After five years of development, national group the Independent Network of Estate Agents has announced that it has 660 agent members – and a new multi-listing proposition which could challenge the supremacy of the property portals.
Released last week in nine test areas, founder Trevor Mealham said that it allows agents to multi-list across software platforms.
He claimed: “No one has ever done this in the UK and now we have clusters of agents multi-listing their properties to one another.
“The system is now going viral and INEA member agents can also direct a taster multi-list to non-member agents.
“We see MLS as the way forward in the UK.”
He said that multi-listing could boost an agent’s presence on Google, as it ranks on quality local content: “So if one of our agents has, say, 50 listings and accepts another 30 listings from five other agents, then they would have 30+30+30+30+30 sub-listings and their own 50, thus 200 listings to offer.
“MLS also allows agents to offer clients a premium service at say 0.5% to 1% more. The client in return gets many agents working for them.
“Equally, we have enabled lettings to work in a similar way. If a let has sat empty for weeks and the landlord is losing rent, but is under pressure with mortgage payments, then the INEA main agent can, for just 20% of the first month’s rent, multi-list the property to fellow agents lettings’ lists to reach many more potential tenants.
“The main agent pays the multi-list agent via the up-sell, so the main agent doesn't lose a penny, and if the property is not taken, then the client pays nothing.
“So, greater fees for wider coverage and more listings to sell and let.”
Until now, membership of the INEA has been free. But Mealham said that after five years and a cost of £300,000 in development, it would now cost £25 per month for the next agents to join.
He said that sales agents must belong to a redress scheme, and that lettings agents must be members of one of the trade or professional bodies.
Although multi-listing is the way that estate agency works elsewhere, notably America, it has not become prevalent here, other than in London where it is customary for agents to multi-list if a property has remained unsold after a certain time. Team association members also multi-list, with the proposition depending on clusters of local agents prepared to work together.
Mealham said that his new system creates a modern referral platform for agents and that unlike the American multi-listing system, UK agents get to choose who they work with and what they multi-list.
Mealham also predicted that multi-listing could become a ‘gorilla’ to challenge the property portals.
He said: “It gives agents listings in a very different way and encourages collaboration and trust. What agent wouldn’t rather pay another agent a commission, rather than a portal a subscription?
“MLS is now possible in the UK and we have the ‘holy grail’ that changes UK estate agency.”
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Comments
Hi Fun boy:
Undesirable agents will be ousted out as and when things are brought to our attention. To say that they are a member of a redress scheme sets a benchmark, which we and public and other agents have to accept. But bad practice won't be accepted.
Even occasionally the press highlight a RICS surveyor struck off, you have to have guidelines and MLS could be very positive in that good agents can push the bad ones out if reason is put to us. Exclusion is a great thing as MLS can give local agents more listings and wider access to buyers, but only if other agents play ball. local agents who exclude the bad guys will override those we don't want.
On the listings not showing - In order to bring agents data in we need software suppliers to send it as they do for portals. Some software houses want 'nasty agreements' signing that state data must not be passed to third parties (ie agents) as such we can't sign those agreements as MLS is about agents data being sent from A-B.
We now have 34 software houses supporting agents. I would suggest if a software house won't send agents data it is simply to continue to charge agents more money and is preventing agents from collaborating.
There are other ways in which we will be able to bring agents data in - in time. the great part is that MLS's also create feeds that contain subs accepted, as the data hub we hold this feed for our agents. So, if software houses don't play ball now, we may later impose like conditions on them later. So the software houses that are behind us and our agents, now and later will get out full support.
The game of selling houses shouldn't be about ripping agents off, but instead, helping agents to help themselves, and allowing agents input to sculpt where MLS can go to.
This is almost becoming an intelligent conversation so I don't want to stem the flow of literary creativity.
If a pendent stands alone does that make it an "indy" pendent?
Pedant, by comparison is one who insists on minutiae being correct, who is excessively concerned with formalism and precision.
Unlike a gorilla, which is a large ape which makes nests on the forest floor, beats its chest and admires Sigourney Weaver.
Pendent
From Wikipedia, the free encyclopedia
Not to be confused with pendant.
Relating to the concave triangular segments composing the structure of a dome, something pendent may be viewed as any member of a support system (i.e.: a section of a dome; or, organically, a parent/guardian in a nuclear family).
A pendent most often requires one or more of the same as itself to completely function. For example, one playing card requires another against it in order to stand vertically.
Pendent?
Is there anyone out there with a dictionary?
Trevor,
Please help me understand more.
I don't want to get specific for obvious reasons but..
I looked up agents in your scheme and in my area. You have 2 of a possible 40 or so. Of the 2 you have I see neither of them list any property on your site, even though I am fully aware they have stock. I don't understand this as a concept.
I am also aware that one of the two agents with you has a very poor reputation in activity such as fly boarding and pulling down competitor boards plus other strange activity.
If I was interested in your idea, the moment I saw that agent was a member my interest disolved.
I cant see the protection.
US MLS:
MLS in the UK must be different from the USA and Canada. Additionally even MLS in the US varies from state to state due to differing property laws. In the US there are 900 multi-list systems. As a US realtor (member of NAR, the National Association of Realtors) US law states that all listings have to be placed by the instructed agent on the MLS. Agents there do work together under set rules.
In the UK:
As we know not all agents here will work together, as such we see the MLS working on two levels.
1/ A local agent will collaborate with 2-3-4-5 other local-ish agents. many may know each others standards of professionalism, so as a INEA MLS agent you choose who you work with, agents you trust and respect.
2/ on a second level we see alike Homelink use to allow that there is value in relocation. As such a member agent in say Dartford may have a client moving to Wales, Devon, Manchester or wherever. If a local agent in the desired area has multi-listed a property, a distant member agent could search the MLS and if a match is found, they could contact the main agent to request being able to offer the listing.
THE CODE:
MLS/multi-list, (old fashioned subbing) has been around since the 1800's and its never gone away. When a corporate sends a listing to their neighbouring offices, or an agent calls in an auctioneer, then there is a main and a sub agent.
Fees: Chris is correct in saying that the client must be informed. What agents have done over the last x years is to concentrate on sole listing and watch budget agents push commissions down. The basis of multi-list is that agents change the way they sell their services: the pitch is closer to 'yes we can place the property in JUST our local office, OR we can offer you wider coverage through our local group of agents including (agents) A-B-C-D and E. For this upgraded service we charge an extra (0.5%-1% what fits) on top of our normal sole agency charge of x%. This means that via more agents, their websites, more offices, papers etc we increase the distribution to more potential buyers. (Or for lettings: we can increase distribution to 3-4 associate agents (A-B-C and D) for our fee plus 20% extra of the first months rent.
So the code is covered from the outset and our INEA T&C state that details must not be altered from those that the main agent had approved (without written consent of the main agent). PMA for the record covers written, verbal, image, illustrative, models etc. Our T&C also states that should the sub agent or their staff screw up, then it is for them to indemnify the main agent for blunder and incorrect description.
IN TALKS WITH US AND OTHER MLS's
The gorilla or 'guerilla' as Pendent refers is that due to our works and innovation we are attracting lots of overseas interest, from the US where MLS now drives the way property is traded. Some of the parties are far bigger than all the UK portals put together, the largest handles 150 of the US mls's and has 3m US live listings on its system. Another good associate has a MLS with 140,000 brokers using it and another has 400,000 agents using it.
Our MLS technology sits on top of existing data feeds. As such what a agents letterhead could do 15-20 years ago to multilist a property between two agents was lost as most agents software only allows multi-list between users. As such we are now working strongly with some of the best UK software houses who support agents by bring their agents data into the INEA exchange, at which point our members select who they wish to work with, which forms their sales pitch to clients as to commission rates/flat fees and to whom - TPOS code addressed.
WHY USE AGENTS THEN:
Mike makes a very valid point about agents beating each other up. The key is that you gain so much - ''Instruct me and you get these other (good) agents too. Together there are obvious benefits from who's office is where, who's on what portals, papers and what offices carry what experience in differing practices and skill sets to lean and learn from. ** Why should Jo Public trust you as an agent when many agents run down their own profession and other agents. If selling wouldn't you rather go with a group who row together who hit a wider applicant base? I would.
THE BIG PORTALS/GOOGLE SEARCH:
At a US meeting i was told that people don't normally go straight to a portal, but 90% of us first go to Google. When people are moving, they first check out areas on Google for school stats, crime, flooding, employment and interests, then properties are pushed up via the clever guys at Google and people look.
Rightmove use to claim 90% of all listings. Back in April this year Property portal Watch claimed Rightmove had a 58% market share. As finda and zoopla close the gap, it makes sense for agents on different portals to pool resources and collaborate. Now i ask is a property better being on 1 portal 5-6 times or on 5-6 portals once, as a client I know which I'd want. Rightmove may have reported a 58% share but that still leaves 42% they don't have.
http://www.propertyportalwatch.com/2011/04/rightmove-co-uk-reports-58-market-share/
As most people move locally, it makes sense to increase local coverage. MLS is the answer and we do have the holy grail in IT technology to make this happen.
MLS can change the way agents work. We are keen to work with those in the industry to make it as robust as we can, and see multi-list being of benefit to consumers and their agents.
In these hard times (outside the unique London market) for an agent to provide more coverage, the obvious answer is through other agents. So whilst the big portals continue their bun fight and push their electronic replacement of yesterdays newspapers, INEA has seen greater value in agents collaborating and pooling resources.
MLS also means that agents can concentrate on taking better listings with a better pitch either direct, rather than being desperate and taking overvalued stock direct, plus only accept sub listings they feel are correct giving them more to offer through solid associate agents they choose to work with.
GET RID OF THE BAD AGENTS:
In fact, if an agent has a bad reputation, who will work with them. What I do know is that good agents wjho collaborate, make it very difficult for the bad agents who no one wants to work with.
MLS can provide a stronger agent platform based on good agents working together and excluding the bad ones.
The 'business model' for estate agency is changing, without doubt. But what will it be? Where are we going? What will it look like?
There are far too many agencies on any given high street. They can't all survive the lower volumes.
Corporates are never the strongest in any town or high street so you would think collective 'loss making' offices would be shut down as corporates see loss balances running into millions when adding their offices together. Even they can't prop up sustained losses in EA to provide vehicles for their survey and mortgage business. Independents can suffer less income more readily as owner operators until turnover becomes less than running costs and the only way of staying in business is raising finance against the family home.
Online business models don't seem to have taken off.
Tesco's seem to have lost interest.
The American models do not seem popular.
It is going to change! but to what?
If you wanted to sell your estate agency business today, what would it be worth?
I am spending ages in the toilet contemplating these issues.
You tell less than half the story when you quote the USA.
Their business model is entirely different. Realtors (Agents) and their Sales People (Negs) are involved much more in the process of property transfer.
Here, in my view size, or perceived size and ability , will increasly matter and the business model will and is changing..
If MLS works very well in the USA then why shouldn't it work here?
When it comes to it, it doesn't matter if you are a big or a small agent everyone wants extra business and extra income.
Maybe this is why the fees in the UK are 0.5%-2.5% and we have a terrible reputation as a cut throat business.
Where as in the USA 5-7.5%, they have a very good reputation and sales go through much quicker keeping the agents, sellers and buyers happy. To me its a no brainer. We need to wake up to the 21st century.
Hello!
Have been away for a couple of weeks but have now read the EAT posts that came in whilst away.
Nothing changes – many same old views (not all) repeated over and over again!
However, one thing does stand out in many posts.....the Rightmove influence.
It would seem that Rightmove, with most agents unqualified support – now of necessity, is well on the way to being a property Tesco if they so wish – I can see nothing to stop them. They will provide everything that the agent needs and what is required by seller or buyer. The subscription costs will such that they will be afforded only by agents with a high turnover and good cash flow. Size will increasingly matter.
Time to stop gazing at navels folks.
Small independents should bury their differences and probably merge their individual offices in some way to multi-offices ( if in a viable geographical area ) but their ‘headline banner’ name will be increasingly RM?
So, Rightmove – County (?) Agents
Just another of my thoughts……;>)
Mike Emery - In almost every country and in every business in the world, companies "beat each other out of business", it is the nature of business.
If an agent lists a property at the right price and does the job properly, there is no need for multi listing. It just means that you have to deal with hundreds of over priced, poorly listed property and field calls from complete time wasters.
If people want to view property for sale, all they need to do is lookn on rightmove. I doubt any member of the public will ever hear of this site, let alone the INEA.
The group are mainly the poorest agents, selling few, clinging together, a clever way for the netwrok to take more of the spend. Doubt many sell 5 properties a month.. However, these are desparate times for this level of agent.
UK estate agnecy - We're one of the only places in the world that beat each other out of a living...
MLS is the way forward - those good at listing, list and those good at sales, sell. It's the perfect match.
Much as I like the image of a rampaging silverback hacking at the market position of the portals, shouldn't the correct spelling be "Guerilla"???
Or is it a case of paying peanuts and getting monkeys?
Bearing in mind the OFT report into opening up the market to new models, the TPOS rules on multi listing agents seem to conflict with this ideal
I'm all for innovation and at Homelink, we developed a superb MLS system that was sadly canned before its launch however, a note of caution to all ML Agents out there.
The new TPOS code for sub agency instructions is a killer that could give you a nasty bite.