Property Drop Issue 54

26 NEWS
Should you trust an online estate agent
to sell your home?
In the wake of the new millennium, disruptors began to move into the property marketplace
and create a niche in the estate agency model.
Online and hybrid estate agents were born and
took up a unique space. But it’s not all been
plain sailing. One of the very first online
agencies, Hatched, which started its operations in
Hertfordshire in 2006 and which was later sold to
Connells in 2015, closed in 2018. Connells announced
that model was fundamentally flawed, not economically
viable and instead would be focussing entirely on its
traditional model.
Last year, David Plumtree, the Chief Executive of
Connells Group Estate Agency said: “There is much
talk of ‘disruption’ from hybrid estate agents, but from
our experience we have found it significantly lacking
when compared with the level of customer service,
support and experience that our high street operations
provide. Ultimately, an upfront fee obligation, payable
irrespective of whether a property sells or not – is not
the right solution for the customer…”.
Without question, online agents do provide a muchwanted
and much-needed service to sellers around the
country and so hold a significant space in the property
market. That position is probably much more so in the
regions than in the cities. However, that market is not
nationally uniform and expert local knowledge and
negotiating skill is extremely valuable and, very often,
critically necessary.
In making the decision of who to trust with selling
their property, sellers would be wise not to look only
at the cost of the estate agent, but also the important
services that they deliver and the complexity and
challenges of the property market that they live in.
Online agencies providing an up-front fixed fee service
have little no incentive to achieve a sale, let alone at the
best possible price.
Aside from putting photos of the property onto the
mainstream portals such as Rightmove and Zoopla,
sellers should understand exactly what they are getting;
very often, sellers using online agents need to take a
very hands on approach, showing the property and
negotiating the price. In these cases, sellers risk selling
their properties at a lower than market value and
choosing entirely the wrong buyer.
While traditional estate agents ultimately cost more,
that cost only comes once contracts have exchanged can
very often be offset against a better negotiated sale price,
and a more certain and secure buyer. Good estate agents
are often the glue that holds a deal together, especially
when there is a long chain. The last thing a seller wants
is to incur costs only for the sale to fall through.
Online and hybrid agencies most often attract sellers
that are selling properties in the mid to lower end of
the property market. As property prices grow, however,
sellers strongly favour traditional estate agencies, which
provide expert knowledge and who excel at marketing
and negotiating. It is a fallacy that such knowledge and
skills do not add value in all property transactions, but
never more so than when it comes to prime central
London, and similar prime areas around the country.
Online agencies are of no interest to sellers of
multimillion pound properties where buyers are often
sought from a global market and where agents are
exceptionally driven, and dedicated to achieving the
best results possible.
Selling a property often involves a person’s most
valuable asset, and entrusting it to someone other than
an expert is something that should be done with caution.
MONMOUTH FABRICS AND SOFT FURNISHINGS
10% OFF
Wooden Shutters
FOR ALL YOUR SOFT FURNISHING NEEDS
mortgages, life insurance and finance specialists
4 Re Mortgage
4 Overseas Mortgages
4 Buy To Let Mortgage
4 Let To Buy
4 Help To Buy
4 Equity Release
4 Protection
4 Asset Finance
4 No broker fees
We are an independent company who offer the following:
Designer Fabrics, Measuring & Fitting Service, Bespoke Curtains,
Blinds & Shutters, Soft Furnishings, Re-upholstery, Haberdashery & lots more!
120 - 122 Monnow Street, Monmouth NP25 3EQ Tel: 01600 775531
Email: sales@monmouthfabrics.co.uk www.monmouthfabrics.com
Professional Impartial Confidential
Top Floor, The Market Tavern, 26 Agincourt Square, Monmouth NP25 3BT
E: blestium@hotmail.com
Tel: 01600 775393
www.blestium.com