Its been interesting reading the slew of comment across the media about the likely dismantling of Estate Agency offices in the UK by Google and Tesco. Its a little ‘amuse bouche’ to pep up the idle banter of office staff in traditional word of mouth based Estate Agency offices up and down the country.

However perhaps the danger to Estate Agents with their high staff costs and expensive high street offices is that buyers and sellers are simply not visiting them like they used to. Property searches are starting online. Viewings are arranged on the phone and are accompanied by inexpensive flexible part-time staff or the property owner. Offers are passed onto owners by senior staff. Where do high street office premises fit into that?

We are already seeing many estate agents diversify eg; into conveyancing, financial products and utilities. They realise that they can carry out more of their functions from cheaper out of town business parks. Some agents are adapting. I recently met with Keith Pattinson of the very successful multi branch agents Pattinsons. He is offering a home working option on his web site as an extra income opportunity to part time entrepreneurs in Newcastle. See Pattinsons Home workers.

There is a growing recognition amongst a few Estate Agents that the activities carried out polarise into two distinct areas -

relatively unskilled learnable activity; such as keeping in touch with prospective buyers, arranging and carrying out viewing

skilled activity; listing a property for sale, taking offers and negotiating a sale.

None of these need to feature high street premises. I guess the next question is what will we do with all the empty office space? Banks next!

Labels: estate agency competition

The OFT has finally released its ‘Findings’ (you always know when you are about to be underwhelmed) on Estate Agency. Specifically they looked into competition, prospects for entry into the market by online models and the role of professional advisers mortgage brokers, surveyors, solicitors who work with estate agents.

Here’s a clue as to the likely effect of this hard hitting nature of this detailed investigation which has been running for a year the report finds that “For many consumers, traditional estate agents provide a good service and they are happy”.

The report then says “They find no evidence of collusion between estate agents”

Well if they had just asked me!

After imploring vendors to haggle with agents the report then delivers a welcome verdict in finding that “existing laws make it hard for competitors to use the internet to set up business.” In the States 15% of properties are sold on the internet compared with only 2% in the UK. I remain unconvinced that Google will do any more than provide an enhanced web portal platform for Estate Agents rather than real competition in the UK

Labels: estate agency competition

Google have yesterday declared their intention to launch an online property web site portal. This will give Estate Agents and sellers an equal opportunity to market their properties free of charge on the web site of the most powerful advertising business in the world. Google are on track to earn about £1.6 billion in the UK this year. No wonder RightMove the largest existing property portals shares dropped so much on the news. However its not the impact on portals that matters its the service that we get from estate agents.

There are a number of sites that home buyers use as the first ‘portal’ of call in property finding. The main ones are Rightmove, Globrix (Surprised?), Find a Property and of course Primelocation. All of them feature a fairly clunky mapping mechanism which Google’s cutting edge mapping and street level photography feature will excel at. If this is coupled with internal photos and a description in a seamless presentation for online remote viewing then I really cant wait!

We have already seen good local estate agency brands become swallowed up by large financial services behemoths. Companies like Prudential and Royal & Sun Alliance caused many estate agencies to lose brand identity and staff to lose enthusiasm and purpose. The appearance of Google’s portal will continue the tendancy for Estate Agents to look more amorphous and very much a second tier resource. Which portals survive and which don’t does not matter. Its Estate Agencies that are more important. The reality is that we are not at the stage where Google will be showing buyers houses, taking offers or progressing sales. Estate agents and home finders should welcome this and give sellers more value by concentrating on being more available to show properties on days like Saturdays when most of us buyers want to view and most negotiators seem to stay at home!

Labels: estate agency competition, Property web portals