Traditional vs. online Estate Agents

bertiewhite

My house is currently on the market and already we've had to provide the Estate Agent with better photos and chase them regularly for updates, effectively doing some of the job for them.

I went with a traditional (commission) EA because I was under the impression that they will try harder than an "up front" EA due to the fact that if it doesn't sell, they get nothing.

Looking at it another way, what's to stop an online EA taking the up front fee and then sitting back - what's the incentive for them to sell your house when they've already got the money?

Or isn't that the way online EA's work?

Surrey_EA

bertiewhite wrote: »

what's the incentive for them to sell your house when they've already got the money?

There isn't one, at least as far as I can see.

If you've got a sought after property, in a popular area, and don't mind doing some of the work then the pay upfront model is very attractive.

Sounds like the EA you've instructed isn't a great advert for the traditional EA model. Some EAs are very good and will work hard to get your house sold. On the other hand others are lazy and don't put a great deal of effort in.

steampowered

There are a lot of negative review on here for online estate agents. Just search on the forums for 'purplebricks'.

Online EAs don't tend to do very much to try and sell your property. They just list it online and leave you to do the rest. Online EAs leave you to deal with viewings and negotiations.

So if you are expecting an online EA to do anything other than 'sit back' you will be disappointed.

PokerPlayer111

bertiewhite wrote: »

Looking at it another way, what's to stop an online EA taking the up front fee and then sitting back - what's the incentive for them to sell your house when they've already got the money?

Online estate agents can only continue if people are happy and actually buying/selling houses. Its important the process actually works to continue business. There is much more money in being successful.

MobileSaver

steampowered wrote: »

There are a lot of negative review on here for online estate agents.

That may be true but I would suggest that there are far more negative reviews on here for old-fashioned high street estate agents!

PokerPlayer111

MobileSaver wrote: »

That may be true but I would suggest that there are far more negative reviews on here for old-fashioned high street estate agents!

The viewing i done the other day the guy was selling his third house using online estate agents. He was using doorsteps this time because of the price and housesimple before that. He couldn't be happier with the selling experience.

Lauralou79

Our house was sold via an online agent. As a buyer it was easy, we booked viewing online, the vendor dealt with the viewings. We put offers in online that went straight to the vendors and could also send messages. No games or awaiting for the agents to pass it on etc.
Once our offer was accepted all online it went straight off the market and Rightmove.
Can only speak about buying, tho the vendors did have good photos taken and a costed valuation as well as a sign outside.

Surrey_EA

PokerPlayer111 wrote: »

Online estate agents can only continue if people are happy and actually buying/selling houses. Its important the process actually works to continue business. There is much more money in being successful.

Taking your current favourite for a moment, how much effort do you think an online only, pay upfront, property listing service is going to put in when they are charging £99?

There is no way they can be making a profit at this price point.

MobileSaver

Surrey_EA wrote: »

how much effort do you think an online only, pay upfront, property listing service is going to put in when they are charging £99?

That's the thing, it's horses for courses. I knew a £400k+ property I sold would sell itself with little effort on anyone's part and saved literally thousands of pounds by using an online EA.

Conversely a £200k+ property I sold was too far away and too much hassle for me to arrange viewings and so I happily paid an old-fashioned high street agent several grand to put in the effort for me.

For most sellers though we live in an online world and so long as they price a property right and get it on Rightmove then it will sell. This obviously means the market for high street EAs is diminishing as every day goes by...

Surrey_EA wrote: »

There is no way they can be making a profit at this price point.

This will depend on how much they are paying Rightmove to get listed (do you know how much this is?) and whether they can upsell additional chargeable services to their customers.

PokerPlayer111

Surrey_EA wrote: »

Taking your current favourite for a moment, how much effort do you think an online only, pay upfront, property listing service is going to put in when they are charging £99?

There is no way they can be making a profit at this price point.

For £99 i think its just get it on rightmove and zoopla which is where the buyers come from + make use of the online infrastructure. Cant expect much more i guess if only picking the £99 package.

Lauralou79 wrote: »

Once our offer was accepted all online it went straight off the market and Rightmove.

I currently have offer accepted with traditional EA and house not yet marked as SSTC and still on rightmove. Also already paid solicitor instruction fee which was a solicitor via the EA. URGH!

googler

MobileSaver wrote: »

For most sellers though we live in an online world and so long as they price a property right and get it on Rightmove then it will sell.

...and as long as they have the time to do the viewings (some of which will be during the day, maybe), field the phone calls, and all the other stuff.

How many working folk have the flexibility in their work life to do this? I would wager very few.