The lines are drawn between Full Service and Self-Service in the battle for customers.
But does Full Service do what it says on the tin or are some agents still trying to Fool vendors and landlords.
Long-time readers of my blog will recall my Three Steps to Survival in which I challenged “traditional” agents to be honest with themselves about their level of service.
Maybe at the time, some agents still didn’t believe that this “online thing” was ever going to impact on their business, but very few agents that I meet now feel completely comfortable about ignoring what’s going on.
There seems to have been a change in just the last few weeks.
There are signs now that Full Service agents are fighting their corner. Well done to RedDoor Homes in Rochester for picking up Rayhan Rafiq Omar’s spoof video idea to hilarious effect. Very funny, but very serious all at the same time.
The point in the video about the price achieved is at the centre of Full versus Fool.
Most “traditional” agent that went through my Three Steps to Survival will almost certainly have put “achieve the best price” on their list.
They’ll probably have given themselves ten out of ten for it too. That’s why they’ll nod wisely when they watch RedDoor’s video. But is it really true, or are they Fooling themselves and their vendors?
One of my favourite questions for bringing a puzzled look to an agents face is, “What system do you have in place to safeguard your clients from selling too quickly?”
The correct answer (which I rarely hear) is that if a negotiator tries to remove a clients property from the market, stop viewings, change the board to sstc, instruct lawyers etc, within 21 days of it first being marketed then they can’t. It has to be signed off by their line manager first.
How else can you be sure that you really have exposed your client’s property fully to the market, like you said you would? How else can you be certain that you’ve found the best buyer, and not simply the first one, like you said you would?
How are you feeling about your ten out of ten score now?
Yes, a full service agent probably is in a position to get a better price than a self-service one, but only if they do the job properly.
Editor’s note: It has absolutely nothing to do with online agents, but since Bob has mentioned RedDoor Homes, here is a look at their very latest offering – and it’s very funny.
Youre getting better Bob.
Nice to here someone else saying that offers shouldnt most times be agreed too fast to achieve longer exposure.
Agents who are cheapening part service offerings to low cost fees up front really need to think what budget offerings cost vendors AND themselves.
Some budget models will need to list 5-6 homes to equate to what full agency should be able to earn.
With Zoopla’s main shareholder investing in YOPA agents really need to start thinking of how they list and where they list. The alliance could be dangerous as no doubt money will go into more TV ads and how much Zoopla space might be made available. Could be a slippery slope for agents AND Zoopla.
Agents need to think how they can upgear revenue from each instruction. Not drop their pants.
Sell on service. Up your fees justified by a better client offering.
Don’t join race Ground Zero. You wont compete with big TV adverts to offer the ‘cheap service’ models.
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I don’t disagree with Bob but don’t forget the old adage – the first offer is often the best offer.
p.s. Love the Red Door vid. Well done chaps.
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Don’t be afraid to charge proper fees for a proper job but ALWAYS make sure your promises are delivered and exceeded. There is always someone who will do or sell something cheaper and avoid that at all costs. Spend time with your potential client explaining why your fees are what they are and also the client will only pay when you do the job.No sale no fee if that is how you operate.
On line agents who charge up front fees have no incentive to work for their client; once its listed and money in the bank that is their ‘personal’ or should I say personell job done. Just leave it to the purchasers and the computers!
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This highlights the fundamental problem there has always been in traditional estate agency – the all or nothing scenario forcing agents almost to act in their own interests rather than the customers. No sale no fee creates this environment where an agent spends tons of cash on promoting a property but gets nothing in return unless a sale is made, which is why negotiators will always put ‘good offers’ forward to their clients with a positive spin. Sadly from an agents commercial perspective its not about achieving what the customer wants or what is possible, its simply about getting the deal done no matter what, as otherwise you don’t get paid.
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Not sure I agree with 21 days for full exposure. With how people search for homes now being mobile, with instant uploads I would say that a huge chunk of the most motivated buyers have probably been exposed to the property with the first 24hrs. Recording when we achieve the highest offer, whether the vendor accepts it or not it is usually within the first 7 days.
By quoting 21 days and having it on for that length of time – does it help justify fees ?
Or have we shot ourselves in the foot using technology that devalues our role ?
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#Property Peep – Just out of interest, what’s your patch?
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