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Foxton's Founder Jon Hunt Calls The Market Slump

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Hi,

Well .... not quite. I saw this week that Foxton's founder Jon Hunt has just cashed in a huge (£4m) share dividend in his firm. That is interesting in itself because it is pretty standard to make one big milking of the cash cow at the end of a cycle but, given their high exposure to the US and their business model, that relies on aggressive, low sale commissions and high volume sales, it has been conjectured in the business press as to how Foxton's might cope in a falling market, particularly with a period of sustained, low volumes in the housing market. Here is an article section from the CNN business section for US realtors a few years back, at the height of the boom, that summarises the situation. Perhaps it was quite an astute analysis of the Foxton business model and the housing cycle? Perhaps Jon Hunt is calling the market himself and sees more difficult times ahead in a falling market, cashing in now.

The 2% Solution If you believe Foxtons' omnipresent ads, the discount brokerage will change the way real estate is sold. But can it survive a fast-cooling housing market, 948,000 angry Realtors, and its own hubris?

CNN Business

By Julie Sloane

October 1, 2003

http://money.cnn.com/magazines/fsb/fsb_arc...3/10/01/353423/

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Hilarious - Foxtons' business model in the states is to undercut the local agents (Foxtons charge 2%, most realtors charge 6%).

Meanwhile, in London, the model seems to be to charge the highest commissions (in Putney they charge a non-neg 2.25% + VAT, other agencies are 1.5-2.0% + VAT) but to justify it by overvaluing and claiming they will make you in higher price achieved more than you pay them in extra commissions.

I would be a fan of Foxtons in the UK if they tried to undercut their competitors (I could even forgive them the annoying minis).

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Hi,

Well .... not quite. I saw this week that Foxton's founder Jon Hunt has just cashed in a huge (£4m) share dividend in his firm. That is interesting in itself because it is pretty standard to make one big milking of the cash cow at the end of a cycle but, given their high exposure to the US and their business model, that relies on aggressive, low sale commissions and high volume sales, it has been conjectured in the business press as to how Foxton's might cope in a falling market, particularly with a period of sustained, low volumes in the housing market. Here is an article section from the CNN business section for US realtors a few years back, at the height of the boom, that summarises the situation. Perhaps it was quite an astute analysis of the Foxton business model and the housing cycle? Perhaps Jon Hunt is calling the market himself and sees more difficult times ahead in a falling market, cashing in now.

The 2% Solution If you believe Foxtons' omnipresent ads, the discount brokerage will change the way real estate is sold. But can it survive a fast-cooling housing market, 948,000 angry Realtors, and its own hubris?

CNN Business

By Julie Sloane

October 1, 2003

http://money.cnn.com/magazines/fsb/fsb_arc...3/10/01/353423/

Seems that the Foxton's boss is heeding the advice he should be giving to the sheeple: better get out while you can.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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