Before you read on, I know what you’re thinking, ‘oh, yes, well they would say that being a traditional estate agent’, and yes, we are obviously going to be rooting for the traditional agent, but with good reason, I feel, which is why I’ve decided to write an article about it.
I have written about choosing an estate agent to sell your property and online vs traditional before, however, just before Christmas, The Advisory (Independent Expert Advice for House Sellers) published their study* on the subject, prompted by an online agent’s claim that online estate agents produce the same results as traditional agents but for £1000’s less in fees. The study is well worth your time reading; they even include a hypothesis that an audit of their historic property trades and ‘managed’ sales to see where viewings and offers originated, would give them a solid insight into the impact a strategically chosen local estate agent (an accurate pricing) brings to the property sale.
So, what were the findings? In summary, the right high street estate agent can:
- Increase viewing numbers by 48%
- Increase offer numbers by 64%
- Generate a more secure buyer (or buyer willing to pay a better price) 73% of the time.
- Secure a 5% higher sale price (compared to using a Rightmove listing service)
And, what did they conclude?
‘It is fair to say the best internet only estate agents are just as good (even a little better than your average high street estate agency. However, the best high street agents provide the gold standard when it comes to achieving the highest ‘walkaway figure’ from your sale.’
The Advisory, December 2018
While there is much to praise about using a traditional agent, I think what The Advisory point out is fair comment; there are good and not so great online agents and there are, equally, good and not so great high street agents. So, how do you know how to choose the right agent for you. Assuming you have done the background checks to ensure the agent you are considering has all the necessary credentials, including being a member of one of the three UK recognised trade bodies (GPEA, NAEA or RICS), here are some actions I would recommend prior to instructing an estate agent:
- Ask for recommendations. Has a friend or family member recently used an estate agent? What was their experience like?
- Gain at least three valuations. It may sound laborious, but we are talking about a significant amount of money when it comes to selling a house, so you need to get an average of what your property is worth. An agent estimating far above the other two valuations might be being over optimistic, whereas an agent estimating way below may be selling you short. If all valuations come in at similar values, go with the one you feel most comfortable with.
- What fees are involved? Most traditional agents take a percentage (usually between 1 and 2%) of the price the property sells for. Most sales operate on a no-sale-no-fee basis, so there is much incentive for them to ensure they find you a seller, for the best price, and the sale proceeds to completion. Online agents are increasingly offering a fixed price fee of less than £1,000 to sell your property. However, as I’ve discussed above, if they are selling your property for 5% less, in the long run, you may be selling yourself short. For example, your property is on the market for £180,000. An online company are charging you a flat rate fee of £999. A traditional agent is going to charge you 1.5% of the achieved sale price. The online agent achieves an offer of £175,000 but the traditional agent receives an offer of £179,500. The online agent takes a fee of £999 and you end up with £174,001. The traditional agent takes a fee of £2692.50 and you end up with £176,807.50, leaving you £2806.50 up on the deal and a figure which would cover most of your conveyancing fees.
- Read the small print. You’ll be asked to sign an agreement prior to your property being marketed. Ensure you read this carefully, check for hidden fees or anything you don’t understand and only sign if you are in agreement with the terms and conditions.
- Go undercover. This last one sounds very sneaky but if you are unsure, book a viewing at a property with an agent you’re considering using and see how they handle viewings, from how easy it is to obtain one, how long you get at the property and how enthusiastic the negotiator is when showing you around. You only want the best, knowledgeable agents marketing your home.
Finally, I’d like to pick up on that last comment; knowledge. Online agents are generally nationwide. Traditional agents may be nationwide as a brand, but the negotiators working in the branches are local, with local knowledge of area and price. It is something we at Sure Sales and Lettings Gloucester pride ourselves upon and I firmly believe that knowing the market and our buyers ensures we get you the best buyer and price for your property. If you doubt that, then have a read up on our comments for the Gloucester market in 2019: https://bit.ly/2QEUzER.
So, if you are thinking of selling your property and can’t decide between a local or online agent, why not give us a try and arrange a valuation, so that we can discuss our local expertise and knowledge and just exactly what we can offer you. Contact us on 01452 310999, email us at gloucester@surepropertygroup.com or call into our offices in Worcester Street, Gloucester, to discuss your needs further.
We look forward to hearing from you.
Best wishes,
Rob Buckley
Director
Sure Sales & Lettings