High street agents wondering how hybrid agency HouseSimple will make any money following the launch of its free selling service now have an answer.
The company, which claims to be the ‘original’ online agency, is to generate revenues from offering vendors and sellers a home moving consultancy as well as mortgage referral fees through a new in-house financial products brokerage.
Details of the change in direction have come from former Rightmove director and now HouseSimple CEO Sam Mitchell (left), who says he has spent the last 18 months restructuring the business and aims to use the company’s free-to-use model to turn the industry ‘on its head’.
He says the company will also make money from other parts of the home moving process, but won’t reveal which ones yet.
Mitchell has also attacked traditional estate agents for their attire, saying his valuers will not wear ‘shiny suits’ when visiting potential clients, and also claimed that his no-fee model means the company’s valuers can have a more honest conversation with vendors about the likely value of their home.
“We’ve looked at the whole chain of moving house from start to finish, and we’ve looked at all the different pain points across that journey and we’ve come up with business solutions to solve those,” he has told Business Live.
Mitchell also says that HouseSimple’s sales progression platform has been improved so that the company can claim to be better than its competitors as well as free.
“We’ve built a tech platform that gives control to the vendor so they can understand exactly what’s going on with their property,” says Mitchell.
“We’re properly leveraging technology to empower our customers and I think that’s the thing that’s really going to make it flow.”