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New online estate agents

HaydenB
HaydenB Posts: 155 Forumite
First Anniversary First Post Combo Breaker
in House buying, renting & selling
I have used this forum in the past for advice to help get myself out of debt problems and thanks to advice on here and a debt management plan with PayPlan my past problems are now well behind me.

I am now looking at setting up an online estate agents as a part time (for me) venture along with my wife and friend. We have no visions of grandeur and just want to provide a reliable service and earn a bit of spending money.

We are working on our costs and believe, by operating online and limiting our overheads, we can undercut our competition.

I am just wondering what peoples thoughts would be if they were able to list their property with photos, flooplan and an EPC for £299 on the main sites (Rightmove, Zoopla, etc)?

Also, has anyone else set up on Estate Agents?
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Comments

  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    There are even cheaper ones so I'd use one of those more established ones over a new one. Too many flooding the market now anyway...
    2023 wins: *must start comping again!*
  • Annie35
    Annie35 Posts: 385 Forumite
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    Your problems going to be your right move bill, can I pm you?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    HaydenB wrote: »

    I am just wondering what peoples thoughts would be if they were able to list their property with photos, flooplan and an EPC for £299 on the main sites (Rightmove, Zoopla, etc)?

    What are you offering that other agents aren't. Price isn't everything. Ultimately people want to sell their properties in a prompt fashion. What's your experience of property valuation, negotiating etc ?
  • HaydenB
    HaydenB Posts: 155 Forumite
    First Anniversary First Post Combo Breaker
    We probably dont have a specific unique selling point but just want to offer 'sellers' the choice to choose what package they want whilst giving them a friendly, professional and relaxed service. Estate Agents have a particular style which can often be a turn off. We just want to offer a typical Yorkshire service - cheap and cheerful without the associated sales garble.

    Ive worked most my life in property although not specifically sales, valuation, etc. I do negotiations on a daily basis but dont for one minute believe I have the experience or skills YET, but will work hard to become competent in this regard before going ahead.

    Annie, I have replied to your PM.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 12 April 2018 at 8:27AM
    Since your competition would be other online EAs, is £300 really undercutting them?
    And by how much for a company that no ones heard of? Why would they use you rather than an established online EA? If you don't have a USP or any sales "garble" why would anyone sign up with you to sell their hundred thousand pound plus properties ?
    So you'd need to advertise, that costs.
    What do RM and Zoopla charge for adverts?
    Then there's the cost of doing the EPC.

    Where's all the money coming from to fund this ? Your friend ?

    Seems to me you'd likely be doing it at a loss unless you value your time at less than you could get working in MacDonalds.

    Have you considered getting employment with one of your would be competitors first to see how it works ?
  • googler
    googler Posts: 16,103 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    I think the days of the purely-online EA are numbered. Look at the trend with Purple Bricks and other 'hybrid' agencies. They operate a central office, but are represented in the field by their Local Property Experts, some of whom are now building their share of the business into the equivalent of a chain EA with high-street offices. They're assembling into teams and hiring admin staff to operate offices.

    You want to do this online from Yorkshire. Why would someone, say, in Peterhead, Inverness or Lochinver want to list with you? What would you offer that their local EA would not? You wouldn't have any idea of local market conditions, you wouldn't know anything about styles of property, which are selling quickly, which aren't selling, and you would only be a voice at the end of the phone, or a person at a PC, for the owner.
  • HaydenB
    HaydenB Posts: 155 Forumite
    First Anniversary First Post Combo Breaker
    I sold my house through an online estate agent who are based down in London. They were cheap and offered everything that I wanted. I fully understood the local market conditions and at around what value to place the house for sale at. I didnt need them to 'sell' my house. I needed them to take the photos, do a floorplan and an EPC; advertise my house and let me know when someone wanted to view it and when an offer was received. They were excellent and did exactly what I wanted.

    This is exactly what I want to offer. No frills. Offer advice where clients want it but ensure they are always in the driving seat.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    So you mean, just like all the other online EAs ......... apart from the massive marketing campaigns making sure people have heard of them ?

    Whats your USP again?
  • HaydenB
    HaydenB Posts: 155 Forumite
    First Anniversary First Post Combo Breaker
    I dont have one. As I said in my earlier posts, we have no USP and have no visions of grandeur or immediate rush to generate profit or medium-term desire to make massive profit. There are no financial pressures to ensure it is a success but we are willing to give it a go, test the market and see if we can make it work.
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    HaydenB wrote: »
    I dont have one. As I said in my earlier posts, we have no USP and have no visions of grandeur or immediate rush to generate profit or medium-term desire to make massive profit. There are no financial pressures to ensure it is a success but we are willing to give it a go, test the market and see if we can make it work.

    I'm not sure I'd bother wasting your money setting something like this up.

    Companies like this are only likely to make a profit when dealing with a large volume of transactions. Companies like Purplebricks and emoov have a marketing budget that runs into the millions.
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