View the article online at http://issuu.com/lifemediagroup/docs/sbt_394_2015/c/sp19aul |
ARTICLE WRITTEN BY SUSSEX BUSINESS TIMES WITH COMMENT FROM ME, CLIVE JANES OF CRJ LETTINGS & CHICHESTER PROPERTY NEWS:
"The Internet has revolutionised
the way we buy and sell property with disastrous consequences for traditional
agents. Clive Janes advises on whether traditional estate agency is in fact
dead, or just changing"
The digital revolution seems to
have taken over every walk of life and every sector of business. Just as Airbnb
has shaken up the world of travel and hotels, now it seems online estate agents
are trying to blow apart the old system of buying and selling property on the
high street.
The number of online estate agents
is growing, as with the rest of the business world, and it is predicted that by
2020, 70% of homeowners will be selling online rather than by traditional means.
Buying online has also become far more likely than buying in a high street
agency, which has led to many frustrated independent estate agents in the
streets of the South East as well as the rest of the UK.
In 2013, Rightmove obtained 14
million page views compared to the Queen’s Speech’ 7.8 million views, putting
the state of the market, and the UK populations’ priorities into perspective.
The UK also spend an average of 17 hours a month on property sites in
2015.
The online sector has come a long
way since eMoov, now one of the top dogs in the world of online estate agency,
began selling homes for a fairer fee than the high street in 2010. Now,
due to the prevalence
of the likes of Rightmove and Zoopla (98% of buyers and tenants are said to go
straight to these sites) every agent is now an online agent. However, it’s no longer just about
providing a cheaper alternative, but about offering a more empowering service
for the consumer.
Recently, easyProperty CEO Rob
Ellice and his horse-drawn coffin led a cheeky, and quite outrageous PR stunt in
London. It involved a funeral procession through the streets, mourning the
‘death’ of the high street estate agent. The march got under way as online
‘estate agents’ in pin-striped suits, and holding brick-sized mobile phones to
their ears, filled the streets. They carried red wreaths behind a horse-drawn
coffin.
Rob Ellice said: “Consumer
behaviour has changed. No one walks into an estate agent’s office to start their
search for a property anymore. With traditional estate agents, you are still
paying for their high street offices, a fleet of branded cars and cafes – even
if you don’t want these services.”
More and more people are turning to online
estate agencies due to the cost comparison. Online estate agents often offer a
far more flexible, and more affordable package choice, plus have an upfront fee
for their services rather than high street estate agents’ often high fee that
can rise above and beyond your expected budget due to the cost of the house
itself.
Clive Janes is a Sussex based landlord who setup CRJ
Lettings early last year - a small independent letting
agents, based in Chichester, West Sussex. He doesn't have a
high street presence, viewing it as in fact a hindrance to his particular
business model, however is local to the area and knowledgeable of Chichester’s
property market. He shared his opinion on the topic of online vs high street
estate agents, their differences and some of the advantages and disadvantages of
online-only agents:
“The fundamental
problem with many of the online-only agents is that they operate too broadly
geographically. People still largely use local agents to rent and sell their
property because they are presumed to have good local knowledge of the area and
a solid grasp on the price of any given property, whilst being on hand to
conduct the viewings. In contrast, online-only agents lack this in-depth local
knowledge and often need to consult with local agents to ascertain the correct
sale/rental figure!”
Clive adds:
“Another negative to the customer that most online-only agents have put into
their business model, is charging their fees upfront; meaning it is a sunk cost
whether you sell/let your property or not.”
This is something
that has previously come up as an advantage for online agents – with such high
and changeable fees, some customers may like the ‘flat fee’ approach. However,
Clive suggests a downside in performance: “Sceptics may also suggest there is
little motivation to perform the task in the vendor’s best interests when the
fee has already been paid.”
So, what’s the
solution to this battle between online and high street agencies? Clive believes
that, going forward, a ‘hybrid’ of the two formats will best serve the public:
“I expect the future to consist of more mobile property professionals who focus
on a local area and take full responsibility for each property they take on. Not
being tied to a high street shop nor weighed down by its inherent costs means a
passionate individual can offer truly expert, local and tailored advice,
offering good value rather than simply being ‘cheap’.”
This may prove more
difficult than it sounds, however, as Clive comments: “It's very much a case of
the chicken and the egg; to take on properties you need to be able to prove
competence, trust, dedication and that you will care, but without the property
in the first place it is very difficult to prove you have those qualities.
Whether you are online-only agent or on the high street, it is this you need to
overcome so as to engage with homeowners and landlords to trust in using your
service.”
Perhaps estate
agents with a more high street approach don’t need to be quite so afraid though,
with customer perception of quality and service often far ahead the costs
involved: “Ultimately landlords just want their property let and managed
proficiently, by a competent agent who they believe they can trust and cares for
them. The biggest thing online-only agents have missed whilst banging on about
their ‘cheap fees’ is that property is largely a people business and until they
can actually add value to the end-user, they won’t make the impact upon the
market they expect to.”
The Sussex Business Times (SBT) is a free monthly magazine reporting from the frontline of business in Sussex. SBT gets inside the business issues that matter, informing, inspiring, encouraging, and entertaining the business community with news, features, case studies, and advice. The publication has been in print for nearly 40 years and is now an established title and valuable communication tool for anyone with an interest in business – from budding entrepreneurs to seasoned CEOs.
As well as online, The SBT is available at Chambers of Commerce across Sussex, as well as hotels, golf clubs and Waitrose stores across the county.
Follow The Buy-To-Let Property Investment Market in Chichester
Chichester Property Market LinkedIn Page for Clive Janes
CRJ Letting Agents Chichester Facebook Page
CRJ Letting Agents Chichester Twitter Page
Chichester Investment Property Management Specialist CRJ Letting Agents Website
___________________________________
If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
Chichester Property Market LinkedIn Page for Clive Janes
CRJ Letting Agents Chichester Facebook Page
CRJ Letting Agents Chichester Twitter Page
Chichester Investment Property Management Specialist CRJ Letting Agents Website
__________________________________
No comments:
Post a Comment