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TODAY'S OTHER NEWS

eMoov tests new no sale-no fee business model

One of the country’s most prominent online estate agencies is trying to confound critics by offering a no sale-no fee model, which also allows deferred payment instead of up-front fees. 

eMoov says it is piloting a deferred payment scheme with a ‘no sale-no fee’ element as part of what the agency’s chief executive Russell Quirk calls the firm’s “ever agile approach”. 

He says: “The proposition is two fold and gives sellers a unique choice: No sale-No fee at £1,194 including vat on completion. Or £594 including VAT deferred for 12 months or at completion, interest free. Absolutely nothing to pay upfront with either.”

Quirk told Estate Agent Today that there would be “no draconian sole agency tie ins, no penalty fees [and] no insistence on additional products or services being purchased.”

He says that if these variations on the online agency model are adopted permanently they “should most certainly scare the estate agency establishment - even more than they already are.”

Critics of online agents have long cited a weakness in the online model being that vendors lose their upfront payment if their home is not sold - effectively costing them more, not less, than a traditional High Street agent.

However, eMoov seeks to address that, and follows hot on the heels of the deferred scheme from YOPA - Your Own Property Agent - which we reported on last week.

YOPA has three levels of service at £510, £630 and £870; to sign up for any of these, vendors have to enter into a deferred-payment scheme which involves passing over credit details and passing a creditworthiness. Sellers pay at different points during the marketing, depending on whether they want additional services, each of which has to be paid for. 

  • Trevor Mealham

    Great to see Russell upping his fees in his latest offering.

  • Rob  Davies

    They'll become like those awful insurance companies/lawyer firms that are played incessantly on daytime TV. 'Have you had an accident at work? Then you could be due compensation. At "name of lawyers firm" we operate a no-win, no-fee policy. If you don't win, you don't pay!"

    To be fair, he is trying to address the main flaw of online agents, but I'm not sure this is the way to go about it.

  • Jon  Tarrey

    "One of the country’s most prominent online estate agencies"

    Hmm, does prominent mean the one that shouts the loudest?

  • icon

    I've just agreed my second sale with eMoov - saving us nearly £16,000 on the two properties!
    In my experience, eMoov's customer service is very good and they're online EA platform is fantastic.

  • Daniel Roder

    Russell? Is that you?

  • Glenn Ackroyd

    I admire Russell's innovation. He's prepared to shake things up and his business has grown very well. The latest move is designed to counter Purple Bricks who pledge 'No upfront fees' in a similar way - but you have to pay whether it sells or not at month 10. EMoov have gone to month 12. It still does not get around the issue of the house not selling and a fee being due, but it is a big barrier removed. I'm not sure about the 2 tier fee though. It's trying to be all things to all men, which is likely to cause confusion. Running a low cost model, they need to stick to that - In branding terms the "Law of Sacrifice" dictates you need to stick to one thing.

    The other thing is that with more and more 'Me too' online agents, the only way for them to go is price. That only ends in tears. EMoov are well placed with market share to come out on top with online agents, but I suspect many will go to the wall in the next year.

  • Algarve  Investor

    I think you're right, Glenn. He might be the butt of many jokes from fellow property people and his self-appointment as spokesperson for the whole industry gets very tiresome, but he's not afraid to shake up the industry and drive things forward. He's also not afraid to speak his mind, which is no bad thing in certain situations.

    I think eMoov are one of the better online agents and will be around for some time. They seem to realise the inherent flaws in the system in comparison to traditional agents - who are by no means perfect - and have sought to rectify with measures like the above. It seems the done thing to have a pop at Russell, but the property world would be less interesting without him.

  • icon

    What next Russell - opening high street shops

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