Should high street firms charge for valuations when sellers go on to list with online firms?

An agent would like to canvass EYE readers’ thoughts on a very topical issue – valuing property for vendors who go on to list with online agents.

Warren Sanders of Sanders&Sanders, in Alcester, Warwickshire, said: “As a high street agent with lots of local experience and knowledge of my area, especially in regard to property valuations, I am finding that some of the properties I am valuing are being listed with internet-only companies.

“What I fear, as I’m sure do lots of other high street agents, is that my knowledge and experience are being used by sellers and internet-only companies to help them establish a realistic valuation of the property, as somebody who covers up to say a 50-mile radius could not possibly come up with an accurate figure, especially when dealing with country or village property.

“What I am therefore proposing is to ask all potential vendors to sign a very simple legally binding agreement prior to my valuation taking place stating that if they go on to list with an internet-only company they will pay us a fee of say £200.

“I would be interested to hear from EYE readers if they feel that this could work or not.”

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15 Comments

  1. Hillofwad71

    No.

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  2. smile please

    if you can get them to sign it go for It!

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  3. nosharkbait

    Why use agents at all? All info you need you can get online.

    Put a board outside at cost £25, linked to your free website. Get your inventory clerk to take photos and produce floorplan.

    Why: High street agents are struggling so is down valuing to get sales.

    Online agents charge a set fee for a n agreed period of advertising time eg 6 months regardsless of sale

    so really- we are paying to have our property on Rightmove or Zoopla?

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    1. AgencyInsider

      You really just want to provoke an outraged response with that posting don’t you sharkbait? I’m not rising to it.

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    2. AgentV

      And what do you do to earn a living and support your family nosharkbait?

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  4. agency negotiation limited

    This is similar to an agency in New Zealand, http://www.restate.nz that charges for valuation (if the vendor doesn’t go on to instruct).

    If vendors don’t instruct, however, they don’t love you or your agency enough.

    Sometimes you get paid well for doing not much at all and sometimes you get paid poorly for doing a lot of work.

    Measured over a longer period of time, you should come out ahead.

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  5. AgentV

    Warren Sanders..

    I have a few suggestions that I now use to successfully address what you are experiencing and make it unlikely people go on to use an online agent. However I don’t want to say it all here where online listers can see it.

    If you want to have a chat email me at hiphip@agentv.co.uk

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  6. Shelly

    I’m listing a property this morning and was also up against an on line agent,  the on line agent took the photos at the valuation and said he would email her with the valuation and confirmation of the fee. She is still waiting a week later !

     

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  7. J1

    Improve your offering

    spend more time explaining your service

    keep in touch with the client

    if you still lose the instruction at least you did your best

    then employ someone to keep removing the online board – 10 goes should take all of the profit out of the job for them.

     

    ps the last part is a little monday morning joke 🙂

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  8. Oliver Wharmby

    Income derived from valuations shall increase PI premiums. Market appraisals are typically free to the seller and therefore no income is declared at the PI renewal, although market appraisals would still be covered under most policies. If agents start declaring income form valuations regardless of whether it’s just a market appraisal, I have no doubt insurers would charge a higher rate for it.

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    1. jeremy1960

      Surely the way to go about this would be to charge a redeemable fee to the owner? If they instruct then it’s taken off the final invoice and if they don’t it’s not, as long as it’s made clear that the fee is not for a “valualtion” but for marketing advice then should be okay?

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  9. Property Paddy

    Interesting comments.

    For me J1 (apart from the last bit) is closest.

    You are an estate agent – yes however, you are also a sales person and you are selling your company, yourself and your services.

    The buyer is in fact the client- the vendor.

    If the vendor doesn’t buy in to you then they may choose another agent. Yes we all lose potential instructions based on the price opinion.

    So the question is how well did you sell your self ? Did the vendor believe you are best option?

    In some cases you will lose out to the on line faction, no matter how well you performed on the day, the trick is to make sure you perform better than the competition more often.

    On line selling will always be with us in one form or another, how much of your market they gain is down to you.

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  10. AgentV

     

    ‘Lets look at what we do in comparison to giving you a reduced low fee listing service. Taking a fee off you to advertise your house online, whether or not it sells, is not what I enjoy!

    I want to market your house properly. I want to maximise your interest and encourage more people to come and view. I want to talk to the people I already know, who will be interested in it. I want to meet these people on viewings and use all my experience to sell your home for you. Above all else I want to achieve the very best sale price for you from a committed capable buyer, and help it through all the little bumps along the way through to completion of the sale.

    That is my passion, it’s what I enjoy doing the most, and I can’t do any of that, including getting you the best walkaway result, by just giving you a charge up front online listing service!’.

    Just a suggestion along some of the lines I use…..but adapt it for your own circumstances.

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  11. Special Agent 61

    Funny old world isn’t it?

    I started my career in the 70’s with a firm who’s principal adopted the same view – why should we as professionals support everyone else!

    We charged £20 which we refunded if instructed.

    They continued to operate this policy into the early 80’s

     

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  12. silverfox

    Thank you all very much for your comments, very informative and food for thought.

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