Midlands agent David Brevitt is calling for other agents to put pressure on industry bodies including Propertymark NAEA to insist that online firms display a ‘wealth’ warning to consumers.
Brevitt said that high street firms have to display warnings to sellers that they may end up having to pay two sets of commission if they switch to another agent.
He said that sellers thinking of using firms that charge up-front regardless of whether they sell the property or not should be warned that they could lose their fee.
Brevitt, of My Personal Estate Agent in Birmingham, said: “It is about time the associations demand greater consumer transparency for those vendors who do not understand that they pay the same fee whether they complete or not.”
Brevitt said that bodies such as the NAEA, the Property Ombudsman scheme, industry regulator NTSEAT and the Advertising Standards Authority, plus Rightmove and Zoopla, should all be put under pressure to insist that online firms display wealth warnings in all their advertising, including TV.
He said: “Traditional estate agents now ought to rally themselves via their paid for networks and insist that Rightmove and Zoopla change their rules for ‘pay day’ agents who should now equally promote a fee, viewing cost and wealth warning on all their marketing.
“I also question if the Advertising Standards Authority, Property Ombudsman and National Trading Standards need to intervene, as protecting consumers is their main mandate.”
Brevitt wants agents to support an ‘independence day’ on July 4, when he suggests a mass emailing campaign to Rightmove and Zoopla, plus the industry bodies.
He said: “July 4 could be the day the independent sector finally defends its position with the help of their paid-for associations.
“The question now is which associations other than The Experts in Property will wish to support the vast majority of their members and initiate this consumer safeguard?”
My understanding is that it is only NTSEAT who can instigate the requirement for this excellent suggestion. However it could then become part of ombudsmans rules.
At the end of the day, it is about consumers not being mislead or deceived into using a service they would otherwise not have chosen, had they been given the information to make an informed choice!!!
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Meanwhile we can wait for the cows to come home before the NAEA make statement! Please prove me wrong.
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Well done. I couldnt honestly ask anybody to pay anyway.. if your not no sale no fee you shouldnt be allowed to call your self an Estate Agents ..your more of a …. Pay Anyway Lender.
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I agree Bless You.
Perhaps that is the difference between a pay day agent and proper estate agent?
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Am I the only person who is feeling a deep sense of irony here – that the Agent making his chops wobble about NSPR* Agents taking an increasing cut of the market with their Fee structure is the one claiming
“I…aim to charge you up to 50% less than the larger multi-branch based estate agents on a fixed fee structure.”
So – he wants a race to the bottom – only he wants the race to be one he can win.
Beggars belief.
*NSPR – No Sale Pay Regardless. One for AgentV’s catalogue of acronyms… ;o)
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Thank you for your comment PeeBee I am genuinely pleased to see you back posting.
I do not charge an upfront sales fee and only charge on completion of the deal.
An average independent agency fee in my area is around 1% and Rightmove’s average property price index for the central and northern 6 regions in February was a rounded £175,000.
Hence my fixed fee from £1750 as my area reflects this average.
An average fee based on an average price is not a race to the bottom but a fair reflection of the marketplace?
Perhaps the pre-paid on line agents ought to consider basing their promoted fee savings on regional indices?
Based on the above, my fee is much more suited to take on the traditional corporate agency service with much higher fees as my fee is similar to my independent colleagues, with whom I have a good working relationship.
Some of my reviews reflect this.
PeeBee you are a very smart person.
I am sure the independent sector needs more people like you.
Am I wrong in asking for more transparency?
I may not be the right person to propose this initiative but someone had too?
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David B
Thank you for your most polite response. Maybe I don’t deserve it…
I am posting as and when I feel compelled – whether you take it as a compliment or an insult that I chose to post on this article I will leave up to you.
A couple of points if I may.
1. You say
“An average independent agency fee in my area is around 1% and Rightmove’s average property price index for the central and northern 6 regions in February was a rounded £175,000… Hence my fixed fee from £1750 as my area reflects this average.”
HOWEVER your blurb sends out an entirely different message
“…aim to charge you up to 50% less than the larger multi-branch based estate agents…”
You know for a fact that most people don’t know which Agents you are referring to – they only see the “…50% less…” bit. You want to stand out from ‘the average’ – and that’s how you have chosen to differentiate yourself.
In my opinion – not a good way to do it. You may not agree – but it IS a race to the bottom and you’re three lengths ahead of the pack.
2. Your fee – whether upfront or not – is fixed – therefore you have no justification to offer your vendors as to how you will fight for the last £1000 – or even £100 – for them. Agents on a %age Fee have you Top Trumped there I’m afraid. If they haven’t – then they all need to give their heads a shake.
And whilst you may feel inclined to go into battle with me on that one – I will simply remind you that the entire thrust of your argument is paying an Agent the same fee regardless of outcome in respect of success/failure – your fee is also fixed regardless of financial outcome.
There is much wrong with the claims made by those within our industry – and much to do to right this situation. Your effort is commendable but, as I believe I have pointed out, somewhat flawed in its’ delivery.
That doesn’t mean it cannot work. Edison tried many hundreds of times before he managed to get the light to stay on for more than a few seconds.
You just need to adjust the filament.
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Thank you for your courteous response Peebee.
I understand what you are saying but by advertising a 1% minimum average fee surely this competes with my independent colleagues who appear to understand where I am coming from?
I am more expensive for the cheaper properties, and yes an average council property, of which there are many in my area range from 120K to 150k.
Certainly better than a corporate average minimum fee of up to 50% higher as endorsed by some of my reviews.
I have however changed my marketing to state this.
As a proper estate agent I will always get the best price I can although a financial reward at the end helps!
What I am disappointed about is that you have ignored my main thrust of paying for a service that many may not receive?
As a very small agent trying to scratch a living in a very competitive market, I had hoped that you of all people would have supported an initiative whereby more vendors are aware that they may equally pay the same fee for success or failure?
Changing my marketing script will not have a jot of a difference to the market.
Advertising risk fees may have a massive effect?
Please support me in this?
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David B
“What I am disappointed about is that you have ignored my main thrust of paying for a service that many may not receive?”
Earlier you stated that you were pleased to see me posting again. If, as you intimate, you are familiar with my previous ramblings and rantlets then you will have to acknowledge that I have stated many, many times my objections to the NSPR model. I even mentioned it – in fact spelled out the acronym – in my first post.
But this wasn’t about that. In my opinion, you set out a flawed argument. I pointed out the flaws as I see them – because if I see them, as will others – and once you’re off on full assault mode the enemy will not only be ready and waiting but they’ll have you in the crosshairs of a howitzer and you’ll be like the proverbial fish in a barrel.
As Eric Morecambe once put it so well, ‘You are playing all the right notes – just not necessarily in the right order.’
If and when you want input – I’ll be right here.
Regards
PeeBee
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