Strange times for the property market

Good morning and welcome to my latest blog. I haven't blogged for quiet a while now but after what seems have been a whirlwind 10 months I thought I would give you all my thoughts towards the property market and where we sit now.

My experience of 2014 so far is one of highs, lows and the unexpected.

The beginning of this year started off extremely slow with January being a typical January ie: lots of valuations, lots of split ups and generally lots of running around without being very productive. The sort of January that you get every year, 2014 was no different.

Then BANG

Out of nowhere we started gaining those instructions and in turn we started doing those deals and making those sales. The buzz of agreeing the sale had returned. Cue wolf of Wall Street style celebrations (well not quite cocaine fuelled office orgies )

By May we had generated our biggest pipeline since 2006 and sales just seemed to keep on coming, we were out in the field bringing the stock on and in the office we were 'locking those deals in place' at this point we were even turning down repossession instructions based on the terms not being favourable, I remember one being offered to us as a 50k asking price and 0.8% on completion providing we got over 105% of the asking price. In my opinion, That is the type of business that us hardworking estate agents need to reject until these repo companies start paying Decent fees.

We continued with the sales flying through until about early June when I felt the market change in my area.

June and July were not great. August was even worse. We increased our marketing activity and continued to try and raid our brand awareness but nothing seemed to kick start things. 

We find ourselves now at the beginning of November looking for more instructions. The area we operate in is involved in a huge fee war. We have new agents emerge in the last 2 years who are offering deals such as 0.5% no VAT, 0.7% no VAT or even £500 on completion. The problem is some of the agents who have operated for years are now matching these fees just to gain instructions. Add to this the emergence of the online Estate agent and we now have a market that is changing. 

Do people even care that you are a member of NAEA or ARLA? I don't think so.

Change is happening and we as good quality estate agents need to adapt and quickly 

A day in the life of Agent X

Friday 27th September 2013

I woke up at 6:45 with our youngest child standing at the bottom of his cot screaming and shouting. He's at the age now where he's not quite talking but he uses his voice to let you know what he wants.

Showered,  dressed and in the car for the school run by 8:30. Wait on the school yard until 9am and make sure the kids get into school safely then a sprint back to the car and drive off to the office.

I got to the office at 9:10 which is quite normal for me. (There's one thing I won't let running a business get in the way of and that is my children) because after all I'm doing this for them, to try and make a better life for them.

The morning started with a quick coffee and and then an hour to process the staff wages, check the bonus's and hours then send off to the accountants for them to do their stuff.

We've had a quiet week for valuations however we have 3 valuations today the first one being 1pm.

I had arranged to meet a friend for lunch at 12:15 but before this I had to make sure I have my research done for my 1pm valuation. A 3 bed semi 1970s build that was about 3.5 miles from the office.

With research done and it being 12:10 I answered the phone to a solicitor who was calling to confirm     A completion  had happened and we could release the key. Excellent!!!

Met friend for lunch, had pork, stuffing and apple sauce baguette which the majority dropped onto the floor and enticed the birds to my feet. (Actual birds - not women)

I got back to the office at 12:45, into the car and off to the valuation at 1pm.

Back to the office at 2:15 ready for a quick car swap with my most senior staff member as he was off to measure, photo, Floorplan and pick up the contract to a new property.

Unusually Friday afternoon in the office was quiet, not many phone calls in and hardly any foot traffic. Not letting this stop me I decided to have 40 minutes on the phones speaking with applicants, updating their records and trying to unearth some valuations.

Our 2 last appointments of the day were a viewing at a property we had already sold, it was the buyer going back to measure, and the 5:30 appointment was a tenant coming in to sign the tenancy and move in. 

I finished up at the office at 6pm, locked up and set off to pick the kids up from the grand parents. 

I got home at 7pm quick change and some food then off out for a game of footy!!

All in a days work for Agent X.

The Lost Keys!

One of the best parts of being an Estate Agent is the getting out of the office, meeting people, seeing various different houses and of course being a trusted person. You have access to literally millions of pounds worth of properties.

On Tuesday I had a second viewing at a property at 11:15. The first viewing a few days earlier went really well, we had held numerous conversations about the property, gained more information from the owner and discussed making an offer after the 2nd viewing.

Having not sold a property for a few days I was desperate to secure this one. You know the feeling when you have had a dry period of sales and you can see in the distance that you could be onto a sale you can sense the finish line, the buzz of the sale grips you and you want to do the best you possibly can to ensure you get the sale.

It was 10:45 and im still buzzing about the office doing bits as the property is only a 5 minute walk from the town centre. 11:05 comes and I decided to get myself ready, grab another brochure, get the keys out of the cupboard (that's after I have fought with our software/internet and the dreaded '****** is not responding') and walk down the road to the property, sell it, come back and have a celebratory coffee.......
UNTIL
I go to the key cupboard and...............the key isn't there! FAN-FLIPPIN-TASTIC. (how many times has this happened to you?)
I check my suit jacket pocket, check all the other key hooks, check with the other staff and then I remember, I was the last one there, the keys must be in my car.
I legged it out of the office to the car parked on level G of the concrete jungle that is the multi storey car park, open the car and.....NO KEYS.
Its 11:11 now and my second viewing commences at 11:15. I called the office and told the negotiator (who was happy to see me squirming) to call the viewers, tell them im stuck in traffic and ill be with them in 10 minutes whilst I drive home at the speed of Batman racing through Gotham City and check my other suit jackets to see if the keys are there.
Every minute goes by I can feel the sale slipping away, vanishing before my eyes.  I receive a text from said negotiator saying 'sorry mate, only a landline number'
I get home fly straight up the stairs and check all of my suits, jackets, jumpers and all the places that I could think of. Its now 11:21 and im officially late. Gutted!
I get back in my car and get onto the office to tell them I cannot find the key, I have searched everywhere when I turn around and look at the back seat of the car to see my suit jacket lying on the floor. (The suit jacket that I wore on the first viewing) The suit jacket that has the keys to the property!!

I got to the property at 11:34 to find that my viewers are not there! Im distraught! I hate being late and im not just late ive completely missed the viewing.

Just as im about to leave the viewers pop out of next door!! they had been having a cup of tea whilst waiting for me!

The moral of the story... failing to prepare = preparing to fail!

THE BATTLE.. High street Estate Agent vs Online Estate Agent

Good evening and welcome to possibly my most controversial, exciting and interesting blogs. Im really excited about releasing this one!

This week I asked for one High Street Estate Agent and one Online Estate Agent to volunteer to answer the same 10 questions with the view of getting an insight into both practices. Are High Street Agents very different to Online Estate Agents or are we all cut from the same cloth?

Firstly thanks you to both Agents who volunteered.......very brave of you! so without further delay here we go!

HIGH STREET AGENT

http://www.parkersproperties.co.uk/

Parkers Estate Agents Gloucester

 

 

Q1. How long have you been trading for?

1. Our director Steve Godsell has worked at our branch since 1998, and became franchisee in 2001. I am a senior negotiator with just over four years experience, all gained at Parkers. Between us in the office we have 40 years of experience within the estate agency industry.

2. What qualifications do you have?

2. We are members of the national association of estate agents (MNAEA) and the property ombudsman scheme (TPO). Our director Steve Godsell is currently studying for Association of residential letting agents (ARLA), his father/business partner was an ARLA member and he sadly passed away towards the end of last year.

3. Describe your service?
 3. Parkers is a family run independently owned estate agency franchise. Our core belief is customer service, we and our customers believe this is key. Our customers feel they can come to us for advice and with any query, we're always there to help. We provide a friendly, honest and efficient service, which we feel is rare in the current economical climate. We are remembered by our customers both past and present.

4. What is your typical fee model?

4. Our typical fee is 1.5% for selling a property. To fully manage a rental property our fee is 12%, we also offer a rent collection service and a tenant find service.

5. What's important about having a High street Agency?
 5. Customers of all ages still like and want a personal face to face service. It's important for any local community to have shops and local businesses nearby, not just for the community spirit but remembering not everyone can and does use online services. It's like having a local shop, a local high street estate agent is a necessary part of the local community. With this in mind, we have an advantage, we can be more helpful to a local clients needs, not to mention being able to sell the area to potential buyers who may not be from the area.
The important factors of high street agents are; the ability to carry out accurate market appraisals, conducting accompanied viewings, negotiating sales, regular updates on the property and local property information for the client, recommending solicitors, dealing with the sales progression after an offer and to monitor, sales chase and give updates on the progress of the sale. We at Parkers feel the main point of a high street estate agent is to be able to meet and get to know the agency team that will be dealing with the property, whether selling or renting, it's surely fundamental to actually know who is dealing with what is most probably the most expensive thing a person owns.

6. What do you think of online estate agents?

6. Have you heard that online is a buyers first point of call before anything else? We have, there is no doubt that this is the case with some potential customers, but certainly not all of them! The process with online estate agents tend to begin with a free online valuation of the property. The figures are generally automated and provided by a third party website that bases its figures on recent sold prices and area averages. We offer free, accurate market appraisals that are conducted by visiting the property, this takes into account all individual aspects about the property itself. A high street agent meets the client at the very start of the process, understand their needs and go from there. It offers a much more personal approach with the clients best interests in mind at all times. In conclusion, a high street agent offers a personal, tailored service to suit the client, with help, advice and professionalism shown every step of the way.

 

7. What territory  do you do business in?

7. We are based in Gloucester, the county town of Gloucestershire. You know place, remember the old rhyme, doctor foster went to Gloucester in a shower of rain, he stepped in a puddle.... You get the idea. Moving on, our branch covers 24 districts within Gloucester, as you can imagine it keeps us rather busy.

8. What do you offer that you think an online estate agent can't?

8.Whether it's sales or lettings, there are several aspects of selling/renting a home that high street agents do, things we can offer that an online estate agent simply can't. We offer a wealth of local knowledge that can play a significant part in the price of a property. Giving the client an accurate market appraisal is the first step to selling/renting a property and a very important part of the process. We can offer a tailored package after meeting a client that suits their requirements and needs. Accompanied viewings take place, something an online estate agent doesn't do. Viewings  are vital to selling/renting a property, if the client works long hours or is nervous about letting unknown people around the property, a high street agent takes away this hassle. We vet all customers and find out their position, give constructive feedback after viewings, negotiate offers on the clients behalf. Even though the buyer isn't the client, it is still all about communication. It is important to take time and all the necessary steps when doing dealing with viewings and offers to get the best price possible for the client. If buyers aren't receiving this interaction and getting what they feel is needed in the process of buying/renting a property, everyone loses out.

9. Where do you see the industry in 10 years time?

9. In 10 years I still see high street agencies being part of the local community and being the number one choice for vendors, however, online estate agencies have definitely increased in recent times. I can't see how the public will completely convert to only wanting online estate agents.
As long as high street agents keep their presence in the local community as trusted businesses and adapt their ways to use more online methods. Online estate agents are the competitor and we must not fear this, embrace it and work twice as hard to prove your worth to the local community. Some high street agents have already adapted the business and do both, therefore offering a choice to clients, a very basic service or the full service.
Even though the Internet and modern technology is very good, I don't think you can beat good old fashioned pen and paper.
In 10 years time I still see high street and online agents, people have and still will have the choice between the two. I don't see online agents replacing us.

 

10. Why should a customer chose a high street agent over an online agent?
 10.Opting for a high street estate agent means getting a good service that's personal and suits the clients needs, Accompanied viewings, feedback, regular contact about the property and market, a fully negotiated sale achieving the best price possible are all included as standard. After a sale has been agreed, it is closely monitored by our dedicated sales progression employee, keeping the client updated right up to completion. Making sure our excellent customer service skills continue throughout the process.
A high street agent may cost more, but when it comes down to the sale price of a property, we will get the best price we can, not only does commission depend on it but maintaining a good service to the client ultimately means a good reputation, word of mouth spreads fast. A high street agent never forgets who the client is, the vendor, maximising footfall through their door, with an outcome of offers and a good hard negotiation to get what the house is truly worth, always with the vendors best interests at the forefront of the mind.

 

 

ONLINE ESTATE AGENT

www.hatched.co.uk

Hatched, the low cost estate agent

 

Q1. How long have you been trading for?7 years. We opened on 1^st June 2006

 

2. What qualifications do you have?

I am NAEA qualified and one of my other fellow directors is ARLA. I have been in the industry since 1997 starting as a trainee and working my way up to manager of a large high street office in 2003/4

 

3. Describe your service?

We visit every property to measure up and take photos, write the description and do the floor plan. On top of this as an extra charge, we can offer virtual tours, 3d floorplans, a walkthrough, a for sale board and anything else the owner wants (newspaper ad, etc - as long as they pay for it). We advertise the property on Rightmove, Zoopla & Primelocation. We deal with all enquiries and arrange viewings via text, email and phone. Each and every viewer and seller gets a confirmation text & email when viewings are booked. We also get feedback from viewings and we enter this on a private ‘vendor area’ where vendors can pick up their feedback and look at stats relating to how many people have clicked on their property. They can also delete or move photos around in this area. We negotiate the offers on behalf of the vendor, send sales letters out and deal with any issues throughout the sale, like downvaluations, retentions, etc, etc.

 

4. What is your typical fee model?Most customers pay £270 up front and then they pay another £270 when we sell the property.

However, customer can choose two further option if they wish to pay less up front. They are:

£150 up front, then 0.25%+VAT on completion (min completion fee £499+VAT)

£0 up front and then 0.5%+VAT on completion (min completion fee £999+VAT)

 

5. What's important about having an online agency?Offering a comparable service to a high street agency, coupled with the low fees. We have to always offer a service that is comparable with a high street agent so that we continue to surprise people. Customers sometimes expect ‘cheap fees, cheap service’, but this couldn’t further from the truth. Customers are consistently surprised when they find that the service is the same, but the fee is completely different. We cannot fail on service and we will always continue to offer a service comparable with a high street agent, which is what will help us to continue to grow as we are.

 

6. What do you think of high street estate agents?I think high street agents are good in the main. You always get a few cowboys, but you do in any industry. I do think there is a fundamental problem with the way high street agents charge. The no sale, no fee model is why fees are so high and perceived as too high by many people. If agents charged for the work that they did, then people would pay for it. I actually think that the industry would end up being seen as more professional if agents charged for the work that they did, rather than the ridiculous ‘no sale, no fee’ model.

 

7. What territory  do you do business in?We have 6 regional offices, covering the whole of England & Wales

 

8. What do you offer that you think a high street estate agent can't?Low fees. Other than that, high street agent online agents are no different in my view. The object of the exercise is to sell the property for the best price possible, to the best buyer possible. We do that just as well as a high street agent. Our figures speak for themselves. We have agreed sales on 58% of properties in 2013 at 97.5% of asking price. Looking at a website such as Hometrack, these are better stats than an average high street agency.

 

9. Where do you see the industry in 10 years time?

See answer 6. I think that agency will change to a model where we charge for each of the major jobs that an agent carries out – fee for valuations, fee for listing, a fee for each accompanied viewing, and then a fee on completion – why wouldn’t an agent want to charge for everything that is done. It would improve cashflow and you wouldn’t end up doing dozens of hours work for nothing in some cases.

 

10. Why should a customer chose an online agent over a high street agentAgain, fees. There is little difference between online and high street other than the fees. We believe that technology is also leveraged by us more than a high street agent – text messaging, the vendor login area and this is continually being improved with vendors being able to track their sale on their login area from 1^st September this year.

 

Agent X's Thoughts

A lot of traditional Estate Agents hate online agents with a passion and likewise, there was a recent story of a High Street Agent taking an online agent to court over an advert. The high street agent lost! In my opinion they spent too much time fighting the online agent that they took their eye off the ball.

There is room for both high street and online but the best and most successful Estate Agents will take the best from both rivals and implement it in a way that does not compromise anything. Sooner or later an Estate Agent will grasp this, embrace it and make an absolute fortune from it.

I believe you need to embrace the change that is happening in the industry, embrace and adapt!

 

Im not going to judge from the above q and a so ill leave it to you guys!

 

I hope you enjoyed it and once again thanks to Laura from parkers Gloucester and thanks to Adam from Hatched for your honesty! 

Estate agency. My views

I'm writing this blog, right now because I'm standing inside an empty house waiting for yet another viewer to turn up. I'm looking around at the freshly painted magnolia walls, cleaned carpet and clean windows and I'm thinking....... It's a Saturday, why bother? Why be an estate agent. I know I'm a good sales person, I have my cv to prove it so why do I need to be waiting around empty houses on a Saturday morning when I could be at home with my family and work a monday - Friday job. I'm not paid amazingly well so why bother.

Well I'll tell you why....

For some reason I'm addicted to estate agency. I love the houses (good and bad) I love dealing with all kinds of people I hate the downsides, the angry customers and the ones who firmly believe no matter what you tell them, you are going to shaft them some how. But I love the industry.

I'm addicted to checking rightmove, I'm addicted to looking at good quality photographed houses, I'm addicted to the bad photos, I'm addicted to the language used to describe houses and above all I'm addicted to the buzz you get when you sell a house.

I'm addicted to the stress of working for myself, every minute of every day will lead to a successful or bad month. I love and hate that feeling when you are lying in bed and something pings in your mind to remind you to do a certain task the next day.

Estate agency is a bug, a disease that grips you and doesn't let go. 

Run your own agency, manage your own staff, listen to new ideas, sell houses, rent houses, take the good times and take the shit, get qualified.

Live eat breath and sleep estate agency.

The way I see it is I've got another 30 years left in this industry to make my mark and provide for my family, 

Anyway, back to reality and ,y next viewer hasn't turned up either!!

Happy Saturday fellow property professionals

Agent X's Best and Worst Photos from rightmove LONDON EDITION!

Good evening ladies and gentlemen and welcome to this weeks best and worst photos uploaded to www.rightmove.co.uk in the last 7 days. Last week we seen some shockers and this week is no different apart from all the images have come from 1 area.

WELCOME TO THE LONDON EDITION!

Each week I talk about being professional, being on top of your game and taking the best images possible.

Things that really annoy me on property photographs are thing that can be moved, should be moved but the agent cant be bothered! (Don't blame the vendor, you are the one with the camera in your hand)

Imagine a travel agent photographing a messy room in a 4 star hotel in Tenerife. Would you book that hotel for your yearly holiday???

Enough of me banging on here is the LAANDAAN EDITION!

Best photo uploaded to rightmove.co.uk (I will use zoopla when they include me in their top 100 influential agents list)

BEST PHOTO

 

 

Congratulations on a fantastic photograph Hunters-Baker Street, London!

 

 

NOW for 2 photographs that nearly made it for many different reasons but pipped to 3rd spot are 2 photographs from the same London agent on the same property.

 

 

SMILE!!!!!!!

may be being a bit harsh here but if I had an £850,000 apartment I would want it to be in a building that was straight and not leaning towards the water!

 

 

3RD PLACE GOES TO.......

 

 

 





FML!

2ND PLACE

 

5 minutes of elbow grease would have sorted this. Whoever took this shot should of asked the vendor to move some stuff!

 

 

AND FIRST PLACE THIS WEEK IN THE LONDON EDITION IS....................

 



 

 

If any of these photos are yours then please do us all a favour and either stop trying to be an Estate Agent because you are giving the industry a bad name or employ someone who has eyes!

 

Thank you and good night!

 

Next week we will be hitting LIVERPOOL!!



My biggest nemesis - no it's not door knockers!

My biggest nemesis.

I'm not a fan of dogs, infact I absolutely hate them. I don't know what it is about dogs but it doesn't matter what size they are, what they look like or how loud they are I just bloody hate them.

Unfortunately in this industry I come up against them on a daily basis. Like the time I accidentally trod dog muck through a house on a valuation. It wasn't  my fault. It was the dogs fault.

The problem with a dog is no matter how potentially dangerous it is the owner will always say "it's ok he's harmless" or "he will lick you to death, he's soft as a brush" . I'm sorry but that doesn't wash with me, for starters I don't know what the dog is thinking and if I don't know what it's thinking then I'm in a potentially dangerous territory!

I've had some bad experiences with dogs whilst out on valuations like the time I entered the front gate,  walked up the path and knocked on the door only to then hear my worst fear..... I knocked the door, then ferocious barking coming from the side of the house, straight away I'm panicked so I knock again and again, as I'm knocking I can hear the barking getting closer and closer, then from around the side garden I see 2 dogs flying at me, teeth out, eyes bulging heading straight towards me!

Just as I'm about to get eaten by theses 2 dogs the vendor opens the door completely unaware of the situation. The moment the door opened I leapt onto him, literally jumped onto him like a bride would be picked up to get carried over the threshold. I'm just glad to be alive after that one.

However nothing can be as bad as getting called to a valuation to find 17, yes 17 jack Russell's in one property! I kid you not. They were in the kitchen cupboards, on top of the units, in the bath, absolutely everywhere. This was a mid terrace house. How on earth did the neighbours feel!

Nowadays I tend to get the office staff to find out at the time of booking the val if they have a dog or 2 or even 17.

Unrelated to work I went for a Sunday morning jog recently. As I left my house and started jogging up the road, I turned the corner to be greeted by a stray Alsatian. I froze, I completely s**t my self. I knew that if I carried on running then it would think it was fun to chase me. Anyway it thought I would be fun to mess with so it jumped up at me, paws on each shoulder. The fear I was experiencing now was unimaginable , I managed to shake it off and then start walking back to my house........ It followed me, walking at the side of me all the way back home. I jumped in the door greeted by my other half saying "what the hell are you doing?" I opened the blinds to to see the Alsatian sitting outside the front door. Needless to say I didn't go back out that day!