Hiizzy - A New Way to Sell your House
Industry ripe for change
In a world where technology is transforming industries at a rapid pace, Hiizzy emerges as a revolutionary platform that aims to redefine how properties are bought and sold. Lovely bit of marketing jargon, which is one way of describing why I think Hiizzy has a chance of being a massive business. The other is far more simple, the industry they are trying to disrupt is broken, I was mid doom scroll the other day and I saw a video of an estate agent bragging about the fact that on a £4m property sale they had taken a commission of over £50k, they were using this potentially inflated figure as a way of advertising the perks of joining the industry (and their company specifically). What did it say to me? This space is warped and resting on its wonky laurels. £50k! Think about the value you would have to create in other industries to sustainably gain £50k of revenue for your business, X million interactions for a client of a marketing agency, hundreds if not thousands of sales and happy customers in the e-commerce/retail space, I use the word warped because the value creation/money spent equation is totally out of whack here. Now there are obviously reasons the real estate agency market has stood the test of time, I think the main ones being “this is just how it has always worked” humans are generally (I certainly am) creatures of habit and then also it would be fair to say, selling your house is a very emotive thing to do and having a human hold your hand through the process must be nice. This doesn’t change the fact that technology has changed everything about the market and the status quo is a bloated, untrustworthy mess.
What is Hiizzy?
Hiizzy is an innovative marketplace that eliminates the need for traditional estate agents, empowering individuals to manage property transactions independently. The platform is designed to be user-friendly and cost-effective - making buying and selling a house easy and far cheaper. I was initially interested in speaking to Lewis and Allan because I genuinely didn’t understand how/why real estate agents get paid thousands of pounds to take some pictures and give homeowners access to what is effectively an email list/website traffic. Having seen Hiizzy’s idea I wanted to speak to a few friends and family that have actually bought and sold homes and predictably a couple of themes emerged:
Real estate agent fees are extortionate and the value they actually provide is minimal.
Real estate agent’s are useful for exposure to the right people and also at the point of finding the right price, they are useful as a go between.
Whether or not point 2 is worth thousands of pounds is what Hiizzy’s founders question and to be honest so do I. If one is selling an enormous home yes a specialist real estate agency with a list of multi millionaires/billionaires in their phone is useful and at that point the clientele can probably afford it, but for your average home buyer/seller I don’t see why you should pay an estate agent to take some pictures of your house, send a blast email to their list, do a couple of shoddy viewings and charge £5000+ for the privilege. It stinks of an industry ripe for disruption.
The Problem with Traditional Estate Agencies
The traditional estate agency model is widely recognized for being outdated, expensive, and riddled with conflicts of interest. It is also enormous, a £13 billion industry made up of about 52,000 estate agent firms across the UK, the monopoly board is large. Sellers typically pay between 1% and 3.5% of their property’s value in fees, which can amount to thousands of pounds. This model often prioritizes agent commissions over customer satisfaction, leading to a transactional experience that lacks transparency and integrity. It is therefore no surprise that according to IPSOS Veracity Index 2023 72% of people do not trust estate agents. Whether traditional or online, they have largely failed to adapt to the digital age, maintaining practices that are inefficient and customer-unfriendly. All the technology that has arrived in this industry has been built by estate agents for estate agents, the focus has been primarily how do we streamline the status quo, not how do we actually improve the way people buy and sell houses and focus on the customer. Zoopla, Right Move, all of these businesses don’t even let you post your house on their sites until you have an estate agent signed on.
According to Home Owners Alliance - the average estate agent fee for 2024 in London was typically 1.42% including VAT. So on a £275,000 house this would mean estate agent fees of around £3,900. The article they wrote then goes on to detail what estate agents are doing for this money:
A valuation of your property - Just like the estate agent will, Hiizzy use huge amounts of data to give you a realistic price range.
Providing a written description of your property - laughable in the age of AI that this is something they can say takes long enough to include in this list.
Drawing up floorplans. - included in Hiizzy’s service (which costs £395)
Taking professional photographs of your home. - any decent Iphone camera makes this part of the offering pretty much obsolete, on a 275k property especially.
Putting up a For Sale board - there are many other ways of letting the locality know your house is up for sale, I would question the use of the for sale boards. One option being the app “Nextdoor”, for sale signs and pictures in the windows of physical estate agent shops should already be a thing of the past.
Contacting their list of potential buyers - This is an actual value add from the estate agent, this is what Hiizzy needs to build, a massive pool of people on their website obviously.
Marketing your house including on property portals like Rightmove, Zoopla and On the Market - These platforms do not allow Hiizzy’s offering to do this as the homeowner, precisely because Hiizzy is removing the grossly overpaid middleman in this closed self-protecting industry. This is one of the problems Hiizzy is out to solve in building its own marketplace. With some estate agents, the paid ads and marketing spend on sites like Zoopla, isn’t included in the fee and will be added to the bill.
Organising viewings and managing them. - The Hiizzy calendar makes organisation of viewings easy and who better to sell the home than the owner who knows the property better than any estate agent (there is obviously nuance to this as I am sure a buyer sees some level of value in having a tour from someone more impartial, however the estate agent is greatly incentivised by their commission so that impartiality sort of evaporates anyway.)
Negotiating a sale price. - Based on my conversations with people that have been through the process, this is potentially real estate agents primary value add, being the middleman at this point is useful. While I understand buying and selling a home is very emotive on both sides, data will do away with this problem, if not already, it certainly will in future. AI and big data sets (that Hiizzy is already leveraging) will mean arguing about price will become less and less common.
Therefore the question consumers must ask is; “Is the estate agent price negotiation, professional photos and better email list worth 3.5 thousand pounds?” - (3.5k as Hiizzy costs £395 and the average estate agent fee is 3.9k.) I know what my answer would be, but as stated, Hiizzy not only have to ensure they build an email list/traffic on their website quickly, they also have to ensure they are buying good data and lots of it, so that price negotiation and uncertainty is minimised.
For those that haven’t quite managed to sell a house yet (most under 40’s), obviously you haven’t been a direct customer but based on what you know and a smattering of logic let me know your thoughts in the poll below:
How does the platform work?
Essentially it gives you all the tools you need to sell the house with an estate agent. When you login - they draw in all the data that is relevant to their house and therefore needed for the process of selling it. The floor plan and photos of the property can be uploaded very simply and quickly. You then log when you are available to do viewings and any prospective buyer can book out time in your calendar like calendly. Even the more obscure parts of a sale like an energy performance certificate are provided. Finally they give a price guide on the property you upload based on 29m data points from the area you are selling the house. Based on the trust pilot reviews/initial customer feedback the process of listing your house on Hiizzy is incredibly simple.
The Co-Founders
Lewis Buckley, CEO: Trained as a lawyer, Lewis practiced at the Jersey Bar for a decade, specializing in trust and regulatory disputes. He then transitioned to a financial services business, where he played a pivotal role in doubling the headcount and leading a successful business sale.
Allan Wood, CCO: With a career spanning leadership roles at Barclays and the Royal Bank of Scotland, Allan brings deep expertise in business development and global market strategies. His work in promoting an international financial center and his involvement in social causes, such as the Grace Crocker Family Support Foundation and the Cherie Blair Foundation's 100,000 Women Campaign Board, underscore his commitment to both professional excellence and social impact.
Together, Lewis and Allan share responsibilities as typical of any startup’s early days, ensuring a cohesive and focused approach to Hiizzy’s growth and development. They are supported by a dedicated marketing team, a digital marketing expert, and a chief technology officer, each contributing critical skills to the company’s mission.
These guys are high quality founders, all round they were impressive, methodical in their approach to ticking off milestones and getting to the next lilley pad. It was a pleasure to interview them, they are also beautifully external to the industry, most “innovative” change in the industry has understandably been built by industry veterans and that has meant they are all built for estate agencies benefit instead of the end consumer. These two are also incredibly kind/nice people which I hope/I think is useful in being a successful founder (no data to back this up).
Hiizzy's Market Fit and Growth Goals
Achieving 1,000 property listings within six months: This ambitious target reflects Hiizzy’s confidence in its value proposition and the market demand for an alternative to traditional estate agents.
Completing the first property sale within six months: Achieving this milestone will validate Hiizzy’s business model and demonstrate its effectiveness.
Expanding into the rental market: By extending its services to include property rentals, Hiizzy aims to capture a broader segment of the real estate market.
Partnering with UK housing developers: Estate agents significantly impact developers’ margins. Hiizzy offers a solution to this problem, providing a more efficient and cost-effective way for developers to market their properties.
The Five-Year Vision
Hiizzy’s long-term vision is to become the “Amazon for property” in the UK, providing a comprehensive, end-to-end solution for property transactions. The platform aims to integrate advanced technology, such as blockchain, to enhance transparency, security, and efficiency. The UK Land Registry "Data Street" pilot scheme for legal property transfers over the blockchain aligns perfectly with Hiizzy’s goals, promising a future where property transactions are seamless and fully digitised.
Beyond the UK, Hiizzy has set its sights on global expansion. The company plans to enter key markets such as the US, Middle East, and Asia, establishing itself as a trusted and preferred platform for property transactions worldwide.
Educational Campaigns and Content Strategy
One of Hiizzy’s key challenges is going to be around education to realign the knee jerk reaction away from “I’m selling my house, I better chose a real estate agent” and towards “I’m selling my house, lets start taking pictures to upload to Hiizzy”. To achieve this, Hiizzy is developing a comprehensive content strategy that includes:
Vox-Pox Series: This series captures street interviews with ordinary people discussing the hidden costs of estate agents and how Hiizzy is changing the landscape.
Podcast Series: Featuring the founders on an "ask us anything" basis, this series will include other disruptors in the property market, as well as successful independent property sellers and buyers, offering valuable insights and tips.
Newsletter: Hiizzy’s newsletter will provide regular updates on market trends, success stories, and practical advice for selling properties independently.
Guides and Resources: The marketplace will feature detailed guides, articles, and video tutorials covering the entire property selling process, making these resources freely accessible to help individuals make informed decisions.
Community Support: Hiizzy is building a strong community platform where users can share experiences, seek advice, and support each other, reinforcing the viability of selling properties without traditional agents.
Competitors/Incumbents:
Let’s take, a company I would say are most similar to Hiizzy, (digitally focussed, trying to reduce cost) Purple Bricks:
It is an estate agent, period.
Their offering is looking through the lense of an estate agent. While they offer a free service, it isn't quite because you have to pay for an EPC (free from Hiizzy, if available) and they charge an AML admin fee pf £60 because by law they are required to comply with AML legislation.
They send someone round to value your home (and cross sell you their services, like doing hosted viewings, listing on other platforms like Rightmove, photography etc) they also offer various packages over and above the free service called Boost and Full House. As part of their service they provide "professional negotiation" as their platform says "a team of experts to help sellers at every step".
Hiizzy is all about self-help and empowerment. It takes out the middleman entirely and all of the cross selling that sits with Purple Bricks. Hiizzy is a platform focussed on customer empowerment and convenience, not relying on (or waiting for) any third party to intervene. Hiizzy has a single flat fee. No hidden extras. There is no cross selling. It is radically transparent.
Hiizzy is prevented from advertising on Rightmove as this is reserved for estate agents only. This is a self-protected industry which has everyone disempowered. People are prevented from gaining access to a marketplace to enable to sell their own home. Hiizzy is changing all of that creating a marketplace available to everyone and a single affordable price.
Social Impact
Hiizzy’s commitment to social responsibility is a core aspect of its mission. The company has partnered with New Horizon Youth Centre, a charity that supports homeless youth in London. By dedicating 10% of its revenues to this cause, Hiizzy aims to make a significant impact on the lives of vulnerable young people. Phil Kerry, CEO of New Horizon Youth Centre, emphasizes the importance of providing a potential home for young people facing homelessness, highlighting the critical need for support in this area.
Conclusions
Hiizzy addresses a significant market inefficiency by disrupting the traditional estate agent model with a customer-centric, technology-driven platform. The company’s innovative approach, ambitious growth goals, and commitment to social responsibility make it an attractive proposition for investors looking to support a business with both high potential for financial returns and a positive impact on society. All that aside, at this stage as we know if you invest you are betting on the founders and in this case the founders really are experienced, brilliant people, utterly focussed on solving this problem. I want Hiizzy to have put a stop to ludicrous estate agent fees by the time I am selling a house, sadly this means Hiizzy have a lot of time (I am confident they will do it much quicker) as the likelihood of me buying a house before I’m 40-50 is looking slim.