Low up-take of online estate agency

Some local sellers have approached us to sell their property following a less-than-impressive performance by an online alternative to “proper” estate agency. Although it is always tempting to say “I told you so”, we wouldn’t be so harsh with someone who has just been through the mill with the wrong choice of agent.  

And it seems they are not alone. In fact, according to research conducted by The Advisory, fewer than 7% of properties are sold by a low-cost internet-only estate agency.

Those sellers who chose to use a traditional agent were asked whether they had considered an internet-only alternative; 30% had, due to apparently cheaper fees, but then decided against. Seventy per cent of sellers said they didn’t even consider using an online agent.

Despite the fact that so much of our world is now online – and often all the better for it – most people recognize that this does not generally apply to effective estate agency. For example, 38% of sellers using a “traditional” estate agent said they did so because local knowledge was very important to them. 35% appreciated the value of a face-to-face relationship with their agent (which of course offers far greater personal accountability), 17% cited the importance of a local high street presence and 10% said it was simply more convenient than a faceless online alternative.

It would seem that the only attribute an online agency has to offer is the temptation of an apparently cheaper fee (this was the main reason why 74% of those who used an online agent decided to do so). But beware! This can be a substantial false economy as most online agencies charge up front, with no incentive to actually sell your property! Additionally, automated models cannot fully understand the nuances of local values and online agents are seldom involved in the psychology of selling, negotiations, sales progression, chain chasing, liaising with solicitors etc.

Choosing the right estate agent for your property type is an important decision, so don’t be tempted to cut corners with false economies. As many will confirm – the internet-only agency experience usually ends in tears!