A portal which bans agents, but accepts free listings from private sellers and landlords and also from new homes developers, has said the property market will undergo “massive change” affecting both high street and online models – both of whom could see themselves out of business.
John Candia, CEO of the iProperty Company, said that the current wave of online agents would prove transient.
But he also said that clarity was needed of the various models now available to consumers – saying they are currently as complicated as mobile phone packages.
Candia made his remarks after yesterday’s story on Eye in which online agent Adam Day said that many newcomers to his sector were cheapening the industry and did little more than facilitate private sales.
Candia said: “It’s really quite amusing that Adam Day feels that other online agents ‘are starting to cheapen estate agency by cutting huge corners’ when that no doubt is exactly what traditional agents would have said, and continue to say, about Hatched.
“There is no question that the reason all of these online agents are functioning is to cater to a growing number of the public who would list directly with Rightmove or Zoopla were they allowed to (79% according to a report by investment bank Jefferies).
“However, to be classed as an agent and be able to advertise on the ‘estate agents only’ portals, companies such as Hatched, Emoov and Tepilo must comply with the minimum regulations which requires boots on the ground which translates to overheads which are obviously passed on the owner, hence the fixed fee model.
“I think this is a short- to mid-term solution while the property market undergoes massive change driven by technological advances.
“We do welcome, however, the call to clarify the roles of various different business models within the property market.
“Property buyers, sellers and renters need to know what they are paying for.
“The options now emerging are almost as complicated to understand as mobile phone packages. It is confusing for those outside the industry.
“With free options now available such as the iProperty Company, I predict it will not be long until a significant share of the market shifts allegiance and chooses to save money by using a service which allows them to cut out fees and commissions.
“For the record, we are not an agent, online or otherwise, nor do we claim to be.
“We don’t charge any fee for listing or searching, nor do we get involved in any of the negotiations.
“We are building a global online property community for individuals who wish to buy, sell or rent property directly without the need for estate agents.”
iProperty, which was co-founded by former Swinton Insurance boss Brian Blake, is endorsed by the NHBC.
Comments (11)
Any portal that allows private sellers in should ensurd that content is not misleading and come under agent rdgulation. Free is a commercial decission for portalz to offer. But poor punters buyer lose all redress which is consumer unfair and potentially unsafe.
First off free country and all that, let this lad have his say, although this faked confusion thing he's doing is a bit wet, so, if you are a member of the public I'll explain now as its not complicated, you can pay a budget agent up front or use one on your high street who charge once you've moved. That's the two options, don't worry that it's complicated, it's not. There, simple. Now to the main point, if I walk past a horrid pub that I don't want to drink in and the landlord shouts down the road at me that I'm barred he is clearly an idiot with an ego, dangerous mix, but this 'site that bans agents' thing is the same, you can't get banned from somewhere you have no intention of going to? – Jonnie
Let buyers and sellers deal directly "without the need for an agent" – good luck with that and with the fall through rate!
???? What? if this appeared where it should, as a post reply to a story, it is one of those posts that would only be partly read as it doesn't actually say anything other than perhaps as as advert for his own portal. This is just the sort of " spice girl" story we got treated to last Autumn from the likes of Adam and Russell. Ooooow, here is a subject I can make a comment about but I haven't got the strength of argument to make it as a comment in case I get Peebeeed, let's submit it as a story and I can get a bit of publicity without needing to defend a weak position.
The online agents are only gaining traction due to an 'easy' market. The market has lost its froth so it will follow through that there will be attrition in respect of the newbies…including High Street agents, there are 2 near me who closed within 18 months of opening, resulting in a couple of big online businesses, traditional agents and 3 property portals, 1 hopefully growing like topsy!
A thought for those who see nothing but evil with online agents. They get paid whatever, wouldn't you like that model for your business! You have a lot of overheads and are definitely not selling all your stock, often due to over inflated asking prices fuelled by greedy vendors and agents seeking market share…pushed by their head office and the relentless kpi's!!!
What really annoys me is the fact that that the private sellers and landlords will have most likely seen high street agents for advice/valuation. Like I've said before, we should get sellers to sign a "valuation form" to say that our valuation fee is £100+vat, but only becomes payable if they use a self sell or online agent.
Whilst legislation increases and memberships are demanded to ensure landlords obey the law, quite rightly so. How can agents cut costs to compete with this! In addition will the landlords properties be checked that they meet requirements i.e. gas safety certs. It seems to me that this will result in more properties that do not meet safety standards!
Strangely I find myself agreeing with some of what he says. I think that consumers are being given a smoke and mirror trick at present by many of the online only brigade. If industry they would be forced to issue disclaimers such as some others consumers would at least be seeing statements on adverts such as "we do not know the local market so our valuations may be out by a country mile" or "we charge a fee regardless of outcome" or perhaps "you can instruct us but any attempt we make to see your sale through to completion will be purely superficial because we have already been paid" or finally "instructing an online only agent can seriously damage your wealth"
Re local market, when I sold a bungalow years back I had 3 local agents, this is before online agency, the difference between the 3 valuations was £50k!!
And I think the biggest smoke and mirrors trick is the one peddled by many (not all) of the traditional agents who need to charge a high fee just to keep the rent and rates paid. I have worked for such an agent and know many others who have worked for similar. I have never seen or heard of an agent who risked loosing a sale by pushing for a higher price because the difference in what they get is marginal. An acceptable offer is all they really want. Face it, it's all anyone wants these days!
What a stupid comment, who doesn't pay rent and rates apart from those working from a back bedroom. Perhaps you are advocating that we should stop making clothes in factories and go back to weaving loom in the pantry. As for your last comment, you can't be an agent because that is a disgraceful thing to say. I am sure that the relatives paying for care for their elderly parent from the proceeds of a sale would be delighted to hear you say that. What a k*ob.