Door knocking, cold calling and ‘continuous’ attempts to canvass for new business are all highlighted as examples of poor practice in new guidance on touting.
It comes from the Property Ombudsman, who says that touting has been the subject of complaints.
The Ombudsman also makes it plain he will frown on letting agents who target tenants ‘by whatever means’ to get details of their landlords, so that they can make unsolicited approaches to landlords.
The Ombudsman also makes it clear that in any flyer for touting, the agent should make it clear that the seller could be liable to two sets of fees. As a matter of best practice, if the agent does win the business, the seller should sign a declaration confirming that they have understood the potential liability.
As well as the guidance on touting, the Ombudsman is introducing new Codes of Practice for both estate agents and letting agents from August 1. Among the major changes is the need for member agents to have separately designated client money accounts to protect money they receive.
As well as the guidance on touting, there is also guidance on agency contracts as well as the Consumer Protection from Unfair Trading Regulations.
The latter guidance also highlights touting, saying that ‘aggressive’ practices such as uncontrolled leafleting could result in criminal prosecution.
The two new Codes of Practice have been pending for some time while awaiting approval from the Office of Fair Trading.
Bill McClintock, chairman of the TPO operating company, which oversees membership matters, said: “We were delayed because we were waiting for OFT approval for the Sales Code revisions and were hoping to have the Lettings Code included under the OFT’s Consumer Codes Approval Scheme.
“But in the end, we decided we could not wait any longer as the Codes are intended to improve levels of service and remove confusion for member agents that may arise through recent legislative changes.
“I have been pressing the OFT for almost three years in the case of the Lettings Code approval and for many months for the Sales Code improvements, but so far without success.
“Regular meetings with member agents and other industry bodies mean I am familiar with issues that need to be addressed. I am sure the revised Codes will be of great help.”
Until August 1, agents will be governed by the existing Codes and these will apply to all cases reported to the Ombudsman that arise from agents’ actions before that date.
TPO currently has 8,179 member firms operating 11,503 sales, 8,195 lettings, 216 commercial and 31 international offices.
The new Codes of Practice and the guidance notes can be downloaded from the TPO website members’ section at www.tpos.co.uk
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Comments
@David......so wrong, not you perhaps but the firm...so so wrong......
@Backfire....it is the classic tout I know and probably the only one I use....I am simply updating the public on what their own agent is up to!
Steven (and others...): I thought my comment would raise a few heads over the parapet...
First of all, let us get something straight. You know NOTHING; you have no idea whatsoever. You are making statements and accusations on totally unfounded grounds. I take it you know that in itself is a crime? OOPS - that brings your pious stance down a peg or two, doesn't it?
You call me dishonest; a hypocrite; a liar - on what grounds? That I said I was honest only 99.9% of the time? I was. IF I had said I was 100% honest, I would bet a year's salary that five times more of your likes would have jumped on my words!
No. Sometimes I was not 100% honest in the strictest sense of the word. But that does NOT mean I was DIShonest.
The other 0.1% of the time - when prudent to do so in the cause of saving ongoing sales (usually, I add, for the benefit of the buyer, not seller...) - I said nothing. I MIGHT have even committed the heinous crime of "bigging up" the occasional buyer when the vendor wasn't impressed and didn't want to sell to them. NO dictionary definition classes this as "dishonest".
I categorically (AND 100% honestly...) state that NEVER did this result in either buyer or seller having cause for complaint. Notice, please, I said HAVING CAUSE FOR complaint - not complaining! BIG difference. Get your heads round it before commenting further.
In THOUSANDS of transactions - NO 'bungs' (plently offered...); NO undervaluing/overvaluing for clients or friends; NO 'gifts' (barring the freely-given boxes of chocs or bottles of vino for job well done which my staff, not me, enjoyed the benefit of - they did the hard work...); NO shady deals. Just doing what the job requires - putting buyer and seller together.
And, I maintain, that NINETY NINE POINT NINE PERCENT of Agents act in the same way. Honestly.
I would say that crime statistics back me up in that respect - but of course you will argue the opposite, as that is your way.
You have NO IDEA WHATSOEVER goes on in the dealings with buyer and seller - especially you, Steven - so I am not in the slightest surprised you are no longer an Agent - but am amazed that you lasted a whole 18 months. Usually, the chaff is separated far quicker than that - I assume it was during peak selling when even the worst appeared 'good' - although from what you say your employer probably struggled to get decent staff in the first place due to their practices...
I have no issues whatsoever with my professional conduct in sixteen years of Agency work. Neither, by the way, does ANYONE else.
You are a bitter, cynical individual, Steven. You should speak to someone about your issues.
What about the Ombudsman, if you have proof of what you CLAIM to have witnessed? Or are you as full of wind and p**s as you are quick to accuse without scraps of evidence?
Oh - and stealing is a CRIME, Steven. Anyone who steals should be punished accordingly. REGARDLESS of who - or what - they steal from.
@ David..................Must have been a corporate. :-)
Well even the 'sold' sign can be a con as the previosu estate agent I worked in agreed with the vendor to put the 'sold' sign before taking the house off the market with a view to putting it back six months later!
Best tout of all your "SOLD" sign! i rest my case
@ PeeBee
I suppose if you steal a car from a miilionaire who owns a collection of 30 cars then its ok as it is not doing anyone any harm.
I was an estate agent for 18 months before I couldn't take it anymore. I couldn't look myself in the mirror with what my manager asked me to do in order to achieve a sale and to maximise a profit.
Agents like PEEBEE was the norm. They didn't see making a few extra quid by deceiving the vendor or buyer as being dishonest. Agents would compete with each other to see how much they can squeze from anyone. Sometimes buyers had to give 'booking fee' in order to secure a sale without the vendors knowledge. PEEBEE has the audacity to consider himself honest. This sickens me.
@Ian
Thanks Ian. I am glad you agree with me the PeeBee is just a hypocrite. PeeBee is obviously someone who believes in 'white lies'. He has obviously made his riches from the misery of others (well 0.1%). PeeBee's only defence is that he writes in good English.
"For combatting heavy touters, simply colour copy the offending agents tout letter and post it through every door they have a board outside with a little note "Are they paying you this much attention?" Chances are they are not, if you dont put a note on their tout letter when you post it back to their own clients they will eventually lose the business anyway as the vendor will think their agent has gone mad touting their own properties"
we did exactly this last year to our local corporate it worked an absoloute treat :-)) they were touting 0.5% fee on our clients with a letter we posted it to all their existing clients it was fun!! they may have kept some of their clients but at a very much reduced fee.............happy days
"However, if you refer to my past life, let's just say I was 99.9% honest... "
Is that what all estate agents tell themselves?
You are "acting in the best interest of your client"; the flip side of this is very possibly that you are acting in the worst interest of the buyer. Is that being 99.9% honest?
I am sure every agent has a story of a property that they sold and could not believe the price that they actually achieved.....were you being 99.9% honest when you did this?
Were you being 99.9% honest when you were selling houses knowing these sales were based on your colleagues were selling 125% mortgages or basing mortgage applications on made up salaries?
How you ever said to a buyer, "this house is marketed £20K over what we advised the vendor I wouldn't touch it with a barge pole?"
Does "acting in the best interest of your client" absolve you from any duty of care / morality towards the buyer? Is this being 99.9% honest?
You are a salesman and like all salesmen all that is important is achieving the sale and if lying is required to get it I am certain it is not beneath you to do so.
Mmm, thorny subject indeed.
If you miss out on an instruction the best way forward is to make sure you call the vendors with new suitable properties if they are staying in your area, When they are having more contact with you than their own agent, they'll soon switch over especially when they see that you follow up all viewings too.
We have a smarty who keeps phoning for her 'surveyor ' wanting the full address of all available properties for comparisons. They must look right charlies writing touting letters to the wrong house number. I know they do as I gave them my house number one day, pathetic but it amused me.
A huge, huge bouquet and card has just arrived this morning from our local retired Doctor and his lovely wife. It was a slightly difficult sale, they describe us as their rock. We've had three appraials this week already from their recommendations and there is no better way to secure new business.
Keep it professional guys and don't look too desperate. It's hard enough to build up trust asit is.
HPC Blog: I am NOT an Agent - so you take it wrong!
However, if you refer to my past life, let's just say I was 99.9% honest...
More's to the point - the 0.1% did NO harm to ANYONE.
A hot topic and one that divides opinion. Read my thoughts on whether 'canvasing' is just something that the industry gets it's knickers in a twist about on my EAT Blog here - http://www.estateagenttoday.co.uk/news_features/Henry-Pryor-3A-Blog
@peebee
But in your other posting, you said 99.9% of estate agents are honest. In this posting you are stating otherwise. You must be referring to the 0.1% dishonest estate agent. I take it you fall in the 0.1% for not telling the truth. Mind you, at least you have good grammar and spelling.
my experience is people don't like door knocking / cold calling etc. because its uncomfortable sales! but it is the most effective way of generating business. my teams knock on doors and for every 15 doors we knock on, we get a valuation! some people don't agree with it, but business is business, and in a tough market, you have to do what it takes to get the business in.
I tout, I is scum and can’t run a proper business.
Go on admit it your were “trained” by Spicer Haart......
sorry peebee forgot to add.....it would be rude not to follow this up and let us know the excuses which follow!
Personally i think cold calling is unprofessional in this business.
Touting is fine, but agree with others on their views about 'call me urgently' business cards. Please, at least put some effort into it!
We tout occassionally, but when we do we advertise our services we at least put some thought into it!
Touting is for rubbish agents, always has been, simples.
It tells you the vendor has already thought you a failure, correctly.
Marketing is another thing, if you have walked up the path and knocked the door you are the lowest of the low and clear evidence your business model is wrong.
A mistake is another word for experience, learn from the experience of being the worst in your market and be better, that’s experience, being scum does not make you good.
@Peebee.......I have done the very same before now with the very same outcome (no doubt to the very same company), told them at the end of the call who i was and the reply "well you know how it is Ric, you do what you can to win the business"
@Ace.....I agree in the whole, assuming you mean generic mailing of some description is okay......if youve been invited out to value a house and lost it then a call to see how they are going on in the future is not quite cold calling although my view like yours is they did not use me in the first place so why tout! hense I rarely make the call.
The best business is when they come back to you after failure with another agent off their own decision to get you back out, so you get it on your terms, at your price and without any pressure of "well you did convince me to swap" usually because the other agent promised too much to win the business in the first place.
Best tout of all your "SOLD" sign!
PeeBee. Love it.
So, the general feel is:
** it's ok to drop 'misleading - call me urgently' leaflets if the owner doesn't have a big sign up saying "no leaflets/free papers" (NOTHING worng with general marketing leaflets going to EVERYONE)
** It's ok to call because if they didn't want cold calls, they would set up a number blocker
** It's ok to knock out of the blue on someone's door because you don't know their circumstances or there is no sign telling you not too.
How do you think such tactics influence the already existent feeling towards EAs in this country?
There IS a reason why the seller didn't go with you at first time of asking....
Hmmm... where do I stand on this thorny subject?
Okay - here goes. And, sorry - it'll be a long one!
Back in the day when I was an Agent, I didn't tout as such. We leaflet dropped (blanket, not door-specific...); we advertised for properties in certain locations (including the occasional invitation to homeowners that may be currently on the market but not achieving the results they require...); but certainly didn't door knock. All of our material carried the correct small-print - and we never promised anything other than we would do our best to get them moving.
What annoyed me were the other leaflets that broke every rule. The false promises; the false buyers; the false success stories - and lo and behold a decade or more later these leaflets are still in circulation!
I got one a few months ago. Big company - you all have one of their branches on your high street. Some of you might be sitting in one reading this. THEN TAKE NOTICE!!
"We have a genuine buyer who is desperate to own a property in Acacia Avenue. Please ring Petunia-Angeliq or Britney-Jasmine NOW on 123 456 7890!!"
So... I rings. Gets the first-mentioned of the dynamic duo. Judging by the youthful sound of her voice and the amount of noise in the background I surmised it that it was play-time and she was in the middle of a game of hopscotch or something... ANYWAY - I launches into my planned speech.
"Oh hi - I understand you want properties in Acacia Avenue? For Mr and Mrs 'B' - yes?"
"Erm...(rustle of papers...) yeah that's right" says herself.
"Great. What kind of property are they looking for?"
"Erm... what...kind...of property do...you...actually have?" young P-A replied with.
"No (says I) - that's not the answer I expected. Please answer the question."
"Well...I...erm... don't have their details with me at the moment. If you were to tell me what type of property you own it might jog my memory..." (I kinda like the innocent-but-stoopid thought process behind that one...)
...and so it went on. I won't bore you any more with the rest but I guess by now you all know I didn't let go!
Best bit of the lot was when I dropped into the conversation that I was a TSO...
THE PLAYGROUND (...and Petunia-Angeliq...) FELL SILENT! Strangely enough, I got cut off - how annoying is that?
When I redialled, she had apparently had to leave the office on an appointment. She hasn't returned my call yet - maybe she is in the middle of SATs or something - but do you think I should follow it up? ;o)
@Ray, you are not likely to find out the owner's circumstances unless you ask.
ALL advertising and generally asking for business is good.
What is not good is knocking on doors or posting a specific letter or leaflet on properties that are displaying a For Sale or To Let board. You do not know the owners circumstances.
As other agents have said, there is nothing at all wrong with leafleting and touting if done properly.
This week alone, I have listed two properties directly from two seperate leaflet drops in areas where we had buyers waiting. I've also just returned from another valuation in one of those areas and have an appointment tomorrow to list a property which came from sending a seperate leaflet to a house on the market with other agents.
We get positive responses to about 1 in 100 targeted leaflets or letters we send and the additional fees gained more than cover any expense. Very occasionally do I get a complaint, in which case the owner will receive an apology and their address will be removed from our database. I don't post leaflets through doors where there is a sign asking me not to.
I will fully explain any dual fee liabilities to my potential clients and would be happy to get them to sign a form to confirm I have done this, but I won't be cutting down on the amount of touting we do (if anything, we are looking to increase it.)
Touting for me, when I count the hours, petrol, paper, postage & effort, has I think not made me a penny.
Yes I have got instruction that have sold.
Yes, I have been quite successful at it.
BUT, it costs a fortune (50p per 2nd class letter or £1 for a brochure).
Or 40p per mile AND a letter or brochure.
Surely the only UNETHICAL thing is persuading the owner to break a sole agency agreement...
I work in a town where everyone signs up on a 12 week contract (sort of, ish).
The only benefit of touting before week 9 is persuading the owner that the price reduction that their current agent has just asked for is justified.
Therefore, wait for the last two weeks (use Rightmove Best Price Guide - put in the postcode and it will tell you when it cam on the market) or have a huge database of instructions noted when they come on.
THEN tout them, professionally and honestly.
Personally though, in all the years I have been doing it, I would say I have probably spent more money and time on doing it than I have ever got out of it.
And I have worked for (or owned) several different types of agent including corporates (with their letters 1-7).
Got to say, that if they didn't even call you in for a valuation in the first place (so you don't have their number) then it is going to be an uphill struggle.
Sometimes I just wonder if it is "make-work".
Door knocking and cold calling? Perhaps signs that your marketing strategies aren't working in the first place as the vendor didn't choose you - I'd address this first and foremost.
Leaflets are fine. But "Call me urgently" - why the need? It's cheap and misleading from the get-go.
By all means, mass market your 'brand' to the papers, online, send leaflets; but when you start knocking on people's doors and cold calling, you cross a line...
A contributing factor to the reputation agents have today.
Don't be stupid with the Tesco/Asda comparison. If Jeremy Asda came and hijacked your Tesco delivery van, just as it pulled into your road...THEN you might be able to use this example.
Companies try to win business all the time - but knocking doors and cold calls are intrusive, desperate and unprofessional.
I'd rather a woman selling feather dusters knock to be honest.
I thought the vast majority on here would be against touting - I'm delighted to see that in fact there's some strong and vocal support for it.
To echo the comments of one commentator earlier, people would think it ludicrous and outrageous if Asda were banned from trying to win my business simply because I shop at Tesco. Why should our profession be any different.
The cosy old boys club mentality of our profession should have died out years ago.
There is canvassing and there is giving people false expectation and jumping onto people at the emotional time of not having sold their house.....how easy is it to give the puppy dog eye look and the comment to a vendor on with another agent......"I just can not beleive they have not sold your house yet", 3 of these calls over a period of time and hey presto, you now have the over priced house which the other agent can not sell as the vendor will try anything bbut lower their price to sell.....
Unless you call that vendor and say guess what you have not sold yet because your home is too expensive, but reduce the price with me and we will sell it, then most touts are jumping on the obvious properties!...Most touts are on properties struggling to sell due to a high price or rubbish service......either way decent agents will look at another agents unsold stock and usual count 1 out of 50 worth a phone call. (my opinion)
Good agents dont need to "tout" they may send letters with informative information, a reminder of a factual service or can we help you find a house if they are not registered and win the business that way based on a great home finding service. But cheap fee offers and "I can not beleive its not sold" rubbish.....arrghh
For combatting heavy touters, simply colour copy the offending agents tout letter and post it through every door they have a board outside with a little note "Are they paying you this much attention?" Chances are they are not, if you dont put a note on their tout letter when you post it back to their own clients they will eventually lose the business anyway as the vendor will think their agent has gone mad touting their own properties.
Letter writing and leaflets drops can be done tastefully but door knocking and cheap tactics are what some agents on here want stamping out and rightly so
We canvass all the time and we do very well at it. The only complaints we've had are from other agents who evidently can't be bothered to make the effort.
That said, we go about it in a professional manner, we never slag our competitors off and if the vendor says they're not interested, then we say 'thank you' and leave them alone.
and its opinons like yours that give agents the rep they have. If they cant play by the rules they shouldnt be playing.
@ Wardy - nothing is done because nothing can be done...with or without regulations. Best accept it, move on and stop whinging....you cant stop competition and neither should you....its good and keeps you on your toes.
Im sorry but many of you are missing the point. It is the duty of an agent to point out the terms of their existing contract to make sure the vendor is not liable for two fee's. We all know this does not happen.
Touting will aways happen but 'call me urgently' compliment slips are in breach of the ASA and yet nothing is done.
I leaflet my patch routinely, always have always will, the whole point is to put my company's name in front of potential customers for the future. I agree with whoever said - the ombudsman is there to deal with complaints over how a sale/let has been conducted; it has no place when it comes to how we get our business. If they want to go down that route surely there is space for another department to be set up by this ineffective government (& manned by another failed minister) to be paid for at great expense by the business community!? defining "aggressive leafleting practices" should be an interesting one!
Gotta go now have leaflets to drop!
@Knocking on Heavens Door. Totally agree with you on the courage part. Problem is 'they' apparently lack it - any churlish fool can simply post this diatribe addressed merely to the occupier! As for the so called preference/opt-out services. I've tried them all and none actually work.
Swampsnake - You have your views and thats fine however in a very competative world with more and more Agents and less and less business ot obtain whether you like it or not canvassing is a very important way of getting your company name in front of the public. You may canvass the same road again and again and again with no luck, at great expense, and then one day you will get a call out of the blue from a vendor/landlord who remembered you because of leaflets they received months prior. Its all about offering a service and if the current Agent is not perfoming and they lose out to an agent who is then thats just the way it is.
Swamp snake - whats cowardly about knocking on a strangers door completely cold. As Brian states he is to "pussy" to do it...and so are the vast majority of people.
Why? Because it takes courage and guts to face possible rejection. Nothing cowardly in that.
@Industry Observer. I wish it were a joke! Seems you have missed the point somewhat. It is the barrage of literature that irks the most. As you should know such rubbish is outside the gambit of any so called opt-out service. I am currently marketing a property (empty) and within 7 days no less than 8 touting leaflets, cards etc were delivered to the property with 3 being from the same agent (conglomerate of course). I re-iterate cowardly way of conducting business, and you can add parasitic as well just for good measure! The sooner the Ombudsman sharpens his teeth the better!
@ Monkey Tennis. Here here....been door knocking for past 23 years and have always been greeted well. Sure somewould say unethical but they are the same agents who have forgotten (or never learnt in the 1st place) how to sell a property rather than just advertise a property and wait for the calls to come in. If an Agent is servicing his/her client properly with good feedback and advise then they would not be tempted to use another agent. The only ones who fear canvassing are those who know at the back of their mind that they are not providing the best service and therefore have a fear of losing business.
Question:- How will the Ombudsman police it? Answer:- They will have to wait for complaints to come in from those who have been door knocked. Therefore no worries as people just wont be bothered to do anything about it even if they dont like it. Its a lovely day, now go out and knock on some doors. P.S Its also very good excercise!
What ever your opinion is of touting, I do not believe the ombudsman has jurisdictian here. We tout and will continue to do so. I look forward to TPO being taken to court under Unfair Trading Contracts or restrictive trading practices if he ever tries to enforce that one.Leafleting and cold calling is not illegal.
This initiative by the Ombudsnman is well overdue. Some of the larger agents are the biggest culprits. Touting for business is grubby and unprofessional. In an ideal world, agents would restrain themselves from using such practices - but hey, it doesn't work like that in practice. Full Kudos points to the Ombudsman.
@Swampsnake
I am sure your post is a joke and that like the rest of us you receive boiler room phone calls and others where the dreaded opening line is "Hello Sir and how are you today (or Hello Madam if you are female!!)" which means you know a scripted sales pitch follows.
What is wrong with cold calling someone who has had a board up for months or a classified advert in the paper for several weeks?
The Telephone Preference Service (TPS) and Fax Preference Service (FPS) exist to prevent unwarranted phone calls and faxes (remember those damned overnight things offering you stationery but using all your fax paper to do so?!!).
Maybe TPO will promote the idea of a TPS - Touting Preference Service so anyone who doesn't want anyone knocking on their door can register. Mind I'd be careful where the door has one of those local authority/local newspaper "No uninvited callers here please" etc stickers on it.
TPO exists to deal with complaints on how business has been conducted - not how it was obtained.
Monkey Tennis is right by the way the vast majority of agents do not know how to go about business development of this nature mainly for fear of leaving the office just when a prospect walks in.
I am sure the EU rules on restriction of trade would overrule this anyway. There is nothing wrong with marketing your business in this way. If someone asks you to stop leafleting or calling you stop and that should be acceptable.
What the xxxx is aggressive and uncontrolled leafleting ? and who, exactly, is offended by it ?
Monkey Tennis, you are a man (or woman) after my own heart. How can they come down on touting? It is offering consumers an alternative.
So, if someone shops in Tescos, then they can't receive leaflets from Sainsbury's or Morrisons - I certainly do, but i'm not gonna complain because I want a choice and I want to know who is offering the best service and fee...
I tout with great success. Although, I can't say I have ever door knocked...! I'm too pussy for that!
I doff my cap to you Monkey Tennis - I think it should is a good thing...
About time this extremely cowardly and tedious way of conducting business was properly addressed. This long overdue.
This is (again) none of his business. Whether Agents want to intrude upon the privacy of peoples homes is up to them. It is the juristriction of the Trading Standards Office, not this high and mighty self-righteous nit. Next he'll be demanding that Agents send him their tax returns for inspection, and making sure all company cars are properly insured. I'm amazed you don't already send him a copy of your public and employee liability insurance. I can just imagine the OFT "oh no, is he in reception again? Tell him we've all gone to a meeting or something"
Monkey Tennis
That sounds interesting, you are the first I have heard that is making a success of it.
What's the secret? My managers would have a fit if I asked them to do it.....
So the Ombudsman wants to discourage touting but not outlaw it. Fair enough. I will carry on doing it. I must have knocked on about 1,000 doors by now and only had 3 openly hostile exchanges versus approx 200 instructions and approx 50 sales. Its the best way to sell if you know how to do it, my guess is that the average agent doesnt know how to do it which is leading to all these complaints. now waiting for the barrage of lazy, 'desk hugging' agents saying that this is 'unethical, unprofessional etc.'.
Oh dear thats the corporates finished then!!