An online agent poaching a property wrote a letter for an elderly couple to sign, disinstructing their high street agent.
The high street agent says he subsequently found out when the elderly gentleman told him what had happened.
The high street agent says that the online agent had poached the property – one of a number – stooping to dubious tactics.
He says they pretend to be surveyors asking for information about comparables.
The agent, who has asked not to be named, told Eye: “I am sure we are not alone, but we find that properties which have recently been reduced in price get targeted by online agents.
“Of course, we do not advertise the full addresses online but will show that a property has been reduced and very often get phone calls claiming to be acting for surveying practices and asking for the addresses of properties which they have identified as comparables.
“In the case of this particular property, we had got on very well with the elderly owners. Due to ill health they reduced the price to try and push it in a sluggish market.
“My secretary gave the full address over the phone to someone claiming to be working with a surveyor and needed the address as a comparable.
“Within about a week, I received a very sharp letter by recorded delivery telling me to take the property off the market with immediate effect.
“It came as a shock as I was by now on first name terms with the owner. Anyway, I did as instructed.
“A short while later, the owner called in to settle his bill, and worried that I’d done something to upset them, I asked them outright.
“His reply was: ‘I didn’t write that letter. [The online] estate agency contacted us to sell the property, and as you know we are desperate to sell, so we thought we’d give them a go. They wrote that letter and asked us to sign it and post it to you.’
“The penny dropped.”
The agent says the property had already been reduced twice while on his own books, the second time bringing it down to just under valuation.
The online agent advertised it at £15,000 less than that and the property is now under offer.
The agent said that other full-service high street agents and their staff should be on the alert for sharp practice.
He said: “Be aware that some unscrupulous online agents will try and blag the full address of some properties – almost certainly those which have reduced their asking price.
“Never give out the full address of a property over the phone unless you know who you are talking to.
“If you do not know the caller, offer to email or ring back.
“Invariably, unscrupulous poachers will not give their phone number of email address – which should automatically set the alarm bells ringing.”
The agent added: “As a member of the RICS, we are rightly subject to strict rules on poaching properties from a competitor, so this practice grates on me.”
RICS members have to adhere to a set of ethical standards.
New NFoPP membership rules that come into force in the New Year stipulate: “You must not use unfair methods when seeking new properties for sale by unsolicited approaches.”
The rules are here
The online estate agent concerned, which operates nationally, does not appear to be a member of either the NAEA or RICS, although it does show the TPO logo.
Comments (29)
Mmmm. Just a thought, but when did most of us read Rule 7(1) of the NAEA Rules of Conduct last? RULE 7: Duty not to seek business by improper means
Rule 7(1). A member shall not seek business by methods which are oppressive or involve dishonesty, deceit, or misrepresentation.
Taff – when indeed! However, in this instance it don't matter a jot because said onlinie isn't a Member – so the 'rules' are there are NO rules…
Hang about now. You say the on-liner is not a member, but my understanding is that they HAVE to be a member to be able to advertise on RM. Or have I got that wrong? What do the TPO rules say about the matter then? The on-liner is displaying the TPO logo after all.
Sorry, Taff – in this instance you do seem to have got it wrong. As far as I can see there is NO requirement in RMs "General Membership Terms" to be Members of ANY professional body. Just pay the bill – that's all that is required..
These rules are worth jack. It's why I won't rejoin either the NAEA or ARLA. They've no teeth.
With respect they do have some teeth .. indirectly. If I've read it right, the NAEA can suspend a member if it doesn't comply with the NAEA rules. And as I understand it, anyone advertising on RM (not sure about Z) has to be a member. Ie if you get suspended from the NAEA to me that means you get taken off RM for the period of your suspension.
Name an agent who hasn't had a property poached by another agent at some time or other. In my town all the agents (except us, haven't the time) try and poach each others properties 24/76 with mail shots, so nothing new. It does annoy when the other agent actually writes the letter though. Here is one for the record while on the subject …… a rather large corporate agent on joint agency with us wrote a withdrawal letter and got the vendor to sign it. Two days later a sold sign went up at the property. When I spoke to the vendor she told me that she couldn't pay the joint fee, so the agent advised her to quickly switch to sole when they submitted an offer to her. Yep their office air was blue when I walked in.
New NFoPP membership rules that come into force in the New Year stipulate: “You must not use unfair methods when seeking new properties for sale by unsolicited approaches.” Mmmmm. Unless the NFoPP actually define "unfair" then such a bland statement isn't worth a carrot surely.
"isn't worth a carrot"…..Like most of what the nfopp do!
This is genuinely good news, the fact that a passive intermediary has written a letter is a huge improvement in standards for this particular sector. Perhaps writing to Santa gave them the confidence to have a go at grown up letter too.
Bit cheeky to call the agent for the info, but hey business is business.
Lets not be so quick to praise the 'onliner'. We all know which onliner it is even if the agent wasn't brave enough to name them, or him/herself for that matter.
The firm exists to go after distressed sales, charge extortionate fee's and get quick results by selling under market value.
Granted that not be right for some but as the article states "elderly and ill" they already had 2 price reduction from their first agent and seems to have taken them some time to sell. Some times money is no the motivator time is. At the end of the day they instructed an agent that got a result, happy to reduce the price and accepted an offer. The original agent states its a sluggish market OR does he mean he overpriced it….
Let me get this right, An agents has a property on the books long enough for not 1 but 2 price reductions. The elderly couple are desperate to sell. Another agent gets instructed as the property appears to be outside a sole agency term. The new agent helps the vendor out and with their permission writes a letter to disintruct agent that has failed to sell the property. The first agent then bills the vendor for not selling the property. They then see fit to moan at an industry news channel…… okay original agent sounds like you did a poor job, well done to the onliner!
One of the first things the complainant says is "It came as a shock as I was by now on first name terms with the owner". By now? We are first name terms within the first 10 minutes of the val. Respectful and not too familiar.
Most vendors don't know how to ditch a bad agent, too British and don't complain. We regular as clockwork advise on how to "Honestly" leave an agent. Don't lie and say your coming off the market then go with the competition, "Sorry, you didn't bring home the bacon, I want to try someone else". If I havent sold within my sole period, how could I charge a leaving fee? More front than Brighton.
What sort of agent doesn't know how to find out a house number? Rocket science it ain't.
Guessing its a regular contributor who has "Highlighted" this so called issue. Be interesting to see who does not comment or comes to the rescue of the agent!
Ohhhh, dear…..its not me by the way.
Ha ha – Don't worry Wardy we know its not you!
A quick Google map search will give anyone all the information they need in regards to addresses and I struggle to believe that most agents aren't aware of every property, price reduction and even sale cancellation that comes to the market in their respective area every day. Sounds like this agent dropped the ball and didn't work closely enough with his client. The online agent sold it but getting a price reduction and little else.
I think when the more moderate / less bonkers believers in online say good traditional agents will survive and weak ones won't this lot are what they count as a wont? – didn't look after his vendor, didn't advise them well, didn't have much of a working relationship. Big boys / girls world and all that – Jonnie
I agree, Jonnie – one of my local HIGH STREET competitors has a 'disinstruct your agent' letter template on their website. Oh – and before the AM Collective jump up and down about how none of their brethren would stoop so low and be so unprofessional – the firm in question are GOLD MEMBERS…
Same here. Call it what you will, touting, farming, canvassing but it pretty much begins the minute the property hits the market. We advertised a vacant property on a Monday with a block viewing scheduled for the Wednesday. When we arrived we counted 11 various bits of communication from our competitors.
ONLY ELEVEN??? Your competitors are proper slackers, phoenix! ;o)
Have to agree Jonnie & PeeBee, seems like an agent who's feeling wounded by what appeared to be a "get the job done agent"…….. oh and as a brethren member I should point out I have a special OTM themed Drop your agent letter!
Ric – I was agreeing with Jonnie to the extent that some Agents have these letters available to download – I certainly wasn't saying that it 'right'. I'm not even convinced from reading his post that Jonnie is a fan of the practice – I believe he was merely stating the point. That said – I'm sure of your belief that your "OTM themed Drop your agent letter" will be eagerly received by those you choose to send them to, and can't wait to hear the result of the campaign, mon ami…
I'm not sure I agree with the AM collective comment PeeBee, I trust it was tongue in cheek, as it is possible to be "proactive" in your market place and still support the AM concept. For me I have no issue with the online only or in fact any agent touting for business, I have lost count of the number of properties I have taken off competitors over the years. But I have to say once you go down the route of getting elderly clients to sign a letter you've produced and then arranging delivery of the letter as well, well that I think puts you in a precarious position. Even if as in this case the property sells, suppose another property sells a few doors away for £5K more and the relatives of the owner say their parents were coerced? By all means tell a seller they need to write a letter, even perhaps draft one, but any agent that produces it, gets the to sign it and then sends on behalf of the owner is frankly daft.
Why assume my comment to be tongue-in-cheek, RealAgent – it certainly wasn't. Are you telling me that it IS the mark of a professional to conduct business in this way?
I perhaps misread your post, but no as I put in my post, this example is beyond what I believe is palatable, but the reality as has been posted elsewhere, is that many agents canvass for business and personally I don't see that as an issue, like all things in life however, there are lines one should not cross and any agent writing a dis-instruction letter for a client to sign, crosses that line in my opinion.
I'm not sure the on liner had done much wrong, some agents have a letter you can download from their website to bin your current agent. Current lot had a couple of price reductions, none of which seem like they were enough, they had time and that includes the notice period and I assume the length of the initial agreement……….the fact an on liner took it from them is a distraction but a headline saying agent fails to sell house and customer exercises right to go elsewhere isn't much of a headline ? – Jonnie