Top 5 online estate agents for buying and selling property
Online estate agents are shaking up the way property market works. We give you the lowdown on how they work and which ones you should consider.
Online estate agents are changing the way the property market works.
The right online agent could save you thousands of pounds, but are they better than traditional estate agents?
What is an online estate agent?
Online estate agents work in largely the same way that existing estate agents do, with the caveat that they function entirely online.
Rather than operating from high-street stores, with the added overheads that come with them, online agencies are run from call centres and websites, meaning they can offer lower fees to people who use them.
While some will be able to go beyond the basic platform-like system they operate on, this will usually come at a higher fee. If you’re looking for an agency to handle some of the more administrative work, you would likely need to pay for extra.
The catch is that, while online agencies take the property market online, the property seller will need to do more work.
From accurately listing details about the property, taking the photos and filling in more of the paperwork, you’ll be responsible for picking up some of the more labour-intensive processes.
How do online estate agents work?
Each online agency will operate a slightly different basic package, but the key takeaway is that with an online agency, you’ll be selling your own home via an online platform.
Some online agents charge zero fees and simply connect you to a potential buyer – you will need to do the rest.
To reduce the hassle and stress of going through the whole process on your own, some agencies will charge an – albeit low – fee to handle some of it for you.
Online agencies will save you money. But if you were looking for a selling experience that saves you time and stress, going online might not be completely right for you.
Online vs high street estate agents: whats the difference?
The key difference between online estate agents and traditional high street operators is this: high-street estate agents will usually charge you a percentage of your property's selling price, while online estate agents generally charge fixed fees.
Most online estate agents give you the option of valuing and marketing your home and arranging property viewings.
Many can negotiate and accept offers on your behalf and liaise with your conveyancer, other estate agents and buyers right through to completion.
But buyer (and seller) beware. However tempting the basic package’s cost looks, it's likely that these 'extras' won't be included and, if you want them, you'll need to pay more. These services come as standard for traditional estate agents.
In terms of the pricing difference, it really comes down to how much work you’re willing to take on. If you’re happy to do the majority of the work, you can certainly save plenty of money with an online agent.
But, if you were hoping to minimise your responsibilities and have a smooth experience, you’ll need to pay extra with an online agent – ultimately meaning your savings might only be slightly more than what you’d get with a normal agent.
What are the best online estate agents to use?
Here's a snapshot of some of the UK's leading online estate agents.
Some have a flat fee payable upfront or the option to pay on completion, which may cost up to twice as much.
Others also require a percentage of the sale price. Most offer a range of packages that increase in cost as you add extra features. For example, a basic package may advertise your property online, but you'll have to do the rest.
A mid-range package may require you to host viewings, but will handle everything else. A top-of-the-range package means the agent will do everything on your behalf.
Basic package price: £295, which includes an online market appraisal, buyer verification, support from a sales consultant and property listing on most major platforms such as Zoopla and On The Market, as well as one month free on Rightmove.
Recent customer review: “Good service overall, easy to follow the process and the support team responds quickly to queries with clear information. Good value for money, allowing you to save a lot of money on agent fees. Would recommend to anyone wishing to sell their own property with a little help from the online agent.”
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Basic package price: There is a free package that includes an expert valuation and report and the ability to manage viewings and offers via the app, but extras are available. The ‘Boost’ package is from £999, which is the free package plus a listing on Rightmove and Zoopla, professional photos, a virtual tour and a professional floorplan.
Recent customer review: “Good valuation, arrived on time. Knowledgeable agent, good advice given.”
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Basic package price: 0.5% of the sale price, which includes professional photos, video and virtual walkthrough, and listings on Rightmove, Zoopla and OnTheMarket.
Recent customer review: “Thank you to Harvey who was crucial in keeping me updated throughout the whole process. He was always very quick to respond and deal with any issues along the way, as well as chasing other parties. Would definitely recommend to others!”
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Basic package price: From £999, which includes a dedicated estate agent, an advert on Rightmove with floor plans and professional photos, a for sale board and YopaHub account.
Recent customer review: “Friendly, attentive service. Very approachable and helpful staff. Clear explanation of what is involved in selling a house. Prompt replies to any queries.”
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Basic package price: There is a free package that offers a free instant valuation, listing on the site and instant email and text alerts. The standard £99 package includes the ability to arrange viewings, a dedicated account manager, paperwork preparation and listings on Zoopla, OnTheMarket and other property portals for four months.
Recent customer review: “99 Homes is selling my property, they are very quick to make changes to my listing as and when I ask them. Easy to work with.”
Is an online estate agent or a high street estate agent better?
There's no doubt that online estate agents can be a great money-saving option, but it's worth considering all the pros and cons before you sign up.
The benefits of using an online estate agent include:
Lower fees: in most cases, using an online estate agent will be a whole lot cheaper than doing business with a high-street agent. And, if they charge a flat fee (rather than a percentage of the sale), the more expensive your home is, the more you'll save.
Convenience: As online estate agents use call centres that are often open during evenings and weekends, it can be easier to get hold of them. And, as they're online, you have website access to monitor progress. Some agents also have apps that allow you to update your listing in minutes.
Flexibility: Many online estate agents offer a range of packages so you can choose what best meets your specific requirements.
Freedom of choice: Generally, there's no contract period, which means you are free to instruct other estate agents if you wish to.
Transparency: You can read feedback from customers about their experiences on Trustpilot to help you make an informed choice about which agent to go with.
Third parties: Nobody likes working with third parties who take commissions and fees. Like many other new and challenger platforms, online estate agents connect buyers and sellers – no third parties attached.
Things to consider when using an online estate agent
Lack of local knowledge: Even online agents with regional representatives may find it difficult to compete with a high-street agent who knows your local area and its property market inside out.
Valuation: An online-only agent may use online data to value your home, rather than sending around a 'local expert' to provide a valuation.
How much work you'll have to do: Some online estate agents won't negotiate offers or act as a middleman to progress your sale to completion. Having to manage all the communications with buyers and solicitors can be time-consuming and stressful.
Viewings: Generally, you'll have to conduct viewings yourself, so you'll need to feel OK about showing strangers around your home and be available when they are – most likely during the evenings and at weekends.
Vetting: Some (but not all) online estate agents will vet buyers, typically getting details of names, finances and whether potential buyers are already part of a chain. Always ask your online agent about this as some companies use third parties to carry out vetting checks.
Paying up front: if you opt for this type of package because it's cheaper, you won't be paying on results. In fact, you may even pay only for the company to end up not selling your house unless they specify a money-back guarantee.
Lower profit potential: Cutting out third parties sounds like a cost-effective way of getting the right deal, but without a professional agent to negotiate the best price, many users may feel they could have got more for their house. While online agents can offer price negotiations as an extra, traditional agents do this as standard.
Do I need a mortgage in principle for my house hunt?
Whether you choose the high street or the information superhighway as your route to buying or selling a house, the first rule for homebuyers and sellers is simple: be prepared.
And, one of the best ways to be ready to move when you've found the right property is to get a Mortgage in Principle (MIP).
This is a written indication from a bank or building society (the lender) stating how much it might be prepared to lend you.
It's not binding (they could still refuse you a mortgage on those terms), but it's a very useful indicator of what you can probably borrow, and estate agents – both high street and online – take them seriously.
The beauty of a MIP is that you can often get one sorted in under an hour if there are no hitches, and at most, it should take only a few days.
You can then focus on your hunt for a house, knowing that you're in a position to make a firm offer once you've found a home you like the look of.
Although you can apply for a MIP direct from a bank or building society, it's generally better to do this via a mortgage broker since he or she will have access to a greater range of mortgages than you can find either on the high street or online.
You can also save time as your broker can find you the best potential mortgage deal straightaway.
This means that as soon as your offer is accepted, you can give your broker a call and ask them to proceed with the full application instead of having to shop around some more.
Did you find this article useful? Then you might also find our article on how to sell your house at auction and our mortgage calculator tool informational, too!
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