Online agent Housesimple rolls out its free sales service to the midlands

Online agent Housesimple is rolling out its free home selling service to the midlands.

The agent – which scrapped all fees for vendors earlier this year to focus on offering a free service in Yorkshire and parts of northern England – is now offering its services to home owners in Nottingham postcodes.

Those living in postcodes NG1 to NG8 can now book a free home valuation ahead of the official launch on December 27.

Since trialling its free service in January, Housesimple said it has helped more than 5,000 people sell their homes, saving an estimated £7m in total fees.

Rather than charging commission or upfront fees for selling homes, Housesimple earns referral fees from no-obligation selected services provided to sellers and buyers such as mortgage, conveyancing and insurance advice.

EYE asked how much has been earned from these services but chief executive Sam Mitchell declined to comment on financials.

He said: “Since announcing our free service earlier this year, we have increased listings fivefold and as a result we’ve also seen a significant uplift in the use of the additional services we provide to customers.

“This sits in line with our targets for the model and we’d expect to see this trend continue as we now expand into the midlands.

“To give an example, our own mortgage business has grown from scratch to 20 people since the start of the year in response to the increased demand.”

Based on the average property price of £218,078 and an agency commission of what it says is 1.3% plus VAT, Housesimple claims Nottingham home owners could save almost £3,500 in fees.

Mitchell added: “We are on a mission to change estate agency for the better, by making the experience of buying and selling property simple, transparent and free.

“As of December 27, people will be able to start selling for free in Nottingham, our first city in the midlands and the next big step in our plans to take our free offer nationwide.

“Nottingham stands out as having one of the strongest property markets in the UK.

“The city has seen consistent house price growth in recent years, and homes are selling in good time and very close to asking price.

“Since the start of the year, Nottingham home owners have sold over £300m worth of property, meaning they could have saved an estimated £4.5m in fees if they’d sold for free – something they can now do with Housesimple.”

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17 Comments

  1. GPL

     
    So good, You give it away Free?
     
    Yeah, right!    
     
     
     
     
     

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  2. J1

    Easy pickings when touting peeps

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  3. APE

    The new restaurant I’m set to launch will offer free meals & drinks for all.  Diners will only be charged a nominal amount for using our cutlery and condiments.  Although there is an option to bring your own.  Fancy investing?

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    1. AgencyInsider

      Not until you make clear whether the new restaurant is a game-changer or a disruptor.

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    2. PeeBee

      APE
       
      Don’t forget to mention that the free meal and drinks are not guaranteed and that a high percentage of customers will leave hungry and thirsty – even if they have paid for the use of cutlery and glasses.

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    3. Ostrich17

      Will we have to do our own cooking and washing-up?

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    4. PeeBee

      Ostrich17

      Absolutely – and I would further suggest you take your own food and drink to avoid potential disappointment.

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  4. Property Pundit

    This time next year they’ll have reached LE postcodes!

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    1. J1

      Are those in France 🙂

       

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  5. Woodentop

    Housesimple earns referral fees from no-obligation selected services provided to sellers and buyers such as mortgage, conveyancing and insurance advice.  
     
    I trust they disclose to their vendors fees received and send it to them if their terms of engagement are not correct. We now live in a consumer protection society and playing around with referral fees as your only income is extremely dangerous strategy.

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  6. padymagic

    OK as a trad agent I want to say good luck house simple

    Why

    Because if they can provide a real service for nothing then good luck to them

    My only condition is they make an honest profit.

     

     

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  7. PeeBee

    “Since trialling its free service in January, Housesimple said it has helped more than 5,000 people sell their homes…”

    Really?

    524 total currently on Rightmove – of which 226 (43%) are stated as SSTC.  These are NOT figures that support the above claim…

    …by any stretch of even the most vivid imagination.

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    1. PeeBee

      Rather than amend the above I will correct myself here.
       
      The figures above are as according to Rightmove.  However, on Zoopla a different picture emerges.
       
      HouseSimple apparently have 3163 listings, of which 1314 (41.5%) are stated as SSTC.
       
      Whilst the Zoopla figures still indicate 5000 sales in a little over 10 months be unrealistic, I concede that it isn’t beyond the realms of possibility.
       
      What I really need to question however is what has happened to the 1524 listings that are apparently available for sale on Zoopla but not Rightmove – despite the HouseSimple website statement
       
      “Ads on Rightmove, Zoopla and many more”
       
      and do the homeowners know how little exposure they are getting compared to the stated promise?

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    2. J1

      They might all be HMO’s with lots of people in each house……….. does not say houses – it says people

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    3. PeeBee

      J1

      You are correct – it does say “people”.

      But, as quoted above,  the article clearly states “Housesimple… has helped more than 5,000 people sell their homes …

      …so highly unlikely that the “people” referred to are those living in HMOs.

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  8. PeeBee

    “Based on the average property price of £218,078 and an agency commission of what it says is 1.3% plus VAT, Housesimple claims Nottingham home owners could save almost £3,500 in fees.”

    But… but… their claim above is of £7m saved by over 5000 “customers” – which only equates to a maximum “saving” of £1400 per sale.  That’s a BIG chunk off the £3500 claimed for Nottingham homeowners.  It actually equates to a maximum home value of £89,744…

    …which is only 46.33% of the average listing value according to Zoopla.

    That’s some mighty big discounts being given there against the rest of the Estate Agency industry figures.

    I think if I was selling I’d rather take my chances with a whopping “1.3% plus VAT” – and achieve 95%+ of my asking price.

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    1. Property Pundit

      Well, their next accounts are due by the end of this year, so let’s see how THOSE figures look.

      Report
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