Bob Scarff says that agents should not class themselves as “traditional estate agents” because traditional agency is dead – and that online-only agents are not just dead, but were never really born.
The former head of estate agency at Countrywide said that any firm classing itself as a “traditional estate agent” is in trouble.
He said: “You don’t have a website, you only have one desktop PC. You do all of your advertising in magazines and local newspapers and your filing cabinets are bulging with faxes and flimsy copies of letters sent out by post.
“Your waste bin is full of pull-off slips from your colour photos and you only know your market share by driving up every street in your patch, counting the boards!
“But that’s not how your business looks, is it? No agent around today has survived without a website – in fact, every agent in the country over the last 15 years has been ‘online’.
“It’s as basic a requirement as a phone and a camera if you want to keep going in business. You’re an agent that embraces technology and places it at the heart of everything you do.”
He goes on: “So, if traditional is dead, what of online-only?
“It’s at least ten years since I first spotted someone touting themselves as an ‘online-only’ agent. None of that breed survived.
“The latest crop of ‘no frills’ entrants to the market has moved along the spectrum towards full-service agency by employing a number of local experts and extolling the importance of local knowledge and personal contact.
“They accept that ’online-only’ is also dead – in fact it was never really born.
Scarff said he no longer thinks in terms of “traditional” and “online” agents but “self service” and “full service”.
He said: “The market of the next ten years will be defined by service levels, judged by the customer.
“That’s why you have to take the time now to decide where you want your agency to be on the scale – more towards ‘self-service’ or ‘full-service’, or can you back yourself to offer both?”
Scarff was writing in a newly launched newsletter, designed to share ideas and promote his new business ventures, including a service, Callwell, which is unveiled next month. It is designed to deploy technology to maximise leads. Just 24 agents across the country will be using it in the first phase.
Comments (25)
I too was sceptical that on-liners would do well for all the reasons of not being as good a service. The latter bit hasn’t changed from my experience and many others. Who hasn’t seen a broad or two for an on-line company that doesn’t have a real presence in their neighbourhood? They are getting business. You can wait till the crowd fund money runs out …. tell me when that will happen? Meanwhile some hard working true estate agents struggle to compete with the massive under cutting and misrepresentation that’s duped the public?
The 10 are quite now.
We are in a market where the volume listings are currently shrinking at an incredible rate and the call-centre business model depends on volume new listings.
This causes a problem for the forecasts made to investors, sub-contractors incomes and, to cashflow. The only solution is to spend more investors money to obtain an even larger share of the shrinking market, just to stand still and, to maintain income forecasts. However; this is at the expense of the expenditure forecasts/ budgets.
With the added problems of an NTSEAT investigation on misleading data/ results due to portal juggling and ASA rulings on misleading adverts, as well as a crop of new entrant disruptors who have seed funding and a belief is all that you need to be is cheapest, and you have a serious problem for the call-centre, pay-up-front models.
Listings depend on the areas you work, I’m just outside london (essex) and we’ve noticed more valuations booked and houses coming to market in the last couple of weeks, but asking prices have been reduced and stock is taking a little longer to sell.
Online agents solely reliant on traffic via their sites will struggle, and the high street agent will come into their own.
How long before Mr McCallion pops up doing his usual ‘anti-PR’ bit, I wonder?
In 2008 we faced a pretty simple choice in the face of the slowdown which was actually an abrupt stop on this patch, continue with the same level of paper advertising and drop a member of staff from payroll or retain staffing levels and come out of the paper, we chose the latter and it felt like a huge risk at the time. Made very little difference to the figures, lost a couple because we couldn’t offer paper advertising and that neg we retained made a few deals out of nowhere because she’s good at her job.
Traditional agency is only traditional in the sense that no sale no fee leads to a mindset where the vendors and agents interests are aligned, I want to get paid and you want to move, if you pay me up front as a passive intermediary I will move onto the next one because I want to get paid, on no sale no fee I will stay in the trenches with you and keep up-scaling company resources ( experience, knowledge, contacts, solutions ) until we get there or bomb tryin.
Why on earth would a passive intermediary drive 50 miles to deliver a contract to give a better chance of moving on the date required?, why would a passive intermediary go over a conveyancers head to partner level because of poor performance by that conveyancer which put the chain at risk?, why would a passive intermediary stop everything else in their diary for an afternoon to work on one chain and one chain alone?
They don’t and why should they?
Traditional do, and those examples are from the last week right here.
So callwell wants to launch a new service……….
It needs an awareness campaign to create positive recongnistion and validity with customers.
SO. It goes like this…. write a few ambiguous articles that really say nothing more than “if my auntie had balls she would be my uncle” . Hire the services of an arguably very respected estate agent to put his name and reputation to it.
AWARNESS CAMPAIGN achieved.
Good luck CallWell. I like your style….may even take a look.
1. There is a good tool for High Street agents to retain their success, with so many direct and indirect advantages that will assist in protecting their business and the High Street vocation …….. but sadly missed opportunity by so many.
Many who either do not understand it effectiveness or hell bent on prejudice want to see it fail, (some of the anti-brigade often contradict themselves or alternative motives with other business interests, hiding behind red herrings). The power it really has for them is a missed opportunity until everyone unites behind it. As it is many of those who are anti and who are High Street agents are helping the industry decline and they themselves may very well realise they are on the receiving end before it is too late!
If the day arrives when everyone wakes up, the High Street agents will be back in control of their future, sadly not before.
OTM provides you with that opportunity and no other outlet. Your choice where you advertise, the public will be more than happy to use it, particularly if that is where all the only real, estate agents advertise.
Everyone is still swimming around allowing the sharks to take bites. You need to get out of the water where they can’t swim!
Well we know 10 are not high street estate agents.
Consider marketing your business with somewhere in the title “self service” and “full service”.
Before you take the idea too far let me explain something that might shed a little light.
A venue recently reopened it has three floors. ground floor is drinks and light lunches, first floor is for a la carte lunches and top floor is quality restaurant serving lunches and diner.
The owner told me he intended to offer basic bar snack and sandwiches on the ground floor.
It closed pretty quickly.
Reason: If you offer basic no frill bar food then when a potential customer wants a proper meal out they will go somewhere else because what you gave them on the ground floor didn’t reflect fully. And of course before you book yourself a top table wouldn’t you go in for a casual drink first to see if it’s any good?
So you see why estate agents can’t offer two services !
Good point Paddy but customer rentention in restaurants is very different from property sale transactions that happens every eg. 5-10 years.
Self service / full service is not miles away from let only and fully managed. Different model but similar in principle.
They are both highly dependant customer service experience businesses; estate agency and restaurants.
If you deliver a low end service (albeit at a lower price point) then this marks your card for future business potential. Would you go to Woolworths for a high quality diner service or John Lewis ?
sorry Paddy I only make you 50% correct. I agree service is critical. No argue with that.
But the notion you can t offer both a premium and “pay for what you get” option is incorrect. Eithed airways, Emirates, British airways all sell economy seats but have a brand that represents higher service than you would expect on say easy jet.
It’s about how they deliver that message.
Estate agents don’t have match the likes of Easy property, There is always been a market for direct sellers. Instead estate agents should learn lessons from premium brands that offer alternatives that stop cheap imitations eroding their core business.
They don’t share the same pool for starters.
Sorry cant agree with your analogy.
Airplanes and their operators offer a very particular service: getting the customer from A to B.
Virgin and many others like you to fly in stile whereas easyjet and Ryanair just get you there.
In both cases you arrive (hopefully) at your destination.
But imagine you had to take the 134 bus from Highgate to High Barnet two came along and one charged you £2 and the other £100 but with luxury seats
Which one would you choose?
Because the trip is relatively short and a daily grind you would choose the cheaper.
Selling a house is something you do less frequently and using the right agent could add 1000’s to you bank balance or cost you 1,000’s therefore you take more care choosing. If you tried a cheep no thrills on line option and failed to get a decent offer would you succumb to the low offers or take it off and try a professional agent.
Having already muddied your marketing with a poor imitation of an agent it is quite possible buyers will be more wary seeing it readvertised and this could still cost you.
Getting it right first time is imperative and this is why some agents charge a lot more than on line and why traditional agency isn’t dead at all.
No, it is your company that is dying.
It’s not HIS company and was made redundant a year or so ago.
While about 98% of completions are generated by traditional estate agents it would be a bit mad to run away from a branding that is generations old and stands for honesty, integrity and trustworthy success. Traditional is a label that differentiates proper estate agency from passive intermediaries and internet listing firms that are devoid of professionalism or minimum standard, customer care.
What is ‘Traditional’ depending how pre the PC someone is, depends on definition.
For sure different tech opens new opportunities. but be it now or 100 years ago, some ‘best’ traditional parts remain, or should do in spirit of deployment to contribute to better biz practice today and tomorrow.
“They accept that ’online-only’ is also dead – in fact it was never really born.”
“The call-centre model is no more. It has ceased to be. It’s expired and gone to meet its maker. This is a late business model. It’s a stiff. Bereft of life, it rests in peace. If it hadn’t nailed been nailed to the perch, it would be pushing up the daisies. It’s run down the curtain and joined the choir invisible. This is an ex-business-model. Eees bleedin snuffed it”
With apologies to Monty Python (and Russell of course)
Most of what is mentioned in this article makes sense and I agree with it, but the premise of callwell is nothing new. We use something similar that’d been around for years.
Whilst I know there are still agents out there described by Bob, it is hard to believe in this day and age. In regards to his comments, I couldn’t agree more. Service is where all battles will be won or lost over the coming years and those looking to remain in the fight will need to ensure that they are equipped and capable of offering the level of service demanded by the public.
Service AND supply (of stock levels).
For sure were seeing from ‘list only’ to models breaking down charges based on sellers and landlords needs.
as an industry with offices we all should refer to online agents as ‘online only agents’.
Like he says we all offer internet but difference is we dont rip people off with upfront payments.
how is it a positive to not have an office or local staff….best propaganda i’ve seen in years by emove/pb etc etc .
Bless You
The phrase ‘Call-Centre Estate Agents’ has been long-used by many of us to differentiate those with and without High-Street presences.
It’s a hole that kinda fits the pegs – does it not?