“I’ll take the cheap one!” Costs Foxtons’ Sellers
Discount Broker Foxtons, previously known as Your Home Direct (YHD) 2%, YHD Foxtons 3% has close up shop! Wednesday night after a lay off of 350 of the remaining 380 employees, company officials said they planned to file for bankruptcy protection. It sounds like it is, take-the-money-and-run time at Foxtons folks. It seems like Foxtons is covering its retreat from the real estate business really well. Even though Foxtons had its membership in the Better Business Bureau (BBB) of New Jersey revoked last year because it failed to respond to complaints, it is only this year that its gravy train has pulled into the rail yard.
Foxtons U.S. is owned by Jon Hunt, who was the founder and owner of Foxtons London. Hunt sold the UK Foxtons in May after a March BBC investigative report found that Foxtons agents engaged in unethical practices such as over-pricing, lying to sellers, collusion with mortgage representatives in the disclosure of buyer financial information etc.
Is it any wonder, no one at Foxtons US, is picking up the phone? The layoff leaves Foxton’s 4,400 current listings in limbo, while the company seeks to protect itself. With only 30 employees and 4,400 seller listings on its books there is no real way for real estate professional, buyers, and sellers to connect and get those properties sold. Who is the real victim here? Since the BBB would have told the sellers about the complaints against Foxtons had the sellers called the agency, then the sellers have to take some responsibility for not doing their research before signing the contract. Momma always said, “You get what you pay for in life” (smile). Traditional Real Estate Brokerage has been around for over 100 years and no true constant can last that long in this society if it didn’t work.
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