There’s a lot of talk in the media these days, about the perceived savings that can be made by using an ‘Online Estate Agent’ to sell your home, rather than one on the high street.
We had the idea (in the pursuit of fairness, of course!) to investigate the situation in our home town of Harrogate. Do people really seem to ‘get more’ from an online estate agents’ service?
At the time of writing, online-only estate agencies accounted for approximately 2% of the property marketplace. We think that Harrogate seems to reflect the national picture quite well.
Why such a low percentage?
We don’t think that 2% is a vast share of the market, given that many online estate agents claim to offer huge cost savings compared to the prices charged on the high street.
Perhaps some sellers tempted to use an online agent can make a saving if all is very straightforward, but only if the house sells at its correct market price. The upfront money is lost if the property doesn’t sell.
It’s also fair to say that because the market share of the online agents is tiny and the numbers of properties listed on their web sites is so low, they are simply not seen as a go-to place for the end buyers.
Are high street estate agents expensive?
We’ll start by demolishing some of the urban myths about all High Street Agents, starting with ‘high fees’.
Estate agents fees and earnings over the years in the UK have risen in line with general inflation – certainly not in line with increasing property values. This is because the iron rules of supply & demand in any marketplace always apply.
Estate agents fees come under constant pressure from fellow agents. As the supply and stock of properties for sale (or rent) diminish, agents are competitive on fees to gain instructions.
The national media of course love to report large high street estate agent fees and sometimes seem unaware that properties are bought and sold here in the ‘Frozen North’ at half the fee levels of London and the South East.
Each commission fee charged is unique to the individual circumstances , as per the property and the level of services provided.
In almost every case your high street estate agent will have to work very hard indeed to sell your home and earn their fee. They will have also have relied on their expert local knowledge and experience, plus great negotiating skills to secure you the best possible price for your home from a well-qualified buyer.
There’s also securing ‘the chain’, assisting in the ‘exchange of contracts’, getting the completion and sale over the line; all of the things that are necessary in order for a smooth and binding house move.
Let’s not lose sight of the real imperative too, which is to sell your property at the best price possible, with minimal stress and delay.
Harrogate is very fortunate indeed to host a very wide selection of good estate and letting agents, most of which are based in and around our famous square. We’re proud to open our doors to the public seven days a week and offer our expert, face-to-face advice.
