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
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.
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.
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.
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.
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
Hatched, the low cost estate agent
Q1. How long have you been trading for?7 years. We opened on 1st 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 1st 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!
