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Guardian: Buying A House? That'll Be The Aisle Between The Cat Food And The Beans.

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Guardian: 'Buying a house? That'll be the aisle between the cat food and the beans':

http://money.guardian.co.uk/houseprices/st...1763380,00.html

The supermarkets are increasingly seen as vast, muscle-bound beasts stamping on smaller rivals - but there is always someone less popular. Yesterday Asda announced plans to take on one sector of the high street with an even bigger image problem: estate agents.

The Leeds based grocer, which is part of Wal-Mart, is trialling a discount estate agency service that could eventually see Asda "for sale" boards going up outside homes across the country.

The supermarket is spurning the traditional smooth-operator approach to the business. Instead Asda will offer an internet-based service. It will start in 10 stores in the north-east, but if it proves successful it will be rolled out nationwide within a year.

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Guardian: 'Buying a house? That'll be the aisle between the cat food and the beans':

http://money.guardian.co.uk/houseprices/st...1763380,00.html

Anyone who shops around uses some common sense can find a half decent estate agent.

Anyone who thinks Asda will offer a better service is wrong.

Anyone who thinks Asda will offer a cheaper service is may be right.

The thing with estate agency is that you need people who are mobile in a small area - as an agent I could offer a better service to people if the properties were within 500 yards of my office, and a couple of miles was quite a long way away. So it doesn't benefit economies of scale like many industries. And ideally with local knowledge as well.

Secondly, I have no idea how EAs make money at all - fees are far too low.

Thirdly, people really do appreciate a proper service. A senior negotiator valuing and offering marketing advice. Negotiators agreeing a sale, and then one person (one of the former or a sales progressor) monitoring the sale all the way through. Automating the process is very hard.

Linked to 3, fourthly... in Burger King they automate the process and make burgers before they are ordered. But they offer a service whereby you can order a "special", with extra gherkins for example. If everyone ordered a special, then the whole process would become much slower and they'd have to raise prices. What Asda doesn't realise is almost without exception every single house sale is a complete and utter nightmare for a wide variety of reasons (slight exaggeration). Asda probably think they can offer a service and not deal with the awkward stuff. Well, I've got news for them.... it's very hard to work out what will be a nightmare and what won't, and besides so muuch is a nightmare that if you did just do the easy work you'd be restricting your potential market by 75%.

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Adsa’s record at selling car insurance seems to be an interesting one – they appear on average over 2x more expensive than Direct Line (and consistently the most expensive by far of those examined) for car insurance according to survey data from Fubra’s petrol prices site.

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Anyone who shops around uses some common sense can find a half decent estate agent.

Anyone who thinks Asda will offer a better service is wrong.

Anyone who thinks Asda will offer a cheaper service is may be right.

The thing with estate agency is that you need people who are mobile in a small area - as an agent I could offer a better service to people if the properties were within 500 yards of my office, and a couple of miles was quite a long way away. So it doesn't benefit economies of scale like many industries. And ideally with local knowledge as well.

Secondly, I have no idea how EAs make money at all - fees are far too low.

Thirdly, people really do appreciate a proper service. A senior negotiator valuing and offering marketing advice. Negotiators agreeing a sale, and then one person (one of the former or a sales progressor) monitoring the sale all the way through. Automating the process is very hard.

Linked to 3, fourthly... in Burger King they automate the process and make burgers before they are ordered. But they offer a service whereby you can order a "special", with extra gherkins for example. If everyone ordered a special, then the whole process would become much slower and they'd have to raise prices. What Asda doesn't realise is almost without exception every single house sale is a complete and utter nightmare for a wide variety of reasons (slight exaggeration). Asda probably think they can offer a service and not deal with the awkward stuff. Well, I've got news for them.... it's very hard to work out what will be a nightmare and what won't, and besides so muuch is a nightmare that if you did just do the easy work you'd be restricting your potential market by 75%.

Indeed, it isn't clear yet how the service will work. If it is just a portal, it won't work at all. If they employ negotiators in the stores, or based in an office somewhere, then distance and local knowledge are a problem. My nearest Asda is 6 miles away. Agents there would not understand my local market any more than I understand theirs. This is why there are agents in every town and, in bigger towns, there are agents in every part of town.

Interesting comment on fees i.e. that they are not high enough. I wonder how many of you lot realise the average net profit on a property sale for an estate agent is in the range of £300 to £400?

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Interesting comment on fees i.e. that they are not high enough. I wonder how many of you lot realise the average net profit on a property sale for an estate agent is in the range of £300 to £400?

I would love it (just LOVE IT) if the government brought in lots of new regulation / licensing. Knock 50-75% of agents on the head, make the remaining ones better, twice as expensive and more profitable.

I might even re-join the industry!

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http://news.independent.co.uk/business/new...ticle360675.ece

Now Asda shoppers can put a new home in their trolley Published: 28 April 2006

Asda is to become the first supermarket to enter the estate agency market, it was announced yesterday.

Supermarkets have diversified into many non-food areas of consumer products, including clothing and financial services.

Asda's estate agency venture will allow shoppers to browse for new homes alongside their groceries. Properties for sale will be displayed on touch-screen terminals inside stores. The company plans to undercut high street estate agencies by charging lower fees, although rates have not yet been confirmed.

Its "Homes Supermarkets" scheme will be piloted in 10 branches in the North-east from July and rolled out nationally if successful.

The chain will offer vendors free Home Information Packs which include a survey, search and land registry information. The packs will become compulsory next year. Asda said vendors could enjoy total savings of up to £2,000 compared to using high street estate agencies.

A start-up company called Homes at Supermarkets based in Hexham, Northumberland, will employ estate agents, surveyors, conveyancers and call-centre staff to manage all sales.

Customers will be allocated one named point of contact to get in touch with by e-mail or telephone. There is no walk-in centre to meet staff.

The touch-screens in Asda stores will contain a database of properties for sale and allow potential purchasers to register their interest. Customers will also be able to put their own up for sale. Homes at Supermarkets staff then get in touch by phone to arrange viewings. They will visit potential vendors to value their properties and take photos to be uploaded on to the database.

Asda's financial services director, Gev Lynott, said: "We've brought Asda value to everything from handbags to hamburgers and we're now doing this for house sales as well."

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The good news is that if your an Estate Agent then Asda (or another Supermarket chain) maybe able to offer you a job soon. :rolleyes:

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  • 302 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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