Will sellers be persuaded to go online route after Sarah Beeny programme?

| Rosalind Renshaw

So, what did you make of the first Sarah Beeny television programme last night, featuring home sellers bypassing high street agents?

In the first two case studies – a three-bed cottage in Sussex and a four-bed Victorian semi in Nottingham – one of the sellers said they had exchanged contracts after signing up with an unnamed online agents six months ago.

The other was persevering, despite what looked like only two viewings.

In both cases, the online agents did not seem to have queried the sellers’ own valuations of their properties.

In East Sussex, the local high street agent thought it should have been put on the market at £300,000 – some £100,000 less than the seller thought it was worth.

Needless to say, the property has still not sold. But the vendor is sticking to her guns as to how much she thinks her home is worth (an all too familiar scenario, no doubt, to many agents). And she is now trying the ‘traditional’ agent route.

In the Nottingham case study, the domestic tensions practically crackled, with her accusing him of being only too ready to reduce the price, and him saying what a load of hassle all those viewings were.

There were some interesting points.

First, those Beeny figures: 1m homes sold each year results in £5bn a year in estate agent fees.

For those who can do the maths, does that ring true to you? Eye’s own number cruncher queries the sum: if a million properties a year sold at an average of £160,000 each, that would fetch a total of £160bn. With an average estate agent’s fee of 1.25%, that would work out at a total of £2bn in fees. So, we’re not sure where the £5bn came from.

The prices were also interesting. The Sussex property last sold for £132,500 in 1997. Despite improvements the vendor had made, the outer paintwork was peeling. Could it really have been worth any more than the £300,000 the local agent was saying?

In Nottingham, the vendors had bought the property for £236,000 in 2011. Sold privately – and one presumes for the listing price of £220,000 – the high street agent had valued it at £210,000.

The Nottingham sellers claimed to have saved £3,276 in agents’ fees.

Point proven? Maybe. But only maybe, because we did not see the high street agent instructed or what they could have achieved.

The single most mystifying point was the programme’s comparisons between properties of similar prices but of entirely different house types and in different parts of the country. So, no real comparables at all.

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45 Comments

  1. Trevor Gillham
    October 21, 2014 at 07:17

    I nearly switched off when Sarah said 'As the owner of an established online agency'. It was a private sale site originally that when failed converted to an online agency, it's been online for roughly 12 months or so.

    Also, I did laugh to myself when the lady who had her house valued at £300k by a local agent listed it for £450k, god I remember those dark days, getting phone calls from people like that wanting to chat about why they were getting no interest.

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  2. Housesimple
    October 21, 2014 at 07:18

    Housesimple.co.uk provided an in depth valuation which proved very succesful in the case of the Watson's Nottingham Property. It is also clear from the program what the local high street agent would have achieved and it is most likely £10,000 less than the Watsons achieved with Housesimple.

    Whilst Housesimple are proud to show it's professionalism in terms of high quality of service and it's achievement levels, highlighted by the Watsons selling at £10,000 more than suggested by their local agent, this is something that occurs day in, day out.

    Housesimple have been trading almost 8 years now and are consistantly ourperforming High Street Agents and saving clients thousands in the process – in this case the Watsons saved around £4,000 or £14,000 depending if you count the £10,000 they'd have lost if they'd been pushed by the High Street Agent to accept a lower price, as i'm afraid many do.

    Vendors want a good service, but they also want more control and reasonable fees, Housesimple fulfils all of this.

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    1. RealAgent
      October 21, 2014 at 08:39

      Its comments like this Houssimple that really wind me up. You appear on a forum read by people in the industry, puffed up and all brave because some biased so called celebrity has made got channel 4 to buy a programme indirectly aimed at promoting her business and then competley outrageous comments like " we constantly outperform high street estate agents" save those sorts of comments for the sellers who are naive enough to use yours services. My grandma has been baking cakes for the last 50 years but that doesn't make her Mary Berry!!. Pathetic.

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      1. 1stTimeBuyer
        October 21, 2014 at 09:31

        Interesting comments to make, considering you could say the same 'puffed up', about high street agents and your tone of on-line ones. Just because a high street agent, it doesn't mean on-line are bad – even though I would personally prefer a face to face high street agent. They offer a different way of doing things that's all. It's called business and competition.

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        1. RealAgent
          October 21, 2014 at 09:59

          I'm sorry I've re-read your post a few times 1stTimeBuyer and I still don't know what you are trying to say. I assume its a swipe but if it is, then perhaps you can make it clearer.

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      2. 1stTimeBuyer
        October 21, 2014 at 09:34

        I especially like where you say "save those sorts of comments for the sellers who are naive enough to use yours services". As if high street agents always tell the truth and do not use similar lines to gain business. "Dear my client, I am leaving RM/Zoopla to go with a portal which doesn't even exist yet to try and save myself money. This means your property will have much less exposure, but I am still going to charge you the same fee, hide these facts from you and spin my words to make you believe this is a positive thing. You perhaps may want to consider moving to one of my competition who will continue to list on both sites, giving you more exposure."

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        1. RealAgent
          October 21, 2014 at 10:04

          And again, I'm not sure what this post means either. I was referencing the fact that Housesimple feels that he needs to promote his company to the industry he is working in rather than the clients he hopes to convince. This wasn't a discussion about On the market so please try and keep your posts slightly relevant else I will feel like I am having a conversation with my dear Grandfather who suffers with dementia.

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    2. Benay
      October 21, 2014 at 10:33

      The site rules you signed up to prohibit URL user names and product promotion. Probably best if you ask Ros to change your username and delete the unpaid advertisment.

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  3. Jonnie
    October 21, 2014 at 07:36

    Right before it gets all fistycuffs I'm having a stab in being impartial, especially as one of my chaps was against PB in the week and won the listing at the very reasonable 'pay on completion ' fee of 1.8% against their upfront thing. sensible customer too! followed our advice on price etc. Now, there are many cases of customers setting their own price with real estate agents too, the real skill comes in managing them through the process including their price expectations, of course if you'd lifted 600 quid off them up front you probably wouldn't be too fussed about this – Jonnie

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  4. Living in the past
    October 21, 2014 at 08:05

    Jonnie, as a mere bystander, I find your comments laughable.. What exactly is it that you feel that you provide a customer that adds value to the process over, for example, a company like Purplebricks?

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    1. RealAgent
      October 21, 2014 at 08:32

      Im sure Jonnie can answer for himself but shouldn't that question be: what can PurpleBricks offer a customer more than his company?. Can they for instance quote three houses they've seen internally locally as a comparison when setting the price, no. Can they offer the property maximum local market and portal advertising when marketing, no. Can they call upon a database of registered buyers looking in that exact location, no. Both of these ensure the client gets the best price. Further, do they have the manpower to phone round on a house that doesn't sell straight away urging someone round to look at it. Do they have the motivation to get the best price for the seller, no. Do they need to assist the seller in finding a property in order to complete the chain and get paid, no. So as I said the question is really: What do Purplebricks do other than simply take money up front for placing a property on the internet?

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      1. smile please
        October 21, 2014 at 08:37

        Ahhhhh yes but they save thousands 😉 – point well made myself and my staff are well versed in the pitfalls of online agents. It's about educating the public and if any agent is having problems against online agents add the above into your pitch.

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  5. Benay
    October 21, 2014 at 08:53

    After the EAT Autumn of 2013 I am surprised you are surprised that now somewhat run down/ scope for improvement Ms Beeny managed to cobble together a Channel 4 programme to deliver stereotype Agent bashing and attempt to apply defibrillator paddles to her own failure to change the industry.

    Making stuff up and publishing it either on the internet or the telly is the trademark of the passive intermediary end of the industry, let them get on with it- the sort of people they are broadcasting to don't have property to sell!

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  6. MA machine
    October 21, 2014 at 09:00

    It seems as if most of Purplebricks listings are now joint/multi listings, my guess is that one of the key functions of the traditional agent is to advise the Vendor to be realistic about price. Vendors might list with PB at a high price, but then face a choice between lowering the price, or trying a 'real' agent. Naturally they don't want to lower the price, hence all the joint listings. What do you think?

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    1. wilko
      October 21, 2014 at 11:32

      All the instructions my branches have obtained from online agencies have been from disgruntled sellers who have not sold. On every occasion we have had to allow them "sole agency" rates but allowed them to continue advertise with their online agent(we have the board) – as they still feel, having paid a listing fee upfront, that they may "strike it lucky" and get a viewer/offer from them. As time goes on the 50% or so of sellers who don't sell through online agents are going to be giving them bad reviews online etc and this, along with the appalling marketing photos that you can see online with the online agents at present will lead to the public avoiding them , in their current form.

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      1. Shaun77
        October 21, 2014 at 12:43

        You should really avoid joint marketing with an online agent. I once had a buyer door knock the vendor after viewing through us offering to make his offer through the OA if the seller shared their saving on my fee by reducing their price a little.
        I'm sure this isn't the first time its happened.

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        1. wilko
          October 21, 2014 at 14:32

          Good point Shaun77, always a possibility, and something to watch out for…..I'm prepared to risk it though as, to date, owners that have been disappointed with their upfont online agent have seen an immediate change in their marketing and seem really grateful they went on with a traditional agent.

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  7. gbh11
    October 21, 2014 at 09:30

    It's all very well selling a house that is in pristine condition, that could well sell its self. However, the online agents will have no chance when it comes to those run down, poorly presented, stuck in the 70's properties. Ones that require a bit more pushing than (in the words of online supporters) "just sticking it on Rightmove"

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    1. nevets61
      October 21, 2014 at 09:41

      Did anyone hear about sales progression ???

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      1. Paul H
        October 21, 2014 at 10:01

        A very good point indeed. It will be interesting to see if any of the back office work is shown during this series.

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  8. wilko
    October 21, 2014 at 09:51

    "Will sellers be persuaded to go online route after Sarah Beeny programme?"…..No, in the short, medium, and long term – unless the national online agencies tackle their shocking property marketing photos and blasé approach to the smaller, important details of agency, which at present they feel is unnecessary.

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    1. Trevor Gillham
      October 21, 2014 at 11:14

      You say that Wilko but some of my local agents photos are a joke, i've seen quite a few online agents photos and they have been of a high standard.

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      1. wilko
        October 21, 2014 at 11:41

        It doesn't matter whether it is an online or high street agent that takes terrible marketing photos…..same outcome for both….failure. Marketing anything requires "marketing" – simple as. Look at PB photos, tepilo photos, or search any area (especially Manchester) on easyproperty, and you will see what I mean. These photos are, on the whole, appalling. Many local agents take poor photos, but not in the same league as the easyproperty site when you search Manchester….honestly…..please, please take a look and tell me honestly where I can find a high street agent with photos as poor as that!!

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        1. Trevor Gillham
          October 21, 2014 at 14:43

          Yeah I saw some easy ones and they looked like they were taken with the 1st ever camera phone.

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  9. surreyagent
    October 21, 2014 at 10:42

    no mention of the word 'disrupt' yet. gutted………….

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  10. JungleProperty
    October 21, 2014 at 10:53

    I thought the subject matter was weak – was this another 'how to prepare your property/makeover for sale' prog or was it 'how to market your property' prog or a weak mix of the two. A few points I noticed:
    The valuations provided by the traditional estate agents and references throughout the prog were pre de-clutter/redecoration so was that a fair comparison
    Every verbal mention of the fees charged included the VAT for the traditional agent but did not include the VAT for the online agent
    Finally how much do you value your time? The Notts couple did 29? viewings, add to this the time walking the streets and Internet valuing the property, the time compiling and editing/uploading photos and written particulars etc. and they value themselves at something below the minimum wage – haven’t they got a life to get on with?
    29 viewings seems a lot, would a traditional agent have taken this many viewings to sell the property? Who knows.
    Sarah made a number of references to 'if you do use an online agent you do have to think about preparing your property for the viewings' don't you have to do that with a traditional agent anyway or would you just leave last night’s take-away for the agent to clear up?

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  11. Ric
    October 21, 2014 at 11:17

    I was torn between watching two good comedies last night on TV and opted for the West Brom -v- Man U show….. such a laugh! I hope I did not miss too much on Channel 4.

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  12. MinnieMouse
    October 21, 2014 at 11:42

    Yawn – everyday is the same for you TA. If the the online models are so poor why worry about them so much??? Oh and how many of you booked 22 valuations today???

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    1. RealAgent
      October 21, 2014 at 12:09

      Oh goodness what a naive boast. Most agents reading that comment would only need to book perhaps 4 at best to make more money and in London perhaps just 2! ……I think perhaps you are better off debating on EAT. Oh hang on, I think I am likely to have just started a "how can estate agents justify making money" debate.

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    2. Jonnie
      October 21, 2014 at 13:11

      Don't starting yawning yet, you've only been posting here for a day or two madam, come on give us a proper post………22 valuations in one morning eh? Clever Minie mouse, that's 40 booked a day, let's say you win, what? Half of them, 20 listings a day, let's work on a 5 day week so 100 listings a month – you are very special indeed, 600 quid upfront 60 grand a month, it's flattering you are so bored with us already, I'm surprised you have the time to grace us with your presence – Jonnie

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      1. MinnieMouse
        October 21, 2014 at 13:53

        Oh I have the time as they just flood right in with a 87% conversion rate. I dont charge upfront.. As I have stated previously, just because I believe in change it does not mean I work online. It is yawn worthy, you are a group of grown ups who are so concerned about other people's business, maybe concentrate on your own models and let the public choose which way they CHOOSE to go !

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        1. RealAgent
          October 21, 2014 at 15:00

          I take it from your comment about grown ups that you are not one yet, gosh its 3.00pm must be nap time surely!?!

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        2. Jonnie
          October 21, 2014 at 15:15

          Sorry miniemouse 40 valuations a day, 87% conversion is 35 listings a day, 5 day week is 175 listings a week, 4 week month is 700 is 8400 a year…..clever girl, I'm sure you're not telling porkies either and I'm sure everyone will agree on that won't they. On your uncontrollable yawning thing, little cross right hand corner of the screen, click it, it will solve your problem love – Jonnie

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          1. MinnieMouse
            October 22, 2014 at 08:23

            Play nicely Jonnie.. Make your clients proud!

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    3. wilko
      October 21, 2014 at 14:37

      "If the the online models are so poor why worry about them so much???"…Because we CARE!!! about the industry… something you clearly don't ….making posts like this!!

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      1. PeeBee
        October 21, 2014 at 18:06

        wilko – there is substantial evidence here on EYE to show that you and I don't tend to agree much. In fact, we usually stand toe to toe on most discussions. Not now. I am proud to stand side by side with you on this occasion. I'll be your wingman, Maverick… ;o)

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  13. RealAgent
    October 21, 2014 at 11:56

    For me, all this programme did was outline the very obvious point that in a good market, with lots of buyers around, online only agents, who are just going to place a sellers property on the internet, have a chance at finding a buyer. Those said firms of course want to make out they have the trappings of real estate agents as they wish to attract customers, but the bottom line is the only thing they do to promote a sale is pop the property on the portals. However in going down that route it is very similar to having £50K in your hand and either going to an investment broker or taking a punt at the roulette table. Neither have a guaranteed outcome but one has far worse odds. So in this context, some sellers may achieve a sale of their property for less commission but statistically 62% of them (in the more buoyant south of england market) won't attract an offer at all. Of the 38% that do, few of them will know whether the price they achieved could have been much better with a comprehensive, market specific, selling process. Further, a number of those will need far more active involvement through to completion, which they simply won't get. It remains a fact that at present, despite the massive advertising we are seeing for some of the bigger online only players, only 2% of house sellers are choosing to go this way, so the real horror stories of online only agencies with: sellers let down, paid over money for nothing, undersold or just simply badly advised, are yet to appear. Lets see if Sarah will ever make a programme about that!

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  14. Woodentop
    October 21, 2014 at 12:48

    All this article seems to have achieved is show up those that have no idea of what being an estate agent is and the service they can and do provide, not just the fee being charged and overheads it covers. Pay peanuts and you will not get an estate agents service, just advertising which in general is reactive marketing of the lowest kind and fails most of the legal requirements of an estate agent. If you want a service there is no such thing as a free meal in business!

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  15. PeeBee
    October 21, 2014 at 13:56

    So… Mr/Mrs/Other H********e above states that the company "…provided an in depth valuation which proved very succesful in the case of the Watson's Nottingham Property." Champion – I'm all for that. Do it every day, actually. And I back it up with 36 years of LOCAL knowledge and experience. H********e's offering, however, apparently goes along THESE lines (under the heading of "What's your property worth?" and a compelling arrow emblazoned with "Expert valuation guidance FREE" – and the typical "Get valuation" button):

    "Proud to deliver professional valuation guidance.
    Whilst some agents might over-value to gain business, or under-value to Sell / Let your property quickly, H********e does neither. The valuation is part of our service and not just a tool for gaining business. An Estate Agent does not dictate a property’s value, the market does.

    To be sure you don’t fall for bogus valuations make sure you get at least 2 or 3 opinions to be sure you are not being pushed one way or the other, otherwise it will only waste your time (over-valued) or money (under-valued).

    Our valuations consist of analysis of Land registry data, local house price movements, recent transactions and archived (failed) transactions. We take all of this into account as well as square footage, layout, work undertaken, condition, build type and plot size."

    You are then invited to enter your and your property details. What do they want to know, in order to provide you, apparently instantaneously and without even stepping into the STREET, never mind over the thresh…? "No of ROOMS". "YOUR Estimated Valuation". "Similar property price nearby". "Please provide as much information as you can below" (…feel free to upload pics at this point. ANY pics will do, I reckon – nothing actually states categorically that they have to be of the subject property…) And finally "Any recent works carried out?" and the real clincher – the one which will no doubt decide for once and for all the TRUE "value" of any property…"Comments…". Now as far as I can see, THAT is the process that results in a "valuation" being produced. Please, H*******e, convince me and the rest of the world that I am wrong – and you're not simply billshutting like a true champion…

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    1. RealAgent
      October 21, 2014 at 15:02

      Oh how I chuckled.

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  16. Robin Bruce
    October 21, 2014 at 16:21

    I knew this would light a fire! But surely it's time that agents began to compete on service and value added rather than fees? We read agents' websites day-in day-out and how often do we see case histories explaining how the agent's professional advice saved a sale from falling through? Where are the tales of how many times personal knowledge of a legal adviser or mortgage source has helped their client? They're like hen's teeth. Agents need to give prospective clients more reasons to choose them over the alternatives.

    BTW, I am surprised Channel 4 did not give a conventional agency some sort of right-of-reply, if only in the interests of professional balanced journalism. I was horrified that the poor deluded woman with the '£400k' cottage was allowed to continue on her road to ruin unadvised.

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    1. smile please
      October 21, 2014 at 18:37

      Robin I have been trying to get this through to "the masses" for god knows how long! I had all my branding, websites and staff ethos changed to reflect this. Instead of best fee we boast best service, we are not market leaders on volume but I know for a fact I am more profitable!

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      1. True Agent
        October 22, 2014 at 10:50

        I have read with interest the above post and would like to add following comments:
        I am a high street agent with 35 years experience and welcome all forms of competition whether it be high street or online the vendor has that choice in our democracy.
        However I feel we have missed a few key points on appointing a high street agent/online.
        1. We have abundance of local knowledge key to getting best price and right price in a fast changing market place. This could go against on line agents going to high or too low, both costing the vendor loss or delay in their move.
        2.I am still convinced that buyers like the ability to speak to local agents and physically be able to come in to discuss property they are considering buying, particularly in finer negotiations,
        3. On sales progression if I had a £ for every sale that we had saved via
        negotiating after sale had been agreed I would be a very rich person.
        We also know the local solicitors in the main instructed on sales and purchase, and can talk to them on a completely different level as we know them personally.
        4. Fees everyone talks about high street agents being expensive but in most cases we are still competing against all other agents in each area and negotiating on fees to secure 'the business' so not necessarily as high as 'the media' make out
        5 In a good market with the right property and increasing prices a on line agent may pick up sales from the initial 'through of the dice',
        However we all know that if they are not keeping in touch with the vendors what happens after the first month and beyond. We are regularly reviewing stock after this period to keep the vendor informed on what to do next and viewing feedback that has happened. Making constructive strategy for what they need to do now to get interest, change photos, look at price, alter description, Open Day approach with a continues review process.
        6 Most high street agents do not get paid till they have completed no sale no charge! If we don't sell or loose instruction we have lost material monies in marketing therefore we have a vested interest to perform.
        On line agents of course have there place and are not going away but
        I don't think high street agents need to worry as we are not going away
        either.

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      2. Woodentop
        October 22, 2014 at 10:53

        Spot on and self satisfaction goes a long way to keeping you sane and sleeping at night.

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      3. Robin Bruce
        October 22, 2014 at 15:48

        Hi 'Smile' – thank goodness for agents like you. Visitors to agents' websites are looking for one thing, and one thing only – reasons to contact that agent. One of our clients has stripped everything away from their home page except for a feed of their reviews – and they haven't looked back. The reviews do the job for them. Have a loom at our take on Ms Beeny's programme here: http://www.helphound.info/2014/10/sarah-beeny-and-london-standard-all-in.html

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