Rightmove fees blamed for decline in agencies

February 23, 2020
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Free listing platform has claimed that the costs of listing on established sites—specifically Rightmove—are part of the reason that estate agencies are on the decline.

“Property portals make money by charging to list on their site, regardless of a sale or let being made. Depending on the quality of listings, brand notoriety, area of operation, and a whole host of other factors, you could end up paying a fortune to a portal before you even generate your first lead” says Christopher May, Director of Residential People.

And he says those portal costs are contributing to as many as 10 agencies goes bust each week, with Rightmove named as the chief culprit. 

May says the number one portal has been accused by agents of charging crippling fees and putting the squeeze on independent firms, many of which are now beginning to voice concern about their situation. 

“Property portals are undoubtedly a main driving force for the industry and are here to stay, but what good is a portal without the agents supplying the properties?” asks May.

“In theory, portals should work for the agent not against them, yet in practice this rarely is the case,” he says.

He says the major portals justify their charges by suggesting the cost is a trade-off against leads generated and the profit an agent makes from successful leads. 

Read more here

February 23, 2020

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