Rightmove defends decision to introduce fifth slot for Local Valuation product

Rightmove has defended increasing the number of agents to whom it sells Local Valuation alerts from four to five.

The slots cost up to £300, meaning that Rightmove can now raise up to £1,500 per alert, up from £1,200.

An agent in one of the affected areas told EYE they only discovered this by chance, and claimed that Rightmove had raised the number without any notice to the agents already subscribing to the product.

The agent, who has asked not to be named but operates in the Greater London region, said: “The cost of these alerts varies according to postcode but are the most expensive additional products that Rightmove offers.

“By default the four subscribed/paying agents are selected when a vendor requests a valuation, with them having the chance to de-select any agents as they wish before submitting the request.

“As most vendors typically have three agents around to value their homes, agents can expect on average to be selected for 75% of valuation requests.”

The agent said that by increasing the number of slots from four to five, the average conversion rate will effectively be cut from 75% to 60%.

The agent said: “What Rightmove is doing is diluting the product without a) informing agents, and b) without any guarantee that the number of quality leads that they generate for agents via this product will increase.

“I suspect that they need to make more products available so that they can push their new packages which are substantially based on agents increasing spend on additional products.

“We have analysed our 2018 leads versus 2017 leads and the number of converted leads actually reduced during this period.”

However, a spokesperson for Rightmove said: “We took the decision to introduce a fifth slot for our Local Valuation product in order to meet demand from agents.

“The Local Valuation product offers agents a potential instruction opportunity from potential sellers and we had a waiting list of thousands of agents wanting to purchase slots in areas that were sold out.

“We made a number of updates to the product and carried out extensive testing throughout 2018 to ensure we could make it available to as many of these customers as possible, while still providing the same performance for those agents who had already purchased it.”

Below, five local agents now appear in EYE’s area (a Reading postcode) when a householder makes a valuation request  

x

Email the story to a friend



21 Comments

  1. GPL

     

    I’m done with Rightmove, having received their Annual Increase Letter and basically been told “Tough Sh*t” when I spoke with them. No one available to come to my office and discuss?

    We built them. We’ll dismantle them.

     

    Report
    1. Property Poke In The Eye

      @GPL we had enough of their attitude in 2017 and told them to get lost.  
      Good agents always find a way of closing deals with or without RM.

      Report
    2. NotAdoctor32

      Unfortunately, GLP, not while there are agents willing to pay for the 5th slot.

      Report
  2. Property Poke In The Eye

    More shafting by RM.

    Have they dropped the price for this slot for the other agents who were advertising on the valuation slot, as they have less of a chance of securing the instruction?

    Agents shouldn’t waste money on any add ons, it’s a waste of money.

    Report
  3. The Outsider

    It could be 5, it could be 2. It doesn’t really matter when the majority of agents aren’t responding to valuation requests!

    “You miss 100% of the shots you don’t take. – Wayne Gretzky” – Michael Scott

     

    Report
  4. ArthurHouse02

    This is probably the most important point. Its well know that for what ever barmy reason, a fairly high % of agents dont deal with their portal leads. Having said that i can understand the apathy as most leads from RM, Z & most of all OTM are absolute rubbish. Fake phone numbers, no emails, random search criteria (looking within 50 miles of X). I half wonder if these portals use bots to send enquiries to keep the numbers up.

    However whether you think they are a waste of time or not, you are paying shed loads for them, give them to the young office neg to deal with.

    Report
  5. Ric

    Am I right in thinking Rightmove make you “Untick” the box if you do not want a valuation, rather than tick the box if you do?

    A touch like “opt out” in other industries, this just means you end up with valuations leads by mistake. Easy enough to convert the lead to a valuation, if they did leave it ticked by accident, but you haven’t got a seller then… just an hours long waffle about what their house might be worth. (Anyone can convert a lead to a free valuation!).

    They should be made to have the valuation required option a “Tick to Select” not “untick to opt out”.

    http://www.HaveYouBeenAffectedByTheOptOutValuationToolOnRightmove.co.uk – Call us next week! (Crowdfunding starts today £100k target, need a week to sort it, hence give me a call next week)

    Report
    1. qweasdzxc

      Am I right in thinking Rightmove make you “Untick” the box if you do not want a valuation, rather than tick the box if you do?

      Yes, after clicking the link to request a valuation, filling in your postcode, clicking on the search button you then have to untick the boxes if you don’t actually want a valuation.

      Report
  6. J1

    They have put my fees up without even getting in touch.

    Are they a supplier or just a corporate bully?

    Report
  7. Essjaydee51

    RM, we found we had thousands of agents “customers” available to mug so we opened up the val tool to 5 and we haven’t told you this yet but come Christmas, not only will we raise your fees again but the val tool will be for 6 agents!! Hah

    Report
  8. Property Ear

    Agents’ demanded a fifth slot – RM obliged.

    How about a response to agents demands for fair fees?

     

    Report
  9. Property Pundit

    We took the decision to introduce a fifth slot for our Local Valuation product in order to meet demand from agents’.

    Anybody know a more disingenuous firm than these vampires?

    Report
  10. Essjaydee51

    I’m sorry guys, I had to add this, not only are rm laughing at how much they make but they are laughing at you because year after year after year they hear you all whining about fees, threatening not to renew cons and further threatening to withhold stock for a paltry three weeks and yet they will know that the revenue will fly through their door as expected and predicted to the city.

    Roll on Christmas and the same old comments

    Report
  11. Property Poke In The Eye

    Whoever is on RM and still moaning deserves to be shafted by RM.

    Make a move and believe in yourselves.

    Report
  12. Woodentop

    This is one of the worst business practices I had ever come across when they first started this some years ago. Talk about customer service! Shocking practice that targeted agents to have to pay up or they would be the fifth and left out in the cold. Increase now to 5 does dilute the original 4 chances but still doesn’t help 6 to 20 or so agents? A very clever way of raising some extra revenue without a single thought for its customers. Effectively this is a “cartel” and if you ever thought you would be treated fairly …. oh so wrong you are.

     

    You don’t need RM. There are other options that the public are using, if only you were better at promoting them.

    Report
  13. s71

    Hi All,

     

    Please advise what is their BASIC package and how much it costs as they have different pricing and structure for all agents.

     

    As we are now due a review

     

    Thanks

    Report
  14. WiltsAgent

    It will be a year since we left them in six weeks or so. Would never go back now. Sales income unaffected, static year on year and rental income up 11% on the year. A total waste of money in my opinion. Get all the leads we need from Zoopla for half the price. Still using OTM on their free offer and they are not generating enough leads to justify a fee. Hopefully now they are on TV we’ll see an improvement.

    Report
  15. KByfield04

    Another valid justification of our pending 20%+ increase due later this year. Not.

    Report
  16. smile please

    I honestly feel sick about RM they are a greedy disgusting company.

    Its such a shame all the other alternatives are the same. Capitalism at its worst (and i am all for capitalism!).

    Report
  17. Anonymous Coward

    Rightmove are a virtual monopoly – they got there first and created the marketplace (using estate agents’ money).

    There are other players but because of the income stream that RM have, they have plenty of money available to make sure they stay ahead.

    Now that they are a PLC they have little choice but to push the boundaries of what’s sensible in terms of fees. There is an inherent responsibility to the shareholders to maximise their profits.

    RM has spent the last decade (very quietly) killing off the local property press on the basis that the money that agents used to spend there can go to RM instead.

    What surprises me most is that many (most??) websites for estate agents don’t ask for a valuation from local owners and are not designed to attract local business.   My guess would be that many (most??) are still tuned to buyers and property search rather than “We’re really good at selling houses – let us provide you a free valuation”

    The fees you pay for the marketing packages on RM just make them more powerful. You should pay for the basic and spend the money on marketing yourself effectively to local vendors via your own website (and etcetera).

    I cannot remember one single instruction that was generated solely by the “I need a valuation” option. They usually came from people outside my area. Yes they did need a valuation, but I couldn’t help them. It probably works well for the big corporates as they can pass the lead on to the right office, meet their monthly “valuation generation” target and perhaps get a pat on the back.

    Report
  18. HIT MAN

    Everyone should just drop RM and be done with them, has anyone got the bottle?? RM seem to think no one has the guts…thats why they keep increasing their fees and introduce new products, can you all not see they are working everyone against each other.

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.