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Estate agents to charge £30 per viewing

Alexander Collins (left) and Michael Riley

Estate agents will be invited by ViewRabbit to sign up its new pay-per-view property platform.

ViewRabbit launched over the weekend with the aim of helping the most serious home buyers and tenants gain a guaranteed viewing on highly sought-after properties at a cost of £30.

The new website will send a link to prospective buyers and tenants where they can pay the fee to guarantee the viewing.

The charge is currently £30, but the website has not ruled out a higher charge for highly sought-after or more expensive properties.

Founder Michael Riley came up with the idea of charging applicants after seeing estate agents become fed up with the number of people who skipped viewings after booking them.

He estimates the number of cancelled viewings runs into millions annually in the UK, is overlooked by agents and seen as part of the process that viewers just have to accept, undermining the industry’s reputation and infuriating viewers.

Viewers book their slot by following a unique ViewRabbit link shared by the agent. After the viewing has taken place feedback is automatically requested, including whether the agent was friendly, informative, on time and what the likelihood is of the viewer recommending the agent to a friend.

The agents income generated in the first 30 days by each agent using ViewRabbit is donated to one of three national charities. After which, the agent can decide to continue diverting their income directly to the charities or take the income for alternative uses, such as discounting the owner’s commission or boosting the owner’s property on social media.

ViewRabbit takes a platform fee before passing the remaining income to the agency. There are no set-up charges for agents and the viewers who go on to complete the purchase or check-in to the rental property, gets their booking fee refunded.

Riley, who claims to be first agent in the UK to earn £1m in commission as a hybrid agent, said: “We strongly believe that buyers, tenants, owners and agents can benefit from evolving how agents get paid. Agents provide a service to two separate sets of people for one transaction. How agent’s get paid around the world and what share is paid by whom, creates a huge difference in how owners and viewers are treated and therefore how agents are perceived.

“In the UK, agents need ways of being paid for their services that can shift ever so slightly between the supply and demand side of the market, depending on market conditions. ViewRabbit’s Priority View is just one way to facilitate this and allows serious movers to raise their hand above the crowd and gives agents a platform where they can offer a range of viewing options and benefits to the consumer.

“With your support for ViewRabbit, we will continue to test and develop revolutionary technology products that will evolve the estate agency model at its most foundational levels. Some of what we develop is going to be radical, some in hindsight will seem to be a no-brainer, and some will need ongoing development.

“Our objective is to create better experiences for all sides of the marketplace. We accept at times this change may make us a lightening rod for the public’s view of the industry as well as agents who are happy with the status quo. We truly see those views as feedback and will adjust our technology or seek to educate accordingly.”

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45 Comments

  1. PeeBee

    What appear to be two fingers being stuck up at the industry in the centre of the photo are wholly intentional, I presume…

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    1. Eric Walker

      Is it part owned by Anne Summers?

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  2. Hillofwad71

    “Riley, who claims to be first agent in the UK to earn £1m in commission as a hybrid agent!  
    That must be Coast and Coastal which ran for 10 years til  2018 .The  company is still active acc.to Companies  House.

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  3. MrSmith78

    This will go as well as Hommie (remember those guys)…. and many before them who have completely disappeared/gone bust. No buyer or tenant will pay money to see a property.

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    1. PeeBee

      More’s to the point – why SHOULD they?

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  4. scruffy

    “We strongly believe that buyers, tenants, owners and agents can benefit from evolving how agents get paid.”

    Surely one of the skills an agent should have is great communication, particularly when selling to other agents. I can’t get past the tortured use of our language and struggle to understand the concept of how I could “benefit from evolving”.
    £30 on a proof reader would be money well spent.

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  5. Ric

    am thinking of charging for Valuations… a question still asked today “Is it FREE” and we still promote “Free and No Obligation”

     

    Yet what whenever they ask is it free, they actually mean, we have no intention of selling. Surely something so valuable and important is worthy of a charge, especially if they have no intention of moving.

     

    £50 per valuation, you get the £50 back when you list with us and £25 back if you list with another agent. If you do not sell list the house within 12 months we keep the £50. ****** FAIR if you ask me.

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    1. jan - byers

      do it then

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      1. Ric

        Av you tried Love Island yet? 

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        1. jan - byers

          Why the snide comment?

          You suggested charging £50 for a valuation – that was your suggestion all I sad was if you think it is a good idea why not do it?

          As it happens I watch NO reality TV.  I assume your own kids do however.

          Usually in the evening I play squash – read – go for a few drinks.  In fact we can go days without even turning or TV on.

          When we do so it is usually to watch sport or historical documentaries.  As you know nothing whatsoever about me of course you would not know that.

          No problem though –  if making infantile snide comments pleases you – carry on – doesn’t bother me little man.

          By the way the word is HAVE not AV.  Do try to use correct grammar.

          🙂

          ***

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          1. Ric

            Hold on a minute…

             

            You called everyone who watches Love Island a moron… that’s a fair few million people you know nothing about you insulted!!!

             

            I asked if you’ve watched it yet? Not an insult of any description… but I suppose if you feel anything you are not into makes people a moron, I can see how you get offended and wound up very easily. PS – Watch it… you could easily put it into a sporting type category…

             

            And now call me a “little man” which is a direct nasty pasty kind of insult. If you knew me you would know the hurt this has caused me over the years. I drive car types to specifically compensate for the areas where I am short in life.

             

            and picking up on “av” when written in a purposefully lazy way… cam on…. (that’s come on btw)

             

            Oh, and… before you chuck a grammar insult into a reply…

             

            You say “that was your suggestion all I sad was if you think it is a good idea why not do it?”

             

            I think you mean “all you said” because I’m not sure what “all I sad” means… but it is easy to pick on people over a keyboard innit… (isn’t it before you start)

             

            Have a good day…

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    2. Bosky

      Just do lets.

      We do not do valuations anymore, but when we did it was chargeable; why do this for free when there is no other business opportunity!

      We never charge for market appraisals because there is a business opportunity.

       

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  6. AgencyInsider

    Is this a ‘game changer’ or is it a ‘disruptor’? We should be told.

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  7. Eyereaderturnedposter12

    “We strongly believe that buyers, tenants, owners and agents can benefit from evolving how agents get paid.”
    There’s nothing to suggest what the benefit to the customer is, by paying the fee. Is it a prioritisation system? Will agents not show those who haven’t paid the fee? What are the benefits?
     
    Not wishing to be too negative, but I feel the thesis behind this model may be fundamentally flawed…I’m not sure there are a great many people who care how (and on occasions…IF) agents are “paid” (Other than agents themselves).
     
    It seems a little like a supermarket charging for entry, at the door.    

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    1. OverratedAgent

      We all like to make money, so personally, especially in this market, I would intentionally book as many viewings as possible and delay any offer being accepted for as long as possible

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  8. Essjaydee51

    It won’t wash and it will alienate us even more, there is no way people will pay to view and those that won’t and are blocked from viewing will look to take legal action against us however, I am and have been for many years been very pro having a fee for an appraisal, not a valuation an appraisal so as to stop the peeps who have an interested neighbour or relative buying privately, money refunded if they sell with us, if it’s with someone else then it’s my booby prize.

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    1. Ric

      Morning Essjaydee51 (read with a smile, not offence intended)
       
      Valaution, valuation valuation…. I’m in so much trouble from the authorities… valuation valuation valuation… I do valuations all the time for people who say “can I have a valuation please” never once said “no, I can come and appraise your home, but value it I cannot”
       
      Obviously huge respect to the agent who says “no” when someone asks for a valuation and corrects them and says, we only offer Appraisals… 
       
      When there, we all make it pretty clear we are guiding etc etc, but why on EA forums do EAs do that “we don’t value” milarke. 
       
       

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  9. Propro97

    Is this an April Fool?

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  10. scruffy

    Oh crikey!
    “Fundamentally floored” ? Is this offered by Carpetrite, or a case of predictive text running amok or a flaw in spellcheck.
    i fink we shood take more kair wiv our spelling.

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  11. scruffy

    PS Many supermarkets do charge for use of their car parks, recoverable at the checkouts, so perhaps not as good a comparison as originally thought.

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  12. Gangsta Agent

    Did I wake up on April 1st

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    1. Ric

      I hope so… but I did have a time in my life where I would sleep for an entire day after a sesh…. missed many a Sunday. (oh stop it Ric)

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  13. A W

    the number of cancelled viewings runs into millions annually in the UK, is overlooked by agents and seen as part of the process

    Am I missing something: an agent, if they successfully sell a property, receive a % of the sale price. Doesn’t this money pay for the agent/ agencies time i.e. viewings & time spent on cancelled viewings?

    If its an exercise about reducing the number of cancelled viewings, well that’s going to be down to proper communication i.e. calling the buyer the day before & same day to confirm viewing times.

    Nobody would pay to view a property, I certainly wouldn’t.

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  14. smile please

    Good luck breaking the mold.

    To be honest, as agents we do far too much for ‘free’

     

    Valuations, viewings, general advice. People are happy to use and abuse us. I hope they will succeed and other agents follow but i doubt it (I am not brave enough).

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  15. Bosky

    It would not surprise me that this will be a prohibited payment under the Tenant Fees Act (TFA) 2019, but, say they are saying it is a choice and therefore excluded from the TFA 2019, I would throw in the ring the Accommodation Agencies ACT 1953, which I believe does make it illegal, unless the person paying the £30.00 rents the property, so all those who paid and do not rent the property, retaining the payment will be illegal.
     
    Not sure if the same applies to buyers, suspect not.  
     
    Basically dodgy ground as far as charging prospective tenants!    

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    1. A W

      TFA 2019 only applies to tenants & I believe that AAA 1953 does the same (all relating to tenants & lettings) – although Kudos! I haven’t seen AAA 1953 thrown around in quite some time!

      I believe sales viewings can charge (or at least it isn’t currently illegal to do so).

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      1. Bosky

        A W,  I should have been clearer; where I said “Not sure if the same applies to buyers, suspect not.”  it was only in respect of AAA 1953.

        I suspect they will end up removing tenants from the business plan, but, then again, I cannot see sufficient buyers willing to pay per view.

         

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  16. AJL20

    Is it just me that thinks this is in flagrant breach of the Tenant Fee Act?!

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  17. OverratedAgent

    Cool! Agents masquerading as highwaymen

     

    Blatant profiteering

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  18. iainwhite87

    Whilst this challenges some sacred cows it could well have legs if used correctly . As long as the option to view for free is maintained but perhaps this was offered as a premium service to view earlier and one to one with the agent as apposed to later and via an open house etc .

    Needs thinking through and testing obviously but it’s at the very least thought provoking .

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  19. Trevor Gillham

    If this is a good idea then why would agents need to use their website, just do it yourself, put a payment link on the bottom of each property, simples!

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  20. The Realist

    Someone paying to view a property doesn’t necessarily mean that they are more ‘serious’ – it may just mean they have more money to throw at the process… Can’t imagine many vendors would be happy that the reason they only have a few viewings for their property is because the estate agent wants to profit off their listing before they’ve even sold it!

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  21. KByfield04

    Personally feel this would be better solved by a ‘cancellation fee service’ akin to a hotel or restaurant. You can book for free but must submit bank/card details to confirm it- cancel more than 24 hours before- no charge- cancel 4-24 hours before £25 cancel with less than 4 hours notice (or ‘no show’) £50.

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    1. Ric

      This.

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    2. Hillofwad71

      Yes  the cancellation fee sounds a good idea and more optics on the viewer.
       
      Otherwise  buyers would run a mile  .Taking the view that  if the buyer is looking to trouser a viewing fee what are they going to be like negotiating  over the price . A nightmare arguing over every penny &  taking anything  which isnt  locked down including the lightbulbs .
       
        One experience I had I should  have expected no less as the buyer sold the house himself  with  his own board.  Nightmare  to deal with and argued over everything .Once it was in sols  hands  he was calling me at 7am  hassling.
       
         On day of completion   although curtains were included arrived to find the antique curtain poles gone and a pile of different curtains on the floor ,Every last lightbulb .One he must have got an especailly  long ladder to reach . Garden stuff including dug out plants +others  .
       
      However he was caught out by his tightness as hired  his own van and hadn’t finished moving all his stuff so locked the remainder of his furniture in the garage and  said  he can have   them as and when he returned all the items and  paid for them  to be refixed

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  22. Bosky

    Throw in a home cooked meal during the viewing, I will pay £30; more if they had a swimming pool and tennis court, great relaxing day out.

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  23. Andrew Stanton Proptech Real Estate Influencer

    Brilliant idea – I would certianly look to invest. Unsure if it will be allowed for tenants, but £30 to get an immediate viewing slot on a property that I am considering is worthy of a viewing, that is a cheap price. Refund if you buy, money to charity after first month, revenue for agent/vendor/landlord/viewrabbit, sounds an amicable solution.

    Downside, fewer cancelled viewings, ability to view even if offers are coming in on the property, cutting out the agents who take three days to confirm a viewing, or as recently I found out, agents who fail to even respond to a request to view a property.

    Also, viewers can still go the free to view route – so no barrier for vendor.

    Ends the hypocrisy of no sale no fee, when in reality it is the succesful vendor who sells, or landlord who lets whose invoice covers both the succesful deal, and all the hidden aborted costs of no shows and all the other incidental expenses clocked up by the deals that did not make it to invoice stage.

     

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    1. PeeBee

      “Brilliant idea – I would certianly look to invest.”
       
      Looks like you’re not going to have to wait long to jump in up to the welly-tops, Sir… according to what’s written on the bog door of the pub down the road, they are already talking of seeking investment.
       
      How much can they put you down for?

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  24. PeeBee

    “The agents income generated in the first 30 days by each agent using ViewRabbit is donated to one of three national charities.”
     
    Erm… no mention of this anywhere on the site – pretty much the opposite, in fact – as it actually states:
    “What happens to the booking fees?  
    It depends on the market, the property and the agent.
    Using the income generated from ViewRabbit, some agents choose to reduce their clients’ commission, increase staff capacity or donate to charity.”
     
    But let’s consider the mechanics of this a bit more deeply than is gone into in the marketing guff – and why I am absolutely sure it won’t work.
     
    Using supposedly reliable industry statistics:
    * The ‘average’ sale is agreed after 13 viewings have taken place
    * 1 in 3 sales agreed fall through before exchange of Contracts
     
    Using the above, there are statistically speaking 18.59 viewings going to be carried out per property.  If every one of those viewings was booked at £30 a pop, that would increase the cost to buy ’27 Acacia Avenue’ (I haven’t used that for ages…) by the sum of £557.70.
     
    That’s a big added cost.
     
    From the website:
    “Priority View bookings are guaranteed.”
     
    Let’s be absolutely clear – there is only one ‘guarantee’ here – based on the above example, at least 17.59 viewers will be disappointed… and each one also poorer to the tune of thirty quid.
     
    How many properties does ‘the average’ buyer view before finding – and successfully buying – their dream home?  Four?  Ten?  Just pick a number you feel comfortable with and multiply it by £30.  However much it is, it’s money they should be spending on their new home – not  viewings that lead nowhere.
     
    And then, of course, if those figures don’t look bad enough – you throw into the mix the “free” viewings that will be taking place to avoid what would be entirely justified and indefensible complaints to the Redress schemes and Trading Standards.  I reckon they’d have to do at least the same number of ‘free’ viewings as paid ones to be not considered anti-competitive. 
     
    So… those forking out three tenners would stand less than a 1 in 35 chance of securing nothing more than first dibs on the property. 
     
    They still have to be the best buyer in the parade… make the most attractive offer…
     
    And I haven’t even turned my attentions to lettings.  I don’t think my old ticker could take it.
     
    What amazes me is that these people have come up with this proposition, and then presumably spent hours… days… weeks – or even months – wrapping it up nicely in Christmas paper to then shove it in front of the intended audience, fingers tightly crossed that no-one would notice the overwhelming nitrogenous odour emanating from it…
    …and now they wonder why we seemingly have a problem with it.

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  25. Will2

    Nominal Land Registry search fee and cut the agent out completely – cheaper than paying to view.  Get those dislikes in!!!!

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  26. Baar

    Buying or renting is expensive and people would be viewing more than one property, so that’d be added onto top of their expenses.
    If someone had made £1 million from the commissions, surely people didn’t turn up doesn’t seem much an issue.
    If people not turning up is really an issue, then, a deposit scheme would work better when it is given back to the viewers who have turned up. Therefore, they won’t be out of pocket for paying the penalty and agents would be compensated with the deposit of those who didn’t bother.
    The solution should be WIN-WIN situation, but the consumer who would be the one losing with this proposal.        

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  27. AgencyInsider

    This lot will be out of business when the market turns (as it will) and the present buyer-frenzy has evaporated.

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  28. Will2

    In the How to Rent booklet it states you can not charge for viewings. The booklet I guess is guidance rather than law?  I guess someone will have to challenge the Tenant Fees Act to clarify charges or pehaps the charge cannot be made if you intend to accept the person as a tenant.  This all seems very thin ice relating to lettings.

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  29. Gangsta Agent

    looking for investors and crowd funding, sounds like a couple of chancers looking to make a quick buck after coming up with a half- baked idea after a few too many Pimm’s (IMO)

    Report
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