30 UK PROPERTY INVESTMENT


MY PROPERTY, MY HOME 29 JULY 2018


IMAGE: GETTY Traditional vs online


Consumers are embracing online estate agents, but do they have the same benefits as those on the high street? Grahame Anderson looks at the advantages and disadvantages of both


of personal service thrown in. Having a varie- ty of choices at their disposal is also extreme- ly important when it comes to buying and selling houses One look at the internet will reveal huge differences in the packaging and pricing of services offered. This creates com- petition of course, and the market is certainly hotting up .


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ONLINE PROPERTY SERVICES Sarah Beeny, founder of online estate agent, Tepilo.com explained: “We’ve embraced the way people now search for properties, and by operating online we’ve been able to massively reduce the overheads that come with having a high street shop. This has enabled us to pass on huge cost savings to our customers. “We still provide top-level customer service


and support to our customers throughout the whole process, but they pay a set fee, much lower than traditional agents. Our fees, de- pending on the package chosen, are general- ly only a few hundred pounds, so the savings are huge. “I believe the way we do it is much fairer and


saves our customers huge amounts of money.” There are better viewing advantages too,


with professional photography, in-depth listings, excellent floor plans and use of the


ore than anything, investors want local expertise alongside competitive pur- chase and sale prices, with a high level


latest software offering a better idea of what a potential property feels like. On many sites clients can review and update their property listing, including editing the property de- scription, photos and price, any time of the day or night. HouseSimple.com CEO Sam Mitchell add-


ed: “The high street agent commission struc- ture is outdated and not in the best interests of the consumer. The home seller is paying for the premium priced offices on the high street, branded cars and other estate agent gim- micks. Through HouseSimple, a home-owner selling a £250k house will save £2,755 com- pared to a high street agent charging a stand- ard commission of 1%”. On the flip side, online estate agents can be


less personal, and you may have to deal with several different people via a call centre. It’s also been noted you may have to hand over an upfront fee even if the site fails to sell your home. Online agents can arrange viewings but leave you to show prospective buyers around. In terms of security, not all agents online are members of the property ombudsman.


THE TRADITIONAL HIGH STREET A high street estate agent will take care of everything for you, from advertising your property to conducting viewings. And of course, you can always arrange to talk face to face. They’ll know a lot about the locality


and its benefits, including transport links, the best schools, and what the property market is like in the area. It’s even possible they could negotiate a better price. What’s more, many still offer a no sale no fee proposition. “In today’s market it’s easy to be tempted


to instruct an online agent with a low fixed fee, says Ashley Coppin, client manager at London-based Currells. However, what we have found is that a lot of clients come to us after having tried the cheaper option. In many cases the problem is not with the prop- erty or the price, but with the online agent’s motivation laying more heavily on selling ven- dors add-ons rather than pro-actively selling their property.” For those with unsocial work patterns or


Sarah Beeney


extremely busy lives however, regular open- ing hours can be a drawback. It’s true, over- all costs can be higher as traditional agents usually charge a percentage of the final sale price, so their fees often end up being several thousand pounds. Harrogate and North Yorkshire estate


Sarah Beeny: “By operating online we’ve been able to massively reduce the overheads that come with having a high street shop. This has enabled us to pass on huge cost savings to our customers”


agents FSS, explained: “It’s worth noting that although online estate agents appear to be cheaper, there’s a difference in the service and it’s important to consider the whole process from beginning to end. If you’re in a compli- cated chain, for example, a high street estate agent is on hand to help by taking care of the details and offering advice. Online pack- ages won’t be able to offer the same levels of customer service and support. High street agents also have very strong local networks and good connections with financial and legal professionals.”


THE RESULT This fascinating debate over which service is best will continue long into the future, though it seems clear using either is all down to per- sonal preference.


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