Emoov founder slams Housesimple’s free sales offer as ‘race to the bottom’

Russell Quirk, founder of Emoov which went into administration last December, has criticised online agent Housesimple’s move into selling homes for free.

Quirk said: “The race to the bottom finally reaches its destination.

“Housesimple have always been keen to drag fees down even when others in the ‘cheap, online’ space were actually increasing theirs.

“Surely if anything is clear from the reversal of fortune of the online sector, it’s that the public are suspicious of a service that is too cheap.

“Going one leap further and making it free is really to demean the industry.

“And not only does ‘cheap’ not work from a consumer perspective, take it from me, the unit economics of such a business approach don’t stack up either. It won’t work.

“There’s no path to profitability here. Just a cul-de-sac.”

Emoov was bought out of administration and is now in new hands. Quirk is still in the property sector, but in public relations serving a variety of clients, including traditional agents.

 

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14 Comments

  1. GPL

     

    “Take it from you….” Russell?

     

    Yes, people did listen to you and ended up royally shafted.

     

    Forgive me (and no doubt others) if we completely ignore your opinion.

     

    The Online Sector is imploding ……we predicted it, its no surprise.

     

    We’ll get on with doing “real” Estate Agency properly.

     

     

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    1. Bless You

      The media listens to online agents. Leave him be.

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  2. AgencyInsider

    ‘…making it free is really to demean the industry.’

    Says the man who spent a great deal of his time demeaning the industry.

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  3. haveathink

    Just a massive cup if irony this morning for breakfast.   Yes because ’emoov’ didn’t demean the industry at all !!
     
    The eye should also qualify stories from HouseSimple as a ‘marketing firm who lists home to collect data’ as they are not an estate agent and should not be treated as such.

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  4. Moveaside01

    Like you’re going to listen to Quirky when it comes to running anything? I’d rather consult next door’s cat!

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  5. EAMD172

    Leaving Quirk alone for a moment as his opinions are not worthy of our time.

    On the basis that Housesimple are not charging the seller, are they charging the buyer anything? Either way, where does this leave them with regards to obligation and liability? If the seller is not a client do they legally have to act in their best interest? IE valuation/advice on offers/renegotiations etc etc

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    1. Stevie J

      They are selling the property purely on referral fees. So over-priced solicitors quotes, there own mortgage company (Mortgage Advice Bureau), removal firms etc… Not sustainable, they’re literally just paying for a mailing list to sell other products. Matter of time, but the first sign of rain and the cardboard walls will come caving in.

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  6. ArthurHouse02

    “Mr Quirk, whose own business went bust due to his failure to secure the market share and listings promised to investors”….Its a shame for those Emoov vendors that were lead down the garden path by a man whose only goal was to remain relevant.

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  7. nick1927

    [Sentence removed as it breached posting rules] I can’t image 1 single agent on here wishing him well or wanting to know what he is up to, let alone help grow his new business by giving him publication time.

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  8. Woodentop

    ” …… economics of such a business approach don’t stack up either. It won’t work.”

     

    Oh so very true for all on-line models that are high risk ventures reliant on mass numbers, but no control over stock or market conditions. And proved by all those that went turtle and those that have to rely on gullible investors to keep going.

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  9. PeeBee

    In fairness…
     
    There is possibly no-one better positioned to comment on what doesn’t work for CCILFs and is bound to bring a sticky end to any such company than The Quirkster.
     
    Mr Mitchell should therefore engage his services as Advisor.
     
    Or would it be ‘Accelerator’?

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    1. PeeBee

      CCILF – could that be the next rude acronym in the property industry?

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  10. propertyguru11

    Any person who ever worked with Russell Quirk would testify that his arrogance is not the worse part. It is the lack of competence and self-awareness that led to the demise of emoov.  It is beyond me who pays him for media relations.
    Hearing about his thoughts and feelings about the industry – could we not have spared the wasted bytes from the internet?

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  11. propertyguru11

    Why don’t you interview one of his victims instead
    https://www.telegraph.co.uk/business/2019/06/29/richard-desmond-takes-19m-hit-investment-collapsed-online-estate/

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