Internet estate agents - any thoughts?

[User6179]

Purple Bricks was on Watchdog a few months ago, I cant quite remember for what exactly other than misleading customers.

 

[nickyboy]

We "thought" about selling a few years ago and got 3 valuations.
First agent gave loads of negatives and suggested (what we thought) was a ridiculously low figure.
Third agent suggested £50K more and said "it will sell quickly at that price".
You would expect that, as "experts" they would at least be in the same ball park.

This is what always concerns me about the estate agent fee model. They aren't well incentivised to squeeze the last few K for the seller from the buyer. They want a nice low price so an easy sale

If I was selling my house I would consider doing it like @screenman

 

[Deleted member 26715]

This is what always concerns me about the estate agent fee model. They aren't well incentivised to squeeze the last few K for the seller from the buyer. They want a nice low price so an easy sale

I disagree with this if anything it's the estate agents that push the prices up, I knew our house was only worth around 150K yet all 3 estate agents we had in suggested 160K, using the theory it's easier to come down than go up.

 

[Labradorofperception]

Swings and roundabouts.

The internet only agents are fine if you are selling a standard estate new build and happy to do the viewings yourself. All they are really doing is putting a sign up and sticking it on Rightmove. They like to pick up houses where the value is fairly obvious, lots of comparable sales.

Where a decent high street agent earns their fee is being able to value a slightly non standard house. They will also have an extensive list of buyers - weed out the tyre kickers, good working relationships with the local solicitors and conveyancers and be able to deal with any curve balls thrown up by land searches, building surveys and awkward buyers. They are also better in more problematic sales such as matrimonial and if they are members of a professional body such as the RICS, you have redress via their professional standards.

Of course, some agents are crap, so do a bit of homework, but generally I would opt for the high street agent.

 

[petek]

Lad in today's paper, a teenager. Set up an internet estate agency whilst he was still in the 6th form and his firm is valued at £12 million today. Charges a flat £99 to sell your house and he is shifting properties. Top end stuff mainly.
http://www.dailymail.co.uk/news/article-4982920/Teenager-set-12m-estate-agency-sixth-form.html

 

[Deleted member 26715]

Lad in today's paper, a teenager. Set up an internet estate agency whilst he was still in the 6th form and his firm is valued at £12 million today. Charges a flat £99 to sell your house and he is shifting properties. Top end stuff mainly.
http://www.dailymail.co.uk/news/article-4982920/Teenager-set-12m-estate-agency-sixth-form.html

Can't knock him, never understood why house sales have to be made so complicated,

 

[vickster]

I disagree with this if anything it's the estate agents that push the prices up, I knew our house was only worth around 150K yet all 3 estate agents we had in suggested 160K, using the theory it's easier to come down than go up.

Yep which is why I went for an asking price of 10k over what the agent expects and I'd expect (but won't put people off viewing). Be nice to get more and a bit more off the purchase property to cover the estate agent fees etc

 

[AndyRM]

Lad in today's paper, a teenager. Set up an internet estate agency whilst he was still in the 6th form and his firm is valued at £12 million today. Charges a flat £99 to sell your house and he is shifting properties. Top end stuff mainly.
http://www.dailymail.co.uk/news/article-4982920/Teenager-set-12m-estate-agency-sixth-form.html

I read about that too. This, which I agree with, was from the comments section:

In five years time there will be hundreds of bucket shop operators cutting each other’s throats in an effort to grab a piece of the action. They will be the Poundlands of the industry and a certain section of the public will use them. (The difference being that Poundland does actually give the customer the product that they pay for and expect to receive – unlike so many of the bucket shop agency brigade.) More and more entrants will cut that bit of the cake into ever thinner slices – and when the market suffers a serious stock shortage they will drop like flies.

Meanwhile full service agents will go on providing no-sale no-fee and continue to take the vast majority of the instructions.

 

[PK99]

This is what always concerns me about the estate agent fee model. They aren't well incentivised to squeeze the last few K for the seller from the buyer. They want a nice low price so an easy sale

@screenman

Again it depends on the state of the market. In a very active market they are competing with other agents for future commissions - a reputation for getting high prices helps in that regard.

 

[vickster]

Again it depends on the state of the market. In a very active market they are competing with other agents for future commissions - a reputation for getting high prices helps in that regard.

And not being called Foxtons

 

[PK99]

I disagree with this if anything it's the estate agents that push the prices up, I knew our house was only worth around 150K yet all 3 estate agents we had in suggested 160K, using the theory it's easier to come down than go up.

Most agents I dealt with had a different view. Pitch slightly low to get punters through the door and expect offers above asking. Again, a function of market conditions.

 

[PK99]

And not being called Foxtons

I avoided mentioning Fxxxxxs, mainly to keep my blood pressure under control. They have a high price reputation but their methods are abominable. Until I got wise, I was being dragged around wholly unsuitable properties by spotty faced teenagers making up their minimum viewings quota for the week. The most professional by a long measure were KFH - All properties fielded matched our criteria.

 

[vickster]

I avoided mentioning Fxxxxxs, mainly to keep my blood pressure under control. They have a high price reputation but their methods are abominable. Until I got wise, I was being dragged around wholly unsuitable properties by spotty faced teenagers making up their minimum viewings quota for the week. The most professional by a long measure were KFH - All properties fielded matched our criteria.

Think it depends where you are. KFH aren't where I'm selling/buying

 

[Chris S]

Purple Bricks was on Watchdog a few months ago, I cant quite remember for what exactly other than misleading customers.

They give you the option of not paying your fees until you sell your house or terminate your contract with them. What they don't always tell you is that you have actually taken out a loan when you do this.

 

[Chris S]

I had a bad experience with a local estate agent. They somehow got the impression that my flat was a mortgage reposssesion and did nothing for six months. They then expected me to sell it to one of their mates for hardly anything or put it in their auction.

I switched to another local agent. They got me a steady stream of viewers and two decent offers. The sale was completed within 3 months.