October 27, 2015 at 10:00 #18355
I’ve still yet to hear a satisfactory definition of an “online estate agent”, but for the sake of this discussion, let’s include those who self-identify as such.
I hear so many different estimates of the total CURRENT national market share for online agents.They vary SO much that I wondered what the actual national figure is and, very importantly, what is the SOURCE of that figure?
Surely if we as an industry are to monitor the progress ( or otherwise) of online estate agents there should be an accepted measure, perhaps split into regions, as to this specific market sector and exactly how it is defined. It’s only by knowing what that market share is NOW that we can accurately measure how things progress in the future. Without this definition and accepted measure, we will need to rely on anecdotal or subjective comments.
I confess that I have not carried out this specific exercise across the area that we at Thomas Morris in Cambridgeshire cover – but my GUESS would be a market share for online agents of about 5%.
Can anyone help with what that figure currently is and the source of that information?October 28, 2015 at 03:14 #18399
1st Post, so be kind!
Using Rightmove Intel I can tell you that the market share in Newport South Wales and surrounding area is 3.88%
This is based on New Listings
This assumes every agent not based within 20 miles is an online / national agent and I have taken out traditional nationals like Chewton Rose. I have also then added in some online agents based in the area.
Here is how the data breaks down.
110 Listings by Online / National Agents 3.88% Market Share
2832 Listings by local agents 96.11% Market Share
Springbok Properties 20
The Express Estate Agency 18
Housesimple Online Estate Agents 9
Sell Simple Estate Agency LTD 5
Agent Online 4
Mulu Homes 4
House Network 3
Sell a House Online 3
Mouse House Estate Agents Ltd 2
Online Agent UK 2
Homes With Options 1
House Tree Online Estate Agents 1
MyHouseAdvert Online Estate Agents 1
Owner Sellers 1
Property Exchange 1
There is a future for online agents and their market share will grow but the service customers expect will not be delivered by them. The big volume will not in my opinion be online.
Main headaches for them include
Customer Acquisition Costs (Purple Bricks is burning £500k a month)
Lack of stock presence in area (Switch Selling)
Lack of margin, it will be a race to the bottom (Purple Bricks already trying to reduce costs)
Poor customer service (either through handling the viewings or lack of or properly negotiating the sale)
Customer Expectations simply being too high
A big experienced industry that will fight back
I have not lost one appraisal to an online agent all year! however I know I didn’t get invited to every online appraisal opportunity 🙁
October 28, 2015 at 03:41 #18403
- This reply was modified 2 years, 10 months ago by PaulC. Reason: forum does not support tables
Data was from June 1st to Oct 26th 2015October 28, 2015 at 07:18 #18405
Thanks PaulC – very informative.
I’m surprised that there is not an accepted measure established throughout the country. It makes it very difficult to accurately assess market share. I wonder why the portals do not offer a view. They must be in the best position to carry out such a survey.
For the moment I’m going to assume that the national market share of (self-identifying) online agents is between (your rather scientifically calculated )3.88% and my guess of 5% – though I’d love to hear from someone who has no other interest in the subject than identifying the truth!
Thanks again for your engagement and excellent efforts.October 28, 2015 at 08:10 #18406
All the data I have from West Cornwall is that on-line (non local, no-high street presence) agents have a sub 3% market share (if you include the ‘we sell your home quickly’ outfits too)October 28, 2015 at 08:28 #18409
Are you aware of any “independent” charts/tables/ongoing research that measures this either nationally and/or regionally?October 28, 2015 at 08:48 #18411
I doubt that there is any ‘independent’ information out there – nor will there be.
The only people interested in the ‘fight’ between the respective camps of Agency are those already in the arena (no pun intended) and shouting on their Champion.
So… you might as well follow the onlinie’s Rule of Thumb on the prickly subject:
Pick a “statistic”… any statistic… make of it what you need to.October 28, 2015 at 09:24 #18414
I am in a leafy London suburb, year to date the onliners account for 3%, but if you take that over the last 3 months they account for 12%.
They certainly seem to be gathering traction my end of the worldOctober 28, 2015 at 12:22 #18416
Interesting to note from that sample data that the 2 largest ‘online’ agents are Sringbok & Express Estate Agents, both of which don’t typically (from experience) follow the low cost model.October 28, 2015 at 13:35 #18417
I just tried to find out but I don’t keep a monthly record so I thought I’d use RightmovePlus to go back to the beginning of the year and see what has been put on the market since then and who was instructed.
However what I have actually just discovered the level of Rightmove manipulation going on.
In an area of about 12,000 houses there have been 263 completions so far this year (Land Registry figures – obviously a bit out of date, but about 20% lower than expected). However it would appear that 2,080 properties have been put on the market.
I can’t find an easy way to count the online agents – but I’ll do my bestOctober 28, 2015 at 13:50 #18418
Using Rightmove Intel instead there have been 708 new listings this year in my area. The breakdown of the “online” agents is as follows:
House Network 1
Springbok Properties 1
The Express Estate Agency 1
Harper Brooks 1
That’s 11 instructions out of 708 or 1.55%.
However, the average sale price in my area is £243,439 year to date and the agents here are toughing it out at about 1.1% so the average fee is around £2,500.
On that basis the incentive to use an online agent in my area is very small indeed.
October 28, 2015 at 15:37 #18420
- This reply was modified 2 years, 10 months ago by Anonymous Coward. Reason: PIE doesn't do excel spreadsheats very well!
Thanks Pee Bee
Would you not think that either Rightmove or Zoopla would be able to provide such an insight and would they not, in this instance, be about as “independent” and properly informed as it’s possible to be on this matter?October 28, 2015 at 15:39 #18421
Thank you Gump – that 12% figure is the highest I’ve heard of to date.October 28, 2015 at 15:40 #18422
No traction from the likes of Purplebricks?October 28, 2015 at 15:42 #18423
Dear Anonymous Coward
Interesting that even that relatively small online market share is so splintered. Thanks for that information – much appreciated.October 28, 2015 at 19:40 #18478
RM & Z “independent”? You’re having a laugh! ;o) Not only that – but there’s so much #portaljuggling going on that their figures will be miles out to the benefit of the perpetrators!October 28, 2015 at 21:58 #18480
“<span style=”font-family: Arial, Helvetica, sans-serif; font-size: 14px; line-height: 21px;”>However what I have actually just discovered the level of Rightmove manipulation going on.” – This is a serious problem and a number of companies are breaking all sorts of laws in doing so.</span>
Can I ask that any agents finding hard evidence of portal juggling or figures fixing on any portal/ agents website makes this available to PIE and/ or PeeBee or myself, as the NAEA and RICS seem sadly disinterested in protecting consumers of late.October 29, 2015 at 12:53 #18486
Our local Northwood branch reloads all of their available properties every 3 months or so. Whenever we look at figures through RM and Z we always have to remember this. It’s pure manipulation of their figures.October 29, 2015 at 16:01 #18494
Clarkuk……..that is why it is impossible to get an accurate picture of exactly how well onlinies are actually doing.
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