An international comparison of how major portals have discounted their charges to agents show Rightmove and Zoopla making “deeper and longer lasting” reductions than many similar services in other countries.
A study has been undertaken by Mike DelPrete - former head of strategy at a New Zealand portal and a long-standing analyst of estate agencies in many western countries - and it’s looked at how the equivalents of Rightmove and Zoopla have reacted to the devastating impact of the Coronavirus on housing markets.
He says that leading US portals Zillow and Realtor have announced 50 and 60 per cent discounts respectively on agents’ next monthly bills - and he expects those lower rates to be extended in duration.
Then he turns his attention to the UK, explaining the two discount options offered by Zoopla and adding: “Rightmove is slashing 75 per cent off agent bills for four months at a cost of £65m to £75m. For a business that booked £289m in revenue during 2019, that’s a material hit.”
He continues: “In Australia, leading portal REA Group is postponing its July price rise (eight per cent), and offering free re-listings of premium depth products.
“Germany’s Scout24 is offering to defer one month’s payment for up to nine months, and is offering free private listings for consumers. And in France, SeLoger is deferring two months worth of payments for up to nine months. Both Scout24 and SeLoger are also offering free premium products to agents at the end of the crisis.”
Other portals in other countries are improving their offer to agents - for example, a Swedish portal has rolled out live streamed open house viewings for its agents.
As ever with Mike delPrete’s work, there’s plenty of food for thought - here’s his league table of international portal discounts:
- Zillow (US): 50% discount on next monthly bill;
- Realtor (US): 60% discount on next monthly bill;
- Rightmove (UK): 75% discount for all customers for four months;
- Zoopla (UK): nine months free if customer quits Rightmove or three to five months free if customer remains on Rightmove;
- OnTheMarket (UK): 33% discount to full-paying agents for three months;
- REA Group (Australia): postponed July 8% price rise, re-listing premium listings for free;
- Immobilien Scout 24 (Germany): one month payment deferred for nine months, free private listings for consumers;
- SeLoger (France): March and April fees deferred up to nine months, one month free premium service at end of Coronavirus crisis;
- ImmoWeb (Belgium): 35% discount for April and May, then defer two following invoices until autumn.
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Interesting, but a bit pointless, given each country is at a different stage in the corona cycle with US, Australia and Sweden (the latter still sending kids to school and going to work) someway behind UK. Its not a great comparison to do right now.
Its highly likely the other global portals will amend their prices further, as the pandemic takes hold in their local markets.
It would also be interesting to plot prices rises followed by the discounts. Its a lot easier to drop 75% if its preceded by many price increases. In other words the non UK portals may not have had as much room to fall.
Who knows, i'm just a lowly estate agent, not a clever analyst.
The mistake UK agencies made was to stop complaining. They might have dropped even further or maybe EAT has had a nasty legal letter and now decided to axe coverage and start putting out more positive messages.
Its odd how virtually every article was about the price war and agency revolt and then it suddenly stopped.
Your fifth word sums it up perfectly for me.
We have a very good relationship with all our contractors , including Rightmove and Zoopla, there is not one who has not offered some kind of reduction or postponement of monthly charges during this crisis which is a massive help in these unprecedented times . I have been humbled by conversations I have been having with other business leaders and also With our suppliers and Contractors . We are all pulling together to get to the other side .
Would have been better if some suppliers hadn't had to be shamed in to showing a proper level of support. Never forget that.
Are your agents self employed? Are you supporting them financially too or are they salaried?
More a measure of overpricing than discount!
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