An agent is offering a business based on what it sees as the ultimate in customer service.
The model is based on assigning each client and property to just one dedicated client manager, who handles the deal all the way through, from marketing appraisal to instruction, marketing, negotiation and sale.
In return, individual staff get much higher commission – 40% of what the business earns from the deal – with no colleagues sharing the commission pot.
Jamie Gray launched Nexa, in Portsmouth, three months ago with his start-to-finish business model largely aimed at fighting back against online agents.
He says online rivals are not motivated to sell, but only to list.
Gray, who ran an estate agency in Dubai for two years, said that start-to-finish was common there, and also in other high-end international markets.
He said: “When I came back to the UK, I couldn’t believe that the same thing didn’t exist here.”
Gray, whose other businesses specialise in development and property investment, said: “Property investors in particular are used to dealing with the same adviser – so why isn’t this the norm in estate agency?
“Instead, agents are defined, labelled and categorised to single specific roles.
“There are no start-to-finish agents and for a customer, this is incredibly frustrating. Customers want to be able to build a relationship with an individual and create trust and confidence.
“There seems to be a completely backward practice in this country whereby an agent that wins an instruction doesn’t seem to have full accountability and responsibility for the sale of that instruction.”
In a blog on his site, he tells clients: “In high performing markets, individual agents are driven by their sales and generally paid approximately 50% of the commission for each deal.
“This means that an agent will fight tooth and nail to get you as a client, keep you as a client and sell your property.
“This structure completely removes the ceiling of what an individual agent can earn and motivates them to love and be great at their work.
“As a seller, surely, you’d like to know that the person selling your property is financially incentivised to do so, rather than someone who will get their same salary regardless if they sell it or not.”
Gray added that the big ticket earning a client manager can get out of one sale incentives them to achieve the best possible price to the most stable buyer.
He said: “Currently in the market agents get a 2-5% share of the x% commission.
“This really is where the market has faltered.
”Whether a sales negotiator sells it or not it makes very little difference to their earnings and even if they do just want to work out of self motivation and integrity, but have no real ownership of the sale because the responsibility is shared amongst the whole office and therefore it’s very difficult to be personally motivated.”
Gray said that the firm currently employs himself and two others, and lists some 12 sales properties and about 30 rental homes.
He said he is confident that the “first to last” business model will hold up as the firm expands – and that it has already picked up instructions specifically because of its approach.
What happens when the “negotiator” is on holiday or sick. Pretty sure vendors will be a little unhappy when nothing is happening for weeks on end….you truly become the call centre style agent then. Nothing works better than a good team, where they all are part of a well working office, everyone has their role and they do it well. Like it or not, no estate agent is amazing at all the key parts of our role, that is why working in a good team brings brilliant rewards from it.
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I’m not sure where’s he’s getting his facts from but there are plenty of firms that already operate like this, including numerous brands in London.
Personally, I’ve never really understood the model as essentially you only employ listers who are far more expensive than negotiators/sales progressors. This does nothing to increase the agent’s market share but massively increases its overheads.
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Pass me that wheel over there, let’s knock the sides off and turn it into a triangle. Why has no one ever done this before?!
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I agree with him to a certain extent. The Valuer is who impresses you at the start. Then they disappear never to be seen again leaving you with staff who come and go, who have never seen the property and do t have a feel for it.
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We have operated a model similar to this for three years now…..is does deliver exceptional personal service for the vendor.
We also have three years of experience to share with anyone who wants to know more;
in@agentv.co.uk
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No other firms do this? Give it a rest mate.
Please can you like this post, purely for the likes. Cheers JPS
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When I moved from East to North Devon in 1989, I joined a firm ,commission only, doing exactly this not for 40 but 25%. Within 12 months the arrangement had to be reviewed.
“Sorry Robert 25% is too much, I’m paying all the fixed costs and you’re getting all the profit”
“That’s what you agreed to. I’m winning the instructions and doing the selling, shall I stop?”
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He must have been crazy if you were helping find and generate new business!
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Its just not sustainable.
Portsmouth is not the most affluent of areas. I am guessing the town as a whole is averaging 1% and the onliners do have a good foothold from what i am told.
Average fee say £2,500 = £1000 for a neg if it sells. leaving £1,500 for the agent.
Mass market penetration needed. With just 7 properties for sale and 50% off standard fee. It already has disaster written all over it.
– Robert, happy to take you on as a remote agent on your old split if you are interested 😉
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I was hoping to take you on, keep your name above the door and your local reputation intact. I’d pay pay you 100% of any business you brought in plus about £30 per exchange of contracts or change of tenancy.
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every firm I have worked for has worked this way, I know all my vendors and talk to them weekly I also do majority of the viewings and talk to them about market conditions. I have worked for 3 firms doing exactly this and I defiantly do not know any firms where you get 2-5% more like 10%+ depending on how nice your boss it No ones is re-writing the script when they come up with these things they just know what “the big corps” do and that’s, Vauler to neg who doesn’t even have all the info about their house to sale progressor who’s usually pretty direct and they have no relationship with. I know plenty of independent agents offering this exact service and paying their negs a basic salary
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Interesting headline on this story – I see this as a move to improve service generally so why is it positioned as a fight against online players?
Is the article assuming that if online players did not exist, then such high street agents would not seek to improve their service? If so, it’s not a great position to be in, but I welcome the motivation of any business to review their operations and make customer service driven improvements.
Ewemove has been operating this model since 2013 and now we’re the No1 Agent in the UK on Trustpilot. So we know a full start to finish service by the same person makes a huge difference, not only to the experience of the buyer AND seller, but it also means we’re able to sell houses for more than anyone else – high street or online as we’re far better positioned to negotiate effectively. And it’s not just me saying that, it’s the stats we see on GetAgent which compares sales prices to asking prices for all agents.
And our franchisees earn 100% of the commission they charge. Some franchisees work with Associates, who do just the same thing and earn 40-50% of the commission. So this story isn’t really that new…..
And if someone is on holiday? An individual will take over for the short period of absence, so nobody is left waiting for them to return.
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