Will Estate Agents Die As Sellers Go DIY?

I was wondering today if the rise of the internet has effected the way we are trying to buy and sell homes yet, or even if agents are still our first port of call when we come to selling?

Would you attempt to sell your own via the new emerging web sites aimed specifically at that?

Industry insiders think the internet will, and has, transformed the property market and will eventually put an end to the high street estate agent as we know it. Personally I doubt whether this is the case.

According to the Ombudsman for Estate Agents (OEA) around one in four estate agents has closed. Estate agents are fighting to stay alive in this difficult market.

My own view from what we have seen in our area, is that some of the estate agents we are loosing are the not very good ones anyway.

From our own local market, some of the agents who came later to the area when sales were boiling hot, were the first to leave when things took a dive downhill. Many have gone out of business or amalgamated with larger chains.

Morphing

“Our business is morphing into a consultancy. People are coming to us with properties they’ve already found on the internet because they want independent advice from us. Rather than the whole house finding service, they want to be driven around a certain area, or to use our black book, or want someone to do their negotiations.” says Jonathan Harward, chairman of The County Homesearch Company.

This last point is particularly true. The negotiation side of buying and selling can be a fraught scenario. Agents will inevitably get wise and evolve their own businesses to stay ahead of the game. They are sales personnel after all, and it is the nature of the beast to evolve or die.

Buyers are already finding properties on the internet for themselves and seeking professional advice as and when they need it. The vast majority of properties ( approx 90%) are now advertised online. There are plenty of tools that allow buyers to look at flats and houses from street level such as Google Street View or Mouse Price. Some buyers are even using online property “dating agencies”, such as the recently launched Property Flirt, to identify people who are considering moving. Though I think these are a bit hit and miss myself.

The National Association of Estate Agents (NAEA) is adamant that it is the market, not the internet that is to blame for the decline of estate agency. I would suggest that it is a combination of the two. Agents will need to change their game plan to keep up with the fast moving world of social media and internet.

The Other Side Of The Coin

So if you are tempted to sell online and save yourself the fees an agent would charge here are a few hints and tips:

• Get your own sale board for about £40 from one of the many ‘sell your own home” web sites.
• Do an internet search for ‘for sale by owner’ web sites to place your property on.
• Have your solicitor or conveyencer on hand and primed ready to do the sale.
• If you have the skills, build a web site to sell the property more effectively-and remember to put the web address on your board.
• List the site with an agent too, and tell them you are trying to sell privately ( hence you can get better exposure).
• OR:-check property forums for someone willing to share their Right Move access. Some will do this for a small fee.
• Check comparable property listings via the various on-line sites for the correct valuation.
• Go view your competition so you know you are pitching the right price level.
• Borrow some agent speak for your web page or adverts so you sound professional.
• Get your home ready for sale, and take some quality pictures to show it at it’s best
• Don’t forget the HIPs/ EPC you will need to market your property.
• Make a video of the property to show people around and upload it to you tube or similar to field enquiries.

According to Sarah Beeny, who recently launched Tepilo, an online do-it-yourself property selling portal, it is not rocket science. She says the internet has removed the need for estate agents, and that in the future, it is likely that estate agents will be the preserve of complicated or “out of the ordinary” sales. “An estate agent’s role is incredibly different to what it used to be. The internet has completely turned the process of finding a property on its head,” says Beeny

Finally, from what Ive seen, most vendors who want to sell their own homes do so for one of two reasons, either they are strapped for cash and want to save money, or, they feel they have a better ‘product’ and are trying to get a higher price than market can stand.

As always, it’s buyer beware. ( And perhaps-seller be careful.)

You may also be interested in this story: OFT Looks At Estate Agents Over Valuing Property

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