An online agent has said that his sector has been damaged by recent failures.
Vijay Vashistha, of 99home, said vendors would be thinking more than twice about going with an online agent.
He told EYE: “Because of Emoov, Tepilo, House Network and a few other hybrid agents, the reputation of online/hybrid has gone down.
“Right now, if I think as a vendor, I will think ten times to give my property to a hybrid agent – but at the same time I will calculate the risk of a local high street agent shutting down.
“The overall online market is growing but not as fast as we expected. Of course, the blame goes to Mr Quirk’s Emoov, plus House Network and a few others.”
However, he said that online agents probably have more market share than is generally thought.
He said: “According to Gavin Brazg from TheAdvisory, current onliners’ market share is around 5% but I think he is missing a point here. If you see most of the high street agents are not growing and reducing numbers of branches or shutting down, a few onliners struggling too, so where is the business going?
“I might be wrong here, but I think most of the business is going to the local agents who have changed their strategy.
“I live in south London and in my area I see three or four local agents now offering a fixed fee service which starts from £600.
“I see that they have more stock than a few local high street commission-only agents.
“At this moment, the UK has got more than 200 local high street agents converted into hybrid firms.
“If you calculate their stock and add into onliners/hybrid category, you will see market share in double digits.”
Vashistha said that his own business “is going well – we are growing generically and keeping ourselves in control”.
He was speaking as his firm launched a no sale, no fee option costing £799 (within the M25, £999), payable on completion.
The new service includes valuation, photography and floorplans, listings on Rightmove and Zoopla, plus negotiation and sales progression.
It does not include EPCs or accompanied viewings, which cost £300 in advance.
He said that the new service had been offered after requests from potential sellers.
The new service competes with other packages including the basic £99 price which offers Rightmove and Zoopla listings with vendors doing everything else but with support from the online firm.
99home, which launched in 2017, also offers a lettings package from £49.
However, Vashistha said that some changes are to be made to existing packages from next month onwards. The £99 package, for example, will be limited to three months instead of until sold.
Yesterday on Rightmove, 99HOme had 436 available sales properties, and 115 available rental properties.
Always good to see someone with so much respect for Mr Quirk and the damage he has done
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He would calculate the risk of a high street agent going bust. Seriously? Personally I never really worry about about the people I don’t need to pay until I have sold going bust.
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Which of course wouldn’t matter if they were no sale no fee.
Pay any way/ fake service is the problem , not online.
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So not really £99 to sell then, might want to change your name!
I’m a local independent, I don’t charge unsustainable fees like you, and am doing just fine.
Stop doing pointless press releases and instead workout the fee that you need to charge to stop being the next Emoov etc.
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“Pay peanuts, get Monkeys!”………………………….Just saying.. He’s got Quirk right, though!
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Next accounts due 29 August 2019, let’s see how these look.
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What does ‘growing generically’ mean?
Perhaps he means organically?
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Only one thing has damaged the reputation of ‘online Agents’:
Online Agents.
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“However, Vashistha said that some changes are to be made to existing packages from next month onwards. The £99 package, for example, will be limited to three months instead of until sold.”
Further evidence that the wheels are coming off the callcentre/FSBO listing model – RM price hikes really must be hurting and they have no choice but to pay. If Zoopla start putting the squeeze on, they will be toast!
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Just a quick reminder…
…this firm runs alongside a HIGH STREET AGENCY.
Its’ history is well documented in the EYE archive.
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It’s quite noticeable how properties often sell when they switch agent. Perhaps a 3 month term and then a switch is a good marketing strategy?
Perhaps £40 a month would be an even better option?
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Why would anyone who are selling their biggest asset put it in the hands of a company whose business model is based on volume and cheap upfront fees. You get what you pay for applies to most things and the same applies to Estate Agents.
Personally i would want to give myself the best chance of selling for the best possible price by using a good local and professional agent.
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Thank goodness for £99home-here to save the day for all onliners.Seriously-is this what estate agency has come to. Get me out of here!
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