Online Estate Agency

What is online estate agency?

As the name suggests, an online estate agency is one whose shop window is online instead of on the high street.

There are a growing number of online estate agents in the UK offering a variety of prices and packages.  Some cover the whole of the UK, while others only cover certain regions.

Typically, an online agent will be much cheaper than a high street agent.  Most high street agents are charging from 1.5% to 2.0% plus vat.  Online agents tend to offer packages based either on a fixed upfront fee with no commission on sale, or a smaller upfront fee with a small commission upon sale (usually 0.5%).

How much can I save?

Taking a £200,000 house as an example, selling through a high street agent would cost £4,800 based on a 2.0% commission plus vat.

Compare this to a common upfront fee for online estate agency of £479 including vat and with no commission on sale.  That’s a saving of £4,321!

The 3 things to look for when choosing an online agent:

Not all online agents are created equal, however.  In particular there are 3 things you should look for when choosing yours:

1.  What portals does the agent advertise on?

Advertising on property portals is an expensive business and some online agents cut costs by only advertising on one or two of the main portals.

With Rightmove being the best known portal you’re pretty much guaranteed to get a listing there, but what about the others?  Based on independent statistics from organisations such as ComScore, Hitwise and Nielsen you could be missing out on around half of all property buyers if you only get a Rightmove listing.

In order of which get the most buyers the top 6 property portals are as follows:

1.  Rightmove

2.  Zoopla

3.  FindaProperty

4.  PrimeLocation

5.  Globrix

6.  Nestoria

There are lots of other portals, but with your property on these 6 you should reach over 90% of all buyers on the market – so make sure they are all included in your package.

2.  How long will my listing last?

We’re in a very slow property market at the moment, so this is an important one to check.

On average it’s taking around 4 months to sell a property, while the numbers of sales per estate agents’ office are near to record lows.

Some online estate agents will charge you an upfront fee, but only list your property for 3 or 6 months.  If you want to stay on longer than that you have to pay a top up.  Sometimes this top up can be the same as the initial fee – doubling your costs.

Look for an online estate agent that gives you at least a 12 month listing.  Even in today’s property market that should be plenty of time for you to sell – especially if your property is listed on all the major portals.

3.  What is included in my package?

As mentioned above, a typical online agency price is £479 including vat.  But as with so many things you need to check the “small print”.

If you are going to sell – and sell quickly for a good price – you will need a number of things as part of your package:

• A “For Sale” board.  Because most people move locally “For Sale” boards generate around 30% of all viewings
• An EPC (Energy Performance Certificate).  These are now a legal requirement for anyone selling their house
• Floorplans:  Properties with floorplans are known to get both more viewings and better quality viewings.  That’s because people like to see as much information as they can before deciding that they’re interested

It’s very common for these to be offered as “optional extras” rather than as part of the basic package.  But since they’re so important for a successful sale they’re not really “options” in the true sense.

If you have to buy them separately you’ll end up paying anything from an extra £130 to £200 plus vat.  On the other hand, you could simply choose an online agent who includes them all in their standard package.

Because these factors are so important, the online estate agent we recommend is House Hop.  House Hop offer the following benefits:

1.  They advertise on all 6 of the major portals, plus many others.

2.  They will advertise your property for at least 12 months.

3.  Their standard package includes the following:

• A “For Sale” board
• An EPC
• Floorplans
• 20 photos
• 6 panoramic moving photos

House Hop’s standard package costs just £397 plus vat.  To visit their website click here:  www.HouseHop.co.uk