More homeowners than ever are discovering the advantages of selling their homes through a fixed fee estate agent instead of a traditional commission-based agency. Online fixed fees are kept low due to the huge savings such companies make through not having to maintain their own bricks-and-mortar offices.
Fixed Fee Versus Commission
Online agencies are offering standard fixed fees that can be less than £200 and rarely exceed £400.
The fees remain the same regardless of the property’s value or sale price. They are paid in advance and are forfeited if there is no sale within a set time limit. Alternatively, commission is charged once the final sale price has been reached and although it is only up to 2% it can result in a fee of thousands of pounds. Typical fees on a property with a value of £400,000 and a 1.5% commission would realise a fee of more than £7,500. A property that sells for £750,000 could have a commission-based fee of £15,000 while even a modest property worth £100,000 could have a commission of £2,000 compared to a fixed fee of less than £200. It couldn’t be clearer to understand why online fixed fee agencies are rapidly gaining in popularity.
Flexible Services
Critics of the fixed fee scheme highlight the amount of work vendors might have to undertake. Standard packages from a fixed fee estate agent include photographing the property, creating a floor plan, posting the details onto the internet and promoting with kerbside advertising, exactly the same services that a traditional estate agent offers. However, vendors who opt for the fixed fee have the freedom to choose extra services to suit their requirements. For instance, there is a small additional cost to have an agent conduct the viewings. Many homeowners welcome the opportunity to negotiate their own price with potential buyers rather than the traditional practice of relying on an agent. Online agencies concentrate on placing properties where they will be seen by a large audience. Research has shown that up to 95% of potential buyers conduct their own property search online before visiting a traditional estate agent, effectively carrying out work that they will end up paying for.
Knowledgeable Homeowners
The popularity of television property programmes and an extensive range of online resources have enabled both vendors and buyers to have a greater understanding of the principles of buying and selling property. They also have the confidence to make their own assessments. Many feel they no longer require the full services of a traditional estate agent, particularly in popular areas where sales are concluded quickly.
Fixed Fee Success
An online fixed fee estate agent provides flexible services with affordable fees saving every vendor thousands of pounds. Market research indicates that by 2020, there will be an increase of at least 50% in the number of property sales conducted through online agencies, proof indeed that the fixed fee estate agent is here to stay!