Does selling online work e.g. Purplebricks?

RSTime

We have had to move my mum into care and are selling her home. Her house in London needs considerable renovation (not been touched for over 40 years) and we have dropped the price to reflect this, however, after trying two estate agents we have not sold the house. We have had some negative feedback concerning our current estate agent (apparently they have been negative about the property in a viewing) and I am looking at other options. 

Does online selling work, any issues I need to be aware of?

I would plan to move into my mum's house for a while to conduct viewings. I would welcome the experience of others who have gone this route. Purplebricks is the only company I am familiar with, are they still the market leaders?

On a separate note, is the market really slow in (North West) London, I understand developers are not active due to high interest rates and people are struggling to get mortgages?

jonnydeppiwish!

2 EAs, 8-12 weeks each? One price drop? Sounds like whilst the second EA may be negative, the price expectation is possibly more of an issue.

housebuyer143

They are not miracle workers so I would say if you can't shift it with 2 EA then you won't magically do so listing it with PB. 
PB in my opinion is a glorified notice board. I don't think they do anything for the money they charge, and you are better off listing it for free with strike or paying someone like 99 homes for the same service at a fraction of the price. 
In this case though, it's probably the price that's the issue if it's not shifting.

RSTime

jonnydeppiwish! said:

2 EAs, 8-12 weeks each? One price drop? Sounds like whilst the second EA may be negative, the price expectation is possibly more of an issue.

We have dropped the price several times (significantly) and it really is good value now. Even with costs of modernisation it represents good value. 

eddddy

RSTime said:

We have had some negative feedback concerning our current estate agent (apparently they have been negative about the property in a viewing) and I am looking at other options. 

Hmmm... so who told you that? Was it somebody with an ulterior motive for saying that? 

Estate agents get paid if/when a property sells. So it's highly unlikely that they would say negative things that would reduce the chances of the property selling.



(And it depends what you believe the estate agent said. The law says that they are not allowed to make misleading statements. For example, if there is a problem with the house, they shouldn't be denying that the problem exists.)

ThisIsWeird

An EA has no interest in stalling a house sale, or putting buyers off.
Yes, you do sometimes have a naive 'negotiator', or sometimes just a lowly-paid viewing droid who will be too, um, honest, and I suspect that usually doesn't help to sell a property. But that will come down to the individual buyer, and in your case it probably consists of folks who already know the place needs updating, and who are looking for a 'bargain'.
That is different to folk who expect to move in to their dream home.
It may be reverse psychology. I've experienced both types with mil's purchase a few years back, a retirement bungalow that needed extensive decorating, but which was in sound condition. There was an amusingly 'blunt' EA on one viewing who actually pointed out every flaw they could see, and another who tried to put a gloss on everything; "Oh, a lick of paint will soon have...".
No idea if this put other potential buyers off, but 'Mr Negative' only helped to make me feel more keen that mil should go for it, because it gave the feeling that there could be a bargain in the offing!
In reality, I doubt very much It made any difference whatsoever.
For some buyers, there's no point in horse-pooing, as it might make them think that the seller isn't realistic of the true condition of the house, so barely worth pursuing. 
People looking at your mum's house will be looking for a 'bargain'.
Effective EAs will play the game, and will try and judge the best way to encourage each buyer. Their approach will likely vary with the buyer. A 'negative' could be a ploy.

RSTime

I am aware of the valuation and what buyers are looking for. My question is about online estate agents, I don't really want to go into the realm of our estate agents, I think you would be quite shocked but it is not the purpose of my posting. Thanks.

eddddy

RSTime said:

I am aware of the valuation and what buyers are looking for. My question is about online estate agents, I don't really want to go into the realm of our estate agents, I think you would be quite shocked but it is not the purpose of my posting. Thanks.

It sounds like you have a 'difficult to sell' property that requires renovation, and maybe limited property information available for the contract. I'd say that's not the kind of property to sell through an online agent.

That's the kind of sale that might need a lot of effort from an experienced, professional, estate agent.

When I bought a 'difficult' property requiring renovation, it took 9 months of effort (and negotiation) via the estate agent to get it to exchange of contracts.

Similarly when I sold a difficult property to a BTL investor, fortunately I was using a very 'assertive' estate agent, who got me a great price, and consistently pushed back on the buyers demands.


But online agents might be OK for selling standard properties (to rational buyers), that will sail through conveyancing with no problems.

housebuyer143

RSTime said:

I am aware of the valuation and what buyers are looking for. My question is about online estate agents, I don't really want to go into the realm of our estate agents, I think you would be quite shocked but it is not the purpose of my posting. Thanks.

In answer to your question, yes you can sell with online agents - I bought mine through PB and I sold mine with 99 Homes. 
You are required though to be confident dealing with the other party and appreciate it might not be as easy as using an actual agent for the sales progression, because you end up doing lots yourself. 

PB honestly don't want to know as soon as they have a sale agreed and didn't properly verify us as buyers. I wouldn't choose them if you went online only because I don't think it's value for money. 

silvercar

I would think, with a property that needs major renovation, an established estate agent may have more people on their books who may be interested in the right opportunity. Whereas the online estate agents rely on actively looking movers who are constantly scrolling Rightmove.

That said, I know of a few first time buyers searching for property in NW London who are wanting something that they could improve over the years, rather than buy now and have to move again in a few years time. They say there isn’t much on the market.

theartfullodger

Purplebricks was sold not that long ago for all of £1, partial answer to your question.