Online agent eMoov has defended its use of “estimated savings” shown on properties listed online.
Yesterday, Eric Walker, managing director of franchising business Northwood, drew attention in a post on Eye to an eMoov listing which quoted a “saving” on a particular property.
However, could the “saving” perhaps be seen as a discount in price to the buyer, given that property listings are aimed at buyers and not sellers?
We also wondered if, when later explained to the buyer that the saving is in respect of commission paid by the seller, would the buyer want a slice of that?
We put our question to Russell Quirk of eMoov, asking: “There is a post on the site today about the way eMoov advertises properties, querying whether this could be misleading because it looks as though it would be the buyer saving the money.”
Quirk replied: “As an agent that provides far better fee value than high street agents, we illustrate to sellers the likely savings that they might make relative to the asking price of each property that we have listed.
“The formula we use is based on a typical high street fee which is 1.6% plus VAT and as attested to by the OFT, Which? and others.”
By yesterday evening, it was thought that eMoov’s listings which quote the “estimated savings” could be the subject of a challenge to the Advertising Standards Authority on the possible grounds that buyers might mistake it for a discounted price.
Comments (13)
“The formula we use is based on a typical high street fee which is 1.6% plus VAT and as attested to by the OFT, Which? and others.”
For the purpose of providing information to Mr Quirk, I think you will find it would be a ‘typical high street fee of 1.92% including VAT’, as per the ruling by the Advertising Standards Authority (ASA): http://asa.org.uk/Rulings/Adjudications/2014/11/IMS-Residential-Ltd/SHP_ADJ_276939.aspx#.VNulqixUBuQ
I can see it as a disadvantage for the vendor as the buyer has some power to negotiate that saving.
A lot of the online sites seem to be obsessive about how much sellers “could save”, nothing wrong with that per-say but I can’t understand why a company would want to plaster it over the property listing. It doesn’t do anything to help sell the house and serves to highlight the point that it is really new sellers that they want to attract rather than buyers for the properties advertised.
I am loathe to post this as it may actually help them but changing the wording to seller saving just means that buyers will think if they are saving that on the fee then they will take a bigger offer….Its a lose lose. I think if really want clarity with their advertisements they should use a slogan like “For the 60 odd percent of you that instruct us but don’t really wanna move: there’s emoove” No charge for that one Stephen.
Come on, someone who can be arsed take it to the ASA, while at it have him on the branches he lists on RM that he doesn’t have, it will give the little fella something to get cross and shouty about, which he likes a lot – Jonnie
I can see how this might be confusing. We’ll change the narrative so that it says ‘Seller Saving’
here’s one Russell.
as you don’t work on a percentage of final selling fee ca you please include Vat in your advertised rate. It is a little thing called a LEGAL REQUIREMENT when selling to the public.
Please let reply with your comment
I’ll defend him on this, I assume he’s not adding VAT to the 1.6 he’s come up with either, of course if he has that’s all a bit shabby but a smidge of credit where it might be due – Jonnie
Actually is has been illegal to advertise plus vat for some time, it must show the VAT £ figure or confirm it is included. Oh dear this guy really hasn’t a clue what he is doing, yet again. Shobby or dishonest behaviour just the sort of person “Rogue” media programmes warn every one about.
I think i am right in saying we even need to put our fee as £ and the total amount in VAT not just 1.5% plus vat.
Thats what the guy who rewrote all our contract 18 months or so said, makes sense!
I am still waiting for Russell to reply to the questions posed to him yesterday.
“I can see how this might be confusing.”
WOW – is this the start of Mr Quirk admitting High Street Agents can see the wrongs with his business model!
Who knows – he might now start to ‘see’ why every word he types is akin to chucking a lit firework in a room!
“We’ll change the narrative so that it says ‘Seller Saving’”
Yeah, fella – potential buyers will LOVE that I have no doubt.
Keep it up – who knows… ONE day you might even get the faintest whiff of the coffee you’re being served.
It’s no surprise that they want to sellers but it is misleading, and should be removed.