Save Up To 80% On Estate Agent Fees By Selling Online
The efficiently cheap way of selling your property!
THE 13 BEST ONLINE ESTATE AGENTS
There are many online estate agents out there, but we’re here to help you figure out which one works best for you.
Ever wondered how online estate agents work? Let us give you some insight and show you the pros & cons of using an online estate agent to sell your home.
The average UK high-street agent charges £4200, while the average online estate agent charges £500! But which online estate agent should you use to sell your home?
Find out everything you need to know about Online Estate Agents, including the best options available…
‘Online estate agents’… welcome to the new world of selling homes.
Online agents are becoming
have become insanely popular with home-sellers because of how cheap and easy they’ve made selling property! When you crunch the numbers, their growing popularity really isn’t surprising.
How much cheaper are we talking about…
There’s always conflicting percentages being thrown around when it comes to high-street agent fees, but let’s say charges a commission fee of 1.5% including VAT. On a £250k property, that equates to a £3750 fee! Now, even when we compare that to one of the more expensive online estate agent charges, which charge a fixed fee of around £900, that’s a £2850 saving. The average online estate agent charges approx £500. Some charge a lot less.
What is an online estate agent?
Online estate agents can help you sell your property without using a traditional high-street agent. They don’t have physical offices on the high-street, which means you can’t casually stroll into their local branch for a face to face meeting. Online estate agents operate their business's via websites and call centres, they tend to offer a more basic service than you'd receive from a high-street agent and, as a result, they charge lower fees.
Like the majority of traditional high-street agents, online estate agents market properties across the biggest UK property portals, which includes Rightmove, Zoopla and Prime Locations to generate enquiries from prospective buyers.
Two types of online agents have emerged over the last few years.
Online-only estate agents - they require the seller to do most of the work themselves, from taking photos and creating an advert to handling buyer enquiries, conducting viewings and negotiating offers.
Hybrid estate agents - they employ 'local property experts' to handle buyer enquiries, accompany viewings and negotiate offers from start to completion. The local agent will be your primary point of contact throughout.assist you with selling your home
Why use an online estate agent?
It all becomes pretty clear when you see the examples below. It's all about the money.
High-street estate agents typically charge anywhere between 1-3% of the sale price achieved.The average estate agent fee for selling a property in the UK is £4200. When you compare that to the average cost of an Online Estate Agent, £500 fixed-fee, it suddenly becomes clear why so many people are starting to use online estate agents, Massive Savings on Agents Fees.
So you want to know exactly how much you can save by using an online agent? Use the calculator below to find out how much you can save by using an online estate agent…
How do online estate agents work?
The services offered by online estate agents, particularly hybrid agencies, are similar to those offered by high-street agents, but often in a more stripped-back form.
Most online estate agents now offer the option of valuing and marketing your home and arranging property viewings. Many can also negotiate and accept offers on your behalf, and liaise with your conveyancer, other estate agents and buyers until the sale is complete.
These services usually incur a higher fee than the basic package. Check out our reviews of the 13 Best Online Estate Agents below.
While high-street estate agents will usually charge you a percentage of your property’s selling price, online estate agents generally charge fixed fees. This means that using an online agent is often much cheaper, especially if your home is worth a lot of money.
For example, if you sold a property worth £250,000 using a high-street estate agency that charged 2% +vat commission, you'd pay £6,000. Online estate agents typically charge a flat fee of between £300 and £1,500, regardless of the value of your property, a massive saving.
A major downside of online estate agents' lower prices is that you'll often have to pay up front, regardless of whether they end up selling your home or not. Paying a fixed fee also reduces the agent’s incentive to sell your property for the highest possible price.
However, some online estate agents offer the option to pay once you've completed the sale but for a slightly higher price, reducing the risk of wasting your money.
Some also offer a deferred payment option, where you pay at a defined point in the future, for example, 10 or 12 months down the line. This may involve entering into a credit agreement with the agency, so make sure you fully understand the terms before signing on the dotted line.
How are property valuations conducted?
An online-only agent is likely to use online data to value your home, while hybrid online estate agents will send a 'local expert' to provide a valuation.
Remember you don't have to use the valuation provided. Ask three firms – high street or online – and go with an average, or whatever you think is the right price based on recent similar examples you've found through your own research.
Inviting a variety of companies to value your home and talking to them about their sales process will also enable you to more deeply understand the differences between online and high street agents.
How will my property be marketed?
Online estate agents will list your home on their site as well as other online property portals such as Rightmove and Zoopla. Some will install a 'for sale' sign outside your house, although they might charge extra for this.
High street estate agents will do all of the above as a standard part of their service, and can also place adverts in their branch windows.
Estate agents have been charging to much for very little for too long.
Online estate agents offer leading estate agent experience for a Fair Fixed Fee
How are viewings carried out?
The default option with most online estate agents is that you conduct the viewings yourself.
However, a lot of online agents now offer accompanied viewings for an extra fee, or as part of a more expensive package than their standard offering.
Buyer vetting
Some (though not all) online estate agents will vet buyers, typically getting details of names, finances and whether potential buyers are already part of a chain.
We'd recommend asking your agent exactly how this works, as some companies use third parties to do this.
Are There Hidden Fees?
Online estate agents are usually up front about the whole cost. The fixed fee is usually as stated. Most online estate agents will include VAT in the price, which is something high street agents often omit from their advertising.
Online Estate Agent packages will not include an EPC (Energy Performance Certificate), which is legally required to sell a property. Many will offer to provide one at an extra cost, usually around £60 - £100.
Be aware that estate agents, both online and high street, do not generally handle the legal aspects of a property transaction. You will require a solicitor or a conveyancer (rare in Scotland) to handle this. The average cost is around £500 to £1,500. You will generally want to arrange this at the same time you choose an agent, so as to not delay the sale of the property later on. Check out our guide here on getting the best deal when looking for a conveyancing for your property sale or purchase.
How do I communicate with an online agent?
Someone will visit to take photographs and create floor plans if you sign up for this option, and you'll meet the 'local property expert' if the agency sends one round.
However, all other contact will usually be via email or phone - and many online estate agencies offer online portals where you can access helplines or chat services outside traditional working hours, with some offering 24/7 support.
How many people use online estate agents?
At the moment, online estate agents only have a small share of the estate agency market, though their market share seems to be growing month on month due to the increased savings consumers are realising.
Online estate agents had a market share of 7.9%, based on the number of exchanges to take place in the fourth quarter of 2019, according to a report by the data consultancy TwentyCI.
The data agency also reports that online estate agents are most commonly used by people selling lower-value properties and homes in the Midlands and northern regions of the UK.
Do online estate agents overvalue properties?
As with any estate agent, it’s the job of an online agent to find the best price for your house. However, research conducted by Which, has found that estate agents who routinely overvalue properties can potentially leave sellers worse off, having to make big price cuts to sell their home.
We found this practice was less prevalent among online agents than traditional high street estate agents.
On average, online agents sold properties 38 days faster than traditional agents. Furthermore, where 19% of properties sold by traditional agents were reduced by 5% or more, that figure was 13% for online-only agents.
Purplebricks – the largest online estate agent – made heavy reductions on the smallest proportion of its properties, while EasyProperty heavily reduced 34% of its properties.
EasyProperty claims that it sells hundreds of new-build properties, with prices set by the developers. Of the properties that were sold on behalf of private individuals, the agent claims to have reduced far fewer than listed here.
What are my rights when using an online estate agent?
Online estate agents are governed by the same regulations that cover high street estate agents.
As with high street agents, online estate agents must be members of a government-approved redress scheme – the Property Ombudsman Limited or the Property Redress Scheme.
Your agent has to be clear about which redress scheme they are a member of, and the scheme should be your first port of call if you have a problem.
Trading Standards will also investigate agents that it believes have acted in breach of the 1979 Estate Agent Act, which sets out minimum standards of conduct for estate agents.
Pros and cons of online estate agents
Online estate agents can be a great money-saving option when you're selling your house, but you should be aware of the pros and cons of these services before making a decision.
Pros of using an online estate agent:
Convenience: it can sometimes be easier to get hold of online estate agents. Their call centres are open during evenings and weekends, so they are able to deal with queries outside of working hours (although some high- street agents offer this, too).
Flexibility: packages can be tailored to your specific requirements, and you can often track viewings and feedback online (some high-street agents also offer this). Freedom to use multiple agents: generally, there is no contract period, which means you can instruct other estate agents if you wish.
Cons of using an online estate agent:
Lack of local knowledge: even online agents with regional reps could struggle to compete with a high- street agent who knows your neighbourhood and its property market inside out.
Legwork: some online estate agents won't negotiate offers or act as a middleman to progress your sale to completion. Having to manage communications with buyers and solicitors on your own can be time- consuming and stressful. You usually have to conduct viewings yourself, so you'll need to be comfortable showing strangers around your home and be available during evenings and weekends.
Paying up front: if you opt for this type of package, you won't be paying on results. In fact, you'll have to pay even if that company doesn't end up selling your house. Most online estate agents charge a flat fee rather than commission, they therefore have less incentive to get the best price for you. That said, they have reputations to maintain, and many companies claim they usually achieve the asking price.
Take our short quiz below to find out which online estate agent is right for you. and you could Save Thousands of Pounds.
Should I use an online estate agent?
There isn’t a straightforward 'yes' or 'no' answer to whether you should use an online estate agent.
If you think your property will sell relatively easily and you'd be comfortable showing buyers around your home, then using an online estate agent could present good value.
THE 13 BEST ONLINE ESTATE AGENTS
There are many online estate agents out there, but we’re here to help you figure out which one works best for you.
How much Money could you Save?
Money Web has an free online tool that can help you to find out how much money you can save and which online estate agent is the best for your needs.
- Step 1 - Click the button below to get started.
- Step 2 - Answer a few simple questions and we’ll match you with an online estate agent that best suits your needs, and you’ll be on your way to getting a no-strings-attached FREE PROPERTY EVALUATION.
Click below to find out more!
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