SELLING
WORDS: SACHIN GUPTA
THE RISE OF THE ONLINE ESTATE AGENCY At 99home, 95% properties sold online fetch the vendor’s desired price and 90% letting meet the rental landlord’s outcome. So why pay percentage based commission to high street agents?
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hrough an online agency vendors and landlords can discuss their property, often with more knowledge than your average agent. The online estate agency is a relatively new business model, offering a one stop shop for property requirements with a fixed fee, and no hidden charges. The 99home’s business model is not just a unique opportunity for many small agents, but also for those who prefer to be selfemployed and run a private management company by using 99home’s platform to let or sell their client’s property. Currently three major overheads overwhelm many small agents: The cost of the office where they pay rent, rates, bills and marketing expenses to keep their business going; Employee wages and software subscriptions for property management, whether they have constant business coming onboard or not; The ongoing cost of insurance, phone bills, fuel and stationery;
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It’s not just about agent’s fees, it’s a matter of equality of services provided and savings on your deal. High street commission fees can be prejudicial. For example, someone selling their house at one million would pay more than someone selling at £250,000 for the same service. 99home’s agents are available for viewings, marketing pictures, floor plans and so on, and the service offered is comprehensive and 24/7. 99home offer vendors an online dashboard, access to all major property portals, a call centre which works for them from 6am to 11pm, plus a personal assistant/agent to facilitate the customer journey. This is why many people are now unwilling to pay heavy commissions based on a percentage of the transaction, when you can get the same or a more accessible service for smaller fixed fee. There are further factors that favour the online estate agency model and this is to do with the way taxes are changing for PRS landlords. Local authorities are
getting stricter as regards compliances and obligations for landlords, so it’s important to work smart by understanding housing laws. By using online agents one can save money and survive in a difficult market. In time, tenants’ fees will be banned, deposits will have a cap, and fair rent policies could apply. This means the landlord will struggle, as these changes will increase the high street agency’s fees. There is certainly a potential risk of loss to be borne by the landlord when it comes to balancing the income and outgoings for tax, maintenance, compliances and agents’ fees. For example, if there is a limited deposit paid by the tenants and the property is left in a bad condition this would result in total loss. There is a similar scenario with sales too. In many cases the seller has to reduce the agreed price after the survey or close the deal in time for various reasons. It is very obvious that if the seller can avoid the hefty agency fees it will be help them to stay in profitable position. Even with a large portfolio, landlords and vendors can let or sell their property with an easy 1-2-3 step and avoid substantial fees from agencies. 99home.co.uk offers a unique experience in selling or letting your property to make your move hassle free and profitable. They provide a free consultation, guide and cutting edge technology to clients 24 X 7. Their main USP is saving clients money.
HIGH STREET COMMISSION FEES CAN BE PREJUDICIAL. EG. SOMEONE SELLING THEIR HOUSE AT ONE MILLION WOULD PAY MORE THAN SOMEONE SELLING AT
£250,000 FOR THE SAME SERVICE.
Our expert
SACHIN GUPTA IS THE CO-FOUND ER OF 99HOME.CO.UK. HE HAS 10 YEARS’ OF EXPERIENCE IN UK’S REAL ESTATE BUSINESS OF RUNNING MULTIPLE BRANCHES OF ESTATE AGENCY
WINTER 2017 I ASIAN HOUSE & HOME
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