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Written by rosalind renshaw

With strong words about the existing duopoly, the Xperience franchised network that is part of Legal & General has signed up to Agents' Mutual, it was announced this morning.

It means that the owned-by-agents-for-agents portal, due to launch next year, now has 75 more offices that have pledged their support.

The Xperience Group brands are Whitegates, Parkers, CJ Hole and Ellis & Co.

Michael Stoop said the decision had been taken because of the "unjustified escalation" of fees charged by Rightmove and Zoopla and "the increasing presence of what are essentially non-agent businesses listing properties alongside those of full-service agents".

He said there was an "imbalance of power" between agents and the two big portals and that Agents' Mutual was a necessary response to this.

He added: "We believe Agents' Mutual can deliver a first class portal which offers a permanently low-cost and safe alternative for all agents."

Agents' Mutual reaffirmed in this morning's statement that it will not carry third-party advertising or promote services which would compete with those of its members. The organisation has yet to reveal the actual name of its portal, but said it is still inviting agents who have not yet done so to register their interest and receive more information.

www.agentsmutual.co.uk

Comments

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    @Move on ...You've got me there!

    • 05 December 2013 10:30 AM
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    @paulasomerville - why would anyone join a franchise that cant even spell experience ?!

    • 05 December 2013 10:25 AM
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    @ pete1 - you shouldn't post unless you have your facts right. Where you get 10% from I don't know and being a franchisee doesn't mean Xperience make business decisions for you. We aren't in a communist state here.

    • 05 December 2013 10:17 AM
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    Actually, Roosevelt is also credited as saying 'Beer is proof that God loves us and wants us to be happy' which I think is a far more interesting quote ;)

    I've just had an email today from Jupix, who are about to launch their own portal, but aimed specifically at the East. as far as I can see from the information they've published, there is no restrictions on using other portals, unlike Agents Mutual, and looks as though it will be a competitive cost. Might be worth a look.

    • 05 December 2013 10:08 AM
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    Look, there aren't many online agents that offer that low a price first off. Secondly the few that do are giving the customer choice to do more themselves. Is giving choice a bad thing? I know you feel everyone should be forced to pay your high fees but that is not really fair is it?

    The next argument will no doubt be that they need hand holding through the process and the service you provide is necessary. I agree in some cases it may be necessary and useful for someone to have this help BUT only if they feel they can't do it themselves. Online agents offer this. But they at least give the client the choice.

    Really the only person needing hand holding is the buyer and solicitors and surveyors do that. Make that legally required is a better argument to take.

    To be honest there's no good argument to stop low cost agents other than to guarantee your higher fees. It's anti competitive my dear.

    • 04 December 2013 18:39 PM
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    AM will fail unless they relax their restriction in the same way Primelocation relaxed theirs - they will see what happens then relaxation will be a fall back position.

    Their SEO wont touch RM & Z who make in a month in profit the entire budget of AM.

    Most agents will be milking the 'we advertise on both RM & Z'

    Agents such a Savills & Strutts are effectively clubs and dont care as the wealthy will always head their way.

    Agents joining AM will be handing an advantage to their competitors in the short term and in AM fails, will be playing catch up.

    Countrywide, LSL & Connells will love this.

    Finally - in all this, everyone seems to assume RM & Z will do nothing. Believe me, if they sense a threat - watch their response. They have more to lose than anyone and will fight - with huge backing.

    • 04 December 2013 18:37 PM
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    As Roosevelt said:

    "only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance."

    Zoopla might seem like good value now. But that is likely to rapidly change. And Rightmove are unlikely to slow down with their price hikes.

    We are signing up as a gold member!

    • 04 December 2013 17:19 PM
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    "Permanently low cost??

    I'm a multi branch sales and letting agent and for me Agents Mutuals proposed fees are not significantly enough below what ZPG/RM charge to provide a compelling enough proposition to commit - you only have to look at RM's 75% profit margin even with it's massive TV campaigns and overpaid "sales team" to see how little it actually costs to run a portal - If Agents Mutual were to be charging say £50 PB PCM then that would be compelling and I'm sure they would have 90% + of UK agents on board in a matter of weeks and the revenue would be huge.
    They wouldnt need a big sales team and are not aiming to make a big profit so why not ? - Before any bright spark says "but if you dont advertise on TV how will buyers and sellers know about it "
    1) if you've got all the properties and RM and co haven't then they will quickly find you
    2) The same way as they know about you even though you dont advertise on TV .

    • 04 December 2013 16:19 PM
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    Anyone asking people to pay a fee between £50 - £195 to advertise their property on Rightmove is not (in my opinion) an estate agent. The fact that the major portals are allowing this to happen is a disgrace and it is right that agents stand up to protect the industry.

    • 04 December 2013 13:22 PM
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    "the increasing presence of what are essentially non-agent businesses listing properties alongside those of full-service agents".

    We all know the truth here. Online estate agents are the threat. This is an attempt to control competition. Highlighting this so oviously is surely unwise?

    Notes: Online estate agents are estate agents, they are regulated and offer the exact same service as High street agents. The only thing that differentiates them is the cost and the flexibility of service.

    Will any High street agent that tries to compete on price also be banned? Are we trying to go back to the bad old days?

    • 04 December 2013 12:40 PM
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    I'm sure the franchisees will be delighted to pay xperience to make decisions about their business for them, you need to me 10% of your turnover and by the way you can't advertise where all you competition will be advertising #goodluck

    • 04 December 2013 09:55 AM
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    It is becoming a case of who's not in as opposed to who's in.
    I dread to think how much the Bronze members will be paying!

    • 04 December 2013 09:37 AM
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