Real Agents Get More!

01 Dec 2018

It’s official – what we’ve suspected all along – a “traditional” estate agent gets sellers more in their pocket than the internet-only alternative.  They also secure more viewings and offers!

According to research by The Advisory - an independent consumer advice group - internet-only agents rely too heavily on property portals to find buyers.  In fact, portals appear to be their only tool!

The research suggests that while Rightmove, for example, may directly generate 52% of viewings, this results in only 36% of offers and 27% of the best buyers, whereas High Street estate agents generate 48% more viewings, 64% more offers and, in 73% of cases, a 5% higher sale price.

On a £250,000 sale, this higher sale price translates to a loss of £12,500, if a passive intermediary (online-only) firm has been used, versus a local estate agent.

Internet-generated viewings do  not  engage  any  of  the  proactive  interactions required  to  prompt  a  sale.  For  example,  deeply  understanding  a  buyer’s  needs  helps  us  to  identify  unseen  opportunities for  the  buyer.  This  frequently  results  in  property  viewings  that  might  not  otherwise  have  happened.  More viewings = more offers = more competition = higher sale price.

This  could be  the  reason  why  professional  property  traders  tend  to  use  regular  estate  agents  such  as  ourselves  over  internet-only  agents.  The  author  of  the  report  has  sold  hundreds  of  properties  on  behalf  of  corporate  relocation  clients  and  developers’  part-exchange  properties.  He  says  that  while  internet-only  agents  appear  to  be  cheaper, estate  agency  fees  are  not  the  issue,  and  he  instead  focuses  on  the  “walkaway  figure  -the  amount  received  from  a  sale  after  the  cost  of  selling  has  been  deducted”.  He  says  that  sellers  who  use an  internet  agent  could  be  “stepping  over  the  pounds  to  pick  up  the  pennies”. No  wonder  57%  of  sellers  who  used  a hybrid/online  agent  said  they  wouldn’t  do  so  again  (source:  Zoopla).

Additionally,  as internet-only  agency  fees  are  usually  payable  up-front,  these “virtual  agents”  have  no  incentive  whatsoever  to  perform.  At  Peter Heron estate  agents,  we  only  charge  on  successful  completion–our  revenues  and  our  reputation  depend  on  it! 

You  wouldn’t  try  to  sell  your  Bentley  on  e-Bay,  so  why  do  so  with  an  even  more  expensive  asset?  So  if  you’re  thinking  of  selling,  you  know  who  to  call.  As  your  friendly,  local,  REAL  estate  agent,  we’d  love  to  hear  from  you, call us on 01915103323.