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Are Estate Agents Really Necessary?

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  • Are Estate Agents Really Necessary?

    Hey,

    I've been exploring a number of subjects within property and writing some articles about the subjects, to share and help people with what i hope you believe is usefull guidance and content.This is my latest installment!

    Are Estate Agents Really Necessary?


    Estate agents have always been an integral part of the property selling process. But that’s all changing thanks to the Internet. More people than ever before are turning to the Internet to search for and offer up property for sale. And that trend is causing many to question the need to use estate agents.

    Perhaps you’re wondering that too!

    To help answer this question, let’s take a closer look at the services estate agents offer. First and foremost, the really good ones are “experts” in the property market. They know every property in the area that has recently sold and each property’s respective selling price. They also know how long the process has taken as well as the current inventory of unsold properties.

    Estate agents typically handle all marketing including accurate posting of property details (size, floor plan, location, price, etc.). They place ads in newspapers and magazines, install “for sale” boards, advertise via the post, and ring every buyer they’ve ever encountered. They’re terrific matchmakers with a knack for bringing together motivated buyers and sellers.

    From there estate agents handle all viewings, “selling” buyers on the property’s finest features. Many also handle the negotiations so sellers get the best price possible. Once an agreement is signed, they help coordinate the people and the documents needed to complete the property transaction.

    In return for that effort the property seller hands over a sizeable chunk of the property sale proceeds – in many cases it amounts to thousands of pounds!

    Having someone else handle the details certainly saves time and a lot of headaches. But watching money that’s rightfully yours end up in some stranger’s bank account is downright painful!

    Can you really do it yourself?

    That’s why many savvy Internet users are ditching estate agents and deciding instead to handle these transactions on their own. Nowadays, with just a few clicks of the mouse, anyone can act as an estate agent – for a fraction of the cost. After all, who knows the property better than the person currently residing there?

    When you use the Internet to sell your property you can still employ the services of estate agents if you desire. Rather than fighting the trend in Internet sales, smart estate agents are offering their clients an Internet presence in addition to the services they’ve traditionally provided. But if you choose this option, you’ll still pay that hefty commission.

    With approximately 70% of today’s buyers using the Internet to search for and learn more about available properties you no longer have to rely on estate agents to bring prospects to you. All you really need is knowledge of your market and a reliable “sell it yourself” type of web site.

    Such sites allow you to post your own property details, set your own selling price and communicate in real time with every buyer who shows interest in your property. It doesn’t get any easier – or cheaper – than that!

    If you’ve got property to sell, sell it fast and sell it yourself at www.propertyflaunt.com.

    If you've got it, Property Flaunt it! - www.PropertyFlaunt.com

  • #2
    i think estate agents very important for that process. Because we don't know people who come to us, and we don't have experience for sale s. it is not easy is ABC.

    so i think better use agent to do that work for us.
    Clerkenwell Property | London Property

    Comment


    • #3
      The DIY approach is totally unsuitable for a large section of the community. As sellers, an agent who carries out all viewings, and speaks to the buyer prospect before they arrive at the home, is an extra layer of security for the elderly, infirm, single female, vulnerable citizen, etc....

      If 70% of the buying public are using the internet to look for property, then 30% aren't - and the selling process has to have the best of ALL sales channels; the agent MUST have a good internet presence, I agree. The agent MUST have a high-street frontage; every day, people go to the place where they want to buy, and look in agents' windows, or go into agents' offices, to find out what's active and what's upcoming. The agent MUST also be able to access the best print media in their traget market.

      Due to economies of scale, the agents can usually offer advertising, sale boards, inclusion on property portals (rightmove, primelocation, s1homes etc) at discounted rates compared with those offered to the single customer.

      People will leave their names with an agent, with the instruction "Call me if something like this comes up" - when it does, the agent will have a willing viewer/buyer prospect for that home. Merely placing that home on a website without guaranteed traffic won't necessarily find that motivated buyer. That buyer may have left their name with the agent because; wait for it' THEY DON'T USE THE INTERNET

      I looked at your website; I searched for property in a 200 mile radius of Edinburgh, and you've got TWO properties listed. That's not encouraging. Why would people look at your site, when the majority of properties in this radius are listed elsewhere?

      In EVERY forum such as this, there's always a loosely-disguised 'advert' for someone, who, like this poster, has started up a 'property-selling' website, and is trumpeting the benefits of selling through their (often new, just-launched) website. In every case, I go look at the website, and there's NOTHING THERE.... sometimes no properties at all, sometimes one or two. An internet presence is only PART of the selling process.....

      Comment


      • #4
        The DIY approach is totally unsuitable for a large section of the community. As sellers, an agent who carries out all viewings, and speaks to the buyer prospect before they arrive at the home, is an extra layer of security for the elderly, infirm, single female, vulnerable citizen, etc....

        If 70% of the buying public are using the internet to look for property, then 30% aren't - and the selling process has to have the best of ALL sales channels; the agent MUST have a good internet presence, I agree. The agent MUST have a high-street frontage; every day, people go to the place where they want to buy, and look in agents' windows, or go into agents' offices, to find out what's active and what's upcoming. The agent MUST also be able to access the best print media in their traget market.

        Due to economies of scale, the agents can usually offer advertising, sale boards, inclusion on property portals (rightmove, primelocation, s1homes etc) at discounted rates compared with those offered to the single customer.

        People will leave their names with an agent, with the instruction "Call me if something like this comes up" - when it does, the agent will have a willing viewer/buyer prospect for that home. Merely placing that home on a website without guaranteed traffic won't necessarily find that motivated buyer. That buyer may have left their name with the agent because; wait for it' THEY DON'T USE THE INTERNET

        I looked at your website; I searched for property in a 200 mile radius of Edinburgh, and you've got TWO properties listed. That's not encouraging. Why would people look at your site, when the majority of properties in this radius are listed elsewhere?

        In EVERY forum such as this, there's always a loosely-disguised 'advert' for someone, who, like this poster, has started up a 'property-selling' website, and is trumpeting the benefits of selling through their (often new, just-launched) website. In every case, I go look at the website, and there's NOTHING THERE.... sometimes no properties at all, sometimes one or two. An internet presence is only PART of the selling process.....

        Comment


        • #5
          and the poster prior to me said it too;

          If you've been in your house 15 years, then the last time you showed someone round with a view to selling your home was 15 years ago.

          The last time an estate agent did the same was most likely the day before yesterday.

          No contest.

          Comment


          • #6
            In economics, estate agents create a "dead weight loss". They are effectively imposing a tax on property. I am not fond of most estate agents. I don't mean to offend anyone, but whenever I have visited an estate agency, I get the feeling that they are trying to sell me something ASAP. Clearly this is not good for me the buyer, but it is what they want. The estate agent's job is to make commission, and this is done by rushing as many sales as possible (not necessarily to get you the best price on a home)
            Government Authorised Property Real Estate Agents in Kefalonia, Greece.

            Comment


            • #7
              Why are Estate Agents any different from any other service provider?

              When you buy a car, part of what you pay goes to pay the salesman, and to keep the dealership in business. You don't refer to the salesman as 'a tax on your car'

              When you buy from the supermarket, part of what you pay goes to keeping Tesco, Asda, and their employees up and running, but you don't refer to this as a 'tax on my groceries'.... or do you?

              When you pay an Estate Agent his or her fee, that goes to paying the individuals concerned, and keeping the business going, so that when you recommend friends and family to the agency that did a good job of work for you, that agency is still in business to serve your friends and family.

              The commission is made not by 'rushing' the sale, but by selling the client's property as quickly as possible, whilst still securing the best price, and with the least inconvenience to that client. Hopefully that client will then speak well of the agent to others, and the business builds.

              Comment


              • #8
                Arent you forgetting something?>.........

                In the fraught world of negotiation, where 2 parties both diametrically opposed pitch to decide on price agreeable, YOU MUST have a third party negotiating for you, and, if you are lucky/sensible that person will be an experienced negotiator primed to get the best deal for YOU. This alone will pay the estate agents fee. When negoitations are stalling, and I ask my client 'what will you accept' it never ceases to amaze them (and me) how my skills can gain more than this figure, a figure they would have accepted without me. Micky mouse house selling sites are not selling houses. Show me a reasonable level of house sales from one of these sites and i'll show you more, (of my clients) who have achieved more money for their property than expected as a result of my negotiating skills. Finally, we all know that whilst more and more buyers view the internet for property to buy (is it 70%??? who knows) the VAST majority will be looking at exclusive estate agency websites not micky mouse home sales sites that you find by accident and then realise they have nothing on there for you. The public know the value they get from estate agents, this type of business will never be an acceptable alternative.
                Last edited by humbleone; 27-04-2008, 11:09 PM.

                Comment


                • #9
                  I believe you need an estate agent, the trick is to find a good one, I always start with agents that are registered with the oea (ombudsman of estate agencies) they have to operate by a strict code of conduct or face fines.

                  Comment


                  • #10
                    "That’s why many savvy Internet users are ditching estate agents ...."

                    Not in my neck of the woods, they're not.

                    Search within a 30 mile radius of me on propertyflaunt; ZERO properties for sale. Had to go to 200 mile radius to find TWO properties.

                    Look at two 'traditional' agencies who cover my area; at least 8000 properties available.

                    The image of the housefly crashing head-on into the moving express train comes to mind; according to theory, the impact slows the express train down, but not by much. Does anyone notice the impact? I doubt it.

                    Comment


                    • #11
                      Oh, and how do I know they have 8000 or so available?

                      THEY'RE ON THEIR WEBSITES

                      Comment


                      • #12
                        In terms of economics, Estate Agents are like a tax. They increase price and cause what is termed a "dead weight loss". This is a market inefficiency.
                        Government Authorised Property Real Estate Agents in Kefalonia, Greece.

                        Comment


                        • #13
                          Originally posted by cadavari View Post
                          In terms of economics, Estate Agents are like a tax. They increase price and cause what is termed a "dead weight loss". This is a market inefficiency.
                          Yeah, you said that already.

                          Comment


                          • #14
                            There must be a better way

                            Maybe there should be a better process in place, because when I have used them they do very little for a relatively high fee...

                            Also, I found solicitors to be slow and vague.

                            Comment


                            • #15
                              at the end of the day we are rapidly moving into a world where jobs are now being done by computers. agency is unlike no other profession and is moving in the same direction.

                              stop there!! although as many of these internet based companies have found over the last few years the role of the estate agent although seems to be pointless by many people, ( until the vendor gets a stress free sale and 20k more than they thought they could get) is in fact vital to the sales process.

                              the role of the agent will always be needed as the knowledge they have and negotiation skills are vital.

                              I do agree that some agents are totally useless and I deal with these idiots on a daily basis, it is these young, fresh faced, loud, obnoxious agents that give the rest of us a bad name.

                              until the industry becomes regulated in the same way as the financial services market, where you need to have a qualification before advising Mr Smith which property he should spend his 500k on, ( didn't ask me how a kid with 3 days experience can do this) we will always be looked down on as professionals.

                              YOU DO NEED AN AGENT TO GET YOU THE BEST PRICE FOR YOUR HOUSE!!!! just make sure you use a large well known conpamy and the agent knows what he is doing
                              Last edited by EARocks; 19-07-2008, 01:30 PM.

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