Is It Better To Use An Online Estate Agent?

Buying or selling a property is a significant financial decision that requires careful consideration.

In recent years, the rise of online estate agents has disrupted the traditional high-street model, offering cost savings and convenience to sellers.

However, the question remains: Is it better to use an online estate agent or stick with the tried-and-true high-street agents?

It comes down to one difference that matters more than the headline fee: when you pay, and whether you pay at all if the house does not sell.

Online agents usually charge a fixed fee, often upfront or deferred but payable either way. High street agents typically charge a percentage on a no-sale-no-fee basis: dearer if it sells, nothing if it does not. So an online agent is cheaper on a house that sells easily, and can be the expensive option on one that does not.

The other thing a percentage buys you is an agent whose own payday depends on the final price, which matters most during negotiation.

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Key Takeaways

• Opting for an online estate agent can save costs and provide more control over the selling process. However, consider the trade-off, as traditional agents offer localised expertise, valuable for a successful outcome.
• Your choice depends on priorities. Online agents offer cost savings, control, and convenience, while traditional agents excel in local knowledge and personalised support.
• Online estate agents have advantages like cost savings, control, wide reach, and accessibility. However, they may lack local expertise and personalised support.
• Traditional high-street agents have deep local knowledge and can maximise sale prices. Consider your needs and preferences when making a decision. Seek reputable agents adhering to industry standards and codes of conduct.

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Is It Better To Use An Online Estate Agent?

Opting for an online estate agent can save costs and provide more control over the selling process. However, consider the trade-off, as traditional agents offer localised expertise, which can be valuable in achieving the best possible outcome for your property sale.

Choosing between an online estate agent and a traditional high-street agent depends on your priorities. If you are chasing cost savings, control, and convenience, an online estate agent may be suitable.

However, if you need local knowledge and personalised support a high-street agents may deliver better service for you.

The Advantages of Using an Online Estate Agent

Cost Savings

One of the primary advantages of using an online estate agent is the potential for cost savings. Traditional high-street agents typically charge a percentage commission based on the final sale price of the property, which can add up to a significant amount.

In contrast, online estate agents often charge a fixed fee, regardless of the property's value. This can result in substantial savings for sellers, especially for those with higher-priced properties.

Control over the Selling Process

Online estate agents offer sellers more control over the selling process. With online platforms, sellers can manage their listings, upload photos, and even conduct their own viewings.

This level of control allows sellers to showcase their property in the way they see fit and have a more hands-on approach throughout the selling journey.

Wide Reach and Exposure

The internet has revolutionised the way properties are marketed and viewed. Online estate agents have access to popular property listing websites such as Rightmove and Zoopla, which attract a large number of potential buyers.

This wide reach and exposure mean that sellers can attract a broader audience and increase their chances of finding the right buyer.

Convenience and Accessibility

Unlike traditional high-street agents with limited operating hours, online estate agents provide a 24/7 service. This accessibility allows potential buyers to view properties at their convenience, increasing the likelihood of securing a sale.

Additionally, sellers can manage their listings and communicate with potential buyers at any time, providing a seamless and convenient experience.

The Disadvantages of Using an Online Estate Agent

Lack of Local Knowledge

One significant disadvantage of online estate agents is their potential lack of local knowledge. Traditional high-street agents have a deep understanding of the local property market, including pricing trends, buyer preferences, and neighbourhood insights.

This local knowledge can be invaluable when pricing and marketing a property effectively. Online estate agents, on the other hand, may not have the same level of expertise in a specific area, potentially impacting the accuracy of property valuations and marketing strategies.

Limited Personalised Support

While online estate agents offer cost savings and convenience, they may not provide the same level of personalised support as high-street agents. With online platforms, sellers often take on more responsibilities, such as conducting viewings and negotiating offers.

This additional workload may be challenging for sellers who prefer a more hands-off approach or lack the time to dedicate to the selling process.

Safety Concerns

One area of concern when using an online estate agent is safety. Sellers are responsible for conducting viewings themselves, which means inviting strangers into their homes.

While online estate agents may have processes in place to collect visitor details, some sellers may feel uncomfortable with this arrangement. It's essential to prioritise personal safety and take necessary precautions when conducting viewings.

Potential for Reduced Sale Price

Another potential disadvantage of using an online estate agent is the possibility of a reduced sale price. Traditional high-street agents have a vested interest in maximising the sale price, as they earn a percentage commission based on the final amount.

Online estate agents, on the other hand, often charge a fixed fee, regardless of the sale price. This difference in pricing structure may impact the level of effort and negotiation skills applied by the agent, potentially leading to a lower sale price.

Questionable Online Valuations

The online valuations provided by companies such as Zoopla, may not always be accurate. It's worth reading whether automated online valuations are correct before you rely on one to price your home.

What Does the Data Say?

When considering whether online estate agents are better, it's essential to assess the data. An earlier market analysis by Movewise found that traditional agents dominate the market share, but online agents held around a 5% share, largely through paid firms.

Paid online agents recorded a higher sales rate (72%) than traditional agents (61%), especially for properties under £1 million. Free online agents had a lower sales rate (55%) but performed well in the lower price range.

While paid online and traditional agents had similar selling times, free online agents did better with mid-range properties. Both paid and free online listings were more likely to be reduced in price (35%) than the market average (25%).

In short, online agents tend to suit cheaper properties, while traditional agents are often preferred for more expensive ones. The online market has consolidated since (Purplebricks, for example, was acquired by Strike in 2023) so treat the exact percentages as a snapshot rather than today's figures.

According to our own data, you won't be alone in considering using an online estate agent. Our data revealed that 72% of homeowners would consider using an online estate agent to save costs.

What Online Estate Agent Should You Use?

If you are proceeding with an online estate agent, our verdict is to go for Strike. Strike offer the handholding support that most sellers look for.

Read our Strike Online Estate Agent Review and our explainer on how Strike makes money for more information.

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Making the Right Choice

When deciding whether to use an online estate agent or a traditional high-street agent, it's crucial to consider your specific needs and circumstances. If cost savings and control over the selling process are your priorities, an online estate agent may be a suitable option.

However, if local knowledge, personalised support, and the potential for a higher sale price are important to you, a traditional high-street agent may be the better choice.

Ultimately, the decision comes down to finding a balance between cost savings, convenience, and achieving the best possible outcome for your property sale. Conduct thorough research, compare different agents, and consider seeking professional advice to ensure you make an informed decision that aligns with your goals.

For a step-by-step approach, see our guide on how to choose an estate agent.

Remember, whether you choose an online estate agent or a traditional high-street agent, it's crucial to work with a reputable and registered agent. Look for agents who are members of professional bodies such as the Property Ombudsman or the National Association of Estate Agents to ensure they adhere to industry standards and codes of conduct.

In conclusion, the choice between using an online estate agent or a traditional high-street agent depends on your individual priorities and preferences. Carefully weigh the advantages and disadvantages discussed in this article to make an informed decision that aligns with your specific needs.

By doing so, you can navigate the property selling process confidently and achieve a successful outcome.