A NEW REPORT PUBLISHED TODAY BY RIX & KAY SOLICITORS, SUGGESTS THAT TRADITIONAL ESTATE AGENTS ARE HAVING TO STEP IN TO SUPPORT CLIENTS WHO HAVE CHOSEN TO BE REPRESENTED BY ONLINE ESTATE AGENTS TO ENSURE THAT CHAINS DO NOT COLLAPSE AND THAT SALES COMPLETE.
The result is rising costs for traditional estate agents whilst the home buying and selling process becomes more protracted, more expensive and more stressful for individuals.
The news follows a recent research note published by stockbrokers, Jefferies who suggested that Purplebricks’ sales success rate was just over 51%. By comparison, the HomeOwners’ Alliance consumer group suggest traditional agents with a local office sell more than 84% of homes.
Rix & Kay’s report, which publishes the findings of six months of detailed face-to-face interviews with traditional estate agents across the South East, says that sales progression, the support an estate agent provides once an offer has been accepted on a property, is the most skilled and critical phase of the home buying and selling process and that without it, any transaction is more likely to collapse.
In fact, 98% of traditional estate agents who were surveyed during the research, agreed that the home buying process is more likely to collapse in the absence of experienced professionals.
The report goes on to suggest that the business model adopted by alternative online estate agents, who charge an upfront fee and are not reliant on a sale completing to get paid, means there is no motivation or incentive for online estate agents to support their clients during the sales progression phase. Traditional estate agents are left to pick up the pieces and fill gaps left by online agents, increasing their costs and adding additional pressure to already squeezed margins.
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