Online estate agent Adam Day of Hatched has resigned from the NAEA over its support for OnTheMarket – which will ban online agents when it launches next Monday.
Day has accused the NAEA of hypocrisy in accepting his money for membership while supporting an organisation that excludes agents whose business model is not that of a traditional agent.
Day also says that the NAEA is burying its head in the sand over a new breed of hybrid estate agents – saying its refusal to engage with them has disadvantaged the industry because its “disregard” has allowed in low-budget agents which “muddy the market”.
The NAEA and ARLA, together with the other NFoPP bodies, did a deal with Agents’ Mutual in October 2013, throwing their weight behind the new portal after ditching their own disastrous website, PropertyLive.
Mark Hayward, NAEA managing director, sits on the Agents’ Mutual board and all NFoPP agents will be getting branded listings to denote their membership.
Day, who describes his own business as a full-service agency, has written an open letter to the NAEA – which the Association says it has not received.
Yesterday afternoon, Hayward told Eye he had not the letter. He said that Hatched was still showing the NAEA logo.
The Hatched letter says:
Dear Mr Hayward,
I am writing to formally resign from the NAEA with immediate effect.
My decision is an inevitable one, made in light of the NAEA’s continued backing of soon-to-launch property portal, OnTheMarket, which is refusing to list online estate agents.
Your stance creates a conflict of interest for estate agencies such as Hatched, now frequently grouped together under the term ‘online’ estate agents, (a somewhat misleading term since it doesn’t reflect the quality and breadth of the services we offer), which, for reasons unknown to us and to the detriment of consumer interest, are banned from featuring on OnTheMarket, despite being members of the NAEA.
It’s pure hypocrisy that the NAEA readily accepts my money for membership, yet overtly supports an organisation that excludes agents like us, simply because our business model is different from that of a ‘traditional’estate agent.
In my view, the NAEA should be supporting estate agency in all forms, so long as member agencies, like my own, are providing a comprehensive and quality service, whilst also adhering to the various acts & regulations in place.
However, like many in the estate agency world, the NAEA has decided to bury its head in the sand and ignore the growth and success of ‘online’agents, rather than engage with us to understand our business model, ethics, values and methods, perhaps simply hoping that we would go away…?
Unfortunately for you and the rest of the estate agency world, our type of estate agency (which I prefer to refer to as ‘hybrid’ or ‘smart’ estate agency) is not going away.
In fact, your collective decision to turn a blind eye to our innovations in the market five to 10 years ago has actually disadvantaged the industry. Rather than embracing the new model and providing guidance and best practice, your disregard has enabled today’s proliferation of a less professional, more DIY estate agency offering, which only serves to muddy the market.
Perhaps, championing the early adopters of this ‘different’ type of estate agency, including the likes of Hatched, would have allowed us to work together to help raise consumer awareness of the great work that estate agents do and work towards setting benchmarks in terms of service levels and consumer satisfaction.
Perhaps, we could have even worked with traditional estate agents to prove that estate agency can be done in a different way which would benefit of the consumer, without diluting the core ethics and values of estate agency.
Had the NAEA engaged with us from the outset, I strongly believe the recent infiltration of private or DIY style ‘online’ agents could have been averted.
At Hatched, our fundamental ethics and values are the same as yours. It’s just our methods and pricing structure that are different.
Unfortunately however, the new wave of online estate agents don’t have the ethics or values of traditional estate agency and are in the market to try and destroy estate agency.
It appears that your solution is to support the creation of a portal which has been set up by high street agents in an attempt to protect themselves from a growing number of DIY agents, but that completely disregards bonafide agents (and NAEA members, I might add) such as ourselves, rather than create a portal which is inclusive of all full-service estate agencies (with high street premises or not) and that ultimately, benefits rather than disadvantages homeowners.
If OnTheMarket doesn’t work, what or who will you support then? Will you engage with agents like myself? Or will you continue to ignore the consumer traction which ‘smart estate agency’ is clearly garnering?
My mission remains: to change estate agency to the benefit of the consumer. Not to destroy estate agency to the detriment of the consumer as the newer, DIY agents, seem to be intent on.
I fear your support of OnTheMarket may be the nail in the coffin of estate agency as we know it.
Yours sincerely,
Adam Day
Hatched, Matched, now Dispatched..
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Will you make your mind up please? Last year you were an 'online agent' and now you are 'hybrid' and even 'full service' at times.
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How did and why were Hatched ever allowed in to the NAEA ? Calling them self a Full Service Agency must be a joke ! If you never sit down and really meet your client, you wont understand their needs. The internet has transformed so much but it does not solve all of life issues or service, it still cant pour a cup of tea just how i like it !
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Paul Rolfe – perhaps you would care to enlighten as to why you think the NAEA's Membership criteria is based upon 'type of service' discrimination?
Or, for that matter, why it SHOULD…?
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Hmmm… silence is golden methinks. Pity, really I was quite looking forward to a debate within a debate!
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It is very difficult to have any sympathy with Adam when he produces a letter that clearly isn't really intended for purpose, unless of course that purpose is to get some headlines. He has had over a year to have written this letter to the NAEA if he really felt this way and had he done so in private he may have got a response given that organisation clearly takes his money. But instead, having been overtaken by the other charlatans masquerading as estate agents, he feels he's not being noticed and sends a public letter. It's all a little tragic really.
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long resignation letter…got board reading just half of it…….snooze
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As much as i dislike his constant clambering for the spot light and making out he is the savior of the property industry he does have a point with the NAEA – Show what a joke they really have become. Basically there offering is "Pay us hundreds of pounds per year and we will give you a sticker and let you use our logo" They do very little for the industry, they had Propertylive which was in fact OTM and through lack of direction and leadership it failed.
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Sadly the NAEA lost credibility when High Dunsmore-Hardy supported the introduction of the Home Information Packs, which was a complete disaster and, as far as I can remember, against the wishes of the majority of members. Very damaging for the NAEA. Don't get me started on the rebranding as NFoPP . . . .
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Having had reason to deal with Hatched recently, I can confirm that they are not a full service agency!
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simonjfisher – I have not had the benefit of such experience of the company to call upon in the way you have – but sadly have to state that I …and no doubt countless others… have had, over the years, plenty of experience of High Street Agents who fail to meet even the basic criteria.
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As has been proven with the potential litigation between SH and CW Agents Mutual has started a civil war between EA's that will only get worse and in no time will be picked up by the media to the detriment of us all. Agree with OEA's or not Day has a point; it is indefensible of the NAEA who supposedly represent all EA members to enthusiastically join the board of a company that excludes advertising for some its own members and by default makes the NAEA at odds with non AM member agents. The whole thing is a farce.
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Pot calling kettle black. So his market and business plan are being eaten into…haha. I loved the description of their full agency service, spend more time selling virtues of the legal and financial services that customers are introduced to, estate agency seems to be a distraction just 2 lines. Survival of the fittest I'm afraid! From their site
As a 'full service' estate agent, we offer both residential sales and residential lettings as part of the service.
But that's not all. We also offer 3rd party services, including introductions to free financial advice, conveyancing services, and energy performance certificates.
Our service providers are chosen carefully to make sure you are receiving a first class services and not paying 'over the odds' for them.
We only work with reputable companies, so if you want any more information regarding the extra services we can offer, or, indeed you would like to go ahead with any of these services, then click the links and follow the instructions.
And just to let you know, we may get paid referral fees by these 3rd party service providers. Just another more way to help us keep our estate agency fees to a minimum.
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When I read this letter I thought "why make such a big thing about it?" I don't necessarily disagree with the content but there seems to be no need to broadcast it through the media. It's almost like "the real Estate Agents are all getting coverage for dropping Rightmove or Zoopla, and I've got nothing to drop – so I'll drop the NAEA" As the online agents continue to struggle(still only a few % of market taken) -and some go out of business, IMO Hatched are cutting off their nose to spite their face. If I were a member of the public and looking for an onlinie to go with then association to a professional body (however inactive) would be something I'd look for.
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Wilko – Serious question, Are you a member of NAEA? If so could i ask why? Not a loaded question just interested to see why agents sign up with them and if i am missing something as i cannot see any benefit.
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I may add i was a member for a number of years.
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Smile, I was a member throughout the 90's and up to about 2001/2 ish. During that time there were some dissatisfied people who complained to the NAEA (they were purchasers who hadn't got a property at their price and thought "we were up to something"…you know the type) Every occasion when answering these complaints we had done everything correctly and according to procedures and every time the NAEA apologised to the applicants saying that it was "regretful"…They never had the teeth to say that we were right and they were wrong…..and that's why I left….toothless and non representative in my view. Many current competitors ensure all their members and their company are members and sell the idea that they are kind of "licensed" in the absence of licensing to would be vendors and therein is the only value IMO. We are RICS so, in my view we don't need the NAEA (one is enough), but if I were a 1 man band or an online agent I would probably add the NAEA/ARLA to my proposal if only to "appear" to be governed by a professional organisation. You can have letters after your name on your card and say to would be vendors that you are a " qualified "agent…..even go as far as to say it is "safer" to use an NAEA member/firm….They just collect their membership each year and check you comply with professional development and that's it. You also get a free legal hotline nowdays but I've not heard what it is like.
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Good similar to my thoughts and experiences, meaning I am not missing anything!
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Good move, Mr Day
You'll get two tanks of fuel in your Focus 'pool car' with the subs you're saving… ;o)
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Joking aside… the guy has an extremely valid point (just a pity that he, The Quirkster etc all needed me to highlight it almost a year ago…)
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Must have written that as i typed a response! 🙂
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I dont think its about the money PeeBee, As much as you may loath Day, you have to say this smacks of hippocratic values! – Happy to take his money and say they are there to promote all agents but then happy to sit on the board that excludes him from advertising! – In my opinion it shows that NAEA have no real direction or plans, they are a "Name" and trade only on that offering nothing in return. The only reason they are there is to pay their own salaries. They offer nothing to the industry in return.
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The merits or otherwise of the NAEA is a whole different debate and I agree with many of your previous statements on that topic, but every organisation adopts support stances or affiliations that not all members agree with. Just about every Trade Union in the country for instance. I don't even have a problem with Day being a member but this letter is 10% about his views and 90% about trying to stay relevant.
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I think that's the problem for me at least, why did the NAEA feel like they had to Aline themselves with OTM / AM? I can see why OTM / AM wanted the tie in as supposedly NAEA is a trusted name promoting values etc. Why would the NAEA have a member on the board of AM what is in it for them? Are they that desperate they are trying to stay relevant and create support for themselves through OTM / AM from high street agents? To me they would gain far greater respect if they came out and said they support high street agents only. i can at least then see a point to them. At the moment they just want to take money off everybody and promote nothing. of course this is another cynical move by Day for press coverage but does open up a healthy debate.
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Why did the NAEA feel like they had to Aline themselves with OTM / AM? In my opinion, it's simple – because I bet that 99% of its members are independent "full service" High street agents. I'd be amazed if they DIDN'T align themselves with OTM.
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Smile Please
I first tried to join the association in 1992. I was told that, despite having over 14 previous years of "industry experience" (by definition) thereby 'qualifying' me as a Fellow, that I could only join as a Student Member or whatever the category was at the time – so they were told where to shove it! (I was young and petty at the time – only thing that's changed is I've got older…!) I finally gave in and joined NAEA in 2000 (at Associate – now 'Member' – status). I resigned about seven years ago – even then I couldn't see the value of Membership any more. Truth is that Ruth Lilley probably let out a mahoosive sigh of relief as I was her 'pet project' every year to get my CPD card (I still miss our "chats", Ruthie… ;o) )
I believe I was first to 'raise the issue' of the NAEA's endorsement of AM here on EYE several months ago (stands still waiting to be shot down in flames…) as I honestly believe it to be a hypocritical stance by the Association considering the breadth of its Membership.
Just goes to show… you pays your money you takes your chance – with everything!
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Seems to be a reoccurring theme with experiences and thoughts on the NAEA – how they are still going is beyond me!
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99.9% of agents are on line. Many of whom have offices.
No one has a problem with online. BIG PROBLEM is ACCEPTING BUDGET THAT DRAGS FEES DOWN. Less in the pot normally means some traditional sevices can't be provided to often achieve best client stc
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Bye bye. Not wanted, not needed, not relevant!
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The status quo is still the same for on-line agents as it was before OTM came along, they can still advertise all over the web. What they don't like is that they can't join a High Street agent web portal, which is the market they have moved into to undercut and under serve in many cases. Surely he wasn't hoping for sympathy from those he swiped?
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99.9% of agents are on line. Many of whom have offices. No one has a problem with online. BIG PROBLEM is ACCEPTING BUDGET THAT DRAGS FEES DOWN. Less in the pot normally means some traditional sevices can't be provided to often achieve best client stc
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Mr Mealham – the market has always 'suffered' from "Budget Agents"… including, as I am sure you will attest, in 'the world before t'internet' – so I really don't see what the beef is. Onlinies are currently convincing TWO PERCENT of the market to part with cash upfront on a punt that they MIGHT 'save' a few quid here or there in the long run. That's a MAHOOSIVE chunk down on what percentage the local Cutthroat Charlies are able to get as market share – and no doubt the Onlinies piddling portion would come out of Charlie's pot in any case seeing as the owners are simply looking for the cheapest deal out there.
Or am I wrong…?
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Surely if online agents were such a bad thing why would the High street agent see the need to open up an online portal? Surely that only backs up the fact that an online agents business model is the way forward, I'f the high street model is the way forward, then do away with the Internet, prove that the Internet is not needed to sell houses, around 90% of sales come from the Internet, surely that is saying that an online estate agent that offers a good service is the way forward? Or is it that window cards are going to make some miraculous come back? I think not.
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Hey – you should buy the domain name to match your username here! Would be the smartest thing you've ever done – 'cos posting the above billshutcertainly isn't…
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Well done Adam! NAEA you should be ashamed. An agent is an agent, no matter the business model.
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Much as it pains me to agree with you, 1TB – it has to be done. I guess there's a first time for everything. My ONLY proviso is to say that Mr Day doesn't usually so much as scratch his rear without sending out a press release hoping for column inches – so it is little wonder why so many are sceptical of his potential REAL agenda. I'm kinda hoping that in THIS instance this isn't the usual f***wittery (credits: Johnny) from The Daymeister and he's actually being genuine. We will probably never know – until he re-joins, that is…
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Except we're NOT all the same – are we! Yes, if you summarise it, an agent is just somebody that sells houses, but that's where the similarity ends. The WAY they sell houses, and what the homeowner gets for their money is totally different. It's like comparing lions and penguins – yes, they are both "animals" but they're nothing alike.
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Why doesn't Adam Day start the National Association of Online Estate Agents? Watch the door doesn't hit you on the way out son.
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