Pay-as-you-go estate agent set to ‘disrupt the disrupters’

A PAY-as-you-go estate agency company has launched with the aim “disrupting the disrupters” already in the industry.

Martin Haywood, 52, is the managing director of Chester-based start-up ourhomesale which is offering to market homes for £30 per month for as long or as little time as vendors want.

The company is now searching for offices in Manchester and Liverpool as it concentrates on building its footprint in the Northern Powerhouse corridor, including the city regions of Leeds and Sheffield.

“Our plan is to disrupt the disrupters with a totally different pricing model,” said the long-time property professional, who is also a former England international hockey international and a tennis coach who once schooled former world number four Tim Henman.

“As an industry, estate agency hasn’t changed much in 100 years,” he said. “But the way the marketing is done has changed fundamentally, because of the internet.

“All estate agent companies use Zoopla and Rightmove because they are sites everyone goes to. We are competing for instructions and clients.

“Despite the changes forced by the internet, estate agents haven’t much changed the way they charge. They’ve been protecting their environment.”

Haywood, who was born and brought up in the Oxford area and came to Chester in 1999, is a fellow of the National Association of Estate Agents and he has a degree in property valuation and management from the City University in London.

“When I qualified, I didn’t want to work for a big property company. I chose to be an estate agent because I like people and houses. In those days (1980s) being an estate agent was a respected career. It was something to be proud of.

“Then in the late 80s, a lot of estate agents sold out to the big banks and building societies. It was a tactic to flog endowment policies, mortgages and financial services.

“Estate agency suddenly became a dirty two words – an industry of sharp-suited kids, foot-in-the-door tactics and a lot of professionals left the industry.”

Haywood said some estate agents – the original disrupters – started taking up front payments. But clients have been forced to sign credit agreements, which means fees can be called in whether or not a house is sold.

“We are a pay-as-you-go estate agent,” he told TheBusinessDesk. “Our model means there is not big up-front fee and no long-term contract to be tied into.

“You can sign up with us for any length of time. It’s very fair and very simple. If you want to be on the market with us, you pay. If you do don’t you stop.
“For this it’s £30 month and you will get exactly the same as you would elsewhere. Properties are listed on major portals, viewings are arranged and the sales progression is carried out by an experienced estate agent.”

Hawyood said he believed many people would question whether this business model could be successful.

“The answer is simple,” he said. “It’s volume. “The automation of the business means a lot of what we can do is handled automatically, which means we can handle more clients.

“We also use a model called ancillary services – which does what any estate agent does.

“We can use an in-house mortgage adviser, a conveyancing brokerage – which can get fees down to about £200 and we have a deal with (removal firm) Pickfords as well as an agreement with a utilities warehouse to make the process of moving easier.

“We want to position the business as the people’s champion – to be fair, transparent, cheap and professional.”

As well as looking for offices in the North West, ourhomesale is also recruiting “brand reps” to cover areas where the live.

“Their job is to get out there and tell people about us,” said Haywood. “For every instruction in their area, we pay them. It can be part-time extra money spinner for people. We are currently recruiting on Merseyside and we are looking for about 25 in Manchester.”