High-profile industry figure Perry Power has blasted ‘free’ estate agents, labelling them as unethical at best and criminal at worst.
He has also revealed that he personally never charges a seller less than £10,000 – and reckons he is worth every penny.
Power, who runs Surrey-headquartered agent network Power Bespoke and campaigns for industry standards and high performance, said that so-called 0% firms who offer to sell people’s homes for free, should not be allowed to call themselves estate agents.
Power, whose criticism encompasses ‘the modern method of auction’, said that while sellers might be charged nothing, costs are charged to buyers.
In a blog on social media headed ‘Rant alert’, Power warns vendors: “If you’re considering selling your property using a ‘free’ estate agent or modern method of auction or similar, make sure you are going into it with your eyes wide open.
“It ain’t free!
“They’re charging the buyer anywhere between 1% and 4%, which means the buyer will be paying/offering between 1% and 4% less for your property to account for the additional, unbudgeted, cost they have to pay the agent (that’s assuming they have the spare money in the first place because they certainly can’t add it to the mortgage).
“The buyer is their client because the buyer is paying them. Not you!
“Whoever is paying the bill is their client so when they’re saying to you ‘This is a good offer, you should accept it’. . . can you really take that as great advice from ‘your’ agent.
“You’re going to reduce the amount of potential buyers for your property.
“It’s tough financially to buy a property at the best of times let alone having to pay the agent.
“Many buyers start their search with only their mortgage deposit, Stamp Duty money, legal fees, moving costs, etc, saved and simply won’t have the extra to pay the agent so it rules your house out.”
Power goes on: “My other issue is the fact it’s massively cheapening estate agency as a profession. I charge my clients £10,000 minimum to handle their move.
“It’s taken me 16 years of graft to get to this level. I’m a professional and I’m sh*t hot at what I do. A decent estate agent isn’t free. They never will be.
“A cr*p estate agent who isn’t able to show their value, will have to find ‘creative’ ways to get new clients.
“Choosing an estate agent to act for you is no different to choosing an accountant, solicitor, surgeon … You want them to be skilled to the eyeballs to ensure they don’t muck up.
“If you needed life saving heart surgery and you saw an advert saying ‘All double by-passes FREE this week’ would you run to join – or run a mile?”
Power called for agents who charge buyers and not sellers, to title themselves as “buyers’ agents” and not estate agents.
He confirmed to EYE that £10,000 is his personal minimum fee, but said: “I give the client the option to have another of our agents for less if they don’t want to pay my fee but they usually say ‘but I want you to handle my move’ and pay the fee.
“I tend to deal with properties at £500,000+ mostly anyway. At £900,000, say, I’d be charging 1.5% and I also charge for negotiating my clients’ onward purchase at 20% of the saving negotiated off the asking price.”
Comments (40)
everyone is entitled to their view, if you dont like the programme SWITCH OF THE TELLY
OFF
Hmmm, it seems we may have upset the Perry Power fan club…..
I already said that I agree with his views on the post. And I can assure you that I regularly bring in fees of 10k/20k and above, as I have always worked in the prime London market. However, I just felt that he came across as a little too self assured in the article. We all know there is a fine line between arrogance and confidence, and whilst I too have regularly negotiated my vendors better deals, I would never claim to be “sh*t hot at what I do….”, even though I am, and my repeat business and recommendation’s will testify to that……but sometimes its better to let other people sing your praises rather than blowing your own trumpet.
I`m very conscious that our industry is still widely viewed to be populated by wide boys, and its an image that I try and distance myself from, because its often associated with bullsh*t too. Perry may well be an extremely nice guy in person, but in my opinion, the piece portrays him in a certain light, and that’s the angle I was commenting from.
Also, I`m sorry, but the name Perry Power, further portrays a certain image. Whether its his real name or not, it seems like he was always destined to become a high profile industry figure in estate agency.
It was a post on his own personal profile on FB. Those who know him know he’s not at all arrogant and also that his grammar isn’t the best either. (Mine’s clearly not perfect either).
This was not a press release. Ros obviously thought it made a good news story. I don’t think it’s newsworthy IMO but cannot believe the comments from some keyboard warriors on here.
“I would never claim to be sh*t hot….. even though I am”
Brilliant.
What a bunch of pr1ck$ some of you on here are.
Perry has set up a free FB group to help other agents with no other intention to offer support and help improve standards. He does this for free – not an upsell to his Boot Camp.
One of the biggest gripes I have is the mentality “I’ve always done it this way” which I suspect is the mentality most of you have on here. Constantly ******** about Purple Bricks – how is that adding value to the client or the industry? Every idea ripped to shreds because you can’t come up with any of your own. Whinging about the downward pressure on fees when the reality is you either can’t demonstrate the value add or don’t offer any. Maybe a lot of you should look in the mirror before commenting.
Suggest a) if you haven’t got anything nice to say then don’t say anything at all – constructive criticism I’m sure is appreciated but personal attacks are frankly pathetic and probably stem from a deep personal feeling of inadequacy and b) join his facebook group – I expect you might learn a thing or two.
Perry is one of the nicest people I’ve had the pleasure of meeting in this industry. He’s spent time with me offered support and not asked for a single penny in return. He is also very candid about his financials and doesn’t claim to be business man of the year – often discussing the challenges he has faced and the mistakes he has made to help ensure others don’t repeat them.
Feel better now, hun?
What a bunch of pr1ck$ some of you on here are. Constantly ******** about Purple Bricks
You’re from Surrey, aren’t you, r29woolf.
Minimum £10,000 fee for a company who recently featured on a popular facebook page for touting their own vendor………. Money well spent???
For those who don’t know Perry, he’s one of the hardest working and most conscientious career agents I’ve ever met.
He has over 1,000 agents in his Power Estate Agent group on Facebook where they all share ideas and opinions on suppliers etc and he freely shares his tips and advice for people who are interested
He also typically saves his sellers substantially more than his entire fee by negotiating their next purchase on their behalf.
His percentage of asking price achieved is the best I’ve seen and he makes himself personally accountable for everything his company does.
He also is a passionate defender of traditional agency, and fees.
I have filmed an in-depth interview with him for a series called Heroes of Agency where he tells his entire story, warts and all which will be published in a couple of weeks.
Christopher Watkin’s personal Heroes of Agency interview went live yesterday, if you’re interested, search “Heroes of agency Watkin”.
I have over a thousand followers on my FB page, that make me an industry expert / leading agent?
I would love an interviewer / Guru / Expert / Leading Agent that conducts an interview without blowing smoke up each others backsides.
Are you all part of a ‘Pod’ endorsing each other to try and manufacture a standing in the industry? By all accounts Perry in his own words was struggling until he ‘Teamed’ up with Royston Guest. And now can you belive it they run boot camps for almost 2k a pop – I guess this is where his up turn in ‘business’ has come from.
Also on social media is Perry asking for a property to sell …….. The prospective vendor mails him back advising he has been marketing the property since December!
Does not even know his own stock.
Actually my vendor that.
If that Facebook incident is the worst that can happen to our customers, I will sleep well at night.
Love the way it was shared by the agent who listed it £25k higher and got disinstructed! Do you know him?? x
Wow, I’ve never read so many comments aimed at putting someone down for expressing an opinion!
If you are a forward thinking estate agent you will definitely have heard of Perry Power. If you are a lister of properties maybe you won’t.
He’s making a very reasonable point about a ‘no fee agent’ indicating that for it to be so, the fee has to come from somewhere else and that could mean less money in the vendors pocket.
The same is true for companies that advertise no commission but charge a fee whether the vendor sells or not. Why is a fee that is paid regardless of success not considered commission? Is it just the fact that commission tends to be a percentage?
Auctions and modern auctions certainly can be a good way of selling property but they definitely don’t suit every vendor situation nor property. They can also exclude some buyers from being able to purchase the property.
Keep up the good work Perry!
Most on SM will have heard of PP over time, but he once lauded the online fee model, or that’s how he set out originally. Young, slick, publicly denouncing the traditional model. Big vision yep hats off to that. Interesting to see he has altered his fee structure or been forced to.’ He’s ubiquity is in fact quite annoying. Don’t think it wins instructions 🙂
I agree with most on here. Just another property professional trying to be industry famous. Why aren’t these guys involved with the professional bodies? Obviously PIE like him. How about some real stats and industry news?
We don’t need anymore self-appointed trainers or self-proclaimed guru’s who came into the industry last month preaching on SM platforms.
Even old Simon Shinerock was trying to enter the fray, offering some type of strategy, but guess what? Their was a cost. Happy with the established few professional trainers, but this new breed offer me nothing.
Focus on your own concern Perry the Power
What are you talking about?
When did PP ever laud the online fee model?
I’ve been working with him for 3 years and known of him for 4. The company was only incorperated in 2013!
Gotta love Simon Shinerock for his success, his bank balance is far fatter than mine, personally, I have more respect for people that made their money off positive customer experiences!
As much I appreciate the guy sticking up for traditional agents, he comes across as extremely arrogant. Just the sort of wide boy, I`m better than everyone else attitude I do my best to distance myself from.
The name doesn’t sound real either. Something he possibly made up to go with his massive ego. As for the “high profile industry figure…” title….. I`ve never heard of him?!
I do tend to agree with his views on “free” agents, but I`m not sure it being put forward in such a cocksure way will be endearing to the public.
I work with Perry and I’ll be honest I can see how it could be read like that.
You have to understand this was a no holes barred rant… agents doing what they’re doing with this method are costing the public THOUSANDS and they’re lying, spending their day spreading utter bullsh** to unwitting home owners.
I’m sure when it stops he’ll calm down! but you cannot deny his heart is in the right place, regardless of how you percieve his articulation of the issue.
A high achieving estate agent who hates the status quo is never going to be popular with the people who work within the status quo!
This doesn’t read well if thinking about it from a formal point of view… I challenge you to 5 minutes in a room and not feel either ashamed or inspired!
I wonder if his brother Paddy knows he is working outside of his roulette wheel!
‘Leading agent’ (LOL) has mouth like a sewer…
Sounds like a betting site.
So it seems logical for me to bet he has charged less than £10,000 to sell a house!
Doesn’t he sound like Paddy Power !
£10K is ridiculous… you could sell with Purple Bricks 11 times over and still have change!!
you could list with PB, whether you’d sell for the best price or not is another thing
Yes but there’s no commission to pay!!
There’s Gazumping and Gazundering. Cartels are outcast, so who are we to question another Company’s pricing menu? The average 10k falls within the negotiation one way or another. The seller would negotiate down more than they would if fees were payable and the buyer calculates costs just in the way that they would with stamp duty. That’s another thing, stamp duty costs… How dare the Government take often many 10’s of thousands of pounds from the buyer. Now that might be considered the rip off.
‘High-profile industry figure Perry Power’.
Never heard of him.
Perry Power another estate agent that spends more time selling his boot camp than selling property.
who are the others?
Too many to mention. Seems to be the new trend either that or the new way to beat the tenant fee ban.
Come on! Call them out!!
Still waiting…… obviously not that many!!
Couple to start you with Sally lawson and John Paul.
You could also then dive into the pool of ex agents (perhaps could not hack it?) trying to cut it as an industry expert, one of the old posters Paul Long fits the bill.
Guess you have signed up to one of these courses or looking to do launch one yourself?
smile please
Glad I’m not the only one that thinks this about these characters. Actually pretty ludicrous,
If you think you can do better then where’s yours?
Can’t say I have heard of Sally or John Paul…..
I’ve seen Paul Long’s facebook bits and he definitely offers value to those who can’t do it themselves….
That’s 4 then so far…. loads!
Jump on FB or linkedin, They are rife, will not take you long to find them if you want to.
There’s a few snake oil salespeople out there for sure!
Perry Power Limited up until a few weeks ago would of been providing the 0% service as part of the Network Auction setup.
Now that Network Auctions have changed their model he has come out saying he doesn’t believe in 0%.
On his Face Book Live he claims he has sale agreed / sold 53 properties, which would mean a potential revenue going by his minimum £10,000 fee of over £500k……… I dont think so!!
Accounts at companies house tells the true picture.
At least he is keeping positive and thinks he can achieve his goals which is half of the battle.
Sorry bud, I have to step in here… personal opinions and attacks are fine but factoids belong on Fox News!
You’re confusing Network Auctions with “I am Sold” there has never been a charge to buyers and a **** “sale by tender” method. Perry actually gave away a larger fee share to the auction house so that they would drop the £900 admin fee to the buyer which was part of their standard terms.
Everyone’s entitled to an opinion… but not when they’re wrong!
Accounts at companies house are over a year old, we’ve grown almost 40% on previous year through blood, sweat, tears and bending over backwards…. most established agents have shrunk by at least 25% on average in our core patch.
I have no problem debating this stuff but keyboard warriors hidden behind childish names who spew absolute BULL**** need putting in their place.
Pop down for a coffee x
I’m surprised at your unprofessional response, James. You’ve just called someone a keyboard warrior for questioning dubious claims after the evidence available to them says the claims are false.
Your company has provided no substantiated evidence and has outwardly attacked agents who provide a 0% option in good faith, after all, nobody forces buyers to pay the fees. If they don’t want to pay the fees, I’m certain they will come to Power Bespoke..
You say the accounts are out of date and therefore don’t support the chap’s claims that Power Bespoke aren’t being entirely honest, but if they’re a year old, I’m sure they’ll be updated soon so we will be able to see fully what the real picture is.
I personally have great respect for Perry and his brand but I find his attack on agents who provide services differently to him is unfounded – we don’t attack him because he over charges them because he thinks he’s worth it but he will attack us because we charge buyers?
Yet you’ll happily rip tenants off for £300 referencing fees? Where’s Perry’s skill and whatnot enabling them to charge these ridiculous fees to landlords?
I think this is a simple case of the pot calling the kettle…
That’s £300 referencing fees after they’ve paid a hefty holding deposit and before holding them to ransom with check out fees and forcing them into insecurity should the not wish to pay a ridiculous tenancy extension fee, showing how much you care about putting your clients interests before your own; tenancy renewals or extensions mean the landlord won’t be left without an income next month should the tenant give notice today whilst on a periodic.