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Estate Agents
HENRY78
Posts: 87 Forumite
Quite rightly Estate Agents have appalling reputations and I was wondering what the future holds for one of the most despised industries in the world.
Does anyone agree with me that the high street agency will be a thing of the past within 10 years? and will they be missed by anyone? Think we can all agree that Rightmove/Zoopla are the most powerful players in the property industry in 2016 so what of the traditional estate agent?
Where I live in Hertfordshire the prices have grown considerably however what we are seeing is real slow down in the volume of sales. All of the EA's who trade in the area (around 8) will all quite easily be negotiated down to a 1% fee. Last month only 30 sales went through for the whole of a very large town. Divi this up between the 8 EA's and that's only around 4 sales each. The average price in the area is around £450,000 so that only an income of £13,500 a month. After paying your talentless sales staff, business rates etc. I just cant see how they are making any money on the sales side at a time where house prices are at an all time high.
For me EA's add very little value and the likes of Emoov and Purple Bricks are the future. In fact if Rightmove or Zoopla allowed individuals to use their site to market their property I don't know many people who wouldn't choose to do this themselves and save a few thousand pounds.
I cant see any long term future for the industry. Times have changes and people are much more clued up than what they were.
Maybe I am missing something, but just cannot see what value they add in 2016.
Does anyone agree with me that the high street agency will be a thing of the past within 10 years? and will they be missed by anyone? Think we can all agree that Rightmove/Zoopla are the most powerful players in the property industry in 2016 so what of the traditional estate agent?
Where I live in Hertfordshire the prices have grown considerably however what we are seeing is real slow down in the volume of sales. All of the EA's who trade in the area (around 8) will all quite easily be negotiated down to a 1% fee. Last month only 30 sales went through for the whole of a very large town. Divi this up between the 8 EA's and that's only around 4 sales each. The average price in the area is around £450,000 so that only an income of £13,500 a month. After paying your talentless sales staff, business rates etc. I just cant see how they are making any money on the sales side at a time where house prices are at an all time high.
For me EA's add very little value and the likes of Emoov and Purple Bricks are the future. In fact if Rightmove or Zoopla allowed individuals to use their site to market their property I don't know many people who wouldn't choose to do this themselves and save a few thousand pounds.
I cant see any long term future for the industry. Times have changes and people are much more clued up than what they were.
Maybe I am missing something, but just cannot see what value they add in 2016.
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Comments
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Maybe I am missing something, but just cannot see what value they add in 2016.
The fact RM etc are not agents but simply a marketing tool for a start.
Whether most agents have ever offered much value is debatable.
But if comments on here are anything to go by their online companions are no better or worse.
There's nothing stopping an individual selling privately.0 -
I never said RM were an agent. What I meant is they are the biggest component when marketing your property. If vendors could access them directly then most would.
Online companies such as purple bricks do not charge any where near what a high street EA does and pretty much do the same job. Its not rocket science.
From what I can see people are still using EA's only because that is what we have always done and people do not generally like change and the fear of the unknown. This will change in time. High street EA's will be finished within 10 years IMO.0 -
High street EA's will be finished within 10 years IMO.
They might be if the market gets more regulated. All these AST, non-binding agreements, etc make EA thrive because there's a need for many middle men esp when the seller is in a position of strength!
After living in many countries I can tell you that in the UK, EA are the worst. Maybe they're great if you're a seller/landlord. If you rent or buy, always an awful experience!EU expat working in London0 -
Online companies such as purple bricks do not charge any where near what a high street EA does and pretty much do the same job. Its not rocket science.
From what I can see people are still using EA's only because that is what we have always done and people do not generally like change and the fear of the unknown. This will change in time. High street EA's will be finished within 10 years IMO.
Maybe you're right. But don't underestimate the value some people put on face to face interaction.
I do most of my retail shopping online because it's easy and for most items cheaper. But when i do go to the city centre the shopping centres are still packed....0 -
I do most of my retail shopping online because it's easy and for most items cheaper. But when i do go to the city centre the shopping centres are still packed....
It is!!! But are they buying? I believe trend is that online is growing whilst traditional shops are declining.
As a consumer (buying or renting) I would want to be treated nicely/fairly and EA often do not do that.EU expat working in London0 -
OP there is always a place for a good estate agent and I know these do exist. Even if it goes further and further online, there will always need to be a keyholder to show someone around, so they'll always exist.
A friend of mine runs an EA in Hertfordshire as it happens, (south west corner of the county), and by being honest and friendly they are very popular. It also helps to have a letting business and not just rely on sales.Pants0 -
Shopping for items is completely different to selling or buying a house. I agree there will always be a high street presence as people still like to feel and touch an item and as crazy as it is IMO people do enjoy going for a day out to the shops in big city centres and make a day of it. (My idea of hell, but that's just me, each to their own!)
As for face to face contact with an EA. Its more like dealing with your bank. Its not a pleasant experience more of a necessity. Most of us do every day transactions online now.0 -
OP there is always a place for a good estate agent and I know these do exist. Even if it goes further and further online, there will always need to be a keyholder to show someone around, so they'll always exist.
A friend of mine runs an EA in Hertfordshire as it happens, (south west corner of the county), and by being honest and friendly they are very popular. It also helps to have a letting business and not just rely on sales.
Im sure there are good Estate Agents but to be honest in my experience they are few and far between. Most are dishonest and immoral. There is a reason they are absolutely despised in this country. I struggle to see the value of approx a £5000 fee to have someone show a perspective buyer around. Most people would do that themselves.0 -
I would agree with the OP.
I am a landlord and don't user High St agents any longer to find tenants. I prefer to take my own photos and get someone in to do the floorplan plus EPC for the fraction of the cost of a High St parasite.
Yes, it means I have to show prospective tenants around but that's no hardship and, as long as the property is in a decent condition and location, it will sell itself.
The days of the High St EA are numbered, IMHO.0 -
From my experience, Estate Agency is certainly not declining as indicated. I think the market has grown and online agencies have only taken a small section of that growth.
I think there does need to be more regulation of the Estate Agency industry - and more consumers need to be aware of the benefits of using a member of a regulated organisation ie RICS.0
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