Estate Agent Today has discovered that a so-called ethical' estate agency is launching in London.
It makes eight 'public pledges' to mark it apart from rival agents, including fixed fees and no individual commissions for negotiators.
Brickworks - which has a work in progress' website on www.brickworkslondon.com - is undergoing a soft launch' now and gathering a portfolio of properties for sale ahead of its official launch in September.
Ellie Rees, who set up the agency with her partner and former Kinleigh Folkard & Hayward and Winkworth agent Rex Siney, has told Estate Agent Today that the aim of the agency is to be anti-corporate and an alternative to what's out there at the moment.
We want to sell the way we sell rather than be known for one type of property or operating in just one area explains Rees. It is based in north London but has no high street office.
However, Brickworks is not calling itself an online agency, because of the strong industry background of Simey and the promise that there has to be a better way of doing things with an emphasis on personal service that is not available through some online agencies.
Brickworks says it is committed to an ethical approach to business and sets out eight pledges including some on environmental responsibility, attention to photographic and descriptive detail in brochures and website displays, and using plain language throughout.
But there are three particular pledges which mark out the firm as quite different to rival London agencies.
Fair fees - Everyone pays the same fixed one per cent to sell their property irrespective of value. It's just fairer that way and there's no haggling at any time says Rees.
No individual sales commission - Its website says: We work as a team on your behalf and reward our staff on the quality of their customer care, not their sales record.
No cold calling - Never. Like EVER proclaims the website.
Ahead of its formal launch, Brickworks currently lists only one property on Rightmove.
It is, according to the legal declaration, a garden flat owned by one of our creative team. But if the details are indicative of Brickworks' approach, the offer to the public will be different from most of its London rivals.
Details include Brickworks says...' (leading on to the classic estate agent description) and then The owners say...' (a more general descriptive and anecdotal section).
There is also the painfully honest Points to consider' (which in the case of its one Rightmove listing, includes trains run close by at the back of the property - the noise is something to consider but the kids love it! and other candid comments).
There are also 27 pictures of the property and local area for this one listing.
Is this just going to be a one-off innovative agency or the template for more transparent fixed-cost agency in the capital in the future
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Comments
As a proto-client of Brickworks (bought and sold through Rex before the new business) rather than a professional, this seems pretty attractive to me.
Low fees also really appealing! Perhaps I am naive here, but axing things like fancy shopfronts, liveried cars and flashy fridges full of bottled water and passing those savings onto clients seems pretty straightforward!
No newsflash here but estate agents are in a pretty bad spot, image-wise, even though many are doing a great job. Perhaps by being really clear about the way they are working, Brickworks are going to be the fresh approach that clients are ready for.
Rob asked, 'What makes every other estate agents out there unethical exactly' I saw a client yesterday evening who's property I sold in 24 hours of taking his instruction. The sale is progressing very well, the property shows as sold on rightmove etc, and of course there is a 'sold' board outside. Earlier in the day he'd had a call from Haart, trying to persuade him to blow out my sale and list with them! Does that answer your question!
Of course SpicerHaart are part of the merry gang of wonderful agents that make up Agents Mutual, the exclusive club for only the very best!!
And Joshua Rayner said 'there is always one person in the office who does not pull their weight, which causes resentment and can have the opposite effect the agent is looking to achieve in terms of teamwork!' Very easily controlled with good management!
Interesting to see todays report on new agency Brickworks ethical approach. I can imagine many of my clients would take umbrage at the insinuation that they are not ethical, with some arguing that several of the innovations planned by Brickworks are already part of the way they do business.
Focusing on the idea of pooled commission in particular, theoretically this should work well but in my experience, there is always one person in the office who does not pull their weight, which causes resentment and can have the opposite effect the agent is looking to achieve in terms of teamwork! However, it pays dividends when agents take holiday as they can build up a good pipeline and wont suffer a dip in earnings.
Knowing what makes a good estate agent, I believe the danger is that with pooled commission firms would not attract the right type of people this kind of pay structure will attract those with an account manager disposition, rather than an ambitious salesperson keen to drive through the deal.
Lets face it, for agents who are really good at what they do commission (and other incentives) is a huge motivator as well as a badge of honour. Top performers want to be rewarded for their success, as publicly as possible. They know theyre only as good as their last deal and a modest basic/high commission structure keeps them hungry.
Having said that, I appreciate the argument about customer care and perhaps a mixture of both pooled and individual commission could work. Only time will tell whether Brickworks attempt to differentiate itself will prove successful in attracting the volume of sellers they need to make this model sustainable.
Josh Rayner, Managing Director, Rayner Personnel
What makes every other estate agents out there unethical exactly It shouldn't need to be said, it should be assumed and implicit. The majority of agents do a good, honest job, it's just a few unscrupulous ones that give us a bad name.
We welcome the debate. And this is something we wrestled with at length.
The trouble with the current, prevailing model - as we see it - is that people living in less expensive property tend to pay a higher percentage, as agents, quite understandably, want to recoup a decent fee for their input and expertise.
Having a flat fee doesnt negate this problem either. In some cases it can exacerbate things. For example, if you sell a 2 million pound house and charge the same as a 200K flat, this is clearly regressive. And if you implement price-banding fees, people will always want to negotiate outside of their bracket, which, again, goes against our ethos.
A well known quote might better summarise our thinking:
It has been said that democracy is the worst form of government except all the others that have been tried.
One final comment: the focus on fees is one aspect of many. We are equally proud of our attention to detail, visual aesthetic and overall quality of service. It's about representing people with style and integrity for a fair and reasonable price, which is accessible for everyone.
Putting aside the level of fees, and arguments about whether it is possible to make a living at 1%, a question for Rex
So you will charge someone selling at 200,000 a fee of 2,000, and someone selling at 500,000 5,000, but will you REALLY spend 3,000 more on marketing that property ETHICAL
Perhaps the 'ethical' way for agents to charge would be to work the same as all other industries, where the consumer pays a fair fee for the service they get. Estate agency fees halved overnight! A percentage is in reality a nonsence, and of course, those on the high street would hate that, only charging an individual seller for what they have actually done for THEM!
Perhaps these nasty online upstarts have got it right, charging a fixed fee up front!
Always sad to see the only thing agents sell themselves on is their price, if you cant negotiate for yourself what sort of job are you going to do for the customer.......................
There are some amazing agents out there doing a fantastic job - we are just being true to our vision and approach.
We have considered our positioning very carefully and stand by every word. In regards to cost, every element of our business has been looked at to reduce waste. That way we can offer a low, fixed percentage but also a truly bespoke service (and still make money).
It wont be for everyone, but we are confident it will appeal.
finding a unique selling proposition is difficult,but as most new businesses discover without material financial backing how do you build a brand that people will a. be aware of and b. people trust. If your ambitions are limited to your very local market then it maybe doable with alot of hard work and good fortune. Sadly 1% commission will seem alot when the easyProperty brand moves into sales next year :)
1% seems extremely low... especially for lower priced houses. There's having ethics and then there's losing money.
Good luck to them - tough old journey ahead !
Been there done that got the t-shirt. I can think of at least 3 agencies that have the same "ethos". One on Kingsland rd, E8 is only one that's survived as they realised charging same price to sell a 1m place is harder/ longer to sell a 300k place doesn't work. Agents don't start with the aim of ripping people off,charging different fees to different people, etc. just works out that way because of a) clients/ general public are a pain in the arse and want everything for nothing and think they house is worth about 20% more than it is and b) competing with agents who over value properties continuously to get instructions (foxtons). Good luck though. Also wonder if they are into their camper vans as their name is awfully similar to Brickwerks.com.