Well-known estate agency industry figure Richard Rawlings has today announced that he is looking to recruit 400 franchisees and consultants for a new venture he is launching in response to opportunities created by the current market – Homebuyers’ Agency.
The new company is a joint venture between Rawlings, of Estate Agency Insight, and John Mulholland, of Homebuyer Solutions, who is a mortgage specialist.
Rawlings describes Homebuyers’ Agency as a buyer representation service with a twist. Not a traditional executive relocation idea, the service is aimed at anyone looking to buy a property, and provides an advice, negotiation, mortgage, sales progression and moving support service. It is not a search service, says Rawlings, although agents may choose to offer this.
Fees are charged as a proportion of the amount saved off the asking price, with a minimum 1.5% fee and, uniquely, all commissions that would otherwise have been earned from the sale of financial services, insurance, utilities etc are fully rebated to the client for life.
“I have always argued that it is incredible that buyers are effectively unrepresented in a sale, yet it is they who carry the most risk,” said Rawlings. “Yet estate agents have all the skills in place to help them – local knowledge, experience of the process and relevant legislation, critical negotiating skills and the ability simply to help people make the right buying decision.
“Far from working in competition with existing estate agents, homebuyers’ agents work closely with them, paying commission for referrals, supplying instructions, and helping to progress sales. But never, ever, with any conflict of interest. And who better to work with, than a known co-professional who is also keen to facilitate a transaction?”
Rawlings is offering franchises in up to 400 areas, and is also looking to recruit self-employed 50% commission-only consultants. On offer, claims Rawlings, are “pre-populated” franchise areas projected to deliver a 100% return on investment in year one.
Rawlings says he is looking only for seasoned estate agents who are passionate about service, who have a thorough knowledge of their area, and who can support themselves for up to three months as they build their business.
info@homebuyersagency.co.uk
Homebuyers' agency launches today
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Comments
No no no no no. Someone needs a reality check.
So let me get this right. I have an agency with some properties that I can't sell and the buyer agent comes along with a prospect, makes an offer on one of my instructed properties which my vendor agrees to accept. I get to keep my full commission. The buyers agent is Paid by the buyer.
Excellent
Not sure what to make of this idea, it's either too brilliant or too stupid, just can't work it out.
Thanks Rebel, I see how it works now. Faff around for several months spending all day searching online whilst the buyer takes little interest. Finally spot a property and get a whopping 9% knocked off the asking price. Agree the £200 fee. Wait several more months until the vendor puts decides they can;t really afford the stamp duty on their purchase and pulls out. Acknowledge that the fee relies upon completion and go and get a job before your house is repossessed. Sign me up.
APPROX: Mean property price £155,000 x existing average discount 9% x min. 1.5% = £209.25. Franchise fee 10-15% of turnover? Sign up fee? Set up costs? Hmmmm
That got a good respose then Richard. Good luck with those franchises.
This idea is all smoke and mirrors. They will take the francisees money and close the business in 12 months. Caveat emptor !
Gosh! I wish I had thought of this unique idea?
this is nothing like the MLS
Anything sounds like a winner when you're desparate.
"you know the telly program with that phil spencer, well you know when he does that bit in the country pub where he has a pint of ale in one hand and his mobile phone in the other? well i'll do that bit for you, then you can meet my mate steve who does mortgages. THEN.... i'll give you a bill for a few thousand pounds... sound good?"
this sounds like a winner to me!
Franchises are aimed at like minded estate agents that are failing in what is now a good market for seasoned estate agents who know there area!!!
In a climate where buyers are struggling to raise deposits for mortgage, im sure they will find extra funds to pay a bloke on one side of the street for a job being done on the other side of the road for free, payed for by the seller!
Wonder how much the franchise might cost though? Not sure what the cost of sitting on the beach in Marbella for year is these days, but imsure that'll be a good guide.
This appears to be a similar system to MLS, which is successfully operating in most other parts of the world, so 'Jim' don't discount just because it's alien to you or you simply don't understand? The need for buyer representation should be clear for anyone who has bought a property in the UK via an estate agent. Although the 'Franchise Oppportunity' is quite does make us smile....
I seen some riduclous business ideas on these pages before, most of them franchise "opportunities". I don't think I even understand this one though. Does a buyer pay the agent, on top of the £12,000 stamp duty bill, a fee for negotiating the purchase price and arranging a removal van? Haven't failed estate agents been doing this for years? All fiancial services commissions rebated to the buyer. So does someone do all the work for nothing then? I am really looking forward to the posts on this little brainwave. Only because I'm obviously missing something. I hope.