Online Vs Traditional – The Battle Continues

Wed 18 Jan 2017

Each month we are seeing more and more online estate agents entering the market, offering low-cost options for selling your home. They are very confident in their product, but are yet to gain real traction in the market. Are they really the best option for selling your most prized asset?

So what’s the difference between the two?

Essentially, online agents offer a hugely slimmed down service of a traditional agent, at a slimmed down price. But crucially, there is no middleman. No estate agent. In our local area vendors can expect to pay around the 1% mark in estate agency fees, rising to 1.5% in London – however, there is nothing to pay if the property doesn’t sell. So an average £250,000 property in PE19 would set you back roughly £2,500 (+vat). Online agents however, will typically offer packages ranging from £400 to £1,000 (again +vat) – paid upfront, regardless of sale price achieved, or if it fails to sell.

How come more people aren’t using online agents?

There are currently hundreds of different online/hybrid agents now in business across the UK, with the largest being Purple Bricks. However online agents account for just 4% of the market at present, with the sector growing slower than expected – why so?

By cutting out the actual estate agent, vendors are leaving themselves wide open to a number of potential problems. Online agents tend to work from national call centres, so their local knowledge is often very limited. Take the property appraisal. With online agents vendors risk inaccurate valuations, with many being over/under the market rate. Your property could be in St.Neots, but you’re essentially asking someone in Leicester, Hull or Peterborough (with completely different markets) to put a price on it!

Traditional agents will pride themselves on local knowledge and experience of the market - imparting this on the buyer at accompanied viewings, during the sales negotiation and throughout the sales progression it-self.

Securing the sale

Buying and selling homes is rarely a simple process in reality. Contrary to popular belief, there are often grey areas! Buyers can change their budgets or specifications considerably and an agent will need to take the initiative to come to the most effective solution – something a computer or virtual agent is unable to do. 

Having a person based locally who can negotiate on the seller's behalf and chase an agreed sale through to completion is invaluable in securing the sale of what is most people’s biggest asset. With no fees paid until sale completion, your ‘bricks and mortar’ agent will work hard for you through to the very end.

We understand that there is a place for online operators, and for those lucky enough to have a straightforward, cash-only, chain free sale, it may work. But with your biggest asset, is it worth the risk? Doing it yourself almost always translates into a lower price and a longer, more stressful process. 

Prop-Tech is the future

The residential property market has made huge technological advancements in the past 2 years, from online estate agents, conveyancers and mortgage brokers to virtual property tours, live-feed viewings and drone photography. As a forward-thinking agency, we absolutely welcome and embrace these changes with open arms. The internet has completely revolutionised the property market and those that ignore this will undoubtedly be left behind.

Despite this, we firmly believe that there will always be a place for human interaction and local knowledge when it comes to the property sales process. And for now, the nation continues to choose traditional over online.

 

If you want to sell or let your property for the maximum possible price, give us a call today on 01480 218200 

"A personal touch with a professional manner and I highly recommend them to rent or sell your property."
CD

News Archive

March 2020

Corona Virus - Tenant Update

February 2020

Meet The Team - Q&A Series:Amy Duffy

Meet The Team - Q&A Series

January 2020

COMPULSORY ELECTRICAL SAFETY INSPECTIONS TO BE REQUIRED IN ALL PRIVATE RENTED HOMES

August 2019

5 top tips to ensure you find the best tenants

July 2019

How To Make Your New House A Home

June 2019

6 top tips for a smoother property transaction

We now officially have an award-winning Sales Team!

February 2019

In Conversation: Q&A With David Hawkes, Land & New Homes Director

Are you prepared for the forthcoming Letting Fees Bill?

January 2019

BREAKING: Stricter rules for mandatory electrical checks

Fitness For Human Habitation Act Becomes Law

Fitness For Human Habitation Act is now live, but what does this mean for Landlords?

Why is pays to use an agency that specialises in land deals

October 2018

Self managing? How evicting a tenant could fail spectacularly

September 2018

How we handle the three D’s – Death, Divorce & Debt

August 2018

First time buyers outstrip movers for first time in 23 years

July 2018

What does the profile of a modern landlord now look like?

Could your garden offer you the financial security we all strive for?

The top 4 things that put off UK homebuyers on viewings

House sale failures in the UK fell from record high in first quarter of 2018

Five year mandatory electrical checks for all private rental homes

What are the property improvements that give the best and worst returns?

May 2018

We’ve been selected to join an exclusive national Land and New Homes Network

Your rights for inspecting or viewing a property as a landlord