A high street agent has spoken of his anger and frustration at the lack of progression work done by online agents.
He says that he is essentially doing all the work for them and their vendors, and for free.
He is now suggesting that agents should charge those customers for the many hours of work involved.
Glenn Jackson said that in his experience buyers who have sold their homes through online agents are usually completely in the dark as to how their own sales are progressing, after they have paid upfront simply for their property to be listed.
He said that if his own firm did not do the progression work for buyers selling via online agents, then deals would fall through.
Jackson said he is now considering contractually charging a fee to any buyer who has used an online agent to sell their home, in the knowledge that he will have to chase up their own transactions.
He said: “As an independent agent I am just sick to death with doing the sales progression for all these online agents.
“I have endured many a buyer who has sold through online agents who frequently tell me that if it weren’t for the updates from us they would never know what’s going on.
“I would therefore like fellow independent agents to cast their opinion on joining me in charging these buyers a fee.”
Jackson says he essentially wants to tell such purchasers: “If you want to buy a property through me, then fine.
“But with the additional work I have to do and the recommendations I have to make to my vendor before agreeing any deal being critical, then agree to pay me.
“You will stand a better chance of getting that property if we are fully in the know and have more key information to help make that decision.
“How can I make recommendations without the full information?
“I know I’ll be spending hour after hour chasing lawyers and doing other agents’ work.”
Jackson told EYE: “At the moment, agents who care do it for our clients and include the cost as part of the fee we charge them, but why shouldn’t we shift the charge to the other side?
“Almost 100% of our clients will go with our advice. If we don’t think the buyer is right my advice is always to wait for another.
“Anyone can take photos of a house and stick them on the internet, but the art in our industry is in negotiation and sales progression.
“That is where we differ: we will fight to achieve the higher price and ensure communication levels during the sales process are top of the agenda.
“At this stage clients are spending money not only with us but with their lawyer (if using a proper one) and need to know exactly what’s going on.
“The difference in fees charged by agents like us and online shops might run into hundreds or even thousands, but the cost of good or bad negotiation or sales management will cost vendors far more.
“The public who use these online agents need to know it will jeopardise the chances of not only securing an onward purchase but the likelihood of a successful transaction going through.
“We all know that 25% of all UK sales will fall through for any one reason. I strongly believe that if a sale is set up and managed correctly, the chances of a successful transaction are far greater.”
Jackson, who says his own firm has a sales success rate of 88%, has now taken advice from the NAEA Lawline.
He said: “They tell me we are well within our rights to start charging a fee to certain buyers.
“We must however have written instructions from our clients that we can do so, but as it’s always going to be in their best interests they won’t be objecting.
“We can then get the buyers to sign to pay upfront too.
“After all, sellers pay some of these online agents upfront, so pay us too.”
In a direct message to EYE readers, Jackson said: “I would very much like to know what my fellow agents think, and whether we can be united on this issue.”
Jackson added: “I took a house on the market that had been marketed with a certain online agent for two months to no avail. I put it on and have two asking price offers within 48 hours.
“While that online agent still got their fee, they had left it available on Rightmove all during our sale and even for two weeks following completion.
“Not once did they call our seller or even realise the sale was going though.”
Your comments are invited.
Now I love a bit of budget boy baiting as much as the next man and it’s true that we often have to cover the gormless links in a chain but this fella is missing a bit, don’t charge theese people, love them, look after them, make sure it all happens and then have a think about what their advice will be to friends etc once YOU have got the deal done.
For what seems like the 6 of us here that worked pre Internet the budget lot have filled the private sale ‘economy’ of old and just the same the vendors thought it was a case of a newspaper ad and a board and it would be job done until the rest of the agents involved in the chain had to look after them.
Jonnie
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Couldnt disagree more
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With any agent online or trad if we dont get what we need we tell their client (our buyer) explain nicely where the problem and ask them to get it sorted, it normally works a treat, demonstrate our diligence and sows a seed in their mind.
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I’m with Jonnie on this one.
Let’s also not forget that EVERY High Street has ONE Agent at least whose attitude is “flog it and forget it” – and their ‘Pipeline’ drawer only gets opened to remove the file when the bill gets paid.
Where else do you think Call Centre Agents get the majority of their staff from…? ;o)
We’d have to charge THEIR vendors also.
These folk who appoint CCEAs already show characteristics of being tightwads – regardless of how short-sighted the decisions they have taken are and how much those decisions could actually be costing them – so you’re hardly going to be able to extract money out of them easily.
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I agree with your thoughts PeeBee
But…
If it becomes norm for high street agents to charge an additional fee to a buyer using an online lister would it not make them think twice about going with the onliner to start with?
And surely if we are to take the battle to online listers (as they are coming after us) should we not make it as unattractive as possible for the public to use them? After all that is what onliners are doing to us.
Also at least with a high street agent i can pick the phone up and talk with the owner / managing partner about service / cooperation we are receiving and they always look to put it right. his has not been our experience with online listers.
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Interesting viewpoint, smile please – as always, of course… ;o) .
Okay – here’s my counter.
WHAT IF it has the opposite effect.
WHAT IF the CCEAs – brilliant as they are at wrapping 5h!t in Christmas paper and making it look like a gift someone would want – turn and twist what you say to suit their agenda? They JOINTLY announce that the High Street Agents wish to add to their already extortionate fees by charging BUYERS (you don’t think for one second that they will mention WHICH buyers, do you…) as well as sellers – and that the whole process IS BEING made so much cheaper “cos it’s all going online, innit”?
What you state will make the CCEA proposition look unattractive makes it look CHUFFIN’ STUNNING to a whole lot more people.
Sorry – what was that? Did you say ‘It’s bending the truth’? Did I hear ‘It’s only for SOME sales’?
Since when have CCEAs been 100% upfront WITH ANYTHING?
Matey – I see them taking best aim they can with their current shoddy weaponry as I write this.
Don’t swap their puny peashooters with laser-sighted sniper rifles for them.
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PS – note to EYE – since the site revamp you are unable to use the text tools – means I’ve got to use CAPS again!
Please fix – it’s kinder on the EYEs of the readers! ;o)
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Hi PeeBee. There was an issue with this but it was fixed last Thursday and they are working correctly now.
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Ahhhh… I see. It’s a pity that YOU were apparently the only person to know, Nick…
;o)
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They twist and lie about the truth anyway.
I think its time we fought back.
I for one will be adding the following into our agency agreements after the Easter break and once i have satisfied myself it is indeed legal.
XXXX estate agents reserve the right to charge a purchaser on (property) a non-refundable £395 admin fee payable in advance if they have instructed a national online estate agent. This fee is to cover the additional work we undertake to conclude the property to a successful exchange. – Or words to that!
We will also make the buyer aware at point of offer. And have an agreement. We will take the fee upfront, but return it if the sale falls through through no fault of their own.
Seller will be happy as does not cost them and also shows a financial commitment to the property.
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Love it. Sign me up. We could of course simply recommend to all of our clients not to get involved in a chain where there is an on line agent involved. Currently they don’t represent that big a number and there are plenty “qualifiable” buyers around right now!
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Much better idea
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We’re in.
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Can’t argue with it. Think its the way to go. We are all picking the slack up of “listers” £500 premium for buyers using an online lister sounds right to me.
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I had this with Purple Bricks the other day. Trying to qualify a chain. They took 3 hours to respond and the initial “call handler” took 10 minutes to “locate the property” only to tell me the was no information she could give me as it wasn’t on file, all of the sales progression department (sounds a huge department, not) were busy and I’d need to email or call back later. I elected to email. Three hours later I received email communication confirming the solicitors details, I telephoned them and they knew nothing of the clients. Quality. Pure quality. I was tempted to phone the “local property expert” but she was valuing a house some 50 miles away!!!
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i had a similar situation with PB, if you thought qualifying the chain was bad, wait til you have to progress it… The local experts are a waste of space, never answer the phone, the call centre couldn’t help me as they “only progress if their client needs them to” so I contacted their own client to help progress the sale, which I strongly believe would have fallen through if I hadn’t. That isn’t just my ego talking either!
However… Become invaluable to their client and I’m sure when they next move they’ll appreciate the effort you’ve put in over the lack thereof from the paid to list, not to sell local expert they only spoke to once!
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You should me making the proposed buyer do the leg work if they want their offer recommended.
they will soon get the picture
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Couldn’t agree more. This has been suggested in our company several times, and reading this article has confirmed it for us. Effective today.
Jonnie, I had a similar initial thought, but if the buyer sees value in what they’re paying and understands the reasoning (they will ultimately), the recommendation to friends will still occur. Even their initial grumbles should have the desired effect, highlighting to the same friends the unexpected pitfall of selling online.
As to charges; £300 upfront, £300 on completion, excl? Still can’t say this would put an online buyer on a level playing field for us, but where’s the fair limit IF your best buyer has fallen in to the budget trap? Or maybe £x per link in the chain?
Visible, full service agents totally dominate the market, and for us, this seems to be a very effective way to quickly limit the appeal of selling online. Thank you to Glenn Jackson for voicing your position, let’s make this commonplace.
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well said
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I think at the moment the chains are surviving around the call centre agents because there are so few generally in a chain that the local agents each side do all the chasing and keep it together. The problem will come where there are two or three next to each other in a chain. That may be where the buyers start to realise the model is flawed and it is worth paying a bit more to actually get their ‘sale’ through to completion, which is the only point that really matters.
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Explain to buyers that have sold through PB (or that have PB below them) that their sale is too uncertain to consider them serious buyers – thankfully the market is so strong where we sell that we can choose the buyer.
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doesnt matter if the agent is online, high street or working from their bedroom. what matters is their ability and dedication. i have dealt with online agents in chains and had great support, i have also dealt with ‘respected’ high street agents and had appalling contact levels…. and vice versa the difference is the agent.
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You are so right .. a good agent is a good agent, whether “High Street”, “online” or whatever. Most of our business comes from people who have used us before or been recommended by previous clients (buyers and vendors). We are always getting comments about our sales progression and rarely get less than 10/10 in our feedback for communication. Surely the whole point is that we are here to look after our customers and having useless solicitors, financial consultants and estate agents in the chain is just part of the challenge – how you deal with that marks your company out as special! High Street agents already get a more than fair commission rate and the odd difficult case is more than compensated for by the easy sales where hardly any effort is needed.
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None of my vendors will EVER sell to a buyer that is either represented by an online agent or has a private buyer in the chain.
Sellers who are either selling privately or via online agents are at the bottom of the food chain when it comes to securing an onwards purchase so they risk missing the house of their dreams for making a small saving on an agents fees.
Selling houses is more than sticking them on rightmove and hoping for the best. That is why we have a fully qualified conveyance solicitor heading up are sales progression department!
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My sentiment exactly. Well put Ben
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Its good to see that we’re all in the same position and taking similar stances. We need to educate these buyers and the use of certain agencies will only jeopardise their chance of securing an onward purchase through us. We all have to adhere to guidelines but how many of you can really promote a buyer who’s sold through these companies, if you say you can then become a politician as they do nothing but talk ******** too. I’ll be doing more research into the legalities of such and how we can move this forward to not only help us progress deals but more importantly to give our proper fee paying clients the security and accurate information they deserve.
Adam you were brave enough to suggest a fee which is exactly where myself and two other independent agents would see as both reasonable to the client and more importantly worth our while.
I’ve sat here for too long without voicing opinions and feel we need to get as many PROPER agents on board and do our industry some justice. We have some very good agents out there but far more bad ones. A PROPER agent is worth their fee twice over. Do the RIGHT job and no-one will ever say they’ve paid you too much.
It’s now 09.10 and sorry as I’m off to ensure deals exchange before the stamp duty changes and no doubt do battle with some certain call centres! Anyone recommend a new telephone handset where options 1,2 or 3 don’t wear out?
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Genuine testimonial from one of our clients- We are delighted with the service we received from **your agency*. We had initially put our property on the market with an online agent, as their fees were considerably cheaper. However we switched to **your agency* to ensure the successful completion of our sale, and we are very relieved that we did. Once initial offers had been made, **your agency* provided an invaluable link between us and our buyer and our seller, and their advice and experience were invaluable in securing our sale and purchase.
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We have all been there, but suggesting to a client not accept an offer from someone who’s sold via an onliner is ridiculous, especially when the only reason is that you may have to do a bit more work. Are you forgetting that your buyer will sell up again in a few years?
Progressing a sale is an opportunity to demonstrate why traditional estate agency is better and why a cheap upfront fee model is a mistake, something we should all be doing. Stop whinging and put your back into it.
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I understand what you say wardy and in an ideal world you are right.
Unfortuantley we do not live in an ideal world.
Also its not the seller that is penalised but the buyer.
Why should you work twice as hard while the onliners are saying they are saving money for sellers? – This is the type of action traditional agents need to take before our industry slips away and for us just to become listers.
If a seller thinks emove / PB / EASYPROP are a good deal at circa £1000 and dont care about service as the agent they buy through will sort it all out they might have second thoughts if the industry as a norm makes them pay a premium as a buyer due to increased workload. Given that most other countries in the world charge both parties anyway i dont see an issue.
I for one, will seriously be looking at this idea and would appreciate any other agents keeping us updated if they do introduce this.
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I couldn’t bring myself to do it smile.
Charging a buyer because of who they have sold through opens a can of worms. Will agencies start favoring buyers that have sold via an onliner SO they can can charge a fee?
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Its a good point.
BUT i can only speak for myself, i would not favor the extra workload for an extra £500, its more of a deterrent to use the onliner in the first place.
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I’m with Wardy and how on earth do you think you are going to get them to sign up and pay! Like a lot of other have posted trying to do a chain check with on-liner is an absolute nightmare, and interesting they often breach the ombudsman code of practice when they take an offer, I have yet to receive a chain check from them! If you want your sale to go through you will have to continue just as before and do the other agents work (on-liner or not).
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The comments above will raise a nod of the head from the vast majority of agents but “one of” the bigger issues that I can see is how do you get that message across to the millions of potential homebuyers and sellers?
They may not use Purple Bricks next time they sell (or other online agents) but when new clients are directed to look at, Trust Pilot for instance, Purple Bricks are scoring 9.4 out of 10 from 4495 reviews. If clients are complaining about the PB service then they need to get on websites like this and tell people about their experience otherwise the on-liners given the opportunity will just refer any potential clients back to sites like this – and I would almost guarantee they will easily be swung back to use them based upon a “website for clients over a competing agent”.
If the average house owner is now moving every 10 years + then their experiences of online/hybrid agency will be forgotten about next time they move, the quicker more efficient way to dismantle the threat has to be used the online mechanism against them and get people to post poor reviews?
https://uk.trustpilot.com/review/purplebricks.com
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One way would be at the appraisal stage, explaining that we advise on buyers that are proceedable and that anyone who uses a ‘pay up-front’ service is seen as less proceedable. This would likely cut down the numbers of lost ‘price sensitive’ appraisals and highlight the danger of lack of proper progression.
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We can all make a website and add as many fake reviews as we want, but it is still lying to everyone.
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