Online estate brokers have been around for almost a decade. But according to public opinion, 96% of homeowners still go with traditional estate agents advice. The initial generation of online estate brokers, which operated through websites and phone centres, forced the seller to do a lot of the legwork themselves. Some of these firms have become more hands-on since then, with some even employing local real estate professionals. These so-called hybrid estate agents provide services that are similar to those provided by traditional estate agents but in a more simplified manner.
What are the differences between traditional and online estate agents, and which is better? With many buyers starting their search online and both traditional and online estate agents having access to the most popular online property portals to market properties, what are the differences between these property professionals in the UK and which is better?
Price
Price is, without a question, the most important selling feature for online and hybrid estate brokers. Most charge a flat fee, which is typically less than a standard estate agent’s commission. This ostensible cost savings is immediately tempting. There are a few things to keep in mind, though. To begin with, some internet estate agencies collect the cost up the advance. And, in most cases, regardless of whether you’ve sold your house or not, you’ll be compelled to pay the charge within a few months. You should also keep an eye out for hidden extras. Many online estate brokers will provide a variety of packages, giving you the advantage of choice. However, it’s possible that the listed price isn’t what you’ll pay in the end. If you want them to prepare the property details, take photos, set up a “for sale” sign, and even conduct viewings, you may have to pay extra. It’s critical to understand what’s included and what the additional charges can be, as they can quickly add up.
It’s also a good idea to see if you have to use the online estate agent’s conveyancer or mortgage broker. It’s best to keep your alternatives open here, because otherwise, cost savings earned on one end could be offset by pricey services elsewhere. Finally, a word about the: according to research, the best local estate agents will get you a 5% higher sales price on average than the best online or hybrid estate agents*. Could you be inadvertently squandering money by getting seduced by the reduced first fee?
Knowledge of the area
We’ve already discussed the importance of local knowledge when selling a home. This is especially true when it comes to determining the worth of your home. How can an internet estate agent appraise your home if they are unfamiliar with the neighbourhood? They rely on available web data, which might not necessarily reflect reality. The addition of “local expertise” to hybrid agencies is an attempt to close the gap. How “local” are these specialists, though? Ask for details of similar properties they have successfully sold, and, most importantly, where they were selling double glazing the week before to see if they truly have detailed knowledge of your area. Also, ask for details of similar properties they have successfully sold, and, most importantly, where they were selling double glazing the week before?
Service quality
What’s included in an online estate agent’s bundle can vary significantly. Traditional estate agents could be argued to be in the same boat. This is where doing some research comes in handy. Consider what’s most important to you, and then make sure you’ll get the help you need. You get actual face-to-face service from a traditional estate agent, who can walk you through every step of the process. You are welcome to come into the branch at any time to get answers to your inquiries. Because of the commission-based fee structure, there is a stronger motivation to acquire the greatest possible price for your home. As a result, they will make an attempt to engage with the target market in a proactive and focused manner. They’ll also help you negotiate the greatest price for your home and move the process along on your behalf.
You may have local contact with current internet estate agents who you may phone and speak with. Their involvement in the negotiation and sales process, on the other hand, is likely to be more varied. It’s worthwhile to inquire about their willingness to be aggressive in protecting your interests throughout negotiations.
One of the “add-ons” for internet estate agencies is viewings. Many of them will gladly handle viewings for a fee, but are you comfortable giving over your keys to a complete stranger? With a traditional estate agent, you can meet the individual who will be doing your viewings ahead of time. This may not be an issue if you have the time and desire to do your own viewings.
Confidence and safety
Because both online and traditional estate agents are subject to the same rules, the same advice applies: make sure they’re members of The Property Ombudsman or the Property Redress Scheme. This is most certainly one of the most significant financial transactions you will ever make. You must be very certain that the persons you’re dealing with are trustworthy. Traditional estate agents may have been in business for a longer time and thus appear to be a better bet, but it’s still necessary to do your homework.
So, which is the best option?
It would be easy for us to simply assert that traditional estate agents are the clear winners. We think that the value we provide at each stage of the home buying and selling process much transcends any potential “cost” savings that internet estate agents can offer.
However, some consumers who are ready to do a little more homework themselves have had excellent results with internet estate brokers. As a result, the “best” option is likely to be determined by your unique circumstances, the saleability of your home, and how much time and inclination you have to handle things like viewings. The key is to be clear on what is included and what is not, and to consider all the pros and cons we’ve mentioned here.