There are several ways to sell your house.
And online estate agents are an increasingly popular one.
But are they better than high street estate agents?
In this blog, we’ve compared both, including their features, positives and drawbacks.
What is an online estate agent?
An online estate agent operates primarily online. They do not have an in-person office and are often not based close to your location.
Instead, they help homeowners to sell properties all over the country.
Last year, online estate agents had a market share of 6.4% for exchanges.
They typically price their services differently. Once the deal goes through, you pay a flat rate.
This avoids commission and often makes the process less expensive.
Steps for working with an online estate agent
The steps involved with using an online estate agent include:
- Get a free valuation by filling out an online form
- Speak to one of their property experts to discuss your options
- The online estate agent schedules viewings, floor plans and photos, and contacts their pre-qualified buyers
- Your house gets sold to a suitable buyer
Sellers can also select the type of package that works best for them.
To keep costs down, you can avoid advertising costs or pay for professional photos. You could also host viewings yourself.
Online platforms such as Rightmove and Zoopla are used by estate agents to find potential buyers. A well-designed listing can attract many views in your area.
What is a high street estate agent?
High street estate agents are the most common method of selling a house.
This method involves using an in-person company based near you. These people will have expertise in the surrounding area and local housing market.
You will meet your estate agent in person throughout the selling process, which is different from an online estate agency.
They will visit your house to provide an accurate valuation and host viewings.
Key high street estate agent features
Other key features of a high street estate agent include:
- Network of buyers in your area
- Understanding of selling prices for similar properties nearby
- Has a sizeable marketing budget – e.g. printed brochures
- Coordinates with the rest of the property chain, including solicitors.
High street estate agents bill for their services by charging a commission on the sale. This is typically around 1.5% to 3% of the selling price.
So, a house selling at £250,000 creates a range between £3,750 and £7,500.
For a property worth £750,000, the range is between £11,250 to £22,500.
The figure rises considerably higher for properties valued over £1 million.
How many high street estate agents are there?
Over 18,000 estate agencies operate in the UK, and many companies have offices all over the country.
But approximately 5,000 branches had to close in a recent calendar year.
This demonstrates that some people are looking for other ways to offload a property.
Online estate agents vs high street estate agents: A comparison
Which one has more local expertise?
You often find that a high street estate agent has more local expertise. They have been working in the area for a long time.
They also have a network of dozens of potential buyers who live nearby. These people are more likely to make an offer on your house.
Which one is less expensive?
Online estate agents usually involve lower costs in the selling process.
They do not charge a commission on your final selling price. As outlined above, this can save you several thousands of pounds.
A flat rate for an online estate agent can start at around £2,000. It may go slightly higher depending on the level of service you want.
Which one is faster?
The most effective online estate agents can complete a sale 38 days faster than an average estate agent.
These companies sometimes have an online cash buying facility too. This latter option enables you to complete a sale within 7 days.
You will find that some high street estate agents are more efficient than certain online estate agents. It all depends on the company you use.
Speak to them directly and look through reviews that mention the speed of service.
When is an online estate agent better?
Online estate agents can be a great option if you have limited funds to sell your house.
Although a high street estate agent doesn’t take funds until after the sale is completed, it can totally eat up your profit margin. You could even end up making a loss.
By contrast, online estate agents keep your costs at a minimum, maximising your profit.
Online estate agents can also be helpful if they have a cash buying facility. This enables you to sell your house in any condition.
This might include sitting tenants, a short lease, or a derelict and unstable property.
When is a high street estate agent better?
High street estate agents are often better if you prefer a personalised service.
You will meet the person selling your property in-person and can ask them any questions.
They will also have an in-depth understanding of local houses and market conditions.
High street estate agents may get you a higher selling price for your property too.
Depending on how much higher, you might not be concerned about paying a commission in this event.
Looking for an online estate agent?
If you are looking for a reliable and experienced online estate agent, get in touch with Sold.co.uk today.
You can start by filling out the form below for a free valuation today.