The CEO of recently-launched challenger portal Rummage4 has called into question the business model of online estate agents in today’s low-transactional market, during an interview on Sky News.
Anthony Codling joined the membership-based platform in December last year to much fanfare after a distinguished career at investment analyst Jefferies.
During his appearance on Sky News he told viewers that the online and hybrid estate agents needed volume to make money and suggested that the current low-transaction market in many areas of the UK was to blame for the demise of companies such as Hatched and the former incarnation of eMoov.
The clip was short but to the point, but The Negotiator asked Codling to expand on what he said in front of the cameras.
“If transactions are falling, i.e. fewer homes are selling, why [should consumers] take the risk in paying £1,000 whether or not [their] home sells,” he says.
“With a traditional agent, if unfortunately, my property doesn’t sell it won’t have cost me any money but with a hybrid I am down £1,000 with nothing to show for it. Is that ‘commisery’?
“In a tough market, agents really earn their money but in a very strong market where demand exceeds supply and every house on the market sells, I can see why some will choose a lower cost option, but ‘selling’ does not necessarily mean you have sold at the best price.
“In my view, an agent also adds considerable value in a strong market.”