A For Sale By Owner website says that a number of online agencies are really private sales sites in all but name.
Franki Chaffin-Edwards, of The Little House Company, said they are simply dressed up to look like agents, for no other reason than to secure listings on Rightmove and Zoopla.
Chaffin-Edwards, who is community and content manager at the private sales website, emphasised that her comments did not apply to all online agents but specifically to some of the cheaper operators.
She said there is very little difference between some of these online agents and private sales sites.
She said in an opinion piece especially written for Eye: “Lines are being blurred at this end of the market, as owners wanting to sell their own home are increasingly being sold an online agency package to bypass the portals’ ban on private listings.
“As with so many other industries, advances in technology and the scope of digital business have opened a host of new avenues, not only to private sellers, but to estate agents as well.
“You would assume that private sellers would benefit the most from innovative new ways to market a property online, as it dramatically increases the scope and reach of their marketing efforts.
“However, this was not the case. As the digital dominance of the leading portals expanded ever further, sellers considering a private sale were increasingly put off by the inability to list on these key platforms.
“Major portals’ refusal to accept private listings hinges on the fact that their business model relies on charging the agent representing the property, and not the seller.
“Partly because of this, the relationship between leading portals and private sales providers has been frosty at best, and confrontational at worst.
“So as a private seller in today’s market, wanting to avoid the involvement of an estate agent, but still securing a listing on arguably the most valuable property platforms available, what does one do?
“Enter the online estate agent – facilitating a listing on the leading portals, without involvement of a traditional agent.
“Online estate agents supposedly represented a middle ground between the ‘all singing all dancing’ high-street service at one end, and the DIY, purely private sales approach at the other.
“However, in reality, a number of these online agents offer little more by way of service and support than a typical pure private sales website.
“The Little House Company, for example, offers much the same services you would expect from an online estate agent, including EPCs, floor plans, viewing arrangements, descriptions, photography, advice, with the exception of the ill-defined ‘sales progression’.
“So what really is the difference between some online estate agency sites and private sales sites? The answer is very simple. One will secure you a listing on the leading portals. The other will not.
“Would it be fair to call home owners selling through an online agent ‘private sellers’?
“It could be argued that if the leading portals accepted listings from private sellers, the private sales market in the UK would expand dramatically.
“Currently, private sales account for a tiny proportion of the market, but if you included all sales made through an online agent into the same bracket, we would reach numbers comparable to larger foreign markets.
“There is clearly demand from consumers to explore digital alternatives, as demonstrated by the sudden influx of press coverage focusing on ‘selling online’ and ‘selling your own home’. However, ‘selling your own home’ now appears to mean listing with an online agent.
“In some cases the online estate agency has become the acceptable face of private sales, offering a For Sale By Owner service in all but name.
“Demand for the much maligned private sales approach is out there – and a number of online agents are increasingly advertising themselves online under ‘private sales’terms in search engines.
“Pure private sales providers will have to fight their corner against the onslaught of online agents, snapping up potential private sellers at the expense of private sales.”
Franki Chaffin-Edwards of The Little House Company
Comments (20)
Great "text speak", Jonnie, but hey boys – give the girl a break ! Let's just keep to the outrageous but good-humoured banter and keep off the personal remarks. Her photo is much nicer than mine.
johnb – IF the lady has sent through a low-res, moody-as-heck selfie to 'complement' the blog-fluffed-up-as-a-press-release in the hope of gaining credibility then she has teed herself up nicely for what follows.
We ARE adults here, after all – so – if we want to partake in juvenile hilarity at the expense of others, WE WILL… or we will skweam and skweam until we is sick…
So far… she has been let off VERY lightly, if you ask me… ;o)
Its funny, http://www.onthemarket.com based discussions always get a lot of posts, certainly more than a press release about stamp duty or from a supplier to the EA industry gets (see Fixflo), Ive had a think about it and the reason is that is one of the only things that divides us, there's those that are going on it and those that think its doomed and that allows us all the chance to post opposing views…………..however we do have to get this 'im not allowed on it' lot (budget firms) led by their un official leader Russell Quirk to get to grips with the whole idea, its been set up by agents for agents so we can make the rules, its our party we don't have to invite you, also if you budget lot are so technically minded then go and do your own, you claim to dominate the online world of property so go on, show us how its done, you tell us how the growth of selling online is going to be spectacular so money where your mouth is people, crack on with your own……………or do you all want to have your listings with ours? – were not bothered where you put yours but you seem to want to be with us? Odd people – Jonnie
I will stand up in defence of local Estate Agents that do not have what is recognised as a traditional office, they are not parasites and it is wrong to lump those agents in with those who are nothing more than Online advertising facilitators. I can well understand why doing so causes offence.
I fully appreciate the market is different town to town region to region and appreciate that genuine bottom feeders exist however this industry has a full spectrum of business models. In any competive market it isn't possible to control the competition by moaning. Understand the competition, how they make their money and how their business model operates then take the battle to them litterally on their terms. It is the gaps in an agent's own services that allows competition to exist.
Thank you, Robert.
As what Jonnie would call one of the "I'm not allowed on it!" lot (Note the correction punctuation, Jonnie – comes in handy when writing sales details) I do not have anyone as a leader, official or otherwise and at no point have I said I want be OTM.
I wish OTM well and hope that it succeeds. Something needs to challenge RM and Zoopla.
Given your poor punctuation etc, I am pleased that you are not preparing my sales details.
Elbee – with respect, if you're going to pull Jonnie up on the content of his post (we ALL suffer from FFS* occasionally…) you first want to be sure YOURS is grammatically correct…
* Fat Finger Syndrome – aka 'bl00dy dyslexic iPhone!' ;o)
I might have expected you to be on his side PeeBee.
Oh I'm sorry – I didn't realise I had to take someone's 'side' to comment… okay – I will take 'the side' of correct grammar and punctuation. You BOTH need to take more care, and pay attention to what you are posting! ;o)
Grammar police, get over it chap no one likes a dullard droning on about grammar. Have you got anything yo say? – Jonnie
AHEM… just to remind you, Jonnie, the "dullard droning on about grammar" is usually ME… ;o)
"Ill-defined sales progression" = "I don't know how to progress a property sale effectively"
The sooner OnTheMarket gain dominance without online parasite agents the better!
Herb, FIRST define an online agent. Secondly learn the definition of a parasite!
OTM classes me as an online agent because I do not have an office – I work from home. That is the ONLY difference between those with a shop and myself. I still visit clients, attend viewings arrange EPCs etc.
Actually there is one other difference – I will often answer emails out of normal office hours!
Selfie of the week? new competition 😉
Yay-!
What is there? Online Agency Self promotion for Dummies? In fairness Franki is a bit late to this party and will attract all the contempt that Adam, Russell and Clemo have stoked up but why is she telling us, the industry , what we already know?
No, really? the sneaky so and so's! We'll have budget agents pretending to have offices in places they haven't next………….also this Franki Chuffy lady, has she sent Eye a photo that looks like something teenager would have as a Twitter profile photo? Either I'm getting older than I think or this is the modern way, I'll start making a groaning noise when I sit down soon! – Jonnie
haha…. I thought it was Belle off Emmerdale….. (not that I watch Emmerdale, I just happened to know this from it being on in the background whilst I am doing a crossword) 🙂
Calm down Jonnie, the edgy, bellicose, selfie is wots going down right now. Either that or the photo booth on Euston is still not giving change, I'd be angry too!
nIs 1 Beenay, im getin d hang of it. mAd me ROFL & LOL a bit I tink her Foto iz gr8 & im weL jel – Jonnie