The digital debate and why estate agents are here to stay
Category Newsletter: Article
Over the last year, there has been a flurry of new market entrants and products, all hoping to cash in on the property market by offering sellers a reduced cost of selling compared to traditional estate agents. Many of these are accompanied by dramatic claims of cost savings and all sorts of marketing campaigns, all aimed at attracting business.
Most of these operators are using online as a means to entice business and property listings onto their books by offering reduced commission in one form or another. While this may be very tempting to prospective sellers and there is no doubt that some will be successful and save a bit, there are many aspects that sellers need to consider.
Many of these so-called digital disruptors are offering no more than what real estate agents are offering and it is important to bear in mind, that the internet is not replacing estate agents. Even these new digital agencies are still offering added services, but generally at additional costs.
While it is true that the world is moving online at a rapid pace, buying a décor item online is quite different to buying a property. For starters, there might well be an intricate negotiation that needs to take place. Very few deals are quick and easy. There is often a period of ‘courting’ the buyer to get them interested in the property.
Then, once you are successful, and finally land an offer to purchase that is accepted by the seller, there are many steps that need to be taken before the property sale is finally concluded in its true sense. In other words, the transfer of the property into the new owner’s name is finally concluded.
Here are just five of the many reasons why estate agents are here to stay:
Reason one – selling and buying property is complicated. For most people a real estate transaction is the most important and biggest financial commitment that they will ever make. Having a real person to deal with adds a level of comfort that can never be emulated by a computer.
Reason two – buying property can be a challenge. For most buyers, there are a number of complexities that come into play when they want to buy a property. These include qualifying for and securing a bond, but there are other legalities that need to be adhered to. Buying a house is not the same as buying a pair of shoes and a human interface is needed to assist.
Reason three – estate agents sell more property for more. Recent research in America has shown that estate agents still sell more property and achieve better prices on average for sellers. Remember, your estate agent only has one objective, and that is to sell your property for the best possible price in the shortest possible time.
Reason four – estate agents offer the same technology and then some more. You will find that estate agents don’t just offer you the same technology, but so much more. In addition to all of the listing and marketing services, this includes access to buyers and tried and tested selling methodologies. Estate agents are usually also part of a network of other agents to ensure that they can attract as many buyers as possible.
Reason five – the costs are worth it. You may well find that with online sales, there are many aspects that are not included in the initially advertised price. It may take a lot longer to sell your property and it may be a very cumbersome process that requires a lot of your time. Once you have weighed all of these aspects, you may find that the costs are worthwhile in the end.
Author: Coastal Property Group
