Discussing the effect on Clients and Conveyancers
Traditional Estate Agent
Most high street Estate Agents will typically charge an average of £1500.00 or a percentage of the sale price, on a no sale no fee basis, with no deferred payment, so they get paid when the property sells. They usually often offer, a dedicated sales team, extensive sales progression work and local market knowledge.
Online Estate Agent
Most online Estate Agents will typically charge an average of £750.00, usually payable up front with a deferred payment charge/loan as an option. Big names in the online market are PurpleBricks, eMoov, Tepilo, HouseSimple, YOPA, Settled and Hatched.
When a new client instructs us to act on their behalf in the conveyancing, the property has already been sold, usually by the Estate Agent. When a property has sold and Solicitors/Lawyers have been instructed, we receive a Memorandum of Sale from the Estate Agent.
Whether it be a traditional or online Estate Agent, we receive a detailed Memorandum of Sale detailing the main terms of the transaction which usually includes:
- The full address and postcode of the property
- The sale price
- The names and addresses of the seller and purchaser
- The name, address and contact details of the lawyer they have instructed
- Any special remarks or conditions
We use that information to open your new file and start the conveyancing process.
The Main Differences
The main difference that we find is that a traditional Estate Agent will contact us several times throughout the transaction, often by telephone for updates on how the matter is progressing.
They will also contact the other party’s Solicitor/Lawyer for updates on their part of the transaction. Updates will also be asked for by email and then the information passed on to the seller and buyer. It is a ‘hands on’ approach and ensures that sales progression is maintained and all parties are fully informed and up to date.
An online Estate Agent will rarely contact us once a property has reached the conveyancing stage and sold subject to contract, their contact with us, the seller and the buyer will be minimal.
Once contracts have been exchanged and a completion date set as legally binding, we will always inform the Estate Agent whether they are traditional or online.
- With a traditional Estate Agent, a fee invoice will usually be generated to be paid on the day of completion.
- With an online Estate Agent, the fee will have usually been paid upfront and therefore their involvement at this stage is usually not needed.
We also find the day of completion very different with the Estate Agent models compared here.
- With a traditional Estate Agent, the seller’s keys are deposited with the Estate Agent at their office ready for collection by the purchaser when legal completion takes place.
- With an online Estate Agent, the onus is on the seller and buyer to meet and hand over their keys direct, once we have confirmed that funds have been received.
With a property sale, you are welcome to leave the keys to your property with us for collection if this assists you on the day of completion.
Whichever model you choose to sell your property we can act on your behalf in the conveyancing of your property. We will assist you with any negotiations that you require and be in regular contact with your buyer or seller’s Solicitor, we will ensure that funds are received into our client bank account on your behalf before you hand keys over to your buyer.