Sell your house at Tesco for £200!!

sunshinetours

How much do Rightnove charge for a listing to agents? Rough range i appreciate it depends on number of details listed etc?

Strugggling to believe that an agency can afford to run its core business at £499 per property

I mentioned in my post above that they will have other income streams and as you correctly say they will need to adapt as all businesses do but the base at say £499 seems to be set to low - especially here in the South East

adg1

trolleymate wrote: »

By the way your figures in #134 are flawed to say the least.

I don't get how they are flawed?

Surely, to be able to profit, the fees must be above the lowest possible mark at which the EA breaks even, as an average of ALL fees, not just the lower value properties, and not just the higher value properties. Unless the direct themselves solely at a section of the market you have to take this into account too. Think of other costs - floorplans are larger, EPCs, HIPS take longer for bigger houses, there will be more photos. I would think that rightmove has a base package with a couple of photos (not sure on this MissMotivation...?) but you'd have to pay more for an increased nunber with your listing.

Given the costs (that you freely admit to knowing nothing about) how can you justify stating that, at £499, a profit can be made? You don't know.

Also, I put this scenario to you Trolleymate:

I list my house at £499 (to use the figure being bandied around so far).

I then have 3 options, I either pay upfront totally, pay upfront and the remainder on completion (or immediately if I list with another EA), or pay a percentage of the achieved sale price, as a previous poster has stated. It strikes me that the EA who gets most upfront or all upfront will spend less time trying to sell my house as he know he has been paid already and his costs are covered (as long as they are under the figure he has been paid). This is obviously in contradiction to your points earlier. If I know I'm guaranteed to be paid for something whatever the outcome I will exert less effort on it. If I need to work hard at something to get paid and be able to cover my outlays, I will work far harder to ensure it happens or I'm out of pocket!

What if the agent doesn't sell my house? I lose either the total fee or the initial outlay, whereas on the percentage I won't lose anything.

I enlist the services of a percentage EA and I pay nothing if they don't sell my house, save the cost of a HIP if I have employed them to do one for me.

Patr100

jeffmasson wrote: »

at least with a fixed fee ea you know they will try just as hard to sell your place as the high priced places on there books as they still make the same money.

But once they have your fee upfront, without a "no sale no fee" guarantee there is no real incentive for them to make any effort or sell your house at all.

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Patr100

MissMotivation wrote: »

If you had read the reply to your earlier post you would have the answer to this question.

At the risk of repeating myself.....yes SOME fixed fee agents have an upfront fee, like Tesco who take an Instruction Fee.

No that is not the answer to my question. That is an answer to a question I didn't ask. Why are you being so vague and evasive on this issue? I never asked if some asked for an upfront fee. I asked if they work on a "no sale no fee " basis. ? You said " some" -
I suspect most if not all. Would they return any fees paid if after a agreed contractual period they had not sold your house?

As I said, without "no sale no fee" there is no real incentive for them to make any further effort to sell your home. If it sells, it sells, if not, they still keep the money.

-

googler

adg1 wrote: »

Think of other costs - floorplans are larger, EPCs, HIPS take longer for bigger houses, there will be more photos. I would think that rightmove has a base package with a couple of photos but you'd have to pay more for an increased nunber with your listing.

The lower value flats and houses are in town, close to the EA and their office, the higher value cottages, country houses, farms tend to be further away, so the petrol and time cost goes up....?

MarianKendal

Gosh. Asda doing loans, tesco selling houses - what next Morrison's morgages?

There's a reason you have market leaders in niches, and I don't think that Tesco could provide much for £200.

googler

MarianKendal wrote: »

There's a reason you have market leaders in niches, and I don't think that Tesco could provide much for £200.

Well, they're not doing it for £200 - the thread title is somewhat out of date, as Tesco launched recently at a minimum of £999 .... around half of which is payable upfront, and non-refundable in the event of a no-sale.

MissMotivation

Patr100 wrote: »

So fixed fee EAs are paid regardless of whether they sell your house? Yes or no?

Is that not the question you asked??

Patr100 wrote: »

No that is not the answer to my question. That is an answer to a question I didn't ask. Why are you being so vague and evasive on this issue? I never asked if some asked for an upfront fee. I asked if they work on a "no sale no fee " basis. ? You said " some" -
I suspect most if not all. Would they return any fees paid if after a agreed contractual period they had not sold your house?

As I said, without "no sale no fee" there is no real incentive for them to make any further effort to sell your home. If it sells, it sells, if not, they still keep the money.

-

How am I being vague when I answered the question? You asked if they worked on a No Sale No Fee basis and I said that some ask for an upfront fee, therefore, it's not No Sale No Fee.

MissMotivation

adg1 wrote: »

I don't get how they are flawed?

Surely, to be able to profit, the fees must be above the lowest possible mark at which the EA breaks even, as an average of ALL fees, not just the lower value properties, and not just the higher value properties. Unless the direct themselves solely at a section of the market you have to take this into account too. Think of other costs - floorplans are larger, EPCs, HIPS take longer for bigger houses, there will be more photos. I would think that rightmove has a base package with a couple of photos (not sure on this MissMotivation...?) but you'd have to pay more for an increased nunber with your listing.

Given the costs (that you freely admit to knowing nothing about) how can you justify stating that, at £499, a profit can be made? You don't know.

Also, I put this scenario to you Trolleymate:

I list my house at £499 (to use the figure being bandied around so far).

I then have 3 options, I either pay upfront totally, pay upfront and the remainder on completion (or immediately if I list with another EA), or pay a percentage of the achieved sale price, as a previous poster has stated. It strikes me that the EA who gets most upfront or all upfront will spend less time trying to sell my house as he know he has been paid already and his costs are covered (as long as they are under the figure he has been paid). This is obviously in contradiction to your points earlier. If I know I'm guaranteed to be paid for something whatever the outcome I will exert less effort on it. If I need to work hard at something to get paid and be able to cover my outlays, I will work far harder to ensure it happens or I'm out of pocket!

What if the agent doesn't sell my house? I lose either the total fee or the initial outlay, whereas on the percentage I won't lose anything.

I enlist the services of a percentage EA and I pay nothing if they don't sell my house, save the cost of a HIP if I have employed them to do one for me.

Rightmove charge a set fee, doesn't matter how many photos or how many properties we list. It is significantly more than the £180 per month that has been bandied about before.

adg1

googler wrote: »

The lower value flats and houses are in town, close to the EA and their office, the higher value cottages, country houses, farms tend to be further away, so the petrol and time cost goes up....?

Sorry Googler that doesn't seem to match the quote? Might be my mistake though.