Where did it all go wrong?

There's no shortage of headlines talking about recent government announcements to reform the housing market.

This newsletter isn't going to add to the noise, because underneath all the problems, there are serious questions that need to be addressed but which are conveniently being ignored.

As any agent who has been around the block enough times will know, around 25 years ago, before the widespread use of the internet and property portals, transacting property was remarkably easy.

I discussed this very issue with a veteran of the property market within an interview for my forthcoming book, Sold, Subject to Chaos. We reminisced together of the bygone era where a sale was agreed, and six to eight weeks later, contracts were exchanged.

"Sales chasing" and the new career it has spawned called "sales progression" was unheard of. In fact, we used to walk the memorandum of sale down to the solicitors office and a few weeks later we'd get an update, and a few weeks after that, we were invited to send in our invoice.

Smooth sailing in the days before the computer replaced the "hot box" and actually knowing your applicants well enough to match them with a suitable property...

A quarter of a century later, the average transaction time has increased at least threefold, whilst consumer risk from abortive transactions has skyrocketed.

So, the question we must ask - in the age of faster, more able, technology and multiplied more methods of communication than ever before - where did it all go wrong?

When we look at the way the housing market has evolved, a few crucial turning points occurred, none of which, in hindsight, have been particularly good for property professionals, or the consumers they seek to serve.

One of the brightest ideas at the time was the idea of putting all available properties in one place. For a small monthly commitment, agents could eventually give up expensive newspaper advertising and the need to send sales particulars in the post.

Seemed like a good idea at the time...

Fast forward to today, and the majority of agents have sacrificed the value of their own brand and the growth of their own business (which in reality, is their nest egg for retirement), to pay a large corporate an ever-increasing monthly sum for fear that they cannot operate without it.

It's what the infamous Chris Arnold calls the trap of "the commoditisation cage".

The downsides to this revolution in property marketing are significant. As long as the bad actors can afford the monthly fee, they're on the same playing field as the truly great agents.

There's also the live class action against the main portal for (allegedly) charging corporate agents significantly less than independents to access the same audience. It remains to be seen how that will play out, but if the rumours are true that some corporates are paying around £350 a month, whilst independents are paying an average of £2,000+ a month, it could result in a very expensive settlement if the outcome finds against them.

Then, there's the lack of trust in estate agents...

I'm not going to suggest this was much higher 25 years ago, but the point is, why hasn't the largest association for estate agents taken massive action to help improve the level of trust the general public has in its members?

Instead, the UK's largest association for estate agents, which has repeatedly failed to hold the UK's largest agency to account for being caught on camera doing conditional selling during a Panorama investigation, is now forging closer ties with the UK's largest portal.

Worse, they appear to be actively lobbying the government for mandatory training and certification of estate agents - a role they will no doubt be chosen to fulfil after paying the current minister for housing a kings ransom to speak on their stage for a few hours...

Look a little closer and you'll begin to understand exactly why the serious questions that need to be asked are actively being ignored...

The point being this - agents carry a lot of blame for being "untrustworthy" as is repeatedly shown within Ipsos Veracity Index reports - but has anyone actually looked at the environment agents are operating in?

One which ensures the people at the top are paid regardless of whether or not agents sell any houses...

An environment that appears to be shored up by cronyism, the status quo and the 'guardians of average' who earn their coin by making sure agents remain plugged into the status quo.

Anyone reading this with the eyes to see will realise that agents have been repeatedly sold down the river and should be absolutely incensed about the way they're being milked at every turn.

But the biggest hurdle for agents trying to escape the commoditisation cage is this - they have absolutely zero leverage in negotiations when it comes to leaving a major portal or association.

This stems from, in my experience, an unwillingness to support the new disrupters entering the market who are trying to destabilise the balance of power within the industry.

As negotiators, we know when someone really wants something, they're putty in our hands because they have no other choice other than what they want. To gain leverage, you have to already embrace another choice - and commit to it fully - to remove this negotiation lever being used against you.

Otherwise, you're simply at their mercy, with zero incentive to negotiate whilst being treated as a cash cow to repeatedly milk month after month as a consequence for your inaction.

And all the while, you're the one the public feels they cannot trust, whilst the environment you operate in ensures the people at the top still get paid regardless of whether or not you sell any homes...

Has anybody else had enough of this, or is it just me?

If you feel the same as I do, and you want more for yourself and your chosen profession, I encourage you to explore the alternatives.

The Mavericks are building the movement for change to finally move the needle on trust for estate agents whilst freeing them entirely from the commoditisation cage. If that resonates with you, I encourage you to visit:

https://themaverickmovement.co.uk