Estate agent: ‘No property valuations’ raises appraisal-to-instruction rate to 90%
Carringtons in SW London now has a zero fall-through rate and is selling every home it lists, its director Andrew Hill reveals.
An estate agency in London has revealed how refusing to give unrealistic property valuations to win instructions has helped double his firm’s turnover over the past nine months, reduced time on market from 100-plus days to 28 and cut its fall-through rate to zero.
The firm involved is Carringtons based in Kingston, SW London whose director Andrew Hill has been working with industry consultant Charlie Lamdin to implement a ‘no valuations’ approach.
Lamdin says: “The seller accepts and buys into the process without knowing what price they are going to launch at.
“But if the seller displays resistance to this idea and is wedded to “a figure in mind” or “how much I want for it” then the opportunity is declined.”
This approach of ‘no valuations’ is part of Lamdin’s campaighn to persuade the estate agency world that independent firms need a new approach, particularly in London, to fend off big corporate agencies who often use over-valuations aggressively to win business in the knowledge that the asking price will have to be reduced at a later date.
Hill adds: “Since we implemented this we have sold every property that we’ve taken to market and haven’t had any fall-throughs so it is ‘estate agency perfection’.
Property valuations
“There are now 15 to 20 positive things happening in the office every day – there’s no negativity – and for me all the stress of work has just all gone and we’re working on an average sales commission now of 2% which hasn’t been challenged.”
Hill says prior to the change, he had to manage a feeble pipeline and ‘pick of the scraps’ of properties that had been with the big corporates, not sold, but whose vendors still had unrealistic views on their homes’ likely sale price.
He adds: “Six months in and we’re selling everything faster at higher fees. “Once you get used to the differences, you realise the strategy of transparency really appeals to sellers and buyers alike, and the markets natural forces take over and people can move.
“The biggest and most welcome surprise is the number of new business opportunities falling into our lap on the back of this process.”
Lamdin says “This process came from working with hundreds of different agents over 25 years, and combining the best ideas from all of them into one strategy. Good agents who deliver great results, deserve to make a great living, and you can’t do that unless you’re charging at least 2%. Sellers will pay that, provided they’re sure you’ll deliver. It’s a win, win, win.”
This approach is now being showcased during a three-event tour with events in Manchester (4th November), Bristol (5th) and London (6th) to which agents are invited to find out more.
He adds: “Every house launched under this process has achieved between 3% and 11% above launch price.
“Flats haven’t had quite such good results as all have had leasehold complications, but they’ve had the time to help overcome them for the sellers.”
Email events@bestagent.co.uk for more info.
