Market analyst claims ‘Yopa is spending over £500,000 to acquire each new listing’

Proptech expert Eddie Homes has expressed surprise at Yopa’s argument that it is already the second largest online agent behind Purplebricks, before any merger between Emoov and Tepilo.

He has not queried that Yopa is in second place but said that the marginal cost to investors of the additional 41 listings they claimed is not something that he would have chosen to draw attention to, in their shoes.

Holmes sent us figures apparently showing that Yopa has had more investment (including from Savills and LSL) than Emoov and Tepilo combined, at £55m v £31m.

The war of words began when it emerged last week that Emoov and Tepilo are in merger talks involving a so-far un-named third party. It was said that the new merged body would become the second largest entity behind Purplebricks.

However, Yopa disputed this, saying that it already has more property listings than Emoov and Tepilo combined.

This, in turn, has now been queried by Holmes, whose number crunching is in the charts below. These allege that in addition to the £585,00 per listing extra YOPA has spent to win those 41 listings, YOPA’s CPA, or “’cost per acquisition’,” is also much higher than their competitors.

ATL stands for ‘above the line’ – ie advertising that can be seen, as in TV. CPA stands for cost per acquisition.

Holmes said: “Over half a million quid for each listing! There is further evidence that the Yopa ship isn’t sailing as well as she might.”

He said that this included rumours of key people at Yopa being sidelined or having left, particularly the movement of the founder, Dan Attia, to the role of chairman

We have put the entire sums and everything that Holmes is claiming to Yopa, which declined to comment, saying it wanted to correct the original claims but did not wish to enter into a war of words.

Amount Invested
Yopa £           55,000,000
Emoov £           16,000,000
Tepilo £           15,000,000
Total £           86,000,000
Difference £           24,000,000
Additional Listings 41
Marginal Investment per Additional Listing £           585,365.85
2017 Purplebricks Yopa Emoov Tepilo
           
Month Listings ATL Spend ATL CPA Listing ATL Spend ATL CPA Listing ATL Spend ATL CPA Listing ATL Spend ATL CPA
Aug 5536 £1,778,431 £321 504 £50,503 £100 360 £308 £1 321 £74,169 £231
Sep 5602 £1,462,620 £261 508 £1,129,031 £2,223 380 £0 £0 331 £130,725 £395
Oct 5363 £988,665 £184 501 £758,606 £1,514 318 £0 £0 293 £128,322 £438
Nov 4548 £787,485 £173 450 £738,873 £1,642 213 £0 £0 262 £40,531 £155
Dec 2961 £391,287 £132 344 £350,751 £1,020 119 £0 £0 171 £21,582 £126
Grand Total 58875 £5,408,488 £214 5330 £3,027,764 £1,300 3478 £308 £0 3703 £395,329 £269

 

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19 Comments

  1. MichaelDay

    Headline somewhat misleading?  Lies damned lies and statistics?

    Not suggesting it is in any way a clever set of numbers and the investment levels are staggering for seemingly little traction but not quite as headline suggests.

    However an average estate agency costing say £15000 per month to run and listing just ten properties is costing £1500 per listing to acquire. If they complete on say five properties they are costing £3000 to achieve per sale – this is above the average fee income per deal which obviously equals losses.

    Knowing the numbers, margins and having a plan are key.

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    1. smile please

      But like so many Yopa are yet to post a profit. A high street agent would be out of business within 3 months with all goodwill dried up.

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    2. J1

      I run an agency that cost £7,000 a month and does £25,000 net fee revenue monthly – something wrong with your figures too mate 🙂  Happy that there is though.

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      1. Beano200062

        Yes I did wonder what sort of average MD referred to when he quoted 15k pm in overheads; central london perhaps

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  2. ValueCounts31

    It confuses me why online agents seem to always miss out Express Estate Agency as a competitor. Their a hybrid, to my knowledge been around longer than Purple Bricks and theirs and Yopa’s stock levels have been hovering at similar levels for a while. I remember when Purple Bricks IPO’d they were not included in Purple Brick’s competitor analysis even thou at that time Express Estate Agency where the biggest. I also think they charge about the same as local agents in general – however i’m not 100% sure so please correct me if i’m wrong.

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    1. smile please

      Are they not touting for BMV properties? 
      Come across their cheap letters from time to time in our properties. 

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      1. ValueCounts31

        I’m not sure. Just looking at their listing now, their everywhere. Different properties of different values.
        http://www.rightmove.co.uk/property-for-sale/find/The-Express-Estate-Agency/Nationwide.html?locationIdentifier=BRANCH%5E61544&includeSSTC=true&_includeSSTC=on
        I’ve come across their letters the odd times too. Very annoying. 
         
         

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  3. Woodentop

    Express used to charge 1.9% commission based on the sale price with a tied in period and all properties that I have ever come across were marketed at 10% to 20% below market value and listed with “Offer invited above”. Are they still doing it today? Interesting their web site does not shows any fee’s or CMP certification but has a real go at hybrids … err aren’t they one. OMG where is the regulator!

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  4. ChumpExecutive

    I think it’s time for a new league table to be collated and published by some of our clever data analytical friends to get clarity on matters that really should be “public record” given that we all feed our stock through to the portals where anyone who has access to the tools can see the truth. EweMove has 1,275 properties listed for sale currently, and 837 sold subject to contract. So total stock of 2,122. Not too shabby I’d say. Oh, and no duplicates or false instructions.

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    1. ValueCounts31

      Agreed ChumpExecutive.

      Well done EweMove! I like their model.

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      1. smile please

        Apart from many of the franchisees list so few and sell so few they cannot make a living without support from a partner paying bills.

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    2. Robert May

      In my  competitive experience, such a league table would be far more useful if it were just given to appraisal staff to use in the parlour on each appraisal.

      Making information openly visible shows the miscreants  (as well as the selling public) their wrongdoing and allows them to be more deceitful.  Keeping it private denies them the opportunity of working out why they are suddenly failing to win as many instructions.

       

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  5. Keyser Söze

    I don’t know where you get 1,275 from. Their website? I counted a couple of weeks ago 850 available properties for sale for Ewemove. Check https://www.zoopla.co.uk/find-agents/estate-agents/company/ewemove-sales-and-lettings-14493/?page_size=100

    850 properties with 106 branches (franchises) is somewhat appalling. This is less than before they were bought by PFG. On average instructing a couple a month. I agree with Smile that they cannot live off this.

     

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    1. Robert May

      I was talking to an agent yesterday who has decided to take a gap year and has closed their agency down while listing numbers and transaction volumes are on the floor. Another recently who was paying out twice what they were earning to pay the portals.

      Our industry is hurting and by my numbers over 5000 agents  can’t  live of the business they are doing.

      It would be  unfair of me to comment on the listings you’ve posted without showing  all of the agents in the same boat.

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      1. J1

        Robert, agency is becoming smaller and more perocial or on-line.

        Those stuck in the middle with high overheads and lots of non fee earning people are the ones who are at the most risk.

        Niche agents, charging strong fees and really delivering on service are doing okay, as they are adding real value to their clients, obtaining reviews and recommendations and not at as much risk as those in the middle ground who no longer know who or what they are.

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        1. Robert May

            I don’t disagree with any of that but feel that there is a unique set of circumstances that have come together to work against agents who don’t understand that change is necessary let alone what changes to make.

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  6. Keyser Söze

    This what I counted a few weeks ago. Maybe Robert can verify?
    BRANCHAVAILABLE
    EweMove Aberdeen14
    EweMove Alton & Bordon9
    EweMove Altrincham4
    EweMove Anston3
    EweMove Barnsley South14
    EweMove Barnstaple28
    EweMove Basingstoke41
    EweMove Beeston19
    EweMove Benfleet & Hadleigh4
    EweMove Beverley & Willerby36
    EweMove Bexleyheath21
    EweMove Bishops Cleeve0
    EweMove Blaby0
    EweMove Bolton North2
    EweMove Bournville3
    EweMove Bracknall5
    EweMove Cardiff North4
    EweMove Cheadle Hulme9
    EweMove Cheltenham4
    EweMove Chester East6
    EweMove Chichester0
    EweMove Childwall & Woolton21
    EweMove Chilterns5
    EweMove Cirencester8
    EweMove Cleckheaton4
    EweMove Corby25
    EweMove Crewe & Nantwich 2
    EweMove Croydon0
    EweMove Crystal Peaks2
    EweMove Doncaster South2
    EweMove Dorking6
    EweMove Edinburgh West6
    EweMove Epsom4
    EweMove Finchley5
    EweMove Formby9
    EweMove Gainsborough4
    EweMove Goole & Selby13
    EweMove Grantham North11
    EweMove Halifax22
    EweMove Hampstead5
    EweMove Harrogate9
    EweMove Herne Hill & Brixton6
    EweMove High Wycombe6
    EweMove Hinkley7
    EweMove Hove1
    EweMove Hull West11
    EweMove Huntington & St Ives2
    EweMove Kidderminster6
    EweMove Kings Langley5
    EweMove Knaresborough0
    EweMove Leak & Hanley6
    EweMove Leicester North5
    EweMove Leighton Buzzard19
    EweMove Lincoln Central2
    EweMove Luton East5
    EweMove Macclesfield0
    EweMove Maghull & Ormskirk8
    EweMove Maidstone North0
    EweMove Mansfield15
    EweMove Melton Mowbray12
    EweMove Newbury6
    EweMove North Ilford5
    EweMove North Leeds2
    EweMove Northwich4
    EweMove Ossett & Horbury13
    EweMove Oxford East2
    EweMove Poole & Parkstone5
    EweMove Pudsey3
    EweMove Putney1
    EweMove Reading7
    EweMove Ripon & Boroughbridge2
    EweMove River Hamble0
    EweMove Rodley & Bramley3
    EweMove Rossendale & Ramsbottom 31
    EweMove Salford0
    EweMove Salisbury8
    EweMove Sandbach15
    EweMove Sandiacre0
    EweMove Sheffield22
    EweMove Shewsbury17
    EweMove Shoeburyness19
    EweMove Sleaford & Grantham South6
    EweMove Slough6
    EweMove South Runnymeade5
    EweMove Southport11
    EweMove Spalding0
    EweMove Staines & Ashford7
    EweMove Stalybridge7
    EweMove Stamford11
    EweMove Stapleford12
    EweMove Stevenage6
    EweMove Stratford7
    EweMove Streatham5
    EweMove Stroud1
    EweMove Trowbridge8
    EweMove Uttoxeter11
    EweMove Walthamstow2
    EweMove West Grimsby3
    EweMove Wetherby17
    EweMove Winchester5
    EweMove Wokingham18
    EweMove Worksop1
    EweMove Wyke & Cleckheaton0
    EweMove Yeovil & Sherborne 8
    EweMove York23

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