The Pros and Cons of 'Online' Estate Agents
Tweet |
Fri 28 Jul 2017
The rise of ‘online’ estate agents means sellers have even more choice when it comes to selling their home. The general consensus tends to be that online agents are cheaper than traditional estate agents – but is it really as simple as that?
Pros
- Online estate agents’ fees tend to be fixed and lower than their high street counterparts. However, a traditional estate agent has expert local knowledge, in addition to a wealth of experience and access to potential buyers; so they may be better placed to get a higher overall price for your property – meaning the lower online fees may be false economy.
- Using an online agent may offer more flexibility. Their call centres tend to be open outside of traditional office hours and at the weekend.
- Sellers have more control over the sale of their property, from conducting their own property viewings, to negotiating the sale directly with the buyers. However, managing the whole selling process single-handedly may not appeal to some and there are many hurdles to clear in terms of sale progression, chain handling and receiving the best price for your home.
Cons
- Online estate agents’ fees generally have to be paid up front, even if the property does not sell and with no actual bearing on the price you get for your property. Traditional estate agents are only entitled to be paid a fee once exchange of contracts has occurred (i.e. once a sale is made legally binding). It is in a traditional agent’s best interest to sell your home and help you get the best price – most online agents are paid no matter what happens.
- Sellers must conduct their own property viewings, unless you purchase a more expensive package. You will need to make sure you are available for viewings taking place during weekdays, in the evening and at the weekend.
- Online estate agents tend to communicate solely over the phone or by email, whereas a traditional estate agent offers tailored support and advice throughout the entire selling process. You can meet your agent face-to-face to discuss the sale of your home and to address any questions or concerns you may have.
- When valuing your home, online agents may rely on online data or even list the property at a price you think it is worth. Conversely, traditional estate agents have expert knowledge of the local area, enabling them to accurately value your home.
- Marketing undertaken by online agents tends to be for a fixed period of time, depending on the package you purchase, with additional costs if you need longer. Traditional estate agents, however, market your property until it sells with no maximum period.
- Online agents generally leave sellers to deal with all negotiations with potential buyers, with no input or guidance from that agent. Meanwhile, a traditional agent will manage the whole offer process for you and also stay involved as the legal work takes place, thereby reducing some of the stress of the process for you and ensuring your sale price is achieved.
At first glance, selling your home with an online agent may seem like it could save you money. The reality, however, is a different matter. It all depends on what price is achieved for your home versus the amount you are charged in fees, or if your property actually sells at all.
Case study:
Online agent | versus | Traditional agent |
Asking price: £200,000 | Asking price: £200,000 | |
Fees: £800
Sale price: £195,000 |
Fees: £2,400 (1% + VAT)
Sale price: £200,000 |
|
Seller receives: £194,200 | Seller receives: £197,600 |
The above demonstrates that it’s not just the cost of the agent’s fees that needs to be considered carefully – you need to choose your agent based on who will help you achieve the best sale price. In the example above, using an online agent may look like you would save £1,600, but in reality, you would be £3,400 worse off at the end of the sale.
At Brown & Cockerill Estate Agents we offer unparalleled customer service, excellent communication and support and expert knowledge of the local area. We can maximise the sale price of your home and ensure you receive the best ‘value’ when you market your home with us.
If you’re thinking of selling your home and want the best price, we can help. Get in touch on 01788 551111 or click on this link to arrange a free property valuation. You can also get in touch with us via Facebook or Twitter
News Archive
January 2021
“What should you spend time and money on when improving your property?”
November 2019
National Estate Agent Conference
April 2019
What is the difference between Outline and Full Planning Permission?
February 2019
Best Ways To Increase Your Rental Property's Energy Efficiency
January 2019
Shared Ownership - What is it?
October 2018
Taxes Payable by Landlords & Investors - A Guide
August 2018
We win GOLD for the 3rd year running.
May 2018
The Facts - Energy Performance Certificate (EPC)
February 2018
Relocation Experts Recognised at Brown & Cockerill Estate Agents
November 2017
Chancellor abolishes Stamp Duty for First-Time Buyers in England and Wales in his Budget
The Team Attends National Estate Agency Conference and Exhibition.
September 2017
Brown & Cockerill win Silver at National British Property Awards
It's Official - We are the Best in Rugby!
July 2017
The Pros and Cons of 'Online' Estate Agents
Top tips for reducing condensation
May 2017
The importance of your credit rating when applying for a mortgage
Thinking about selling but worried about the length of your lease?
April 2017
Tenant Referencing - what you need to consider
March 2017
How to Spot and Tackle Japanese Knotweed
February 2017
10 things to do before applying for a mortgage
HOUSING WHITE PAPER: The Key Points
January 2017
Woodworm Treatment - The ins and outs that you need to know
December 2016
Selling Your House? Don't Wait for the New Year!
August 2016
Brown & Cockerill Offer Clients a Relocation Agent Specialist
July 2016
Brown & Cockerill win GOLD for Best Estate Agent in RUGBY!
June 2016
Lettings: A Guide to Deposit Protection Schemes
Property Jargon Buster - a glossary of terms
May 2016
Thinking of Buying a Second Home? a guide to stamp duty changes.
April 2016
Rents Rising Across Most of the UK
March 2016
Brown & Cockerill Help Home-Movers to Celebrate!
February 2016
FEBRUARY is here which means it is the month of LOVE
This Year We Are Celebrating Our 20th Anniversary !
January 2016
Do your tenants have the Right to Rent?
December 2015
Buying or selling a property with asbestos?
Gazundering: A guide to what it means and how to avoid it!
November 2015
The Team Attends National Estate Agency Conference
View older stories >