Online agent YOPA was the subject of a complaint to the Advertising Standards Authority after it featured an online calculator comparing its fees with high street estate agents’ fees.
By way of example, when the calculator was set to £250,000 purchase price and 2% fees, it stated that the saving would be £5,200.
The complainant challenged whether the ad was misleading, because they believed the figures given in the online calculator were incorrect.
A spokesperson for the ASA said: “We contacted the advertiser who explained that the fees in the calculator were exclusive of VAT (because they understood that high street agents charged VAT on top of their fees).
“YOPA on the other hand charged £780 including VAT. They amended the ad to make that clear and, once VAT was taken into account, the figures quoted by the calculator added up.
“As no further action was required, we considered the matter informally resolved.”
The ASA also ruled on a complaint about a property listing on the website of London-based national estate agent Harper Brooks.
The listing stated “Grove House Manchester … 2 Bed – From £650 pcm … Safety and Security … Manned concierge desk …”
The complainant said that no properties were available at £650 per month, and queried whether there was a manned concierge desk.
Camborne Properties trading as Harper Brooks acknowledged the complaint but did not respond further to the ASA’s enquiries.
The ASA said it was concerned by the lack of response and reminded the firm of its responsibility to provide a substantive response.
It ruled that it could see no evidence to support either claim, and said the advert must not appear again.
Comments (11)
Excuse me but am I missing something here, they state that the fees were exclusive of vat ?
“By way of example, when the calculator was set to £250,000 purchase price and 2% fees, it stated that the saving would be £5,200”
a 2% fee on £250,000 exclusive of vat is £5000, so there is no way you can save £5,200, therefore taking vat off the YOPA leaves a fee of £650 making the saving a net £4350 or the gross YOPA fee makes the saving £4220, niether of which is £5200
Also not all charge VAT, some don’t have the turn over to charge VAT, then of course who does actually charge 2% anymore… foxtons is probably about it!
Our average fees are less than £2,000…..so no-one can say they can save thousands (as in the plural) compared to us (it would have to be ‘you can save hundreds’….and I believe I will get a much better sale price anyway….giving owners a better walkaway result). I bet that also applies to many other high street agents these days!!!
I think we should also all have a calculator on our websites showing what you save against a ‘charge upfront agent’ if by any chance you change your mind at any point, circumstances change, or you don’t sell for what you want and withdraw.
We have an API (web site plugin) that would allow your website to display a loss calculator and help capture enquiries.
Based on your location, your market, your fees part of what we do is to dispel the ludicrous claims made by spivs and charlatans which are invariably based on 2011 Foxtons fees and London selling prices so a million miles away from the norm in most places.
Just doing a case at the moment where the vendor is saving (£200)* over a 2% plus vat fee.
* saving (xxx) is a loss
Whats even funnier is that YOPA quote on the same page reference to agents charging upto 3.5% as per a WHICH reference.
Now how many agents have listings on a 3.5% fees. (M Mouse Estates maybe).
Comparisons shouldnt happen on extremes. But based on average LOCAL sole agency comms if thats whats being offered based on other LOCAL agents in the sellers postcode/neighbouring postcodes.
Actually, Mr Mealham – I did one @ 4% about a year ago.
I love a challenge – and proved to the Vendor that I was pushing for the best price for him as every grand made or lost me forty quid.
“As no further action was required, we considered the matter informally resolved.”
Do you reckon they copy and paste that quote into emails?
*INFORMALLY RESOLVED KLAXON*
The YOPA savings figure might appear correct until you factor in that virtually no estate agency charges 2% nowadays. They continue to peddle the – out of date – Which figure from 2011. They need to stop.
The online model shows the distain for their customers.
Local High st agents would never risk lying as we are in it for the long term.
Trading standards need to wake up and start fining these lying , trading on our standards, dodgy online only agents.
Actually in some parts of south wales where property sell for under £40,000 agents often have a minimum charge of £1800 to £2000 plus VAT. Oddly enough online agents were initially getting a few of these on their books, until they realised just how hard they are to sell !!!!
Therefore £1800 plus VAT on a property that sold for £28,000 is more than 2%