A high street agent is to launch an online-style tariff of charges, with prices including a £499 fee paid up-front by sellers.
There are to be new fees and packages across sales, lettings and property management at PACE, in Southend, Essex.
The firm says it will remove commission-based pricing, consolidate fees into its prices for landlords, and also give sellers the option of paying upfront.
It says: “This innovative pricing model offers the benefits associated with online estate agencies, namely very low costs coupled with the personal service of the traditional high street branches.
“It also ensures complete transparency of costs with no hidden charges and a choice of when to pay fees to suit the customer.”
Managing director Crystal Horwood, pictured, said: “The Consumer Rights Act 2015 made it a legal requirement for all lettings agents in England to display details of all fees and charges on websites and in offices from May 27 last year.
“We know this is not happening fully in Southend.
“Consequently, Pace has consolidated its pricing structure in order to offer transparency, consumer choice and positively differentiate ourselves from other agents.”
She went on: “We are able to offer permanently lower prices without affecting the service we give to clients as we have fully embraced technology and streamlined all our processes.”
In another change, property management will be offered in different packages.
Horwood said: “Historically, our service has been much more comprehensive than many other lettings agents because we have the breadth and experience to handle the full range of issues.
“However, we have learnt lessons from the low cost airline business model and realise not all clients want the full range of services we offer. Therefore, we now have three levels of property management offering our clients the option to purchase the individual services they specifically require.
“The same is available for leaseholders requiring block management services.”
Properties will from now on be sold for £499 up front or £899 on completion; let for £99 for users of PACE’s online service or £299 for traditional tenant find; managed for £40 pcm or for block management, £99 per unit. All prices will include VAT.
You’ve got to be doing some pretty high volumes to make that worthwhile. Good luck. You’ll be increasing your fee of £899 by year 2.
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That may be good for down south but have already been offering better value for a while.
All sales for a flat fee of £500 irrespective of sale value and with no up front cost.
Finder only £199 and includes finder, vetting, tenancy agreement, inventory with digital photography, deposit protection and collection of first months rent.
Full Management at 10% with no set up fee, you only start paying when we put a tenant in place and we also give the first 12 months at half price 5% (based on a minimum 2 year contract).
“Let’s see the online agents beat that.”
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Genuine question – how do you make a profit?
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Hi Kelly,
We are a small family business and not a franchise. We are predominantly lettings and offer great value for landlords. We control our own prices and own our office, so don’t have large overheads.
Being northern based (Manchester), prices on both the outlay and prices of property are very low in comparison to the south (London), so affordability is much easier and profit margins can be made without high costing. We are not out to make a fortune out of people & are not greedy like some other agents. We are quite happy to be making an acceptable profit, without ripping people off!
We cover quite a large area – Mytholmroyd in west Yorkshire to St Helens, Stockport to Leigh.
We are available during office hours and by phone everyday in person outside office hours Tel: 07886 585466.
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With respect, Mr Jones, you DO NOT charge “a flat fee of £500”.
The “+vat” bit you have omitted to mention in your post takes it to £600 – unless you only act for businesses, that is…
Please feel free to correct me if I am wrong.
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With respect, PeeBee, don’t all agents charge vat? and if you were to look at our site, it will tell you there is vat to be added. All our prices are transparent, so to amend it for you, the price is a flat fee of £500 + vat, with no hidden fees.
Still one of the lowest prices you will find and virtually beats all online agents prices, as well as most High Street based agents.
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With respect again, Sir, and in order of your post:
No – ALL Agents don not charge VAT – it depends on their turnover.
I DID, once again, look at your site – hence my knowledge that the fee you quoted is incorrect.
You say “no hidden fees” in the post above – but you chose to hide £100 of VAT in the previous post. Those that do not have access to your website would not know that.
If you challenge the above – take it up with the government, not me. It is THEIR requirement that fees quoted in any written form must include VAT or CLEARLY state that it doesn’t. Your post stated a figure without confirming whether it was VAT-inclusive – which does not comply with current legislation.
I will now ask a question that many will be wanting to know the answer – but won’t bother to ask due to your known offensively defensive stance.
Why do you feel the necessity to undercharge for your services?
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Glad Fred Jones has outed himself, Looking at the website (one of the poorest i have seen) explains a lot about his comments.
2 properties for sale and 0 to let. – Must have VERY low overheads, to make a living!
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Picked him up on #day 1, smile please.
He’s a feisty bu99er, mind you – I’m actually surprised he rolls over as quickly as he does on every business transaction.
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As I have already commented we are predominantly a lettings agency and yes only 2 properties for sale at the moment, however, the reason there are none to let is because we have just let out our last property available and if you had looked at our Zoopla link you would have clearly seen that.
So our website isn’t your favorite will that stop me sleeping I do think so, I know it I in need of redoing and I already have plans to do so.
The fact that we advertise on Zoopla is more relevant to me, the website can be changed.
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But not Rightmove …..
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Zoopla is more than sufficient and works just as well if not better for lettings, if we develop a stronger presence in sales I may consider using Rightmove, but with more than 3x the cost of Zoopla that one will have to wait.
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In reply PeeBee:
Actually the only one who is being offensive is you as you usually are, being unpleasant and harassing everyone in about the only thing you do these days
So not everyone pays vat and so I put up the correction, why does that bring you to go slating someone for what is of very little reason?
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In reply, Mr Jones:
I appreciate you intensely dislike being caught out with your trousers down.
That being the case I respectfully suggest you find yourself a belt and/or braces, as yours pants are doing a far better impression of yo-yo than a means to avoid your embarrassment.
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I intensely nothing, a small correction and you turn a mole hill into a mountain.
You do a great job of extending all of what you have to say, pity it doesn’t extend to things like gratitude instead of just insults.
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I’m sorry – I must have missed something.
Exactly what am I meant to be grateful for?
And while we are back here trading handbag blows once again – define “a small correction” for me will you?
I can’t be the only one to think that twenty percent of anything is easily swept under the carpet without leaving a lump – but you on the other hand try to brush it away like it was a fly hovering around the rear end of a bull.
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I can see this working in situations such as this where the company is predominantly lettings based with a big property management book – the office and staff are already there and the overheads won’t be prohibitive.
It wouldn’t work for us, but good luck to them.
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OK I think Mr Jones business model probably works on a larger scale like PB are attempting otherwise there isn’t enough hours in the day to make a good living.
What the old saying “busy fool ” etc.
I am not calling Mr Jones a fool but you do need to work very long hours just to stand still on his prices.
Just saying.
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To some extent where it comes to working long hours I would agree; We opened our new office in 2012 and we will have it mortgage free by 2020 at the latest, year by year growing in strength.
So call me a fool if you wish but I and my clients are actually happy with what I am doing.
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Pay peanuts get …….
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“…we have learnt lessons from the low cost airline business model…”
’nuff said, don’t ya think?
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Well then, I guess the small business owner of easyjet must be very unhappy with his wages!
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Now then children
no falling out in the playground please
please say sorry to each other
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