A new DIY online estate agency has thrown down the gauntlet to the high street amid some mystery, as it launched this week, charging sellers £65 and with over 300 ‘qualified experts’ nationwide, in an arrangement with another un-named partner organisation, and designed to encourage good reviews.
The partner is emphatically said not to be Purplebricks.
South Yorkshire businessman Paul Telford says he couldn’t work with them – and they couldn’t work with him.
Telford yesterday gave no clues as to who the partnership might be with.
He says that his site www.okaylah.co.uk equips people with the skills and tools they need to sell their property themselves, and that it is not technically an estate agemt.
Telford said: “Back in 2012, Sir Vince Cable, who was the Secretary of State for Business at that time, deregulated the estate agency sector.
“This made it possible for home owners to sell their own properties, without the need for an estate agent.
“The idea was to remove red tape, take full advantage of online technology and reduce the cost of selling your property in a bid to encourage growth within the housing market.”
He went on: “I believe that estate agents offer very little in the modern marketplace.
“They promise everything from free valuations to free online listings, but, in return, the customer usually has to sign up to their terms and conditions.
“I think it’s about time that the customer took control of the process.
“At OkayLah, for a one-off fee of just £65, we give the customer the tools and support that they need to promote their property online, arrange viewings and negotiate a sale.
“Because we work with more than 300 qualified experts nationwide, we can provide a host of optional add-on services, but, importantly, only if our customers need them.
“We can offer everything from Energy Performance Certificates to floor plans and professionally-taken marketing photographs.
“The website is incredibly user-friendly and, once a customer has registered their property, they can control everything themselves through their own personal dashboard.
“The feedback that we’re receiving so far is that it’s a refreshing and welcome change from the other options on offer within the estate agency sector.
“Ultimately, your property is only worth what someone is willing to pay for it. For a one-off fee of just £65 and no contractual obligations whatsoever, why wouldn’t you have a go at selling it yourself using OkayLah?”
Telford said he plans to roll out the business, which also offers For Sale boards, nationwide. The business does not list on Rightmove or Zoopla.
EYE did ask some questions.
Of the 300 local experts, Telford told us: “We are affiliated to a company with over 300 property experts who we commission via the client’s user panel, with a slight difference.
“The agent will receive payment once the client instructs us to so once they are satisfied with the services they have received, the client will be encouraged to leave a review and the agent will be paid the same day (within 24hrs less commission).
“I believe this will encourage a superior level of service for our clients whilst the agents are financially rewarded for the work done on that day.”
He did not name the partner organisation, but said: “I would prefer not to say at this point but I can assure you they are a well established company ISO accredited and their network focuses on Scotland, England and Wales.
“As the project evolves we anticipate registering EPC accredited property experts who will joint our independent affiliates scheme which is why we push the concept of same day payment authorised by the client so the client is always in control and this will encourage the property expert to develop their chosen territory.
“Purplebricks wouldn’t work with us and I certainly wouldn’t work with Purplebricks.
“I don’t have a problem with their business model generally but I do object to ten months finance agreements: that’s wrong but it’s only an issue when the property isn’t sold after ten months when the client pays and has their property withdrawn.”
In 2012, an amendment to the Estate Agents Act was proposed so that “passive intermediaries” that only list properties did not have to conform to the Act in terms of having to comply with regulatory requirements such as having to offer redress.
The amendment, which came into force in October 2013, was intended to allow new business models, such as online agents, to start up without facing “disproportionate costs”.
Telford said that offering a For Sale board is “within the parameters of the private sale portal; any subsequent services we offer is in the form of an agent, so in both cases all communications are documented via the client’s message board so we maintain full tractability.
“At this stage we are not signed up to the Property Ombudsman as I would like to pursue the private sales portal model, but would not have any concerns in doing so if required, but technically we are not an estate agent.
“In 1979 over 25% of all properties sold were private sales. It would be nice to get back to that by providing support and modern technology without relying on contractual obligations, time restrictions, conveyancing tie-ins and third party representation who restrict home owners to promote their property.
“It’s a website for the people, so we will see how well the concept will be received over the coming months.”
Tesco is the most famous example of a big name entering the private sale-by-owner market. Its Tesco Property Market business launched in 2007, charging £199 and attempting to bypass estate agents. However, shortly after launch it was judged to be acting as an estate agent, partly because it supplied vendors with a For Sale board. The business closed because of the costs of compliance that would be involved.
What can possibly go wrong?
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The company is better described as OkayLahLahLand
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Zzzzzzzzz
Wake me up when this dream is over
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Is this a joke? Did I just read that right, ‘businessman’ ?
Oh ffs. I wonder what his ‘business’ plan looks like…….
”So, basically year one; I’m going to list ten houses a month @ £65, this adds up to £1million in turnover for three days… times this by the 17 months of the year and turnover will be £400million… the 300 ‘unknown experts’ will make good commissions because they’ll get 50% of the fee which is £3,456… which actually means they’ll act just like a proper estate agent, oh hang on – they’re not Estate Agents but they are, no they’re not, yes they are. Am I going to get sued? Sh*t, ok they’re not but I’m going to put ‘Estate agent’ in the wording on my website… we’re online so it’s ok.. not a problem… ”
Paul, sure you’re a nice bloke but dumbing down the industry you are starting a business in, coming up with this and then describing yourself as an alternative estate agent isn’t a great start.
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Sounds like he has trained at the Diane Abbott School of Economics !
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£65 To sell a property and they pay an agent a commission for the listing for them.
Deluded.
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I’m surprised the word “revolutionise” wasn’t used!
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In assessing the viability and ultimate success of this amazing new business it is absolutely vital that we are told if it is a ‘disruptor’ or a ‘game-changer’.
At the moment I can only go on what I read here and that seems to indicate it is a steaming pile of you know what. But I may be wrong.
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“Ultimately, your property is only worth what someone is willing to pay for it”
Without realising it, he’***** the nail on the head and in doing so explained why the online model doesn’t work along with his naivety.
What somebody is willing to pay isn’t fixed, it’s variable and can be influenced by a number of factors such as the level of demand the agent can generate and their ability to negotiate well.
I once saw Russell Quirk fall into a similar trap in a head to head TV interview with Ed Mead, where Quirk said selling only required you to find one buyer. Ed’s response pointed out that to get the best result a good agent will find a number of prospective buyers and thus create competition which will increase the price.
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I was thinking game changer?… oh yes, Go For Broke.
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“Ultimately, your property is only worth what someone is willing to pay for it. For a one-off fee of just £65 and no contractual obligations whatsoever, why wouldn’t you have a go at selling it yourself using OkayLah?”
Oh dear, oh dear …. nuts, is he still wearing short pants? This is nothing more than a digital newspaper advert. The business does not list on Rightmove or Zoopla.
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“Oh dear, oh dear …. nuts, is he still wearing short pants? This is nothing more than a digital newspaper advert. The business does not list on Rightmove or Zoopla.”
That is because any client daft enough to see value in this so called offering will be signing up to their No Other Portal Rule. Actually, the rule is more like No Portal, forget the “Other” as who has heard of them.
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where do I sign up?
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https://www.okaylah.co.uk/account/Index
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Call me Pollyanna but I’m glad; this just put a proper value on the internet listing services offered by other firms who say they’re estate agents but simply whack stuff on the net.
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Hi “Pollyanna”
🙂
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Unless we see a major shift in consumer behaviour then the lack of major property portal exposure with this sort of package will render it very ineffective.
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“ Telford said: “Back in 2012, Sir Vince Cable, who was the Secretary of State for Business at that time, deregulated the estate agency sector.”
“This made it possible for home owners to sell their own properties, without the need for an estate agent.“
I assume that that was the year the “classified” advert was introduced and selling privately was no longer a jailable offence?
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Surely we are all in business to make a profit? Can’t see this one working out.
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“superior level of service” for £65.00 – Ha ha ha ha ha ho ho ho ho ho ha ha ha ha ha
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Gosh or should that be GSOH because someone’s having a laugh!
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Hmmm
A VAT registered company with no mention of whether his fees include or exclude VAT. No redress scheme advertised.
No contracts? That is blatantly against TPO rules.
Crack on Lah! (in a scouse accent)
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Anyone claiming good service for £65 doesn’t understand what good service is. And besides service, most vendors want top price, given these field agents working for them will undoubtedly be doing so on the side whilst working for another company to earn a property income, who will dedicate their time to a sale making them less than £65 when another transaction will potentially make them 1000s.
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At £65 a pop I can see this business model being really profitable…………….
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Tick the box for Promotional Speech Launch Mr Telford.
Gather your parachute, lifejacket, flares, fire extinguishers, flotation suit and all your emergency equipment Mr Telford…. because I suspect you may well need them in the not too distant future.
Full Steam ahead and F**k the Icebergs…. that was what the Captain said?!
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…………………………………………what’s the point in even writing anything about this?! Love to see their cost per customer acquisition calculations.
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“Technically not an estate agent so outside of regulation”
No redress, no AML, no CPR – no supervision/policing etc. That’s not progress – that’s the Wild West!
The reality is that this offering looks likely to end up being regarded as an agent and therefore will have to comply with a myriad of legislation in due course. As for a network of “qualified local experts” working for a slice of these fees – my guess is that they are probably Domestic Energy Assessors not Estate Agents.
If the business can run without people (other than outsourced at low £ numbers) and get sufficient volume then it might look as if it could work financially but clearly not if it has to comply with the regulations agents have to or incurs any marketing expenditure to attract customers. Getting PR in PIE is not going to help it!
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Thank you Michael for your comments,
I would like an opportunity to address the comments raised:
“Technically not an estate agent so outside of regulation”
Correct, we have adhered to the deregulation requirements as proposed by Sir Vince Cable in 2012 to encourage competition within the estate agents sector by reducing the red tape and encouraging home owners to sell their properties under the Private Sale Portal to help stimulate the market.
“No redress, no AML, no CPR – no supervision/policing etc. That’s not progress – that’s the Wild West!”
There is of course redress otherwise the business model would be fraudulent, the purpose of dissolving the Misdescriptions Act 1991 was because it was judged there was sufficient legal protection for the consumer under the Consumers Protection Act which we adhere to. It would be highly unlikely a potential purchaser would make an offer without firstly viewing the property, then there would be a an element of due diligence by both parties, an offer and if agreed based on the terms then a Memorandum of Sale (for England and Wales Only), is drawn up (we provide the relevant information within the clients maintenance section so the process is as transparent as possible for all concerned) this is a non-legal document which is then forwarded to the conveying solicitor who will engage with the other parties solicitor, it is during this exchange any irregularities relating to the Anti Money Laundering act will be enforced, it is not necessary to address the AML during negotiation.
“The reality is that this offering looks likely to end up being regarded as an agent and therefore will have to comply with a myriad of legislation in due course. As for a network of “qualified local experts” working for a slice of these fees – my guess is that they are probably Domestic Energy Assessors not Estate Agents.”
We will always respect and adhere to the government bodies under the Private Sale Portal, http://www.OkayLah.co.uk has been created for the home owner to promote their property without having to sign a contract or finance agreement guaranteeing the estate agents fee’s and in some cases penalty fee’s when no sale has been made, the property has been sold via a third party or the agreed time has expired. The majority of conveying solicitors work on a “No sale No Fee” arrangement and their fees are considerably less than an Estate Agents fees.
If any additional services are ordered by the customer then we will engage an agent who is fully qualified, so in the case of EPC or drone video / photography, so I can assure you no work will be undertaken by any representative of OkayLah if he or she does not meet or hold the relevant certificates or licences. On completion of any work undertaken by the agent it is the customer who authorises the payment via OkayLah so at all times the customer remains in full control of any services ordered and the Agent is assured same day payment when they have met their obligations.
“If the business can run without people (other than outsourced at low £ numbers) and get sufficient volume then it might look as if it could work financially but clearly not if it has to comply with the regulations agents have to or incurs any marketing expenditure to attract customers. Getting PR in PIE is not going to help it!”
The investment has been made in the technology to assist the home owner and if the project is to succeed then we do need customers as with any business, our introduction to the industry in November was to identify and address any concerns from the sector before the PR and Marketing starts in 2018, I agree it would be highly unlikely we would generate sales from the Estate Agent sector (other than registering for a free account to view the services we offer), I also believe we will have little impact on the quality high-street estate agents, if the Private Sale Sector does evolve and we get more competition then this will have a direct affect the hybrid models, not quality high-street estate agents. The definition between a quality estate agent and the other will be the contracts / finance agreements……..those who offer a No Sale No Fee will succeed, those who don’t will not.
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Really,
I would suggest in business the truth is always the best option: https://beta.companieshouse.gov.uk/company/04216470/officers
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Really,
I would suggest in business the truth is always the best option: https://beta.companieshouse.gov.uk/company/04216470/officers
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“I would suggest in business the truth is always the best option”
Couldn’t agree more.
However – the point here being what, exactly?
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You’ve already said that.
I’ll not bother repeating my comment above – but feel free to respond to it.
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