Honest? Honest! Not the word people generally associate with Estate Agency. I’m not going to tell you we are completely different but what I will say is that we try our very best to be a little bit different!
An estate agency analyst has shared with Estate Agent Today his findings on the current and recent conversion rates of online agencies.
Andrew Stanton, who worked in traditional agency for over 30 years, now runs a consultancy called Estate Agency Insights and Strategies. He says that out of some 1.5m homes marketed in the past 12 months, only 100,000 were handled by online agencies. “Although the media loves to talk about cheap fees and online agents, in fact the general public are using the traditional approach” he adds.
Using Rightmove data from yesterday - Tuesday November 13 - he has also given a market snapshot of six major online brands (two under the ownership of Emoov). According to his calculations these are:
Doorsteps - 2,054 properties listed, 1,321 for sale, 733 under offer not exchanged, 28% conversion of listed to sold subject to contract.
Yopa - 5,501 properties listed, 3,539 for sale, 1,962 under offer not exchanged, 35% conversion rate.
Purplebricks - 37,531 properties listed, 21,142 for sale, 16,389 under offer, 43% conversion rate.
Emoov - 2,504 properties listed, 1,696 for sale, 808 under offer, 32% conversion rate.
Tepilo (owned by Emoov) - 1,740 properties listed, 1,162 for sale, 587 under offer, 33% conversion rate.
HouseSimple - 1,140 properties listed, 763 for sale, 341 under offer, 30% conversion rate.
FRASER ST JAMES HAVE A 71% CONVERSION RATE
Stanton says that most of the online agents charge either an up-front fee or a fee payable in a period of time, typically up to 10 months. “So at the conversion rate of ‘for sale to sold’ I think there are a lot of clients who have paid for a service 'getting sold' which they never achieve” he claims.
Stanton also queries the fundamentals of some agencies.
“The bottom line is always the bottom line, so for instance Doorsteps sell your home for £99. If you have 2,054 clients at £99 paid upfront that is £203,346 income, and that will not cover the costs of running that company - if it did they would not keep getting a new round of fundraising” he says.
Stanton previously ran his own agency and worked at Sequence and Blackhorse agencies before setting up Estate Agency Insights and Strategies, which assists agencies grow their business.
Once you've decided to sell your home, chosen an estate agent, repaired, cleaned and prepared your home for viewings, you may think you're ready to get started, but there's one area that's often overlooked by house sellers - lighting.
Poor lighting can often give a bad first impression, even if the property is otherwise perfect. If you don't light your home well, you could sabotage all of your other preparation work. Darkness can make a room feel small, dirty and uninviting - it can make a home look like a teenager's bedroom.
After much speculation, the Bank of England has raised interest rates from 0.5% to 0.75% due to high expectations around the economy, consumer spending, wages and employment.
Although the general rule is that a rise in interest rates is good for savers and bad for borrowers, the 0.5% to 0.75% rise is relatively small, so will not cause difficulty or pain for most homeowners.
Are you looking to find out the best time to sell your property or buy a home in Tameside? The housing market is known to change over time, but by basing your choice to sell on the state of the national market, you could be missing a trick. Even drilling down to Tameside doesn't give a full picture. Instead the best view of the local housing market comes down to the postcode area.
We looked at data from Rightmove based on the postcodes M34, M43, OL7, OL6, SK14, SK15 and SK5 to see the performance of the housing market in those areas, but one of the biggest findings was that the housing market varies still when we drill down even further. For example, there were far more properties for sale in Q1 2018 in M34 5, than in M34 6. To give you a full view of the property market in your area, we have created this report of each individual postcode that we cover. This data covers Q1 of 2018 and is obtained from Rightmove.
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