Predicting what happens next in estate agency is a tough call. In the last decade traditional agency has had to embrace the web, a industry change so great, that the web has created dedicated online agents (without the traditional office part). Currently and over the last 10 years agents have signed up to portals to market homes and commercial premises for sale and to let for Joe Public to find online. Agents have seen around 50 main software supplier businesses grow and compete for their business and come to the front to take agents listings to the portals. And as portal prices have increased we have seen agents jump ship, fragmenting listings to no one main outlet. Along the way comes EU and UK government bringing changes to legislation and regulation. The industry needs needs to embrace and harness change back into agent control, influence and lead.
Modelling Strategic Change
With national agent sales down 48% from 5 years ago (excluding London) and web technology at its height, things should be far better. Could a industry property think tank that understood technology and estate agency have made a difference? We think so. One one side of the fence sits the technologists who create the software agents use. Technologist seem to have limited understanding of what agents really need. Systems simply are not interoperable between agents. On the other side are the agents and property professionals, forever having to learn new legislation whilst attempting to keep sales and lettings happening whilst new web terminology is thrown at them, often not really understanding how the web fully works, let alone how new technology could work better for them.
Before the web, and now with the web, agents need the best IT that is available to help them gain more local listings, better fees and lower outgoings.
Looking at recent years daft things thrown at agents include HIP regulation to crazy EU insistance on EPC’s. And unlike other countries, UKproperty data still runs under a single source data feed (the rightmove v3) which means that data flow has been restricted between agents, which until recent has stopped a UK MLS platform from nationally happening. Good news for the corporates who were key players in originally setting up the rightmove feed. Recent developments in software and web technology now mean that the industry can once again move on and allow new models to happen.
Business Strategy: General Considerations
INEA (The Independent Network of Estate Agents) is fastly becoming recognised as the UK MLS (multi-list) platform. In various parts of the UK, INEA now has clusters of agents who are breaking the mould and working together locally to market their clients properties via each other, saving online marketing costs, whilst increasing property exposure to their local markets. Imporrtant as 75% of buyers move locally. Via research and development INEA has created a multi-source property data feed structure, which for the first time allows agents using different sofwares to share local property listings. Whats more agents offering clients greater local coverage are able to increase their fees. The upsell pays any sub agent introductions. Outside the Capital growth areas include Liverpool, Devon, Dorset, Bromley, Cardif, Swansea, Carlisle and Dumfries.
Harnessing Creativity and Sources of National Excellence
With change technology comes opportunity and responsibility. The technology creates a platform that the UK has never seen called MLS idx (multi-list service / information data exchange). Like technology unites the 1.2m US agents across 900 MLS’s, simply the rightmove data feed only allowed agents data into portal structures and not to be sent back to fellow agents.
The technology could change the way UK agents market and take on instructions, and in areas of the UK it already is.
Strategic Property Think Tank
As owners of this new technology INEA is now looking to open its doors to create a think tank/knowledge pool. This will include those from estate agency backgrounds who wish to see a better platform and also early adopting agent softwares. Soon 2 will soon be offering the MLS/idx platform with another 6 scheduling the build integration). INEA aims to work closer with more industry leaders to sculpt how this technology is deployed and evolves. In doing so INEA will be offering 1% shares in the INEA holding company at £15,000 per share. The first 3% has already been reserved.
Area Agent Co-ordinators
INEA will also be working closer with area coordinators who will grow agent groups of 30-50 fellow agents. Using the idx technology agents will be able to see what other local properties are for sale to make applicant introductions in return for a sub commission. Talks have begun with first coordinator approaches who will run under a INEA licence. Licences will cost around £6,000-£20,000 depending on zone sizes and locations. In return coordinators will hold monthly meetings for existing and potential new member agents, promote members and take a revenue share based on agent subscriptions.
INEA is already working with 40+ of the main 50 software houses and offers the MLS idx feed schema for free to supporting software houses. MLS idx took off big time around 7-10 years ago in the US. When idx technology was introduced many of the medium and larger software houses were fast to embrace as they saw the benefits to agents having more listings on their websites. More local properties meant greater local content and greater SEO for the agents. Over the following years the non adopting softwares had no choice but to work with the US powers that be to link agents or lose them.
Agents gain more from MLS
New start agents can go from zero to many listings overnight. Existing agents who are not on all portals (as portal costs rise) can collaborate with other agents who gain alternative leads. For years corporates have used the base of many offices to gain instructions over smaller agents. But now in many areas, by uniting – independent agents can say – ‘instruct us, and you get many other agents too’
Conclusions and Implications from the think-tank and co-ordinators
INEA is well connected and sees opening its doors and technology as healthy for the industry. The greater it’s think tank the more fresh ideas float about from those in the industry. We also see the creation of area co-ordinators with a revenue splits as a great way to raise new funds for growth and group membership.
For those interested in strategic think tank partnering or in becoming a area coordinator you should contact: Trevor Mealham on 01233 633633 or email admin@inea.co.uk
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