We all agree that the Estate Agency is changing. Some are liking the change, some aren’t. Personally, I’m loving it as it’s making us all review our businesses. Get clear on who we serve (and who we don’t) and improving.
Some estate agents are trying to compete with the online agents by lowering their fees or bringing in an ‘online’ offering.
To clarify my definition of online estate agents, it’s ‘a central call centre covering the whole of the UK with no local office (whether that be a shop or an office)’
It is expected that online agents will take 50% market share by 2027, that will worry some. In my view, it leaves 50% who still want a full time expert helping them move onto the next chapter of their life. It’s that 50% we need to educate.
However, if we are to detach ourselves from the ‘online’ category of estate agents, we need to educate consumers as to what a proper estate agent actually does and I don’t mean ‘we’ve just sold x, y & z’
Personally, my team and I track every important KPI around performance and ensure we educate a seller to the importance of them, they are (across our last 10 sales):
- Average time to agree a sale
- Average number of viewings per sale
- Average number of offers per sale
- % of asking price achieved
- Sale agreed to completion success rate
- % increase from a buyers initial offer
- Days to exchange contracts
- Average % saved on a client’s onward purchase
What that enables to us say is:
We sell properties, yes, BUT within 39 days on average after 7 viewings with 3 competing offers achieving our clients 100% of their asking price (after negotiating buyers up 4% from their initial offer) and saving them £12,700 on average on their onward purchase and getting to exchange of contracts within 90 days.
Perry Power is MD of Power Bespoke. An estate agency on a mission to educate consumers to the value of a proper estate agent.