EYE has challenged the HomeOwners Alliance over claims that it has launched a new estate agency comparison tool called estateagent4me.co.uk
The HomeOwners Alliance, which describes itself as the UK’s leading property advice website, says it could lead to “a home selling revolution”.
The new tool was said in a press release to be “officially” launched yesterday.
However, almost exactly a year ago, EYE reported on the launch of estateagent4me by a firm called ULS Technology, which bought a one-third stake in the HomeOwners Alliance in March.
We sent the link to Paula Higgins, founder of the HomeOwners Alliance, pointing out that her organisation had neither launched the tool, nor was it new. We suggested she correct the announcement.
We pointed out that the HomeOwners Alliance sets out its stall as the consumers’ champion in estate agency matters – and that estate agents risk falling foul of consumer protection law if they make misleading statements. Not only that, but they risk being reported to Trading Standards, the Advertising Standards Authority and the industry regulator NTSEAT.
After some conversation, we were sent a press release amended to say that the HomeOwners Alliance had “rebranded and improved” the existing estateagent4me tool.
We have asked for assurances that the changed release will be sent to all those journalists sent the original one, with the change pointed out. We have, as yet, not received those assurances, although it is common practice in the PR world for erroneous press releases to be recalled, and amended ones circulated.
We felt strongly about this, especially in view of the press release’s unchanged anti-agent stance saying that sellers can now choose which agent to instruct based on hard data rather than “chance and sales patter”.
It alleges: “Problems with estate agents often lead to excessive costs, delays and stress.”
Last year, the launch of estateagent4me as an estate agency ranking site caused controversy among EYE readers.
At that time users put in their postcode and in return got a list of “top” local agents ranked by the percentage of properties sold, average selling time, sales achieved at or above asking price, and the number of properties each agent has listed.
Twelve months later, the procedure is the same to get the list of “best performing” agents, who are now ranked by local market share, average asking price, success rate, time to sell, percentage of asking price achieved, and agent’s fee.
Putting in our semi-rural Hampshire postcode yesterday, we were given a list of eight agents, headed by Countrywide brand Carsons which claimed a success rate of 90%, average selling time of 30 days, and achieving 97% of the asking price.
Carsons’ fee is not shown, along with the fees of three other agents.
The list of top agents was described as showing “agents with a minimum of 2% local market share within a radius of 2.4 miles”.
We queried what area had actually been the focus, as we were puzzled that only one agent on the list was within 2.4 miles – while the list included Purplebricks, in Shirley, near Southampton, described as 100.1 miles away. In fact, Shirley is 40 miles away.
We were told: “We define the local market by means of a radius taken from the centre point of the postcode. The size of the radius is dependent upon the market activity in and around that postcode, specifically the nearest 500 or so properties advertised over the past six months. In densely populated areas the radius will be very tight. In sparsely populated areas it will be much wider.
“For [your postcode] it has been calculated at 2.4 miles and this is clearly quoted above the listings on the website.
“There were 407 properties advertised within this radius in the past six months. Purplebricks had 13 giving them roughly 3% market share. McCarthy Holden (Fleet) had 52 giving them 12%.”
Purplebricks claims a success rate of 64% and to achieve 97% of the asking price in EYE’s area. It claims market share of 3% and to sell within 25 days.
We asked where all the information comes from and were told that this is a “complex statistical machine” which uses data from the Land Registry, home, Zoopla and Rightmove.
One agent, Bridges, is highlighted at the top of our list, saying it did not wish the website to reveal its performance data.
The information on estate agents’ fees is said to be done through market research.
It is not clear how the site verifies agents’ claims as to their sales rates.
It claims to cover over 95% of estate agents in England and Wales, and says it is fed on a daily basis with property data from over 18,000 estate agents to provide “accurate comparison data”.
The rankings include online estate agents, and are said to include any agent in England and Wales with a minimum of 2% local market share.
In the press release Paula Higgins, CEO of HomeOwners Alliance, says: “For the first time, home sellers can take an informed decision, whether it’s based on getting the highest asking price, selling quickest or how much they pay in fees.
“They will be able to tell which agents try and win business by promising unrealistic asking prices, which ones have high fees, and which ones take ages to sell.
“We hope this will lead to a home selling revolution, getting estate agents to move away from the hard sell, and instead compete on how well they serve home owners.”
I might be wrong; the recollection is based on something I saw on Twitter, but Isn’t this the crowd who have an expert advisor whose only apparent qualification in estate agency was completing the admission form for NAEA?
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“Hard data rather than chance and sales patter”.
I used to think that hard data was the way forward until suitably enlightened by PB and others. There is a better way and I guess eventually H.O.A will find this out.
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I’m pleased you have finally accepted that what I’ve been saying to you all along is correct, Mr agency negotiation limited.
PB (for short – and certainly not to be confused with the ghastly outfit from Solihull…)
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I have similar a issue but explain I’m the RM who looks after agents, treats them all equally and wouldn’t allow just anyone access to my system no matter how much cash they offered.
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Having looked at the estateagent4me site, consumers will like the layout and the way in which the information is presented. If the information turns out to be erroneous or misleading, then the regulators need to take immediate action as there are more than enough consumer legislation to deal with such matters. If the website deliberately breaches any legislation, then the company responsible should apologise and pay the fines. This is a competitive sector, but no different from any other highly competitive sectors and going forward, businesses need to build trust by providing reliable, qualitative data instead of making claims which are inaccurate.
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HOA has very close funding links with certain call-centre agents who continually fall foul of the law. Their independence is questionable as a result. The presentation of data and its methodology is not clear and could be highly misleading to consumers.
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From the HOA website:
‘If you do want to use an online estate agent get some local estate agents to value your home first, and then you will have a good idea of where to pitch the asking price’
Yes, do that. Local estate agents just love being used as a free valuation service. Don’t they?
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The problem with Statistics and online data is it is mostly manipulated, outdated and incorrect. Yes we all want to boast about track records (I’m proud of mine) but what really matters is who the consumer is dealing with today.
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Just looked in my area and there are 7 agents on there, one with an average selling time of 1/2 of the rest.
says his average selling time is 31 days on this – RM says 15 weeks
which one is right? hmmmmmmmm
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There seems to be a lot of people making a lot of money from other people (investment) in the tech prop world today.
Can anyone show me a viable prop tech company that is making consistent profit and has zero or very little debt?
Exclude RM AND DPG
Its a complete farce!
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Fixflo have done a sterling job!
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ULS (United Legal Services) who owns EstateAgent4Me and launched it last year, took a large stake in HOA in March 2016. Not sure a link will work, but here’s the info http://www.digitallook.com/news/aim-bulletin/uls-technology-takes-chunk-of-homeowners-alliance–1057521.html
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