Online Estate Agent Fees & Services

Buying and selling a home ranks at the top of life’s most stressful moments. Preparing your home for sale, settling on an asking price, and completing all necessary paperwork are just a few of the hurdles homeowners face.

That’s why many people hire estate agents to help with the sale process. Not only are estate agents experienced in marketing and showing your property, but they have access to exclusive listing websites and other local agents. 

Not sure you want to pay estate agent fees? Considering selling your home on your own? 

Before you do, keep reading for a complete breakdown of estate agent fees and services including pros and cons.

 

Online estate agent duties

You know estate agents help buy and sell homes, but what does an online agent do, and is it different from a traditional high street agent?

Yes and no.

Online estate agents help you sell your property the same way a high-street agent does but with a less hands-on approach. Because they offer less support than traditional agents, the fees are generally lower. 

There are two basic types of online agents — strictly online and hybrid. 

When you hire an online-only estate agent, be prepared to do a lot of the legwork yourself from marketing your property to managing inquiries and even performing viewings. These agents generally set up your online listing and leave the rest to you.

Hybrid agents offer a mix of online and high street services. After listing your home on property portals like Zoopla and Rightmove, they will help manage inquiries and may even perform viewings for an added cost. 

Other services include property valuations, additional marketing efforts, dealing with your conveyancer, and communicating with the buyer until the sale is complete. 

Remember, most online agents offer very basic services for a lower cost than what a local agent could charge. If you want additional services like the ones mentioned above, you’ll need to pay for them. 

 

Online Estate Agent Fees Explained

Speaking of payment, let’s delve a little deeper into what online estate agent fees you can expect to pay. 

Most high street agents charge a percentage of the sale of your house. Online estate agents generally charge a flat fee for specific services rendered. 

If your property is priced high, you might be better off using an online estate agent. You’ll save money by only paying for the services you need.

A downside to using an online estate agent is that most require payment upfront. That means if your home doesn’t sell, you’re still out the estate agent fees.

High street agents are sometimes more motivated to sell since their commission and income rely on the sale of your home. Fixed fees can lower the agent’s incentive and motivation.

Some online estate agents offer a “pay later” option but with added fees and interest. It may also require you to sign an agreement with a credit company or use the agent’s partner company. Be sure to read all the fine print before agreeing to deferred payments.

Here’s a breakdown of estate agent fees for some of the UK’s leading online companies. 

 

 

 

Purplebricks

Starting at the top, Purplebricks is the UK’s most well-known online estate agent company. 

Their basic package costs £999 or £1499 to let in London and other surrounding areas. They do offer deferred payments for up to 10 months.

This basic package includes:

• Floorplan
• Valuation
• Professional photos (photos for social media are also included)
• Listings on Rightmove and Zoopla
• Sale board
• Local expert/Account manager
• Managed viewings
• Negotiated offers

For the following fees, you can get additional support and services:

• Featured listings on Rightmove and Zoopla (£125)
• Viewings performed by an agent (£300 and £399 in London)
• EPC (£84)

 

Doorsteps.co.uk

With plenty of packages and options, Doorsteps.co.uk is next on our list of online estate agents to consider.

Doorsteps.co.uk offers three affordable packages priced at £99, £199, and £599. All payments are required upfront with no deferred payments option. 

The companies basic service package is priced at £99 and includes:

• Online valuation and in-person verification visit
• 24/7 account manager
• Arranged viewings
• Negotiated offers
• Listings on Zoopla and Rightmove

The two, more expensive packages offer additional services including:

• Professional photographs (included with the £199 package)
• Full property description (included with the £199 package)
• 2D floorplan (included with the £199 package)
• Sale board (£60)
• Premium listing on Rightmove or Zoopla (£120)
• Featured listing on Rightmove (£400)
• Hosted viewings (£400)
• Virtual tours (£162)

 

House Simple

Keep the sale process simple with House Simple, an online estate agent that charges no upfront fees and no commission.

Sound too good to be true? Let us explain.

House Simple is one of the UK’s online estate agents that offers a no sale, no fee option. That means that if your house doesn’t sell, you don’t have to pay. No sale, no fee options are popular among high-street agents but are also being offered by many online agents. 

For six months, you’ll get the following services for free:

• Listings on Rightmove and Zoopla
• Photographs
• Negotiating offers
• Floorplan
• Photographs
• In-person valuation

If you want a few upgrades, here’s what it’ll cost you:

• Premium listings on Zoopla and Rightmove (£299)
• Scottish home report (rates vary)
• Accompanied viewings (£315 for unlimited/£35 each and an additional £50 key holding fee)
• EPC (£90)

There are a few catches to these services, though. 

Home Simple currently only sells properties in England, excluding the rest of the UK. In addition, you have to choose from virtual or hybrid services. 

The biggest difference being that the virtual service offers a digital property valuation rather than an in-person one.

Update as of 21/11/2020: House Simple has since changed their name to Strike

 

Yopa

Yopa has two main packages to choose from — core and premium. Within each package, there’s a wide range of services and pricing based on your location.

Here’s a quick breakdown. 

Core

• £899 upfront (£1399 in London and some surrounding areas)
• £88.90 per month (£139.90 per month in London and some surrounding areas)
• £1,999 no sale, no fee (£3,499 in London and some surrounding areas)

Premium

• £1,189 upfront (£1,799 in London and some surrounding areas)
• £118.90 per month (£179.90 in London and some surrounding areas)
• £2,299 no sale, no fee (£3,999 in London and some surrounding areas)

All packages include the following services:

• Floorplan
• Property valuation by a local expert
• Sale board
• Listings on Rightmove and Zoopla
• Personal online dashboard
• Negotiated offerings
• Organized viewings

Extras from Yopa include:

• Premium listings on Zoopla (£99)
• Premium listings on Rightmove (£125)
• Featured listings on Rightmove (£149)
• Accompanied viewings (£300)
• EPC (£85)

 

What is a Property Valuation and How Does it Work?

Valuations determine how much your home is worth compared to other similar homes on the market. Valuations are done by experienced agents with in-depth knowledge of the current market.

Online agents will sometimes perform valuations using online data and photographs. Hybrid agents will send a local expert to perform an in-person valuation of the property. 

High street agents have more knowledge about the local area, community, and neighbourhoods which is why, sometimes, their valuations are more accurate. You can also get a few valuations if you don’t agree with the original assessment. 

You can also take all of the valuations and come up with your own medium price. 

 

Why Overvaluing Your Home Is a Problem 

All homeowners want to get top dollar for their property and some may even think it’s worth more than it is. The problem with pricing your home too high is that you’ll miss out on your target market and inevitably be forced to lower the price.

Price reductions, though necessary sometimes, can negatively impact your home sale. Some buyers will wonder why you had to lower the price and start asking questions like, “Is there something wrong with the property?”. 

They might even try to low-ball you, thinking you’re desperate to sell. That’s why pricing your home right the first time around is so important. 

Some homeowners worry that online estate agents are more likely to overvalue their home, creating financial and emotional heartache. The truth is, this can happen with both online and local agents.

That’s why it’s important to get several valuations and even perform some of your own research before settling on a listing price.

 

Viewings

When a buyer is really interested in your home, they’ll want to see it in person. This is known as a viewing and it’s an important part of the sale process.

Strictly online agents generally don’t conduct viewings. They leave this up to the homeowner, which is a risky game.

Some buyers aren’t comfortable viewing a property with the homeowner present. Your reaction to their comments or questions or even your presence may be unnerving and cost you the sale.

Ideally, you’ll let a professional agent conduct all viewings. Some hybrid agents offer this service as part of their fees while others charge extra. 

Vetting potential buyers is another part of the process, and one some online agents will help with. Checking the buyer’s finances, personal information, and if they’re part of a chain are all important things to know. 

 

Are Online Estate Agents a Popular Choice?

As of this writing, high-street agents are still a valued option among many homeowners. But in light of the pandemic, as well as an increase in available services, online estate agents are growing in popularity.

A few factors determine whether or not an online agent is the best option for you. For starters, the price of your home means a lot.

Higher-priced homes mean a larger commission and percentage if you use a high-street agent. When using an online agent, you only pay for what you need.

Location plays a part too since local high-street agents have more access to local buyers and more influence within the community. Online estate agents are far removed from your everyday life, meaning they lack first-hand knowledge of the area.

Online agents don’t offer the same hands-on marketing tactics as high-street ones. Local agents advertise your property in their office windows, brochures, and local magazines and newspapers.

While paper marketing isn’t as effective as it once was, it’s still another avenue for getting your property in front of potential buyers. If this is important to you then a local agent might be best.

 

How to Protect Yourself When Using an Online Estate Agent 

Out of sight, out of mind. Are you worried that using an online estate agent is too risky?

Some people are unsettled by the lack of physical contact and communication when using an online agent. It feels like just a voice on the other line and not a real agent invested in your home sale.

To put your mind at ease, it’s important to understand your rights when working with an online estate agent. 

Rest assured that the same rules that govern high-street agents also apply to online agents. Online and hybrid agents are required to register with a government-approved redress scheme. The agent must tell you which scheme they’re a part of, which is the first call you’ll make if a problem arises.

 

Pros and Cons of Using an Online Estate Agent

To summarize, here are the pros and cons of working with an online estate agent vs a high-street agent so you can make an informed, confident decision about your future. 

Pros

For starters, you’ll pay lower fees when using an online agent. That’s because you’re paying for individual services rather than a percentage of the home sale.

You may only need an online listing and plan to conduct viewings and negotiate on your own. Save money by picking and choosing what services to utilize.

The flexibility of choosing individual services is another reason people opt for online estate agents. They feel less pressured and more in control of the sale process.

Because online estate agents work strictly online, their call centers and chat support are usually available 24/7. If you have a question, chances are, someone is available to help. Online agents are constantly monitoring your listing and can respond to inquiries outside of normal business hours.

Another bonus of using online agents is that you can mix it up. If one agent isn’t working for you, you can try another. Most online agents don’t require a contract period, which means you’re not locked into anything. 

Cons

As with anything, there are some downsides to working with online estate agents. 

The main con is that you’ll need to do a lot of the legwork yourself. If you’re inexperienced, you may overlook important steps in the sale process.

You may also miss out on leads and inquiries if you’re not diligent. Performing your own viewings is another downside if you can’t handle criticism about your property. 

Communicating with buyers and solicitors may also fall on you. This can be stressful and take a certain level of experience that most homeowners don’t have.

Payment for most online estate agents is required upfront. Even if the agent fails to sell your house, you’ll be out of your original investment. This can also reduce the agent’s incentive to sell your property or get you the best price since they’re getting paid the same amount either way.

 

Choosing the Best Estate Agent for Your Needs

Deciding between a high-street or online estate agent is a personal choice and differs from one property to another. 

Using an online agent is generally cheaper, but may come with more stress and work on your part. High-street agents have more connections within the local community but take a bigger payout based on the price of your home.

Most hybrid agents offer the best of both worlds. 

Be sure to do your research and weigh all the pros and cons before deciding if online estate agent fees are worth it.