Probably Not – In Reply to Tepilo Ending Need for Estate Agents

Sticking comment here as can’t be arsed with yet another signup or login just to comment.

Let me start of with I’m not coming out to defend the Estate Agency industry as a whole.  Much of their reputation is well deserved there are a great many sharks.  However there are also plenty of super well trained, nice, kind, informed and helpful agents too.  Just like any industry I guess.

Today Mike Butcher has a guest post up on the Telegraph’s website entitled “Does Sarah Beeny’s free property website herald the end for estate agents?”

Well simply the answer is no it won’t.

The whole FSBO (for sale by owner) model is well understood in America, Australia and NZ where a homeowner takes control of the whole marketing and negotiation process in selling their home.

The system works for a percentage but the last research I saw this was something like < 10% of all FSBO resulting in sale.

The reasons are simple.  Most people are not trained in marketing and in English based cultures haggling (negotiating) is a skill long forgotten.  For anyone in the UK the latest adverts by MoneySupermarket.com starring comedian Omid Djalili even mention the “cringe gland” being prevalent in the English where haggling is concerned.

The problem for many is that, quite rightly, their house is not a property it is a home. Somewhere they are emotionally tied to and when it comes to the business of selling a home removing that emotion is critical.

Why?  Well for a start the biggest killer in selling a property is price.  Too high and no one will even view the place, or at least if they do they will most likely be disappointed having expected it to have been better than it is – after all it is priced in a higher bracket with better properties.  Too low and most people will avoid it thinking there is something wrong.  Pricing is key.

Without training or at least access to decent quality comparable sales data it is really hard for a homeowner to get the pricing right.  Sure there are valuers or surveyors but they cost money and the whole point of FSBO is to avoid cost, right?

The second part to removing emotion from the process problem lays in mentally detaching oneself from the home and treating it as a commodity to be sold.  Trust me on this, it’s hard.  And without that detachment even the simplest of selling tools such as presenting the home for sale is a tricky task.  Home prep is not about clean and tidy, it’s so much more. Sure clean and tidy matters but it’s more about creating a space which prospective buyers can visualise as being their own not yours.   Try removing all personal effects, photo’s, pictures, that lovely family heirloom brass plate from the wall and living in the space for a while.  Your home stops being your home.  It’s hard.

And so back to Beeny’s new website, Tepilo.  I’ve seen a number of these “market your own home and save on fees” sites along with magazines, papers and even shops come and go over the last 10 years.  Sure this one has a “celebrity” name behind it.  Sure people are becoming ever better equipped with internet based resources for pricing, marketing and finding property.  But…

An estate agent does this for a job often 7 days a week. The good ones are formally trained (and where available qualified) and armed to the teeth with better information, better skills, more time.

There are amateur mechanics out there who will tinker with their cars.  I don’t.  Sure I could learn a few skills but when it comes down to the safety of my family I’m the first to throw the work to a local garage.  It’s no different in the internet space.  Anyone can get a copy of Dreamweaver or Frontpage (they still do that?) and knock up a website – will it be any good?  Maybe.  Could a professional have done a better job, probably.

Finally every agent understands fees are a sticking point when competing for business.  You can always try to haggle just don’t forget they haggle for a living.  More importantly find yourself an agent who can offer you more value in using their services than they cost, they should be able to prove their track record on this so just ask.

2009 BEUC Consumer Privacy and Online Marketing Forum – I’m Going…

… well more accurately I’ve been asked to attend and speak on behalf of “Every Single One of Us” (and myself & consumers of course) at the two and a half hour workshop on Alternative Business Models.  Details are over on the BEUC forum site but here’s an teaser for this session:

The B2C equation could be seen as wider than just offer and demand. Trust, including high privacy standards, may be a company’s most valuable asset. Today, some companies have developed alternative business models that allow a business to flourish while at the same time being consumer-friendly and setting a high level of consumer rights and privacy. Some European projects and business initiatives are also researching alternatives to existing business models that would ensure a higher protection of consumers’ data when surfing the Web or shopping online.

The workshop will look at existing alternative business models and identify potential developments.

As speakers we are being asked to consider the starter topics below, my question to the crowd has to be “any input, thoughts or angles?”

• What do you consider to be an alternative business model?
• What kind of alternative model should be developed/encouraged?
• Do you know of any such alternative models today?
• What incentives are required for alternative business models to develop?
• Who should promote alternative business models? Businesses? European Commission? Civil society organisations?
• Should privacy- and security-by-design be a feature of new business models?

In Marketing Privacy Legal Compliance is Never Enough

News hit the feeds today that, rather unsuprisingly, BT has dropped plans to run with the behavioural tracking company Phorm.   If any (marketing) company ever wanted proof positive where privacy is concerned that the will of the masses has greater authority than merely being legally compliant – this is it.

BT helped to develop Phorm and the system adheres to the UK DPA (if not the EU), consulted with the Home Office to ensure their position but screwed up by breaking the social norms in place by the community at large.

But BT did what any commercial entity would have done and ditched the system (irrespective of it’s worth or value) when it was apparent that their ability to retain Customers was severely hampered as trust had broken down.

In a world so acutely (albeit not always accurately) sensitised to security and privacy issues it never ceases to amaze me that companies believe that just because legally they can do something means they should.

Marketing or Advertising?

Which ever camp one sits in one has to agree it is genius.