Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • HaydenB
    • By HaydenB 11th Apr 18, 4:54 PM
    • 139Posts
    • 39Thanks
    HaydenB
    New online estate agents
    • #1
    • 11th Apr 18, 4:54 PM
    New online estate agents 11th Apr 18 at 4:54 PM
    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?
Page 1
    • hazyjo
    • By hazyjo 11th Apr 18, 4:59 PM
    • 10,777 Posts
    • 14,142 Thanks
    hazyjo
    • #2
    • 11th Apr 18, 4:59 PM
    • #2
    • 11th Apr 18, 4:59 PM
    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...
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Annie35
    • By Annie35 11th Apr 18, 5:17 PM
    • 227 Posts
    • 189 Thanks
    Annie35
    • #3
    • 11th Apr 18, 5:17 PM
    • #3
    • 11th Apr 18, 5:17 PM
    Your problems going to be your right move bill, can I pm you?
    • Thrugelmir
    • By Thrugelmir 11th Apr 18, 6:09 PM
    • 59,543 Posts
    • 52,839 Thanks
    Thrugelmir
    • #4
    • 11th Apr 18, 6:09 PM
    • #4
    • 11th Apr 18, 6:09 PM

    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)?
    Originally posted by HaydenB
    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 ?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • HaydenB
    • By HaydenB 12th Apr 18, 8:04 AM
    • 139 Posts
    • 39 Thanks
    HaydenB
    • #5
    • 12th Apr 18, 8:04 AM
    • #5
    • 12th Apr 18, 8:04 AM
    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
    • By AnotherJoe 12th Apr 18, 8:25 AM
    • 10,166 Posts
    • 11,443 Thanks
    AnotherJoe
    • #6
    • 12th Apr 18, 8:25 AM
    • #6
    • 12th Apr 18, 8:25 AM
    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 ?
    Last edited by AnotherJoe; 12-04-2018 at 8:27 AM.
    • googler
    • By googler 12th Apr 18, 10:30 AM
    • 14,814 Posts
    • 9,724 Thanks
    googler
    • #7
    • 12th Apr 18, 10:30 AM
    • #7
    • 12th Apr 18, 10:30 AM
    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
    • By HaydenB 12th Apr 18, 10:51 AM
    • 139 Posts
    • 39 Thanks
    HaydenB
    • #8
    • 12th Apr 18, 10:51 AM
    • #8
    • 12th Apr 18, 10:51 AM
    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
    • By AnotherJoe 12th Apr 18, 10:56 AM
    • 10,166 Posts
    • 11,443 Thanks
    AnotherJoe
    • #9
    • 12th Apr 18, 10:56 AM
    • #9
    • 12th Apr 18, 10:56 AM
    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
    • By HaydenB 12th Apr 18, 12:31 PM
    • 139 Posts
    • 39 Thanks
    HaydenB
    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
    • By Surrey_EA 12th Apr 18, 12:47 PM
    • 1,615 Posts
    • 2,113 Thanks
    Surrey_EA
    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.
    Originally posted by HaydenB
    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.
    • HaydenB
    • By HaydenB 12th Apr 18, 12:50 PM
    • 139 Posts
    • 39 Thanks
    HaydenB
    Purplebricks - 849. Emoov - 795.
    • Surrey_EA
    • By Surrey_EA 12th Apr 18, 12:51 PM
    • 1,615 Posts
    • 2,113 Thanks
    Surrey_EA
    Purplebricks - 849. Emoov - 795.
    Originally posted by HaydenB
    Yet they both still lose money.
    • googler
    • By googler 12th Apr 18, 12:58 PM
    • 14,814 Posts
    • 9,724 Thanks
    googler
    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.
    Originally posted by HaydenB
    All the more reason not to hire you, then. You're not looking to treat it as a business.
    • HaydenB
    • By HaydenB 12th Apr 18, 1:02 PM
    • 139 Posts
    • 39 Thanks
    HaydenB
    Where did I say we would not be treating it as a business?
    • NineDeuce
    • By NineDeuce 12th Apr 18, 1:10 PM
    • 845 Posts
    • 781 Thanks
    NineDeuce
    We have recently put our house on the market with Doorsteps, which charge as little as 99. This is great but there has been an obvious downside

    In 2 months the interest in our property has been poor and so we are now moving to a high street estate agent and already the interest has picked up.

    The problem with any new agent is that they are not really able to easily build a big buyer base. Doorsteps have 2 properties of similar nature anywhere near where we live, so it is not as if they can generate a mass of buyers looking for a property in the area and they do not locally engage in the market.

    I knew this was a possibility beforehand but at 99 it is low risk, so if I were to sell another property I would probably do the same again, but that's just me. I always like to go for the cheaper option when possible.

    And also, I resent having to use a high street agent as I do not think they justify their fee so I would rather see a move towards cheaper options....
    Last edited by NineDeuce; 12-04-2018 at 1:13 PM.
    • Surrey_EA
    • By Surrey_EA 12th Apr 18, 1:20 PM
    • 1,615 Posts
    • 2,113 Thanks
    Surrey_EA

    The problem with any new agent is that they are not really able to easily build a big buyer base.
    Originally posted by NineDeuce
    They're not interested in building a buyer database. They already have their money, it makes no difference whether they have a list of buyers or not.

    For 99 I cannot grasp how it can be a profitable business. My uneducated guess is that they're offering a low entry price in order to build the number of listings up quickly and then hope they can sell the company on to somebody who doesn't look too closely at the figures.
    • NineDeuce
    • By NineDeuce 12th Apr 18, 1:41 PM
    • 845 Posts
    • 781 Thanks
    NineDeuce
    They're not interested in building a buyer database. They already have their money, it makes no difference whether they have a list of buyers or not.

    For 99 I cannot grasp how it can be a profitable business. My uneducated guess is that they're offering a low entry price in order to build the number of listings up quickly and then hope they can sell the company on to somebody who doesn't look too closely at the figures.
    Originally posted by Surrey_EA
    What?!

    What good is an estate agent if it cant attract buyers? That would be literally as useful as an underwater hairdryer...

    If it is known widespread that online agents cant sell, then people wont use them...

    One of the most absurd comments I have heard....
    • hazyjo
    • By hazyjo 12th Apr 18, 1:50 PM
    • 10,777 Posts
    • 14,142 Thanks
    hazyjo
    What?!

    What good is an estate agent if it cant attract buyers? That would be literally as useful as an underwater hairdryer...

    If it is known widespread that online agents cant sell, then people wont use them...

    One of the most absurd comments I have heard....
    Originally posted by NineDeuce
    Upfront fee. They get paid whether they sell or not. Short term large profit for little work - then sell on the business. Made sense to me. Many people will just sign up with a mega cheap one saying exactly the same thing as you did, usually without caring much about reviews. 99 x however many people sign up. That's probably a lot of dosh over say 6 months or a year...
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Surrey_EA
    • By Surrey_EA 12th Apr 18, 1:53 PM
    • 1,615 Posts
    • 2,113 Thanks
    Surrey_EA
    One of the most absurd comments I have heard....
    Originally posted by NineDeuce
    That is because you have not understood the market these companies are in. People like Doorsteps are not trying to be estate agents and 'sell' properties, they are a cheap listing service enabling the owner to sell their own home themselves.

    They are offering a different type of service, with a different pricing structure.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

459Posts Today

5,337Users online

Martin's Twitter
  • Ta ta... for now. This August, as I try and do every few yrs, I'm lucky enough to be taking a sabbatical. No work,? https://t.co/Xx4R3eLhFG

  • RT @lethalbrignull: @MartinSLewis I've been sitting here for a good while trying to decide my answer to this, feeling grateful for living i?

  • Early days but currently it's exactly 50 50 in liberality v democracy, with younger people more liberal, older more? https://t.co/YwJr4izuIj

  • Follow Martin