Online Estate Agent

[dmart]

Hi ya,

I am currently an estate agent at a big firm and have this idea in my head of an online estate agency. If we can have Banks, Insurance, Car Dealerships online, why not estate agencies?

I know that popular aggregators such as Zoopla, PrimeLocation etc. exist, and offer a lot of choice, which is a gift and a curse in my opinion because its hard to tell good from bad. Especially just by looking at 6 shitty pictures from small time estate agencies that don't even bother to put up professional pictures of properties.

I have this idea in mind that an estate agency could survive solely online, and you then just meet people at properties to view certain properties(No need for front offices). Call me crazy but in this day and age, it seems more than overdue. We basically find properties the same way we found them in the 60's (Not that I'm actually old enough to have witnessed the 60's, but from what I have been told)

I currently live in London, one of the hottest property markets in the world and see properties go on and off the market in a phenomenal rate, and I am just trying to figure out if the traditional estate agent is still needed. Wouldn't people be satisfied with someone that just advises them online. By that I mean personalized service, just like a normal estate agent, and not just a property aggregator such as Zoopla.

Maybe I am losing it, If anybody has good comments on this. I'd be keen to fire up a hot debate.

Keep it coming.

 

[StevensOnln1]

I'm pretty sure people are doing this already, although I have no idea how successful they've been.

 

[JonathanSEO]

I don't get what you are going to offer here?

 

[dmart]

I'm pretty sure people are doing this already, although I have no idea how successful they've been.

Feel free to give it a quick Google search and see what you come up with. There are a few agencies that are providing everything online, but for one, they are not focusing on lettings, only on sales. The most successful one I found is eMoov, which managed to sell 560 houses in 2012 (To be fair, they are not in London.) Just as a quick benchmark to put this number in perspective, Sunday Times reported that Foxtons has about 11,000 properties at any given time during the year and have just about 20 percent market share in London.

 

[dmart]

I don't get what you are going to offer here?

Not sure what you mean by offer... I want to talk about why there is not a startup that is taking on estate agencies

 

[fisicx]

If I'm going to invest in a house then I want someone to unlock the door and show me around and do all the running around for me.

The problem is that most estate agent's we have dealt with are useless. Anything more complex than a simple property sale and you end up doing half the work yourself. I want someone I can pick up the phone to and talk to and go to with documents and other stuff. I want someone who can take decent pictures and talk to me about things while I'm stood in the kitchen of the house for sale.

Most of the house selection and correspondence is already done via a website anyway so I can't see what it is you are actually offering.

 

[lazypbx]

If you are searching for a house to buy you will prefer an 'aggregator' because it will have the largest inventory and best search tools ie. an aggregator is a search engine for houses. An individual estate agent could not possibly compete with this.

As a house seller you will want confidence in your estate agent, 'bricks and mortar' gives you this. The alternative to this is self listing.

I can't see where your business model would fit .

 

[businessfunding]

The real question is - as a customer, what do I get out of it?

As a vendor I want to talk to someone who understands the property, the area and who is going to achieve good value and a relatively pain-free experience. To achieve this they need to visit my home and be 'interviewed'.

As a buyer I want to be shown the property and again, to have a smooth transaction.

Admittedly these criteria preclude the 'big names' - who I wouldn't even contemplate selling through

from a customer perspective what are you bringing that I can't achieve through a good local agent combined with Rightmove?

 

[cjd]

Estate agency is an obvious target for disintermediation because they are pure middlemen an operate in a very high margin industry.

BUT, it's been tried over and over again and failed. It's not terribly obvious why, I think it's mostly because house selling and buying is entirely local and therefore doesn't easily scale the way most online businesses can.

The other part is that it's a 'no win no fee' model for both buyer and seller so an entrant trying to break into it would find it difficult to introduce any form of up-front charge.

The third issue is that a physical agent does do some actual work which needs feet on the ground - holding keys, showing people around, talking to potential punters and selling.

 

[businessfunding]

Perhaps - at least in part - because property is more emotional than transactional.

 

[JonathanSEO]

Not sure what you mean by offer... I want to talk about why there is not a startup that is taking on estate agencies

Yeah I meant what you are planning on offering?

I don't understand what you bring that Right Move and a local estate agent can't do already?

 

[KeithP]

I spent 15 years working in the Estate Agency industry, including owning my own offices. I've also spent over 10 years working in the Internet Marketing industry.

With this in mind, hopefully I'm in a strong position to pass comment on your venture.

I won't bore you with the specific reasons (which are broad and numerous) but your idea is a complete non-starter. Getting any sort of foothold in this market would cost £millions.

Sorry to be so blunt but I've seen so many people try, and fail to re-invent the wheel in the property industry and regardless of budget, they've all failed.

 

[QuickHomeBuyers]

If your venture fails, you can always come and work with me. Always happy to hire the talent as they say

 

[dmart]

Yeah I meant what you are planning on offering?

I don't understand what you bring that Right Move and a local estate agent can't do already?

I didnt actually plan on offering an online estate agency but I wanted to hear from other why it would or wouldn't work.

 

[dmart]

If your venture fails, you can always come and work with me. Always happy to hire the talent as they say

If you have a good position for me I might ditch my venture and come work for you straight away to bring your lettings department up to speed!

 

[dmart]

I spent 15 years working in the Estate Agency industry, including owning my own offices. I've also spent over 10 years working in the Internet Marketing industry.

With this in mind, hopefully I'm in a strong position to pass comment on your venture.

I won't bore you with the specific reasons (which are broad and numerous) but your idea is a complete non-starter. Getting any sort of foothold in this market would cost £millions.

Sorry to be so blunt but I've seen so many people try, and fail to re-invent the wheel in the property industry and regardless of budget, they've all failed.

Good point, a similar point was brought up before, and I agree. Give me your thoughts on lettings. Thats a market that has just recently gained significance and is absolutely different. Especially short term lettings.

We have an incredible amount of people renting flats in the short term lettings market, without even seeing flats.

Where is the need for physical estate agencies, when all you really need is someone that opens up a door to a flat for an interested person?

 

[KeithP]

Don't Rightmove already list properties to let?

I'd personally say that with lettings (possibly more than sales), it's even more important to have a local office. For example, if a tenant's washing machine packs-up, who are you going to get to fix it? The reason why Estate Agents remain in business is that they are experts in their LOCAL market and that's what both Vendors and Landlords want and are willing to pay for.

For most people, their property is their single largest asset so they're understandably selective when deciding who is going to be responsible for letting or selling it.

 

[dmart]

Don't Rightmove already list properties to let?

I'd personally say that with lettings (possibly more than sales), it's even more important to have a local office. For example, if a tenant's washing machine packs-up, who are you going to get to fix it? The reason why Estate Agents remain in business is that they are experts in their LOCAL market and that's what both Vendors and Landlords want and are willing to pay for.

For most people, their property is their single largest asset so they're understandably selective when deciding who is going to be responsible for letting or selling it.

Rightmove hat properties to let but as a tenant, how will you find the bet ones out of all the choice. Nobody has time to go through 2000 different flats in one specific region.

You said you worked as an estate agent so you should know that there is a different between estate agencies and property management that fixes things.

What I am trying to get at is that I think its purely a numbers game. Vendors want people through their doors. Tenants will take a flat as long as you get them through enough doors. Estate agencies can not be purely online, but parts of it can be. For example: You can find out ones requirements online and don't have to actually go into an agency to be questioned.

 

[KeithP]

Vendors want people through their doors.

That's actually incorrect - most Vendors find viewings a pain; they just want:

• To sell their house as quickly as possible
• To get best price they can
• The minimum stress and inconvenience

Viewings are seen as a necessary evil by most Vendors who, in my experience, disliked having strangers trudging around their home every evening and weekend.

I agree that certain elements of the process (i.e. the marketing) are better served online but finding a buyer/tenant is only part of the process. And as for Rightmove, I'm not sure why you'd come-up with 2000 results if you use the correct filters which are relatively easy to use.

I've spent years trying to think of ways I could use my experience in the property industry to develop an online venture. To this day I've never managed to come-up with anything that hasn't already been done before or wouldn't require substantial investment in development and marketing.

I'm not saying there isn't 'something' that could be developed, just that it's one of the most difficult markets in which to try and change consumer behaviour.

 

[Peppa Pig]

Don't Rightmove already list properties to let?

Only through estate agents. There are plenty if private landlords who rent their properties without involving estate agents.

Nowadays tenants are fed up with estate agents ridiculous fees. For example, my previous landlord opted to rent his property through an estate agent after I had left him. But his property stayed on the market for about a year whilst properties rented privately nearby went very fast. Why? Because of the estate agent fees. Also, the estate agent had increased the price rent to recoup their admin fees.

I advised him to get rid of the estate agent and rent the property privately. He did so by putting an advert on the front window and the got a tenant within the first week. The rent also went down than the one advertised by the estate agent.

The reason why Estate Agents remain in business is that they are experts in their LOCAL market.

I wish they were.

 

[milhouse]

Yes ,Its it possible.Depends on your business plan and your strategy on how are you going to make your money !!! If its a purely online business then it may be tough,plenty of competition online this days ,specially in London .

P.s Little office is always a bonus if you ask me

 

[1Click2Start]

The problem I see here is marketing. Even if you were able to launch an estate agency online, how would you fund the marketing which would need to substantial in order rival the big players on google, such as Rightmove and Zoopla?

Further to that, how would you promote the site in order to have potential buyers look at it before they look at the big player sites?

I wouldnt invest any money into this business if I were you.

What you could do however, is instead open your own shop and focus on a small area you know well; in which you know people are looking to buy. If people are looking to buy in an area, they will visit it, and their first port of call when reviewing propery will be the high street to see what estate agents are open for business.

I hope this helps!

 

[baincol]

you may have missed the boat there are over 40 online agents in the uk like emuv.co.uk and scothousemove.com ete ctec etc

 

[Cybes]

'turtle homes' are another one, they are really good.

 

[EllaAccountant]

Estate agents really good? Please dont make me laugh!!

Personal experience of mine has led to such a disappointment! So i am someone that is looking to buy a house, in nice areas with good schools.

I find one i want to see...online of course...fill the form, agent calls me, missed call so they email me. I respond to email, i am booked to view the house! But guess what, the vendors will show me around not the estate agents....This was the first surprise... After the viewing, i had no call to see if i made it there, no call to check if i liked it, no call to ask for my feedback! Oh and its been over 4 days so i have given up awaiting the call from the estate agent!

So, these estate agents would charge the vendor in this case for % of the sale for DOING WHAT? Advertising online with Rightmove!! Which vendors (not all want to) can do themselves for a few hundred ££ and save silly estate agent fees!
So for people such as me who can take decent photos themselves and upload them online to SELL my property, yes there is market - but there is no gap left for this as there quite a few known ones out there.
On the other side as a BUYER, i want someone to CARE, an estate agent that knows the property well, that really wants to sell it, show me around, answer my questions and keep in touch after the viewing!! There aren't many Estate Agents like that these days, due to the economy i think they have all cut staff costs down and cant even do viewings themselves!!