Recent Posts

7am - 7pm | 7 days a week | 0800 862 0870 or 0333 344 7772
Posted by

Why are online estate agents only selling 52% of their listings?

‘Top High Street agents significantly out-perform onliners’ says HomeOwners’ Alliance. The consumer group has consistently promoted online agencies in the past, but has now published analysis stating that High Street Agents have a far higher success rate than online agents, selling 82.42% of homes listed with them compared to 51.98% among the onlines.

The HomeOwners’ Alliance also revealed that in the past six months, Britain’s online agents have achieved 95.85% of their original asking price, when the top 1,000 High Street Agents achieved an average selling price of 100.35% of their value, resulting in a whooping £10,530 difference (based on the average property sold price of £234,000 in February).

So why are online agents struggling to sell properties, and selling them for so far below the original selling price?

No motivation – Upfront fee

Perhaps the most important factor is that online agents’ flagship product normally includes an upfront fee. While cheaper than their other products, this means the agent has no incentive to actually sell your property once they have your money.

Meanwhile, high street agents operate under a no sale – no fee basis. This means the only way they are getting paid is by providing the full service a vendor is expecting and getting the property sold.

Inflated valuations

Due to online agents’ local property experts being paid per every instruction they get on, they will do whatever it takes to get you on the market. The easiest way of twisting a vendor’s arm is to try and tell them that their property is worth more than any other agent has valued it for. But unfortunately, this means that often online agents’ properties are on the market for well above their realistic selling price, leaving them collecting dust and unsold.

If you are having multiple agents value your property, we suggest finding the average of their valuations and that will likely be close to the true value of your home.

Subpar photography/viewings/service

The saying goes that you get what you pay for in life, and unfortunately that can often be the case when paying for cheap fee estate agents. There are plenty of horror stories in the reviews of online agents where vendors feel their agent has under or not delivered their promised service at all.

Clients being forced to conduct viewings alone despite paying extra to have them conducted by an agent. Complete lack of communication resulting in sales falling through or never starting in the first place. Photography that doesn’t come close to looking professional.

Ultimately, the reason why online agents are only selling 52% of their listings is aptly summed up by this review of a top online agent:

“Imagine you’re making the biggest purchase of your life. Now imagine that process is being overseen by a company who’s got their commission already and couldn’t give a toss about anyone after that.”

So why could risk losing £10,530 by going with an online agent, or paying a fee when you may not even sell? Book an appointment with one of our specialists and we’ll show you why Love Your Postcode are selling 95% of the properties we put on the market.

Comments

, , , ,