The housing market is very slowly gathering momentum, but most house sellers and renters are finding themselves increasingly frustrated at the cut that the real estate agents take for seemingly not a lot of work. So a small number of house sellers have turned their backs on traditional approach and instead are opting for online real estate agents.
They Cost Less
In the UK, the traditional estate agent can take a cut of 1.5 – 2% of the selling price, which can translate to £6,000 on a £300,000 property. For landlords, the cut that a traditional estate agent will take can be painful. On top of this, the fee that they charge prospective tenants to move in to a property can also put a lot of people off.
Online estate agents, such as House Network, offer a fixed fee depending on the service that you purchase. There is usually a standard package and you can add on other services or feature for an extra fee. Most online estate agents offer a range of pricing options.
In the U.S. real estate agents get an even higher fee typically up to 7% on houses split between the listing agent and their broker and the selling agent and their broker. On land deals the Real Estate agent can get as much as 10%. So Americans are turning to sites like ForSaleByOwner, and Zillow.
They Can Save You Money
Can you really get your money’s worth when it comes to online estate agents? They do the listing and get the word out there and they’ll save you a whole load. But in the U.S. many selling agents are reluctant to show houses without another listing agent to split the workload with. In a sellers market however you can drastically reduce your commission expenses. In the U.K they offer a range of services, but you’ll never be charged the same amount as if it was a high street agent doing the same work. They will even do the paperwork through to completion. From listing your house on housing websites to professional photos and even video, you could have everything you need for less than a quarter of the price of a traditional estate agent.
You Do the Viewings Yourself
While this might seem like a disadvantage for you at first, it’s actually an advantage. Buyers and renters prefer to hear from the horse’s mouth about the property. Assuming that you’ve lived in the property, you’ll know a lot more than it than an estate agent anyway and will be able to sell it to a prospective buyer or tenant much more effectively.
However, You Should Be Wary
Take a look at the website before you agree to anything. Ask yourself a few questions: How long has this company been around? What is the quality of the listings? Remember that this will be the primary way that your property will be seen, so it’s imperative that it’s good. Double check their charges too. In the U.K. you want your property to be listed on some, if not all, of the big property websites, including Zoopla, Rightmove and Primelocation. So this is a vital thing to check when you’re looking at potential estate agents.
So while traditional high street estate agents still rule the roost when it comes to selling and letting houses, the online estate agent is slowly gaining popularity too.
See Also:
- House Hunting Tips For New Families
- Choosing a Real Estate Agent
- How to Use a YouTube Video to Sell Your Home
Resources:
“Manor House Neighborhood” by David Woo on Flickr
