The tipping point for hybrid agents remains between 20% and 30% of the property sales market but will take longer to achieve than originally thought, it has been claimed.
The admission came during the second instalment of our exclusive interview with Emoov CEO Russell Quirk (pictured, below). He famously said three years ago that the hybrid’s share of the property market might be a third by now.
But the hybrid agencies including Purplebricks, Emoov and YOPA have so far only taken 8% of the sales market by volume despite spending at least £150 million on advertising in recent years.
“I’m happy to put my hands up and say it’s taking longer than I forecast,” says Quirk.
He reckons the delay in grabbing more market share is because it’s not a sticky industry where people jump in and use the service every week.
“People used to move home every seven years and that’s increased to 12 years recently,” he says. “The tipping point has become slightly more protracted because the proposition needs to be in the consumer’s mind’s eye and that takes a while.
“It would be foolish of me to say that I’m still determined that by 2022 it will be 35% for example. But I think we will get there – and the tipping point will probably be 20% as [NYU academic] Scott Galloway has said in the past.
“Also, when we can prove that there is no detriment to using a hybrid agent then I think the ratio will start to tip.”