A new hybrid set up by ex-Purplebricks territory owners says it wants to "redefine estate agency in the customer's favour."
Knock Knock Homes appears to aim at the mid to higher end of the market with a basic £3,000 fee that increases according to the agency's performance on a sale; it also uses Facebook to try to recruit agents.
The agency core fee is £3,000 payable on completion. For this the agency says on its website: “This essential package includes your dedicated local agent with their expert knowledge, professional marketing, photography and detailed floorplans. Also, we know your time is precious so we host initial virtual pre-viewings with interested parties using state of the art technology. This makes sure that only serious and qualified buyers visit your home.”
The fee then adds a further £2,000 “if we sell your home at our agreed valuation”.
It adds another £1,000 to take the total to £6,000 if the agency sells at above the valuation. This is the agency's ultimate incentive and its website says: “If we sell over the valuation we split the difference with you, but we cap our fee at £1,000.”
The agency claims: “No other agent has a fee structure that truly incentivises getting the best possible price on completion. If your dedicated agent successfully negotiates a sale that exceeds our agreed valuation, we’ll split the difference with you, up to a maximum of £1,000.”
The new website and the agency's social media output appeal to agents in existing firms to join this new operation.
Its Facebook entry specifically says it’s looking “for valuers or branch managers who want to do what they do best, without conforming to the High Street or online mentality of quantity over quality. You will be supported with all the tools and tech you need to build your own successful estate agency with no costly overheads.”
And on its website it says: “We hire customer-focused agents who are excited about shaking up the industry, and we make sure they are supported with all the tools and tech they need to build a successful estate agency business with no costly overheads."
The service is based in London's Covent Garden and run by four named team members - former Purplebricks agents Michael Booth and Nick Yuen, strategic consultant Stephanie Walker and founder Ian Townshend.
You can see its website here.
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Let me see - How many online agents who have ever made a profit - NONE. How many have ceased trading? Lots.
Why do they cease trading? Run out of money. Where does money come from to fund them? Crowd funding, and more crowd funding, and private investors and if you are a big company the alternative investment market, maybe blue chip companies.
Surely there must be one online agent who has made a profit ... tepilo - no - gone, emoov - no - gone, hatched - no -gone, u-pad - no -gone, the list goes on ... emoov 2 - no profit yet, doorsteps - no profit yet, Purplebricks - no profit yet, Yopa - no profit yet, Housesimple - no profit yet and now a free service, easyproperty - original model - failed - new version in place.
The only person who makes money when a hybrid or onliner sets up is - crowdfunder who takes a cut of money raised, property portals who list stock, and google and facebook etc who take lots of many advertising the projects. Last on the list is the customer experience.
If you want a hybrid model that works - employ me £1,200 a day - I can build a successful model, and the fee structure would be - cost to run the business plus 23% gross profit. And it would be a service that vendors and landlords and other clients would love.
Not - let us cut out the expensive bits - offices etc -because in fact online/hybrids cost more to run than offices on the high street. Funded by - previous years profits - not continuous handouts. Proptech-PR.com
Hope they get to see your incisive comments Andrew. If they're funding this themselves, good luck to them.
This is madness! so if the agent works hard, markets the property really well, filters viewers by doing virtual viewings first etc etc and this all results in achieving a higher price for the client - they 'reduce' their fee?!
Yet another new hybrid agency to "shake up the industry". Yawn!
Stop knocking! At the end of the day who would belittle a High Street start up with a USP of there own? let them try and good luck to all.
Stop knocking! At the end of the day who would belittle a High Street start up with a USP of there own? let them try and good luck to all.
Oh the hypocrisy, they work for PB's constantly slating 'proper' agents for charging decent fees and then start charging decent fees!
Ex-PB duo...So many individuals fed up of working for firms going alone.
I did 10 years ago, after 10 years working for another agency. Bloody well wouldn't do it now. Far too many providers, it will be difficult to establish a position in the market with so many online offerings.
Perhaps that is the future of onliners. Individual self-employed branded agents. Hurry with the ROPA legislation please....
Yawn...
Impressed by their approach. I intend to use them to market our portfolio of properties.
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