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10th June 2017

Avoid the race to the bottom

There is an Easier Way to Grow Your Estate Agency’s Bottom Line

This week saw two big news stories which highlighted some things worth noting if you work in the estate agency business.

The result of the General Election shocked most people across the country.

What looked like being a Conservative landslide two months ago when the decision to go to the polls was made has ended up being a hung Parliament.

The Prime Minister has lost a lot of credibility and according to many voters they deserted the Conservatives because they felt ‘taken for granted’ during the campaign.

There was also a feeling the Tory campaign was complacent and seen to be resting on their laurels while Labour’s efforts seemed more energised, determined and purposeful.

Now I’m not making any political points here, just a general one.

When customers feel taken for granted they start looking elsewhere. And I’ve seen over the years what happens to estate agencies when they do this and get complacent.

They lose market share which often proves incredibly hard to win back.

Another very big news story was announced in the property sector when Easy Property bought out / merged with / acquired (call it what you will) The Guild of Property Professionals and Fine & Country.

Among the claimed benefits of the deal is that it will improve the Guild and Fine and Country’s members ability to reach more potential clients through a branded technology platform which Easy Property is positioning itself to supply.

And that it will open up the cheaper end of the market for these agents.

It’s a deal which could distract agents if their focus is drawn to the ‘no frills’ end of the market and the subsequent lesser commissions that go with it.

While not casting any judgement on the deal as we are admirers of the Fine & Country brand in particular, we feel that many agents are overlooking a relatively easy way to win instructions, add to their bottom line and stand aside from the race to the bottom by not having to slash fees.

Winning Land and New Homes business is a sure-fire way to do all the above if you know how.

We’ve been helping dozens of agents to win new instructions for land and new homes business and the lucrative spin offs that accompany them.

Our focus at the LNHN is on working / partnering with strong local independent agents who are the experts in their locality and therefore provide the very best of service to a house builder.

The time and effort agents put into building relationships and working with developers and house builders is not dissimilar to that they may invest in winning ‘cheap and cheerful’ instructions with cut price fees.

The big difference is that the land and new homes sector offers estate agents a chance to showcase their expertise, local knowledge and marketing nous AND get paid for it accordingly.

Developers and house builders want value obviously but they also want all the above skills and are willing, as proven by our members, to pay the going rate for it.

And that’s a long-term approach worth looking at if you want your agency to start flying higher and make your life a little easier.