A high street estate agency in Essex is getting set to launch a national online estate agency, saying that high street agents will not exist in three years’ time.
Think Property, which set up nearly eight months ago in Leigh-on-Sea, is launching Think Online Property on April 1.
The new service will offer an estate agency service at £395. It will also ‘guarantee’ the vendor’s next purchase against fall-through by reimbursing the costs incurred in legal, mortgage and other fees.
Should that purchase fall through, through no fault of their own, the firm will reimburse up to £500 in mortgage arrangement fees, up to £750 in valuation fees and up to £600 in lawyers’ disbursement costs.
In addition – if the client decides not to continue selling their current home – the Think team will reimburse 50% of the upfront fee of £395.
All of Think Property’s existing vendors will be offered the new service on the same basis.
The £395 standard service is for 12 months of marketing and has no completion fee. However, vendors can also choose to pay £295 upfront plus £350 on completion, for six months of marketing, or £145 upfront plus £750 on completion, for three months of marketing.
If a house doesn't sell in the three time frames offered, clients can purchase an additional six months of marketing for £99.
Peter Joseph, founder of Think Online Property, said: “As a high street agent, we have experience of clients, their needs and wishes, and feel that some estate agents have quite rightly earned a reputation for being unscrupulous and not always worthy of their fee.
“Similar to low-cost airlines who changed the market with the introduction of online bookings, we believe that online estate agents are the way forward for a number of reasons.
“I would even go as far to say that the quiet revolution of online agents could kick-start the housing market if these lesser fees allow sellers to reduce the prices of their house in order for a speedier sale.”
Joseph, an entrepreneur who has had print and design, and costume jewellery businesses, is launching Think Online Property with his business partner Mark Newman.
He said: “I am not from an estate agency background, but it seemed to me that some agents have been getting things all wrong. This has given me the opportunity to break the mould.
“It will be a national service all about customer care. The only thing the public will not see is a local high street agent with the property on display in the window. However, all our properties will be listed on all the property portals, including Rightmove, and our fee includes those costs.
“We will be asking our vendors to do all the viewings – but then 60% of viewings are conducted by vendors anyway.
“We will be a one-stop shop, offering a complete service every inch of the way, including negotiations, full sales progression, mortgages and surveying, whilst saving vendors considerable sums of money.”
He added that the name Think Property had been cleared with Zoopla, which acquired the property portal of that name from the Guardian, where it was part of the Vebra stable.
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Comments
Online agents are relatively new and it will take some time before many will use one of these over a traditional agent. With time may come the realisation that this change will save buyers and landlords significant amounts of money for a process that ends the same. I have a feeling that when this snowball becomes more popular the rate it will grow will be exponential - word of mouth will lead to more media coverage and in time most people will know of at least 1 person who has used an online agent or knows something about them. Not only are these online agents growing in number there have been increasing numbers of private landlords with many using free sites to advertise like gumtree or Tepilo.
However there will always be some sellers or landlords that simply want a letting/estate agent do the majority of the work and this includes viewings which many online agents do not offer.
Two friends of mine are at complete opposite ends of the spectrum. One doesn't want anything to do with letting their property and are happy to pay high agents fees to rent it out without meeting the tenants - although he did say that if a online letting agent could do this for less then he might give it a go. The other sold his property and used an online agent savings lots of money, but he was willing to conduct the viewings himself. For now there are customers for both online and traditional, but I think with time, technology such as virtual viewings, using apps to identify properties for rent/sale rather than boards will mean a general move away from the high street to online. Let's face it, the reason rightmove, findaproperty, Zoopla and others do well is because most people search online for their ideal home whether renting or buying. Can anyone honestly say that the last time they looked for a home either buying or renting they didn't use an online portal or even an estate/letting agent website?
ps. I am slightly biased because I started an online letting company last year, but I've done my research and I believe the snowball is coming. We decided that our services would be concentrated in London & the South East in order to meet clients if needed and this allows us to offer a complete service including viewings.
Forgot to add, out of all our viewings in the last 12 months 0% (none) were carried out by our vendors.
You cannot give good service pre-sale or after sale agreed on your business model. But good luck anyway, you sound a nice guy.
Lovely principles, great that they want to give great service. The business model is doomed however and if he was an Estate Agent he would know why.
The bad news is a great many of your buyers and vendors will not share your values.
If you are going to invest your time and money in a business, have the sleepless nights when things don't roll, give up holidays and work 60 hours a week then you need a reward. That reward is certainly job satisfaction but surely has to include a damn good return on investment.
Yawn - Seen it all and heard it all before. Next please!
Guys - the issue remain - a buyer pays the agent NO FEE and doesn't give a stuff - they want service and help. If they visit a 'think property' instruct and see a KFH or Winkworth board - guess what they will do next?
I have heard so many times of the death of the agent n the High Street. Is that why successful people such as Foxtons, KFH, D&G are all expanding?
You see, you can buy computers on line - the cheapest is best of you know what you want - who cares from where. Oddly, DELL started selling in retail shops a change from their original on line business model.
Clothes are easy to buy on line - there are still clothes shops. Cars the same. So, why would a buyer restrict their search to an idea which benefits sellers?
PeeBee, hunny, I dislike the hot as much as the cold! Quite happy sitting in the Midlands ta!
Ladies & Gentlemen
This already works in my area, I have been through this with PeeBee, the fee is different (£799) but the principle is exactly the same. I think the figures I quoted PeeBee at the time was that they had taken almost £80k if you took into account every house on their website that was currently for sale.
You pay half the fee upfront, you pay the other half (if you sell) on completion, they operate from a small out of town industrial unit/office space and they don't do any viewings. You get your listing on rightmove which let's face it gets your property at least 100 times more exposure than a small ad in any agents window.
I used them 18 months ago, it got my place sold in 3 months, my old neighbour put their's up for sale as soon as mine was sold with a traditional agent, 15 months on and price reduced from £215k to £190k they are still there.
5 days a week I walk to the gym and back home which takes me past my local Connells & Taylors EA's, very rarely is there any customers in there.
I wouldn't be so sure about weighting this off too quickly !
"Wow. With a pitch like that Jonnie, I may have to have a rethink about PeeBee......
You smooth talking charmer you."
Tell the truth, CL - you read what he said yesterday to r'n'r. Jonnie' earns more in a week than I do in six years, and he lives in a palace.
NOT TO MENTION the fact that he lives 'dahn Sarf' where it is tropically hot. Her 'Oop North we battle polar bears every day. If Jonnie is one of those high-flyers I read about, then I am the equivalent of a property penguin...
You're just a gold-digger - and I'm heartbroken! :'0(
Wow. With a pitch like that Jonnie, I may have to have a rethink about PeeBee......
You smooth talking charmer you.
Quaking Jonnie quaking
The again, never did like the missus anyway - she's yours for a small up front fee
Well, its inspired me – bold claims and aspirations, not a lot to back it up in fairness but never mind im going to set my self up with a goal based on the same core principles.
You see I have slept with some women in the past, not many but I think I understand what they want and need so im getting myself out there, across the country, nationwide and all that, im gonna sleep with all the really pretty girls in the land.
Im not doing dating that costs to much, restaurants are a rip off anyway and I don’t need them to do this, dates also need effort but the care and love (not to mention the sex) im giving is much better than any other bloke out there, im not planning to actually travel to them ,they can come to me I cant be doing with all that visiting thing.
Ill let you all know how it goes, hopefully I wont end up just messing around with a couple of ugly ones that live near me.
Lock up your wives and girlfriend im going to take them all!!!
Jonnie
Paul is quite correct.
When dealing with what is most peoples greatest asset they want to be able to meet those whom they instruct 'face to face', a High Street presence with a window gives confidence. The actual advertising of the property is an integral but different matter. Same applies with those firms that give only a mobile phone number - who are they and where are they?
Added by Think Online Property;
"We are commited to making this 'change' work and if we can offer clients more choices backed up with a first class service, then this can only be a good thing."
How can offering only an online service be offering 'more choices' when the traditional agents offer an online presence allied with a high street presence, as well as face-to-face staff presence? Surely, you're restricting choice?
How will you offer, from your base in Essex, a 'first-class service' to a seller in Scotland?
"Can you honestly say you think the agent of the future will be high street based? "
Based on the number of people I see every day looking in EA's windows to see what's new and different, I don't see any reason why not. There's one agent opposite my bank - every time I go into the bank, there's someone looking in that EA's window. There's one close to the Post Office - every time I go to the Post Office... guess what? Someone looking at the properties in their window.
Open question to anyone running one of these internet-only operations - have you ever gone out onto your High Street and observed the general public, and observed how many of them are still looking on that High Street?
James, the point is they just dont need to sell. Once they have the insruction that is when they earn their fee. The good news for "real" agents is they still get to sell the house when after 6 months the penny finally drops and Mr Stu Pid realises thats he has be had! To be honest its not a bad idea for a very short term business in an area of medium to low priced property. I think they could have a good honeymoon period before the good people Leigh-On-Sea catch on.
Guys I have nothing to do with this company.
I run my own independent agency. The only online presence I have is via Rightmove and Findaproperty.
I wasn't for or against this company, as I said maybe it will work or maybe it won't. I was merely expressing my opinion that this could be the future of the industry.
Again, as a business model I said maybe the timings off. It's not something I would be brave enough to do right now. The spirit of my little 'soap box moment' was that we should all be opened minded about this and not dismiss it out of hand.
Hello All,
Well thank you for all your comments, lots of them are great reading. We all have different ideas about the way things are done, or at least should be done.
But as the famous quote goes ' The only thing constant in life is change'
We are commited to making this 'change' work and if we can offer clients more choices backed up with a first class service, then this can only be a good thing.
Kind regards all. Peter
Very funny and very true - rarely do these sites "sell" a house
advertise maybe, but where and to whom - presumably other directors of other FSBO sites so that they keep each others numbers up
El Cheapo Estates: Yes Mr vendor I would put your house on for at least £50k more than any other agent and I will only charge you £395+Vat so if I could just take payment now I will be on my way.
Two weeks later....
Stupid vendor: Ring Ring.... Ring Ring... Hello its Mr Stu Pid here, why havent I had any viewings on my house.
El Cheapo Estates: Dont know and I dont care but thanks for your prompt payment oh and if in three months time you can get the next installment of £99 to us that would be dandy. Oh and no need to reduce the price. See ya!!
What insentive is there to sell the house let alone get the best price?
James- perhaps he is from Think On Line??
Afraid of change - which Director of this company are you ?? Name yourself
Maybe it will work, maybe it won't but is it the future? Do we change or die?
It wasn't that long ago people said clothing was a personal service too. At the time it was true, remember Boo.com! But now look at ASOS!! Indeed, online sales outstripped the high street last Christmas.
Maybe the timings off and of course there are a lot of other factors to consider but it does sound like the natural evolution of Estate Agency. Lets face it, the format hasn't changed for years. Can you honestly say you think the agent of the future will be high street based?
WE educate vendors and WE manage their expectations so WE are in the driving seat. Like Rightmove, if it's the place to be, thats where the vendor will be.
Lets face, with the percentage of sales online we're half way there already!
Maybe we shouldn't be so quick to write this idea off.
Starts on April Fool's day. Says something doesn't it!!
If they're offering a 'national' service, then if I want to put my house in Central Scotland on the market, are they going to send someone from Essex to value it, and arrange the Home Report....?
Or is this an 'England and Wales only' plan..........
"Leigh has two excellent agents, Home of Leigh and Essex Countryside..." Er, some mistake here, surely! One of them has hardly been open for more than five minutes (and doesn't put "STC" on their Sold signs) and the other apparently couldn't afford to open their office for months!
Tesco will deliver your groceries to your door if you buy them online. I'm still waiting for them to announce the closure of all their shops.
After reading their website, sounds to me as though they have opened a shop in 2010, sounds like its not working out, so lets be an online agent and our USP will be that we will be cheap.
There is a place for choice in the market whether it will be online agent or High Street agents, but if online agency was seriously the way ahead, a lot more of the bigger agencies would have jumped off the high street.
Motivated sellers will always want a personal service and in my years of experience would much prefer to pay a decent fee for an excellent service to get their home sold.
In the last year, the online leader in online agency (not going to mention the name, most know who they are) have advertised 2 properties in my local area, from about 700 (average) stock that sits on the market.
One Sold, ones still on. Says it all really.
We spend all of our property ad spend online and have spent next to zero on magazine or newspaper advertising in the past 5 years. It is true that most people do not look in high street windows as a first choice and now hit the internet first.
However, in my opinion we have found that tenants, landlords, buyers and vendors still want the security and peace of mind of using a company that has a shopfront or a recognised brand.
I have seen nothing in the last 5 years to persuade me otherwise!
So although many online agencies sound good at first, they will find that the low level of stock taken on at the low fees charged will mean that they inevitably end up having to work twice as hard for less money and no gaurantee of any long term stability!
What awful news to hear for us High Street Agents, oh well, I've just told the staff to clear their desks and I've now whitewashed the windows, no doubt charity shops will queue up for my premises. Prehaps I'm being hasty though, as we are still making money, incidently a separate part of my business is 'on line' agency, alas that does not make money and rarely sells any property - they get the same marketing as my other properties just without the High Street office and brand name, funny that.
Anyone fancy a wager that Think on-line property will not become a household name?
I am sorry to say this idea is doomed, low fees without huge bulk will only lead to one thing and guaranteeing fall outs?! These guys will be bust within a year depending on how much money they pile in...
Dave - Quoting Foxtons - We can get you another 40k. Pures sales patter. Don't you think a surveyor might have just a little to say about a property being offered on far in excess of any other completed sale!
Think glass ceilings, crap market, prices falling, not going up.
Foxtons cannot sell a property in this market for more than anyone else.
I wonder how I am even able to get out of bed in the morning. Someone else announcing the end of estate agency as we know it!!! Good luck, I am sure they will make a small fortune, they will just need a large fortune to begin with!!!!
After 32 years as an estate agent I have decided that I am going to revolutionise the print and design and jewellery business by charging less !
"I am not from an estate agency background."
Obviously, or he'd know why this won't work. If the public wanted this kind of service, then all the existing "online agents" would be making fortunes, but none of them are. They simply service the same old minority of ill-informed vendors who think that private selling saves them money.
Estate Agency is a PERSONAL SERVICE. You cannot give personal service online - and the day that people start treating the sale of their most valuable asset in the same was as booking a £30 flight will be the day I eat my motorcycle helmet.
This is only a story because it is such a daft idea.
There are lots of on-line websites much better than this concept.
The re-imbursement of mortgage costs will be linked to a buyers/sellers cost protection scheme offered by L&G for instance.
There are loads of sites doing this already, mypropertyforsale.co.uk, housenetwork.co.uk, 121move.co.uk etc, the only difference is these guys are offering a cash back, wow. Lets hope they have got some funds in the bank.
There are a couple of these type of sites out there already. Not sure how well they do (how much money they make).
Not a bad idea if you can get seruious volume. If you don't then well, I guess it wont work
Huge marketing costs involved too
I know where this agent is and it must be getting desperate. Leigh has two excellent agents, Home of Leigh and Essex Countryside, both of which must be beating this lot to a pulp.
I walk past it every day and its a flat as a pancake - thus they get lots of time to think up wacky ideas.
Why on earth do they think this will work when you can list your property on sarah beeny tepilo website for free??? (if so inclined)
60% of viewings are conducted by vendors anyway.
Really? If I discovered my staff were only doing 40% of viewings, they would be looking for jobs elsewhere.
Good luck - I always admire initiative, but at £395 a shot, I wonder whether Leigh on Sea can support that volume of business required - excluding cash backs.
But think Foxtons. "I have been quoted a much, much lower commission rate"........ "Really? We can get you an extra £40k"
"Ok then."
sounds more like a charity than a good business model.
Lee on Sea? Never heard of it. Perhaps Leigh on Sea?