An agent has challenged Rightmove, asking if agents who list on the site will now be allowed to advertise their fees.
The agent, who has asked not to be named, wrote to director Miles Shipside after new guidance notes were issued by The Property Ombudsman. The agent in question charges just under 0.7% plus VAT on a no sale, no fee basis.
The TPO updated guidance, produced in collaboration with the Competition and Markets Authority, strongly suggests that agents should advertise their fees.
In an accompanying note, Ann Pope of the CMA says: “The ability of agents to advertise their fees or discounts freely plays an important role in stimulating price competition between competitors. If agents are prevented from advertising their fees or discounts in the media fee levels may be artificially inflated and owners are likely to find it harder to assess which agents offer the best value for money.
“It could also make it harder for new entrants to enter the market and compete effectively with established agents. Agents that continue to restrict their advertising of fees or discounts in this way are breaking the law and may face severe consequences.”
The agent has now written to Shipside referring him to the TPO note, and saying: “Can you now confirm that Rightmove will now allow agents to freely and openly advertise their commission fees on its website?
“In the past you have prevented agents from doing so.”
We have asked Rightmove for a comment.
Comments (14)
Someone pass that agent the whitewash!
So one-dimensional.
Most people aren’t ONLY interested in cost, they want to know service quality too – some will pay more if they see that the extra is getting them more for their property, if they’re going to save time by having an expert sort stuff out for them and/or if they know that they’re going to be kept updated all the way through and they don’t have to stress.
Some people go to Asda because price is absolutely the thing for them – others shop at Waitrose for the perceived higher quality of product and service.
Just focusing on price is like only focusing on how red something is. People need to be informed of service quality as well to make the right decision for themselves – particularly in such a crucial transaction.
Correct PeeBee – agents have to show B2C fees including VAT (B2B can be shown + VAT)
And I even agree (PB) that higher fees can be achieved by an agent understanding why a seller is selling and tailoring a package that accommodates achieving abest offer.
Tooooooooooo many agents (especially budget agents who don’t even try) are naff at achieving a better commission than other agents. Worrying for vendors as a low fee often equates to an inexperienced negotiator (able to achieve best results).
I REALLY do enjoy it when we agree, Mr Mealham – however small the point we agree on.
We should do it more often.
That’s my challenge to you… ;o)
Agency fees are like the length of a Lady’s skirt, the smaller the skirt the less chance you are talking to a lady!
That’s below the belt.
It is and unfortunately not by very much.
Oh, dear, Robert – I see that your above innocent metaphor has upset one of the Tw@tterati!
Political correctness has its place in society – but at the end of the day it is trumped by common sense 100% of the time!
That comment obviously struck a chord and a nerve at the same time. Funny how the one most outraged posted this “Right… Quick sprint home, wash my hair, tart myself up and then a nice evening ahead!” TOWIE!
REALLY??
Don’tcha just luuuurve unadulterated irony at its’ best! ;o)
Aaah, but what a lady!
Watch out, AC – the Twatterati will hunt you down and feebly attempt to make an example of you for that kind of comment!
LET THEM!
They’ll be breaking current Legislation by advertising their fees in such a manner for a start – and anything more than a paperclip in fines for the breach will probably bankrupt them anyway!
ONE WAY to rid our industry of the bargain basement lot who apparently don’t even possess the skillset to negotiate themselves a decent fee…
FOUR ‘Dislikes’? REALLY?
Oh dear we have a large contingent in EYEs audience that desperately needs the services of Mr O’Dell.
Irony is they simply wouldn’t be able to afford him due to their inability to earn a decent wage.
Maybe they should Numptyfund some cash to spend on training…