Should you use an online estate agent?
Choosing whether to sell your home through an online estate agent can be a pivotal decision with potential savings in the thousands. As the real estate market evolves, the rise of online and hybrid estate agents offers a modern alternative to traditional high street agents, blending convenience with cost-effectiveness. This guide delves into how online estate agents operate, their fees, and the advantages and disadvantages compared to their high street counterparts, providing you with the insights needed to make an informed decision.
Online estate agents, handling a modest but growing segment of UK home sales, offer a significantly different service model from traditional agents. For a lower fixed fee, typically ranging from £0 to £1,200, they provide essential services including property listings on major platforms like Rightmove and Zoopla, photographs, and floor plans. Most also feature online dashboards for feedback on viewings and offers, and some even assist with sales negotiation and progression, albeit with additional charges for conducting viewings.
The emergence of online estate agents over a decade ago marked a shift towards a more self-service approach to selling property, where sellers were expected to take on much of the process themselves. However, the landscape has since evolved, with many online agents now offering more comprehensive "hybrid" services. These can include everything from valuation to sales progression, often with the option of a no sale, no fee package, reflecting the traditional model while still promising significant savings.
The allure of online estate agents like PurpleBricks, Yopa, and Strike lies primarily in the potential cost savings. Traditional high street agents typically charge a commission based on the sale price of your home, which can significantly exceed the flat fees charged by online agents. For example, selling a £300,000 property could cost around £4,250 in commission with a high street agent, compared to a much lower or even no fee with some online services.
However, the online model does have its drawbacks. The up-front payment model common to many online agents means you could lose your money if your home doesn't sell or if you decide to switch agents. Valuations may lack the local nuance that a high street agent could offer, potentially affecting the accuracy of your listing price. Additionally, the reliance on online and telephone communication can add time and complexity to the selling process, and conducting viewings yourself may not be everyone's preference.
Hybrid agents attempt to bridge these gaps by offering local experts to assist with valuations and negotiations, aiming to combine the best of both worlds. Yet, the effectiveness of these services can vary widely depending on the agent's local knowledge and the breadth of their coverage area.
When considering an online estate agent, it's crucial to weigh the savings against these potential challenges. While the lower fees are appealing, the level of service, support, and expertise varies. It's also essential to verify that any agent, online or high street, is a member of a recognized grievance body, such as the Property Ombudsman or the Property Redress Scheme, to ensure recourse should issues arise.
In summary, the decision to use an online estate agent depends on your priorities, comfort with managing parts of the selling process, and how much you value the potential savings. With the real estate market continually adapting to technological advancements and changing consumer behaviors, online and hybrid estate agents represent a viable alternative to traditional methods, provided you go in with a clear understanding of the benefits and limitations.
