subject: The Rise of the Online Estate Agent [print this page] The Rise of the Online Estate Agent The Rise of the Online Estate Agent
The advent of technology in both computers and internet paved the way for the introduction of changes in the way we conduct property searches nowadays. However, the services provided by the real estate agents stayed basically the same.
In the not-so-distant past, the real estate agent was responsible for finding the buyer a home. Presently, approximately 90 percent of houses sold are found online by buyers.
In most cases, the properties were located in the major property websites in the UK such as
Zoopla, Rightmove, Prime Location and Find a Property.
Perhaps, the greater question now at the back of our minds is how do real estate agents still exercise a degree of control over the property market despite the lesser demand for their services?
Real estate agents still hold a huge amount of influence over these online property portals. This is because it is highly impossible for anyone to just advertise properties without an agent license. Only agents are allowed to advertise their own properties.
For ordinary sellers, this means you still require the help of a real estate agent to be able to list the properties you are selling online.
For a time sites such as Rightmove allowed websites known as private house sales sites to advertise. However, once these became a threat to traditional agents, private house sales sites were blacklisted from advertising on these estate agent controlled sites.
Online property agents provide similar services as high street property agents at a hugely discounted rate. The reason for this is that they do not need to open and operate a high street store to be able to attend to their clients.
Since all transactions are done online, they can cater to their clients' needs at the convenience of their homes. There is no need for these online estate agents to pay office rent, electricity and office staffs. Their overheads are effectively slashed.
The savings they made from the operating expenses are passed on to their customers, hence the huge reductions in their rates.
This is, of course, welcome news to everyone wanting to either sell or buy. Online real estate agents merely charge sellers or buyers a one time, reduced payment.
Even if the majority of online agents' transactions are conducted primarily on the web, they are still able to offer similar services that conventional real estate agents provide including sending an agent to photograph the house and secure the floor plans. This information along with added descriptions of your house are uploaded in their property website. The online realtor will then advertise your home on all major property portals such as Rightmove and all the other aforementioned property websites. They will also attend to enquiries from possible clients and help the seller negotiate the terms better.
The only difference between online property agents and conventional high street estate agents is the former may not be available for viewings. The property owner is the one who will tour prospective buyers around the house. This practice however is not unusual as even high street agents are not able to provide viewings at times too especially if there is a conflict of their schedules.
When it comes to fees, there is a marked difference between the amount the online and high street agent charge. The average fees charge by online agents is 350 for advertising the house until it is sold. The owner gets to keep the 100% profit for the house.
A conventional high street agent may charge 1.5 percent commission for each property. This could translate to thousands of pounds for a single deal. For instance, if the property is worth 250,000, the agent will stand to receive 2,500.
The growing success of online real estate agents of getting properties sold has encouraged more and more people to utilise this method of selling. It will not be long that online property agent will replace high street agents.
