jonathan we don’t tend to be busier when it rains and to be honest if you think that talking to people within the branch (be it serious or not) is a waste of time then it pretty much sums up the internet only way of doing things. I don’t mind receiving ‘word of mouth’ recommendations because we where polite to someone asking for directions.
Somthing that hasnt been mentioned is 'profiling'. The public in general dislike being 'profiled', so therefore searching for a property behind a computer screen in the comfort of their home is more preferable than making 'small talk' with a salesman in the High St. Im sure in partso f the country (like the Cotswolds) the community estate agent will survive but my experience but if most High St agents were being honest a large percentage of people walking into theie office are those seeking directions and people looking for shelter from the adverse weather.
Anna is absolutely right. I think what she is trying to say is an operation like house network who wants to be seen as a national brand cant pretend to be as local and as knowledgeable as your average high street agent. We are living and breathing the local market, involved in local issues and doing our part to help the town. No neg from isold/house network is as involved in the local market as that.
Our vendors pop in for a cup of tea, we help them with legal paperwork and our door is always open to people who don’t want to deal with a faceless organisation. 30% of our sales come from people walking into the office. If that level of care costs us £50,000 a year then so be it, we more than make up for it in commission. The internet only agents would love everyone to believe that all you need is Rightmove. They will all tell you it’s the future and the high streets are dead. The fact of the matter is it’s cheap. Cheap to start up, has minimal overheads and you can do it on your own while still in your dressing down.
Ohhh and its lazy.
There is a market for both types of agent. To be successful does not mean that you need to be the biggest in the country.
To say that the business model of the online agents is flawed is similar to Rolex telling Timex that they will never be able to sell cheap watches.
I can point you in the direction of any number of so called full service estate agents who are doing a shamefully lousy job. It is these agents with whom the online agents are competing not the good ones.
some ignorant comments about local knowledge, just because somebody works from home or on an industrial estate doesnts mean they cant find their way around town to the local playgroups etc. Anyone with any business acumen knows that the High st is on borrowed time with the exception of hairdressers and beauty salons. The economies of scale always win in the end, ask anybody who owned a food outlet before Tescos etc took over. Estate agency will become less fragmented in 10 years-15 years with only half a dozen or so brands competing. These will predominantly be internet agencies. Indeed many high street chains are already looking at switching to regional hubs instead of 100's of high st branches. HN with its robust business model will still be trading in 10-15 years time, although its marketing isnt great and someone with deeper pockets like Tesco will probably get the lions share.
Paul - I agree. Their rightmove fees alone must be eye watering, and assuming they are paying them every month then they appear that business must be reasonably sound. Of course I have no idea without checking companies house whether they make a profit. I
Anna - HN must be useless then if you sold 2 properties that they didn't. Am I right to assume that another agent has never sold anything that you didn't after trying? You must be really very unique if that's never happened to you
James (the regular poster) please do explain why I sound like I am not an E A. Do I have a sound of something else? Is it because I am impressed by HN and 'real' estate agents are sworn into a sect that doesn't allow online trading methodology?
Please explain, you've have got me all curious
Just to make it clear that the James that has posted today is not me, who posts often
Sounds like he is not an EA
James
You are right, it will come down to the vendor's choice and I'm never against competition.
However, I do think that being the local agent is a huge bonus. Local knowledge of facilities, short cuts, walks, playgroups, childminders etc etc really does help. Also that local knowledge helps to price a property and the difference between X and Y property won't always be instantly apparent.
we've only taken two HN properties on after the vendors failed to sell. Both sold quickly to potential vendors already registered with us.
To market that amount of properties on RM would be costing roughly 20k a month, that's a big chunk.
Jonnie, with respect you are trying to work out their turnover without knowing too insight into their model. You mention 'exchange' however looking at their options on their website almost every seller pays an advance fee. A guess would be that their turnover is significantly more than £498,000pa. Currently they have over 2000 properties listed, and 3 different payment options, some with commission and some without. They also charge extension fee's for properties listed for longer than 6 months.
I agree with an earlier comment from Ace of Spades that they seem to work their niche market particularly well. They do appear to be the largest on-line agent and lets not forget that i-sold (Spicer Haart) are making a play, so clearly even established high street brands see value in having a non office based proposition.
The Yorkshire agent has claimed that they;ve actually lost millions in selling properties too cheaply, without having any evidence to back up such an accusational statement. I'm not sure this is the case.
Surely we will enter into a phase in the coming years where a seller simply chooses from a fuill service from a local agent with a much higher fee, or a slimmer service with everything bar the accompanied viewings for a much better value fee?
I would love to hear why agents think they are able to value a property better than House Network, or administrate a sale better than HN or even deal with potential buyers better? As for local agents getting a better price too, I'd love to hear a logical explanation for this phenomenon. Surely the skill of the person negotiating has a refection on the outcome? Not the localtion of the office or lack of one.
Housesuccess - good luck to you. If you think it is money for old rope you are in for one hell of a surprise. Displaying goods for customers to buy is what Tescos do. Selling is pro-active not reactive.
Half your properties will be rejected just from first glances at Rightmove. Your job will be get on that phone, in fact to stay on that phone, morning, noon and night convincing potential vendors that they really do want to view a particular property.
If you think they come along and say, 'oh I love it, I'll have it' then you and your bank manager are in for a shock. You need to SELL it to them.
After that you need to have the patience of a saint, the heart of an angel, the work ethic of a mule and the negotiation skills of heaven knows who. And you'll have to be good because that internet advertising doesn't come cheap. Having said all that, it's very interesting, you meet great people and there is genuine job satisfaction. Wow, I must be feeling refreshed after the Christmas break!
Housesuccess, if you think you’re on to something then good luck to you. I fear your ‘on to something’ idea is that as long as a property is on rightmove then it will sell. If that’s your theory then you WILL fail. Mind you, I suppose it will cost you sod all so is of low risk. Give it a whirl!
Brilliant,
This is more like it, after a bit of a slow December its good to see EAT back to generating a jolly good debate / barney.
Also nice to see that the old faces are here – Ace, Peebee and the normal assortment of pedantic grammar police marching around like an English teacher on a mission.
Any way to the point………………………Charlie has helped the conversation along a bit and saved me the trouble of doing any sums whatsoever but pointing out that this lot in Romford are doing an average of 14 deals a week, lets take a mean average of their fee and presume that’s exchanges and not gross sales then im coming up with a turn over from sales of £478 (ish) grand, so lets call it half a million quid.
This means the UK’s number 1 online estate agent (*based on their own claim, but again let’s agree they are) is doing half a million £ a year…………………there’s agents I know doing that that aren’t even number one in their own town!
So, there we have it the UK’s market leader* can only pull 500k a year in, I think its fair to say the online estate agency world isn’t quite there yet.
……………..oh, quick note for Housesuccess – just confirm for us would you, make sure ive got this right;
You’re not an estate agent but sold a couple of houses where the buyers came from Rightmove so thought this is easy money ill have a pop, nipped down the bank and got a small business loan for a couple of quid for a website to run from you dining room table. You are now a player in an industry where the UK’s biggest* agent is turning over £500k a year and you are quite sure you are onto something?
Jonnie
Stonehenge - That was absolutely classic. Thank you :) To be fair, it does serve you right for posting purely to have a b!tch and not actually contribute anything to the forum.
Firstly, this is a QUICK FIRE forum, not a formal letter, so spelling does not reflect the ability of anyone.
Credit to House Network. I know that they are very good at what they do.
Charlie Wright - 14 sales per week is actually quite good. A) They clearly have a successful buisnes model and making money in this current climate B) The vast majority of sellers won't even consider using them and will opt for a high street agent instead, so their market potential is already restricted (massively). Yet, they still are a success.
You've missed the point here. If a National coverage traditional agent with 20 offices hit 14 sales per week, that would be awful. These guys have no high street presence and are performing well enough to deliver and grow.
I agree that the majority of the market would choose to use a traditional EA. Absolutely. There are lots of good agents out there.
The majority of do prefer the full service as you said. Agreed.
However, a shrewd business is one that can cater for the Niche and get a massive slice of that pie.
House Network are doing just that.
ANYWAY - back to the thread (and I'd better be darn sure to get my spelling and punctuation in order or risk 'hengeing'...)!
Housesuccess: You say you find the comments of 'old school' Agents "amusing". I am pleased to hear that - because they will be finding yours absolutely hilarious!
I take it from your obvious ignorance of the entire property marketing/selling process that you have no Estate Agency background. You might be able to cobble together a quarter-decent website (but remember to spell-check - you have a need in that direction...) and have concocted a convincing business plan to show to the funder (that's all they are interested in, by the way - money in:money out, regardless of what widgets are involved...) but you are sliding down a razor blade using your b@lls for brakes if you think you will succeed as an online Agent with the lack of understanding you display.
For your sake, I sincerely hope I am wrong on the last count...
And before you start again with the 'bitter twisted Agent' cr@p - no, I'm not! I DO know many of them though - but I'd still trust most of them to handle my property rather than leave it in your hands to see what happens...
stonehenge:
...glass houses...stones... I'll leave the blanks for you ;0)
I know it's 'business'
In 4 posts there is one spelling error from 'Housesuccess' - brigade NOT 'bregade' and a grammatical one from 'the Yorkshire Agent' who doesn't know that the possessive 'their' is not 'there'. if I had a letter from either agent with such schoolboy errors then they wouldn't be getting my buisness.
I'm just setting up my own online EA in Manchester and so find the comments from the 'old school bregade' amusing. You are stuck in the dark ages - justify your fees? Whether you sell a 100k house or a 500k house no extra work is involved so why charge so much to sell the 500k property? Ive sold 2 of my houses through local agents however both viewings came from Rightmove. That's when I decided to start my own business and my bank manager has backed me so I must be onto something!
The 4.600 sales claimed on their website amount to an average of 14 sales a week, a respectable number. However as a "national" agent this number represents a tiny proportion of sales compared to a conventional national agent. What this reflects is what I have always said: There has always been a small minority of vendors who must believe that a) Their property is worth the same regardless of who sells it and b) Estate Agents aren't worth their fees. House Network meets this niche requirement well, however the vast majority of vendors prefer the full service of accompanied viewings and offer negotiations. Good agents need not worry about this. It's only the "cheap" agents without a good reputation who should worry about losing business to companies like House Network.
may have saved vendors £13m in fees but must have cost them £100's million by not being in a position to get the best price for the vendors by not having the whole market covered. I'd also be interested to know there success rate - in my area all the properties they have had have been succesfully sold but only after the owners changed agent to a high st agent.
In which areas of operation is House Network or any other online agency the market leader - or even in the top ten agencies. Answer, none. Evidently not everyone thinks cheapest is best.