Words: Ashley Rigg
Published: 23rd February 2011
*Consumer watchdog warns of “expensive” agents
The UK’s largest consumer watchdog is advising sellers to shop around for the smallest agency fees and to do it themselves by using online-only specialists.
Which?, the largest watchdog brand in the UK and a persistent critic of estate agents, compares the costs of selling though a traditional agent with listing through an online-only firm. On a £200,000 home, a traditional agent can cost as much as £4800 (2% +VAT) but going online-only will set sellers back just £455, says the report.
Which? states that online firms “offer many of the same services you'd get from a high-street agent” including valuations and listings on large portals such as Rightmove.
Drawing the wrong conclusions
The problem with the Which? report is that it grossly underestimates the cost of sales and marketing and could lead to sellers making the wrong decisions.
For example, although I run an online business I am great believer in "bricks and mortar" estate agents when it comes to my own money. When we sold our last home a few years ago, we selected a traditional agent (Pedder) to promote it. Why? Because I’m greedy and wanted the best price!
I selected Pedder because they had High Street offices in locations where our target market lived. Our buyer came from an upsizing family in a more affluent area who could not afford to stay where they were.
I also knew that the agent would create a viewing day which would create a sense of competition and higher bids.
The result? We achieved £8000 above the asking price. Although the market was different then, we still would not have acheived the same price using an online-only agent.
Online agents just cannot replicate this kind of service.
Cost is always an important consideration in any transaction but the Which? report encourages people to know the price of everything and the value of nothing.
Source: Global edge
User Comments
Well said! Cost conscious maybe but valuations and listings are only a small part of a DECENT agents work. There are a lot more skills than these required to sell properties in todays market.
Kelly Macfarlane BSc(Hons),
Didim Sun Properties