Would-be customers of online agents have been advised against using those who charge upfront.
The advice comes from an online agent – Sam Mitchell of Housesimple.
Speaking to the Express, Mitchell was asked if customers had to pay an online estate agent upfront.
He said: “Housesimple would actively recommend avoiding anyone who asks you to pay upfront.
“When selling your home, there are so many fees to factor in.
“Often the costliest are estate agency fees and in most cases online estate agents will ask you to pay these upfront.
“Avoid this as this often means your estate agent will have little incentive to actively market your property. Plus, if you don’t end up selling, you’ll be out of pocket.”
Mitchell also advises against deferred payment schemes, offered by some online agents.
He said: “This often means signing a credit agreement with a third-party company and still requires you to pay a fee – sale or no sale.”
Mitchell, whose own firm is currently offering a completely free service to sellers in the north while it attempts to monetise itself from referral fees, says that online agents offer real benefits, including efficient and streamlined processes.
He told the Express: “Just like high street agents, we have reputations to maintain and will work to do all we can to sell your home as quickly and at the best price possible.”
The Express is running a poll: Would you use an online estate agent?
Respondents can choose between yes, because they are cheaper, and no, because I prefer the traditional way.
Out of ten voters in total yesterday evening, six had voted yes and four had voted no.
https://www.express.co.uk/life-style/property/1194536/online-estate-agents-uk-housesimple
In this guise House Simple are NOT an estate agent – They are a referral business. An estate agent receives a ‘FEE’ for a transaction of land or property.
IMO it”s not accurate in the slightest that online agents can claim of saving £££ when in reality it’s the NET figure that’s important. It’s a real misconception that’s pushed by the media (including this website) and traditional agents should call it out at every turn.
Looking at recent financials, if I was a potential vendor I would not give any of onliine agents £1000 + upfront for fear of administration.
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The issue is that the vendor that wants to use an online agent is only doing so because it is ‘cheap’ they will therefore invariably think that agents ‘do nothing’ in order to sell a house and simply ‘fleece’ a living. The argument about price achieved will more often than not fall on deaf ears as the demographic will also fall into the camp of ‘well lets put the price up by 20 grand as people will always make an offer, I know I would”. These kind of vendors have and will always exist and frankly if they want to deal with a cheaper upfront pay anyway agent that’s fine with me as I don’t have to waste my time on them and can focus on giving great service those vendors that do see the value in a good agent.
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So very true ARC, there are always vendors who do not understand the concept of running an agency or what is involved in selling a property. Ask them to take a cut in salary and see what the reaction is! You can’t win all the listings and should only take on the ones you can or think you can sell, but I have seen many an agent take on properties they know they have no hope of selling, as long as another agent doesn’t get the business.
I would add, fee is in the mind of who, the vendor or the agent? Then why is it that the high street which charges more (yes has bigger overheads etc) is still 95% of the market. Those agents that ran to the bottom with fee’s are now working twice as hard, when those that haven’t are still going strong. Not that simple but most of the time it is agents failing to present themselves and explain the service they offer for the fee. Is this correct? Next time an agent fails to get a listing, look to see who got it, are they always cheaper? Did you follow one of the basics and call them to say thank you for the time, but why didn’t they choose you and not why they chose the other agent?
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Absolutely I have said on here before that I am not afraid and believe all agents should not be afraid to say to a vendor “I don’t think we are the agent for you”. Working out which vendors are the right ones can be just as important as demonstrating you the right agent.
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ARC – sometimes you almost redeem yourself.
Consider today one of those times.
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Ah, ‘almost redemption’, the holy grail.
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It’s the best you’re getting – so wear it with pride while you can.
Don’t stick it on your CV though – I reserve the right to amend the opinion at any time.
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Someone’s touchy…
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Should be telling customers: ‘There’s no fee but there is more than one way to skin a cat and we have various other ways of skinning you,’
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Sounds to me that any seller will be spending most days fending off calls by third parties introduced by Housesimple trying to flog them something
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My advice – stay clear of anyone offering to do something for nothing! You get what you pay for, pay nothing and seriously what are you expecting?
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Just read the Express article.. so listings cost nothing… and it’s “absolutely fine if clients organise their own broker, lawyer and insurance”.. I wonder how quickly that will change..
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Little incentive……….????????????
What’s a polite enough insult for this wally?
House Simple are in a spinning vortex of self destruction…………..heading for a lost land at the centre of the earth. They will be consumed by marauding cavemen and dinosaurs seeking out hopeless and hapless people from the earths surface, desperate to get listings at any cost because their offering so badly thought out……………..
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“Housesimple would actively recommend avoiding anyone who asks you to pay upfront…
Avoid this as this often means your estate agent will have little incentive to actively market your property. Plus, if you don’t end up selling, you’ll be out of pocket.”
You have to laugh. In other words:
“Notice to 0000s of previous HouseSimple customers – we mugged you good and proper.”
Wonder if those people now have a case for redress after such a frank admission of past wrongdoings?
Mr Mitchell should consider a change of name.
Ratner seems somehow appropriate…
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You beat me to it.
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Normally the other way round. You must be having a bad day, mon ami!
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Housesimple is like a hunted wildebeest that has been shot with an arrow stumbling around waiting to die.
It needs putting out its misery.
Sorry to ARC another negative post, not much positive i can say about Housesimple sadly.
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I will let you off that one 😉
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In my opinion, the concept that agents will only work for commission is outdated and slightly derogatory.
As we all know, a good agent will work hard to build his business, satisfy his client base and cement his reputation in an area.
From speaking and working with those who have not put in the effort because they don’t get commission, I can promise that they don’t last very long.
The wheat is always separated from the chaff, as they say. Any business with the right people will succeed, regardless of how or when they are paid.
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