Online Estate Agents

googler

JQ. wrote: »

........ whether that be fictitious bids, creating a a bidding war that does not exist, applying pressure to the buyer, pushing my property to everyone who walks through the door of their office (whether it's what they want or not) etc, etc.

All of which are tactics which infuriate the buyers/viewers/bidders who post here, funnily enough.....

Contessa

JQ. wrote: »

Personally, I've always incentivised EA's. Get a value that you'd be happy with and agree a lower than average fee at that level and then propose a large bonus should they hit a certain level above that, say 5%, and if they get 10% above they get an even bigger bonus.

I've picked the above numbers out of the air, you need to calculate the numbers based on your own property's circumstances.

It's then up to the EA how they achieve their bonus, whether that be fictitious bids, creating a a bidding war that does not exist, applying pressure to the buyer, pushing my property to everyone who walks through the door of their office (whether it's what they want or not) etc, etc. I leave that up to them, but always make sure I'm aware I know what tactics they are using so I don't say something to the buyer that may undermine the EA.

However, I would comment that the above only works if you get a good EA and that they want that bonus. From my perspective this tactic has always worked and we've achieved values £15k higher than the highest valuations by the 4 EA's we've had round to quote. It might not work for all people or all properties. But on the basis that my house is the biggest financial commitment I'll ever make I always want to ensure the person negotiating the sale is good at negotiating and is highly incentivised to get me best value. I certainly would not be trusting that to an anonymous internet company.

JQ,
Thanks for your reply.
Impressive sounding results but I'm not sure I'd feel comfortable with those tactics as either a seller or a buyer.

WebGuru

What I forgot to say was I was sole agency with the online agent for around 60 days. Then I used a high street agent and the online agent for the last 30 days before it was sold.

The high street never found a single person to view in the 30 days we were multi agency.

12 viewings from the online agent in the full 90 days on the market.

So I conclude that for me, in this instance it was successful.

But I used the online agent to exhaust the internet market (Rightmove, Zoopla etc) for the cheapest fee, and in this instance it proved that the high street agent couldn't find any buyers or add any more value that the online agent.

The ArtfulDodger, I am a web dude into SEO. Nothing to PM you with I am afraid. Get on google!

:beer::j:T:):rotfl::A

googler

How many out of the 12 viewings were generated from the online agent in the last 30 days?

WebGuru

Googler

Three.

JQ.

Personally I don't think it's possible to quantify the difference between Internet and High Street, because it's all about outcome. Had your property been on with a high street agent I've no doubt you'd have also got the same 12 viewings, because it would have been advertised in exactly the same places. The question to ask is whether the EA could have got a higher value for the property than you did and it's just not possible to answer that question.

Out of interest, did the last 3 viewers explain why they responded direct to you (I assume the internet agent did not negotiate for you) rather than go back the the high street agent - it's safe to assume they would have seen both adverts? I know I would respond direct to a vendor given the 2 options, but that's because I'd feel more confident of negotiating a better deal.

WebGuru

We didn't deal direct, the online agent did the negotiations for us like a normal agent. The pass on the offer, go back and forth, do the memorandum of sale, check the chain etc.

I specifically asked the high street agent NOT to install a for sale board, as we had one for the online agent so I think they found it via this.

My view is you might as well test the Internet market with an online agent first, before listing with a high street agent as it will save you thousands. Also online agents don't mind multi agent agreements.

googler

It's hardly a meaningful comparison, is it?

The online agent gets a head start of 60 days, during which time they get the lion's share of the enquiries. Generally-accepted wisdom is that the most activity takes place early on, when the property is new to the market.

The online agent also gets to keep only their sale board at the property, and the high street agent isn't allowed to - sort of one hand tied behind their back, if you will......

johnno71

JQ. wrote: »

and what is a local agent could have got you an extra £5k on the sale price, you've actually lost £2,500.

What sort of tortured logic is that?!

"What if an online agent could have got you £5,000 extra"... etc

To the extent that an agent has a role in determining the price that is finally paid it comes down to the ability and dilligence of the individual agent, not which agency they work for (whether online or off).

WebGuru

johnno71 wrote: »

What sort of tortured logic is that?!

"What if an online agent could have got you £5,000 extra"... etc

To the extent that an agent has a role in determining the price that is finally paid it comes down to the ability and dilligence of the individual agent, not which agency they work for (whether online or off).

Finally somebody with some sense!!

Online Estate Agents are Estate Agents, just the don't sit in very expensive high street shops driving flash cars. It's not a very difficult concept you know.