It is important to remember that not all estate agents are the same and prospective sellers need to be wary of what services they will receive for their expenditure. Some sellers have specific needs and as the level of service provided by estate agents varies, people need to be cautious about the value for money they receive from an online estate agent. A low price isn’t always a smart option if it doesn’t provide the property owner with what they are looking for.
Concerns have been raised over Purplebricks
This is a major component that leaves many people wondering if online estate agents offer value for money or a reliable service compared to traditional estate agents. However, a recent study into Purplebricks may leave many house buyers concerned about the standard of service they will receive. Purplebricks is a well-known name in the online estate agents sector, with a familiar media campaign placing them in front of many interested people.
This study, undertaken by Anthony Codling, a City Analyst and Robert May, a consultant in the property sector, has led to Purplebricks reacting angrily. Codling stated that the price of Purplebricks’ shares should have stood at 94p as opposed to 453p, and of course, Purplebricks responded with their own statement aimed at the London Stock Exchange.
The key reason that Codling stated in his criticism of Purplebricks came down to the fact the chances of making a saving with the company could be seen as a 50/50 coin toss. It was reasoned that there was a 1 in 2 chance of selling your home and saving money depending on where you were based, or a 1 in 2 chance that you would spend £1,000 and not manage to sell the property.
Purplebricks is said to claim that they sell 88% of homes they list, which is a factor that will attract property owners to them. While the lower costs associated with using this type of agent is appealing, when there appears to be evidence that positive results can be obtained for a lower price, you can see why people would opt for this style of support from estate agents.
The fixed fee element causes problems for some property sellers
Codling suggested that 51.6% of people who instructed Purplebricks to sell their home (as of November 2016) sold their property within ten months. This is in line with the industry expectation, so it is not as Purplebricks are performing badly in the overall market. However, when this figure is compared with the claims they make with respect to selling, and the fact that they charge a fixed fee, it is easy to see why many people are now slightly uneasy about the service provided by online estate agents.
For many people, online estate agents will provide the service they require for a fair price. However, many other people will find that online estate agents are not able to provide the service or support that they need. At Taylor Robinson, we are pleased to offer a high standard of service to our clients, and if you would like guidance on your next move in the property market, please get in touch.