Only On The Net?

I received an email this week asking me to give an opinion on Internet Based Estate Agents. Like a radio DJ, I'm happy to do requests and here's my opinion…

There are three ways for an agent to market properties; Internet, Local Papers / Magazines and via a Shop Front. You don't need me to highlight the first problem, namely that these companies limit their marketing by 2/3rds by only bothering with the internet. As a seller you would rightly want to reach as wider audience as possible and they cant possibly claim to do this. In tough markets this decreases your chances of finding a buyer in easier markets it decreases your chance of getting the best price.

Of course if you save 2/3rds of your cost base by not using local advertising and not expending on a shop front you can afford to charge lower fees. In practice these companies normally charge 1% against 1.5% of more standard agencies, so the fee is only 1/3rd less despite their cost base being 2/3rds less. Other basics like accompanied viewings and long opening hours will be a non starter with internet companies.

I can't say an internet company wont sell your home but I can say that logically it will be much less likely. What you the consumer has to decide is whether to gamble on their likelihood of success on the basis you might save some money on fees or whether to play it safe.

In fairness there are plenty of agents who charge 1.5% and more who you could argue don't invest much in some of their marketing anyway. Again you the consumer have to look at this and decide who actually represents good value. Look at each agent you are considering to use for their; marketing, location, accompanied viewings, after sales service, board presence and make sure they employ some staff at least old enough to have started shaving. ,

 It's a bit like a horse race;

You can back the favourite and know that realistically you have more chance of success but you have to place more money on it. Alternatively you could back an outsider and hope to get lucky. The things is you aren't risking a fiver on your decision, in this case you really are 'Putting your House' on it!