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Estate Agents: don't fear your competition - control them!
In the competitive world of agency, agents often find themselves gripped by fear of their competition, much like the characters in "The Wizard of Oz" who trembled before the fearsome Wizard. Just as Dorothy and her friends discovered that the Wizard was merely an ordinary man hiding behind a curtain, agents may find that their competitors are not as formidable as they seem.
Having assessed over 3000 agency activity centres—unique selling areas where typically three localhashtagagents or brands dominate—the landscape is more fragmented than ever. Traditional High Street agents, corporate agencies, franchise agencies, hybrid agencies, self-employed agents, and even ghost agencies that invent listings to generate inquiries, all vie for a share of the market. While falsified listings are a concern for regulatory bodies, until consumers complain, little can be done.
In each agency activity area, three dominant localhashtag agents typically capture the lion's share of new instructions. Beyond these, there are niche specialists focusing on equestrian properties, waterside homes, first-time buyer properties, or ex-local authority resales.
The agency landscape resembles an Euler diagram (a fancy Venn diagram known only to people who stayed awake in maths), where some agents' markets overlap while others remain distinct. No single agency dominates all sectors; rather, agents often excel in specific sub-sections without crossing into others' territories.
The real takeaway is this: if an agency is securing enough business to pay its bills and make a profit, that's what truly matters. The fear of competition often unduly influences fees. When I moved from East Devon to North Devon, my multiple agency fee was 3%, half a percent higher than everyone else.
I relished losing some instructions initially, only to revisit the property six weeks later and secure a deal at my preferred fee. Sole agents (Over, Value & Co 🙄 ) often didn't realise I was contacting potential buyers, informing them of upcoming listings that would likely be more realistically priced after testing the waters with the sole agent at a price that all the other agents and more importantly potential buyers considered too much.
Don't fear your competition—control them! Make informed choices and strategic decisions that benefit your business and clients, rather than succumbing to the illusion of your competitors' strength. It's time to pull back the curtain and reassess the true dynamics of your market.
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