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How low can you go ?

I have been undertaking EPC,s and providing HIP's in the mid Somerset area and have been very disappointed to see the price wars and reduction in fees etc over the past few weeks. The problem is gathering pace. 

At the turn of the year I produced a HIP for a friend for £299 all inclusive and he was happy with the £100 saving he made by not using his Estate Agent. He was amazed at how professional the product was and thought it good value.

A few weeks ago I produced another HIP for a chap who owns over 100 properties, the "first" instruction came with the promise of future work, and I took the ob on for a VERY good price in the mid £200s. This was a leasehold propery and was in Weymouth. I did the EPC the day before I went o holiday !! And lodged it whilst away.

This week I received a letter from a London based HIP provider offering HIPs at under £250 and have seen them advertised online for less.

I know there is a price war and that this was inevitable given the circumstances of the over-supply of DEA's and the current state of the market but I cannot think how anyone can make any kind of living or even make it worth while as a part- time pursuit if prices continue to fall at this rate.

I decided to stick to my guns and have calculated a price which I consider offers excellent value for money and makes my time, effort and expertise worth it. Despite this the public are loving the reduction in prices and are quite happy to deal with non locals from untested or recently-established HIP providers. I know we are in a period of economic uncertainty but there has to be a limit to what we can produce a quality product for, before the pont arrives where it is frankly not worth it.

Adrian Griffiths DEA in Somerset and Wells


Comments

Sympathize

Adrian

I sympathize, hold onto your price and your pride and above all professionalism. The rental market will come into play soon and then there's no need to use a HIP provider at all. Local DEA's who market their businesses well should get work directly.

I've been phoning all my letting agents in the area and the response has been good, even if I'm not their first approach, they still will add me to their roster - what do they have to loose? The larger agents are tided into head office politics - but most of my letting agents are small businesses too - so they understand. And of course exclusive letting agents have no history with HIP providers - why should they? So they are unlikely to call on them.

Google Ad words also seem to be working for me. If you have a web site - try using this. I'm getting some traffic to my site - slow but it's building. I think come September there might be a panic once the Government start running adverts again in national press. Did you see their campaign in June?

DEA offering EPCs to Letting agents in Northwich Cheshire area

Hi Adrian

I am a full-time DEA qualified last September, since then I have managed to do 200 EPCs along with my friend who does it pat-time she has done 150 EPCs . We have only been commissioned todo 2 HIPs for individual home sellers.

Again as you, we started off with prices £60 1 bed up to ££90 4 bed and +£10 for each additional bedroom. it seemed very fair for all.

Now the panel Move with Us give us £55 for any sized / difficulty of property then charge us £30.00 per month + VAT to be linked to their required data base to be offered and submit jobs and of course  the Landmark logging fee £7.00 not much left on a trip to Manchester / Liverpool 40 miles round trip.

The panels the big High Street Estate Agents use luckily we are both members of but they have closed their doors to new people. I haven't had one job of the in a year when I asked why its because they have their own staff and the panel of independents as a back up. Their staff are being made redundant.

The independents Estate agents in the 3 counties mentioned all say when I call in to drop my card off they have someone already thanks and he does them at £50 per EPC so we can charge more HIPs (they make about £100 )in staff being  trained up rather than sit bored. How can you compete with that?

Wait for this though ..............Letting Agencies have already  got a full- house they were telling me in July they are fine thank you. Others that have said they would consider me nearer the time and had a nice chat with me in the office are saying we have someone  who will do it for £40 per EPC the Muppet who would do anything for that poxy price .Then they had the stupidity to write to all landlords of property they manage (me being one) to say we are linked to a local DEA who can do EPC s for £85 +VAT any property size. I rang her up to see what she was playing at she just said your prices of £60 -£90 were too high this man is offering £40 and we make a profit.

Tescos are going to launch an online estate agency tat will blow all the high street estate agents out of the water, £500 + Vat standard for all properties and the DEA is expected to get £38.00 per EPC and if he//she wants more £50 they must attend a free course on producing floor plans whilst on site in a house to upload later. The hand held devise is on hire at £35 per month! mad hey?

idio**!!!!!!!! I wish I could write to some MP to complain we have been sold a pup and they should refund our course fees £2700 + VAT

hope business picks up soon as I really do not want to go back to working for a big company for the next 10 years9-5pm and all the office politics and stuffy scientists

take care hope things improve soon for you at least you know from my rantings you are not alone.

Tina. 

- Tina Lawrence -
GREEN DEAL ADVISOR & ELMHURST /STROMA DEA in NORTHWICH CHESHIRE