Book a Property Valuation
logo

How to Value your Estate Agent

Posted on: Friday, July 1, 2016

 

After some extraordinary recent market valuations, some financial analysts, such as Jefferies, the firm that advised Zoopla on their flotation, have warned that online estate agent Purplebricks is set to underperform. In a note in early June, Jefferies noted that their business model was about listings, not sales, commenting: “The numbers in the business model look very attractive, however it is our view they don’t add up. With no reward for actually selling a home, all eyes are focused on winning instructions, especially if Local Property Experts want to get close to the advertised On Target Earnings.”

For those of us who are not professional investors, this is an important insight. Our touchpoints with estate agents are normally about moving home, and we select and employ them to secure us a positive result - not to flatter us and then fail to deliver what they promised.


Most experts in the property industry will tell you that marketing property on the major portals is relatively straightforward: the key skills of a successful agent focus around qualifying buyers, property presentation, constant re-assessment of local prices, understanding important local details such as school catchment areas, matching databases, managing chains of buyers and sellers, dealing with solicitors and surveyors, and literally holding together complex deals over the 18 weeks it currently takes on average to complete a transaction.

In the case of the so-called pure online agents, their model is that you pay a non-refundable sum (normally the best part of a thousand pounds) up-front, whatever the outcome. When you don’t sell or the offers secured seem very low, this may no longer look like such a good idea. Your potential saving has become a non-recoverable cost and valuable time may have been lost.

Like this post? Read more on the topic here.

The vast majority of ‘clicks and mortar’ agents (as in reality, all estate agents are online) receive a fee only when they find a buyer or tenant and complete the transaction, so their interests are entirely aligned and mutual with their client. They receive a higher fee for a better price achieved. You only pay them when they meet expectations, and as the vendor or landlord you can walk away at minimal or no cost, should you feel that they are not fully focused on your particular case. This ‘stacks the deck’ heavily in favour of the vendor, which should encourage and reward regular communication and good service.

So the two models actually start from completely different positions and motivations; if the new online websites can perform to the same high standard as their more established counterparts, then a revolution really is at hand. Unfortunately, many vendors who choose pure online as ‘a quick and easy option’ may find themselves wiser - but poorer and frustrated.

What Our
Clients Say

"

I would highly recommend Hardings. Their knowledge of the local area is outstanding, and they give honest and reliable advice. They have always been my partner of choice when buying and selling.

Rhiannon Prothero

"

Have used Hardings for many year on both personal and commercial property deals. Have always found them to be transparent, honest, authentic, and a pleasure to work with. Will continue to use in the future.

TB

"

I would highly recommend Hardings Estate Agents. They have excellent knowledge of Windsor and the surrounding areas, and are extremely professional, responsive and courteous. I would not hesitate to using them again the future. I recently dealt with Milica who was instrumental in securing us our new home in Windsor as well as the sale of our existing property. She was a fab negotiator and a real pleasure to work with from beginning to end. Thank you!

Jonathon Beresford

"

Hardings of Windsor managed our purchase with complete professionalism and went over and above in my opinion to manage the transaction and chain, resulting in a really smooth purchase. Milica at Hardings constantly provided timely updates and managed respective solicitors and the chain effectively, always responding quickly to queries. The whole transaction would not have happened without Milicas' focus on making all parties comfortable and satisfying all queries, not only professional but a delightful and welcoming personal approach that was a constant throughout. Thanks Hardings! Thanks Milica!

Stuart Blatch

"

I would recommend using Hardings estate agents when buying or selling your property. Dominic (Scully) was always available, helpful and genuinely interested in my purchase and always calm and compassionate. If I ever move again my first choice will be Hardings.

Cath Powell

"

Dom and the team at Hardings were so helpful and efficient when I purchased my flat - friendly and professional service and kept us up-to-date the whole way through the process. It was my first time buying and so was very nervous but they helped me feel at ease.

Freppell

"

We bought and sold through Hardings and can't recommend their professional service enough. The whole Team are really lovely, we were kept informed throughout the process and never had to chase anything.

Natalie Quint

"

I used Hardings when I bought my property as well as when I sold it and the service has been fantastic both times. I very much recommend Hardings!

Therese Jouini

"

We recently purchased our new home with Hardings Estate Agents. The whole team there were very helpful and flexible with us, arranging viewings quickly on the same day. They were always quick to respond and if ever our point of contact was not there, the service did not change as they work well together as a team. We received a personalised service, which allowed the sale to proceed quickly. Thank you all and we recommend Hardings Estate Agents without hesitation.

Mike B

"

What a pleasure it was to deal with Milica from Hardings. She sourced the perfect property for me and my family (while we were still abroad) and worked endlessly to put the deal together. I would give more than 5 stars if at all possible!

C D

"

Fantastic customer service and made what could have been stressful a total breeze. Dominic and Louisa were brilliant in helping me and my parents buy and sell our houses - reliable, helpful and thoughtful. Thank you!

Eloise Harris

"

Thank you, Dominic and Louisa - having not moved for over 30 years you helped me all the way, step by step. You were always polite, communicative, reassuring and very supportive. Would recommend Hardings wholeheartedly.

Anna Bowen
How Much is Your Property Worth?

How Much is Your Property Worth?

A senior member of our sales team will visit your property to discuss current market trends and how your home; based on size, condition and location should be pitched to achieve the best possible price and buyer. Coupled with an excellent understanding of the local market we do a detailed analysis of what else has sold and what is coming onto the market so we can give you the best chance to capitalise on your biggest asset.

Book a Valuation