Wednesday, May 7, 2008

Rightmove fear the worst

With up to 150 estate agents closing per week and 4000 jobs lost in 2008 Rightmove still remain confident

Rightmove has warned investors in its annual report that with increasing numbers of estate agents closing, (150 a week according to a recent report) and up to 4,000 jobs lost in the sector in 2008 the slower housing market would inevitably take its toll on their results. The firm stated that its retention rate for estate agents - the proportion who keep using the website to advertise properties - has slipped to 85 per cent this year, compared to 92 per cent in 2007.

Posted by converted lurker @ 11:06 AM (627 views)
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3 thoughts on “Rightmove fear the worst

  • Sign of the times.
    I must admit I would have thought extended selling times would be good for Rightmove.
    A reduction in the number of houses being marketed I would have thought to be the only downside to their business model.
    The fact that there are less agents simply means more for the ones that still exist I’d of thought.

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  • Rightmove makes money from estate agents paying a flat monthly fee per branch. The fee is negotiated with each agency. It’s in the ball park of £200-400 per month, but don’t quote me on that.

    Every branch closure that was a Rightmove customer will impact Righmove turnover and profits. The cost to Rightmove to add extra branches is tiny, so expect profit to fall faster much faster than turnover.

    I recently moved house (renting). I used most of the major sites (Rightmove, Nestoria, Prime Location, Findaproperty and others). Nestoria was the nicest to use but did not have many properties. Prime Location was the best by far for choice of properties. The features on Rightmove were poor – I wanted a map of all rentals in an area, which it does not provide. I also didn’t know the postcodes of the areas I was considering and that hindered searching.

    I would sell Rightmove shares now. The competition is catching up with them. Estate Agents will pressure them for lower fees and will increasingly move to cheaper websites to try to cut costs.

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  • As an investor in the property boom and all related matters, should I sell my rightmove shares now?

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