More evidence that cheap estate agency simply isn’t sustainable.
Following on from our article back in April 'Is this the beginning of the end for online only estate agents', in which amongst other things we explored the perils of estate agents charging clients less than it actually costs them to sell or rent their properties, news reaches us of a local West Midlands firm that has ceased trading.
Holmes The Property People, which had offices in Wolverhampton and Kingswinford, had been struck off the Companies House register twice in its relatively short lived existence before closing without warning this week, owing money to dozens of clients and suppliers.
The company, which operated in both sales and lettings, charged a flat fee of £750 inclusive of VAT for sales and a fee of 5% for their fully managed rental service. These kinds of fees are simply unsustainable unless a company is doing a seriously high volume of business. If they are lucky enough to be attracting the level of business required to make a profit at these prices, then it is highly unlikely that they will be able to provide anything close to an acceptable level of customer service for this number of clients.
So a word of warning, think carefully before deciding which agent you choose to handle the sale or rental of your most valuable asset and don’t be seduced by the promise of a cheap fee. Check out our independently verified testimonials to see what our clients have to say about us, a traditional High Street estate agent, with a fair fee structure, a far reaching online presence and a regional town centre office in Bewdley covering the Wyre Forest area and beyond. Book a FREE VALUATION today with Eden Estates and find out how we can help you move.