Consumer watchdog Which? says 5,000 sellers could be affected by collapse of Emoov

Which? has issued advice to customers of Emoov left in limbo after it entered administration on Monday.

Sellers who had signed up to Emoov, which also owns Tepilo, could be out of pocket by as much as £2,995.

According to the administrators, James Cowper Kreston, Emoov has 5,000 properties listed For Sale or SSTC.

Of these customers, some 80% had paid upfront and could lose their money from the collapse of the business.

Which? quotes TwentyCi data which says that over the past 365 days, Emoov had around 8,000 new instructions. Of these, some 53% went on to be sold subject to contract. The average price of a property listing was £375,000.

Which? says that Tepilo’s figures are included in this data which it says it obtained exclusively.

The consumer organisation says that customers of Emoov may want to get their money back – although it is advising them to wait and see what happens, “as you may be able to transition to a new company and not lose any money”.

Creditors will be invited to submit claims for money owed by Emoov and Tepilo, but Which? warns that customers will be ranked lower than secured creditors such as banks that have lent Emoov money, and employees who are owed salaries.

Which? advises that customers who paid by credit card may be able to get their money back by claiming against the credit card provider.

Those paying by debit card may be able to claw back their money as long as they made the payment 120 days ago or under.

Which? points out that there is no customer service team answering calls, and suggests that anyone who is mid-sale should contact the administrators.

Those who chose the ‘pay on completion’ option may still have to pay, and will probably be contacted by the administrators.

www.which.co.uk/news/2018/12/online-estate-agent-emoov-enters-administration-what-it-means-for-you/

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36 Comments

  1. Property Poke In The Eye

    What a mess.

    Customers will be taking legal action and requesting a refund against the lack of service.

    The credit agreements signed for deferred payment will be enforced by these credit companies.

    This type of news does not help the industry as a whole.

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    1. dantheman78

      Claim a refund from where, the pots dry

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      1. JVSOZ

        Credit Card Companies mainly, and they will actually quite happily pay claims, but only if you ring up and make it. The finance company that eMoov used for fee deferment will be in a pickle too I’d say, because the services have not been rendered.

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    2. Moveaside01

      Peanuts and Monkeys?

      Don’t censor this please, I’m simply saying two words.

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      1. Bless You

        WHICH? asleep at the wheel. Should have been warning about PAYANYWAY years ago..

        ASA_UK take note as well.

         

         

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        1. Chris Wood

          Along with NTSEAT, the FCA, NAEA et al’.

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          1. Quags

            The NAEA? That rudderless toothless entity that the public couldn’t care less about?

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  2. Thomas Flowers

    Well, this certainly shows that they did manage to disrupt the market……. for the worse.

    * All fees are payable regardless of sale or receivership?

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  3. JVSOZ

    This is a preview of what’s to come when PB fold.

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    1. DB999

      Just re-confirms the risk of using these pay anyway models, half of these vendors would not have achieved a sale with this agent regardless. https://www.emoov.co.uk/news/2018/10/05/amazon-rental-market/ Only 2 months ago the CEO was criticising Amazon for not giving their employees a big enough pay rise, when he cant pay his employees at all! At the time of writing he was setting up a new firm, knowing his was going down the tubes! You Can’t make it up.  

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      1. dave_d

        I’m literally lost for words

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  4. ArthurHouse02

    Interesting that it is now being stated that only 53% on properties sell. Anyone got any quotes from you know who claiming otherwise?

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    1. Shaun77

      My assumption here is that they mean SSTC rather than Sold.

      PIE – are you able to clarify?

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      1. Rosalind Renshaw

        Shaun77, yes it does mean sold subject to contract according to the Which? report

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        1. Shaun77

          Thanks Ros

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  5. MarkRowe

    ‘Look what ya did, ya little jerk’

     

    I’m simply quoting from a film, please do not moderate this comment 🙂

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  6. AgencyInsider

    The NAEA should have been straight in on this and organised a ‘rescue’ It could have been a fantastic PR coup for them and the  industry.

    But of course they haven’t, and they won’t. Hopeless.

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    1. Thomas Flowers

      Indeed AgencyInsider.
      How about this revolutionary idea?
      All emoov and PB clients can now move to ‘proper’ estate agents, free of charge, who have agreed that they will only charge them if they actually move?
      You could call it No Sale, No Fee?
      Arrgh commissary, that feeling of rage when you end up paying for a service that does not complete and you end up having to pay two estate agency fees?
       

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      1. AgencyInsider

        With its national reach the NAEA could have emailed all members and asked if they would be willing to take over the instructions in their area (it can’t be very many in each individual patch – when did you last see an emoov/tepilo board?) and the deal would be that the agent can charge normal fees on a no sale/no fee basis – but will discount that fee by the amount the customer has already paid the defunct company. Just think what the customers would feel and how they would become ambassadors for the companies in the future.
        With a list of willing participant companies NAEA could have press released and advertised that emoov/tepilo customers only have to ring a hotline and a local full service agent will help them.
        It’s a god-given opportunity for the organisation and the industry but no doubt NAEA is too busy flogging another course or conference to have noticed.

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        1. ArthurHouse02

          I would happily help their vendors out, but there are no Emoov/ Teplio properties for sale anywhere near us, and as far as i am aware never have been

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        2. Mrlondon52

          This is a good idea. NAEA??

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    2. Estate Agent W1

      You are assuming the NAEA could arrange a p**s up in a brewery…thank you as I have not laughed that much this week!!

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  7. AgencyInsider

    And another thing. Mr Quirk has been spending a great deal of time recently on video, twitter, media, etc bemoaning his lot. Has anyone heard him say anything, anything at all, about the customers who are now stranded and out of pocket? Has the firm issued any guidance to them as to what they should do? And has there been any expression of regret for the position in which these customers find themselves? I have not seen or heard anything. Have you?

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    1. Moveaside01

      Great comment AI, take a bow Sir!

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  8. AgentV

    A message to the administrators;

    Our agency would like to help with any clients out of pocket in the areas we cover. As it is the season of goodwill, we will not charge vendors who have already paid up front.

    PIE have our direct contact details if you are interested.

     

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  9. Shaun77

    “as you may be able to transition to a new company and not lose any money”.

    Which? much like your average consumer, fails to grasp the well researched fact that the longer a property is sitting on the market, the more it’s value erodes*. In other words, these vendors will lose money, if not the service they’ve paid for e.g. paying an up front fee for being advertised online.

    *PIE ran an article on this recently, qouting research carried out by The Advisory

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  10. Woodentop

    And a 25% abandoned rate from the SSTC? Taking years to weedle out how effective these pay-up front companies really are and it takes a collapse to show that 1. The business model is a failure 2. The customer is getting a very raw deal at trying to sell a property. As Emoov and Tepilo are typical on-line up front payment models, it should be a warning to the public of what they are getting into with any similar company. Particularity one particular company “We are just like any agent”, who it would appear is only able to just stay afloat from investor support and if they go turtle … what a mess and misery that is going to cause the public.
     
    I don’t think we have seen anything yet!   Jeffries was right a long time ago.
     
    Which? should be advising on the suitability of these on-liners, after all they are a consumer watchdog!

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  11. surrey1

    In fairness, most of them would have ended up with nothing even if they were still trading.

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  12. smile please

    Maybe Eye could get some good publicity and champion independent estate agents.

    Maybe run a story that you can put distressed emoov sellers in touch with local estate agents who will act for them. We will charge no commission, we would just ask them to pay us what they think we are worth on completion. Heck even if its a tight so and so who pays a quid the karma will do us well.

     

     

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    1. Woodentop

      Where would they have gone anyway, when 60% to 70% failed to sell?

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    2. Ostrich17

      PB have already got their PR team on the case.

      What is surprising, is the slow reaction of the portals. They have the consumer reach to quickly get the message out.

      OTM ! you are missing a golden opportunity !

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  13. Mark Walker

    I feel the need to look at how consumers have been ‘independently’ advised.  Sorry for the external links:

    https://www.mirror.co.uk/money/online-estate-agents-versus-high-11371073 – “Founder of online agent eMoov, Russell Quirk argues: “High street commission fees are outdated and anti-consumer ”  Call me crazy but I guess that spending the consumer’s money and folding might be thought of as anti-consumer.

    https://www.which.co.uk/money/mortgages-and-property/home-movers/selling-a-house/online-estate-agents-ar2jr0g705uu – Which? themselves, ha!  “Fees: in most cases, using an online estate agent will be a lot cheaper than using a high-street agent. The more expensive your home is, the more you stand to save if they charge a flat fee.”

    https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/should-i-use-an-online-estate-agent/ – “Why should I use an online estate agent? Without a doubt, the biggest advantage of online agents is the savings you can make.”

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  14. Mark Walker

    Seeing as it is Which?, I feel the need to revisit consumer advice highlights:

    Daily Mirror Money – “Founder of online agent eMoov, Russell Quirk argues: “High street commission fees are outdated and anti-consumer”

    Which? – “Pros of using an online estate agent: Fees: in most cases, using an online estate agent will be a lot cheaper than using a high-street agent. The more expensive your home is, the more you stand to save if they charge a flat fee.”

    HomeOwners Alliance – “Why should I use an online estate agent? Without a doubt, the biggest advantage of online agents is the savings you can make.”

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  15. IWONDER36

    I’d like you to sell my house please!

    Great, that’ll be £1000 please!

    What if it doesn’t sell?

    Still £1000…

    Okay, what if you go bust?

    Still £1000….

    Are there any circumstances when it won’t be £1000?

    Two options: 1) When its £1500

    2) Don’t use us

     

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  16. GPL

     
    Any sign of Russell Quirk stepping forward to provide clarity/guidance for his former Customers?
     
    No?
     
    Thought so.
     
    Wheel out the “Stocks & Rotten Fruit” …..that may give failed Emoov Customers some “Customer Satisfaction”.
     
    My advice to Emoov Customers ….. Trust Your Local High Street Estate Agent – they are “real” Estate Agents, not “virtual” ones!  
     
         

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  17. J1

    5,000 Lemmings standing on a cliff; 5,000 Lemmings standing on a cliff

    And if one poor Lemming should accidentally fall

    There’ll be 4,999 Lemmings standing on a cliff

    Report
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