The guys at The Advisory, have decided to do some great research on the pros and cons of high-street and online agents, and then compared the two types of agency to see which gets a seller more money in their pocket at the end of the day and importantly… WHY. The results were incredibly conclusive, and its pretty much what I have been saying for the last 3 – 4 years too!
According to the research, internet-only agents rely too heavily on property portals to find buyers. In fact, portals appear to be their only tool! Which makes complete sense as they are not an established agency and cannot hold a database of potential buyers.
In short, you can see in the chart above, that pro-active estate agents (with a LOCAL) database will give you a much greater chance of selling your property than an agency (call centre) that relies on Rightmove and Zoopla. That’s just common sense, but it’s taken long enough to bring this to the attention of the general public who don’t really look into the figures and are more subject to the insane marketing techniques by online agents.
The research goal
Distinguish the difference in leads generated by a high-street agent (from their local database) and direct interest generated by Rightmove adverts (which is what online agencies do). If there is a increase in leads generated by the high-street agents’ database, is it used to make more money on the sale (and more money in the vendor’s pocket), even if the estate agents fees are higher.
Well, actually, you’ve already seen the answer in the chart above. It also shows that the best buyer were willing to pay 5% more than the best buyer from a lead generated by Rightmove alone (average price in CR0 Croydon is currently £372,371, so an extra 5% is £18,618!!!).
Estate agents in Croydon (apart from Foxtons) normally charge an average of 1.5% inc. VAT. Based on the same average value property of £372,371 that are fees of £5,585. You are still better off using a high street agent as you will end up with £13,033 (based on this example and research) more in your pocket AFTER paying estate agent fees. They should charge more don’t you think? 😉
The Advisory finished off with an image of a testimonial from an online agent and a note underneath showing:
The Advisory’s study shows using the right high street estate agent can:
- Increase viewing numbers by 48%
- Increase offer numbers by 64%
- Generate a more secure buyer (or buyer willing to pay a better price) 73% of the time.
- Secure a 5% higher sale price (compared to using a Rightmove listing service).
- Based on this research, good high street estate agents could charge up to 4% commission +VAT and still achieve for their clients a better ’walkaway figure’ compared to selling with a internet only listing service charging £849.
- The best national internet only listing agents can’t touch the best high street estate agents.
- Listing property on the portals (Rightmove, Zoopla etc..) and waiting for the phone to ring is a fundamentally inferior sales strategy compared to listing property on the portals plus (+)proactive and focused engagement with a targeted buyer database (a.k.a. – high street estate agency hustle).
It no wonder that 57% of sellers who used an online agent said they wouldn’t do so again (source: Zoopla).
Good estate agents like Appleton Estates in Croydon that have adapted to the modern age should be offering a range of prices. You can sell your property from £850, if your willing to do some of the work yourself, but importantly, there is the ability to access the agents’ database and get them to get those buyers through the door and actually sell your house. You can contact them here, or feel free to give me a call on 0203-761-4332 if you want a free valuation on your home. Alternatively, you can quickly get a good idea on the value of your home by using an instant valuation tool like this one here.