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fru-gal

Traditional Estate Agents Plan Ban On Using Zoopla And Rightmove

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http://www.thedrum.com/news/2014/06/09/traditional-estate-agents-plan-ban-using-zoopla-and-rightmove

Traditional estate agents plan ban on using Zoopla and Rightmove

Traditional estate agents are to mount a rear-guard action against digital upstarts such as Rightmove and Zoopla by banning their ‘parasitic’ internet-only rivals from their own new platform, Agents’ Mutual.

Conceived as a means of breaking the duos online stranglehold, the new website will aim to offer High Street estate agents such as Savills, Knight Frank and Chesterton Humberts, their own online shop window when it opens for business in January, according to The Telegraph.

Moreover the competitor platform would save estate agents from having to cough up the rising fees being demanded of them by online agents.

Online estate agents have been making inroads into the property market in recent years thanks to low fixed costs of around £500, compared to the 1 or 2 per cent fee typically levied by a High Street agent.

Ian Springett, chief executive of Agents’ Mutual, said: “This is a bet on the future of High Street-based estate agents. The online option is a bit of a con, only doing 20 per cent of the job a full-service estate agent does but not getting the high prices and therefore what you’re paying might not amount to very much.

“[Online agents] are parasitic and can only exist alongside the portals – it shows the power of the portals have gone too far.”

Agents Mutual is currently under construction but has already signed up 2,350 offices.

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The headline doesn't seem to match the article. Nobody is being banned from using Zoopla and Rightmove. Some high street EAs are setting up a rival portal which online-only EAs won't be allowed to use.

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I wonder why they didn't do it before (not that I want high street estate agents to succeed)?

Perhaps Zoopla and Rightmove will be for online only estate agents like Tepilo, Emoov etc. but if the traditional estate agents are doing it all online too, then they will have to justify their charges when their competitors are charging 1/10th of their price and lets face it, most of the big high street estate agents don't really earn their keep, they've just had a monopoly until now.

Edited by fru-gal

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This doesn't make any sense at all. The online agents will continue using RM and Zoopla, people will continue giving them business as they are cheaper. 'Traditional EAs' bear all of the costs of setting up a less popular online presence.

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Different take on the new upstart wannabe here. For what it's worth.

One thing noone mentions in that thread is the chunk of the zoopla flotation that the agents themselves bought, giving them a direct interest in it. They might also be rightmove shareholders: I've no idea.

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Has anybody set up a price comparison website for sellers choosing which estate agent to instruct? I bet they'd love that.

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Has anybody set up a price comparison website for sellers choosing which estate agent to instruct? I bet they'd love that.

Where would you get the data? I don't expect most agents would give you that kind of price list, just an individual quote for the house you're discussing at the time.

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Lol so it's the online only routing through portals That annoys them. Imagine there might be some venture capital or maybe private equity backers behind the online only. I remember when google and tesco tried to set something up but maybe that was a portal rather than routing through a portal.

Anyway I am not sure how investing in a platform that will only probably only take business from the founding investors and turns away sales. As others say seems a tad nuts.

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Lol so it's the online only routing through portals That annoys them. Imagine there might be some venture capital or maybe private equity backers behind the online only. I remember when google and tesco tried to set something up but maybe that was a portal rather than routing through a portal.

Anyway I am not sure how investing in a platform that will only probably only take business from the founding investors and turns away sales. As others say seems a tad nuts.

Google and Tesco feature in the thread I referenced. And venture capital backers.

Who on HPC would switch from rightmove or zoopla to a new platform controlled entirely by those nice cuddly agents?

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That Sky advert had to upset them....

A Sky TV advert by an online agent contrasts the experiences of a seller who used a high street agent and one who used eMoov.
One agent said the advert was an example of high-street agent bashing, and said it was an issue for the two bit portals – both of whom feature strongly in the advert.
He said it took the portal debate “to the next level”.
In the commercial, shown on Sky, both the sellers are seen to have apparently identical services. Both had pictures and floorplans, had their properties on Rightmove and Zoopla, and both sold their homes.
However, says the advert, Fred paid £3,500 to his local high street agent and Ted paid eMoov £474.
“Sorry, Fred,” the advert ends.
With Rightmove being mentioned in the advert and the Zoopla and PrimeLocation logos flashed up, we asked both Zoopla and Rightmove if they would like to comment.
Rightmove declined, saying it never commented on individual members’ marketing strategies.
The advert was circulated yesterday to Agents’ Mutual members, with chief executive Ian Springett saying: “Agents’ Mutual is committed to strengthening the competitive collective position of full-service, office-based estate and letting agents.
“That’s why we won’t be accepting membership from online-only agents who depend almost entirely on the Rightmove / Zoopla duopoly to deliver their part-service, low-budget services.”
He went on: “Online agents currently operate at the fringes of the broader market.
“The fact remains that over 90% of vendors and landlords rely on the professionalism and local knowledge of traditional firms to achieve the highest price and therefore to provide the best overall value.”
Edited by Democorruptcy

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What i can never understand is why Rightmove is still allowed to refuse individual sellers to advertise their property on RM, surely there this is some kind of trade law against this.

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What i can never understand is why Rightmove is still allowed to refuse individual sellers to advertise their property on RM, surely there this is some kind of trade law against this.

I think that's the same reason that deterred Google and Tesco.

We have some laws in this country about property descriptions being fair and accurate. A property website displaying some owner's rose-tinted and demonstrably inaccurate details could be liable. Repeat a few times and they'd be wiped out.

If you accept an advert from a bona-fide agent, then you've basically shifted the burden of compliance. Due diligence is outsourced to someone whose business it is. That's the model that works for ZPLA and RMV.

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I think there could be some mileage in the idea of a system where buyers review the property after viewing it.

So the website is not publishing the owners description of the property but the buyers. So in a sense, the buyers collectively arrive at an assessment of the property's worth.

In a similar way to how on Ebay, the trustworthiness of the member is discovered, so the value of the property might become established.

In practice I don't think it would work at all because buyers are in competition with each other and so it will always be in their interest to talk a property down.

But I think the thought might have some value in provoking better ideas.

One thing is for sure, there needs to be some balance in supporting the interests of buyers as well as sellers. EAs just don't seem to think of buyers as customers. Technically they are not, but role of the EA is to bring sellers and buyers together, so they are providing a service to both, that service should have value to both.

Edited by Digsby

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The more I think about it, the more I wonder whether one of our fundamental issues is that only the sellers interests are professionally represented.

Of course an EA has to make a sale to make money and if they have only one buyer who will not offer the asking price then the EA will advise the seller to sell.

But their business model means they earn more the higher the price, they have every reason to entice buyers in and bid against each other, every reason to overvalue the property, and no reason to help a buyer get the best price.

In those circumstances, you can understand how excessive price inflation might come about.

If EAs (perhaps a different type) also provided a service to buyers where their fee structure worked so it was in their interests to help the buyer get good value for money, then both party's interests would be represented professionally and impartially.

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Has anybody set up a price comparison website for sellers choosing which estate agent to instruct? I bet they'd love that.

What would you call it ? ...

Gel Compare

Monkey Shaving Supermarket

CON-Fused.com

Mini Sharing Slimeball market

U-Charlatan.com

Edited by Saving For a Space Ship

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What would you call it ? ...

Gel Compare

Monkey Shaving Supermarket

CON-Fused.com

Mini Sharing Slimeball market

U-Charlatan.com

:lol:

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This new site from the agents sounds like a strategic abortion.

If I'm a buyer how am I to know if an agent in my area lists on it? If my searches cover zoopla and RM then I already know I need not check this site.

As a punter I need a clear incentive to check a third site. Are agents going to post on AM first or exclusively? Only if they have a heavy sellers market and an exclusive on the property so can afford to. If this was all agents by geography or by property type then it might be able to squeeze a niche but to try and force into the market with two established players seems unlikely.

Also "agents mutual" is completely off putting and reveals all the thinking behind this site. This is a scheme by agents to collectively assume more control of the market and it shouts it in its own name. As a buyer, already wary of agents I know are trying to elicit the highest possible price from me, I'm supposed to skip happily to their website?

This is some arrogant fat-tie wearing halfwits having an idea over too many beers one lunch time and a project lead / product manager who needs a punt in the gonads for not taking this behind the wood shed in month one.

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