Will Traditional Estate Agents still exist in 10 years time?

The birth on the Internet has brought on many changes in the way certain industries have conducted business. For example, traditional travel agents have been replaced with Internet travel reservation websites and currently most banking can be done online instead of going to a bank. This begs the question of what will happen to traditional estate agents. Will they still exist in ten years?

Companies are starting to take advantage of the sheer number of people the internet reaches by posting their listings online. This is replacing one of the important functions an estate agent used to fill, finding the perfect houses to show their clients. Now the clients are in control, and with a few clicks of the mouse they can search the location they want to buy property in, click through photos and set up a viewing. In fact, 90% of homes purchased were originally found by looking online. Some popular property portals for searching for property in the UK include Rightmove, Zoopla, Prime Location and Find a Property.

Even though the internet is changing the way many industries conduct business, estate agents manage to keep control of this market. Estate agents have a huge influence on these portals, meaning you have to be an agent in order to advertise your own property.

Online estate agents are becoming very popular for those looking to buy or sell. They offer a much lower rate and perform many of the same services as a high street estate agent. Since online agents do not have the overhead of having an actual shop, they are able to offer much low rates.

Online estate agents offer services such as professionally photographing and making floor plans of your house. They will then use these to advertise you home on major portals. Online agents also take care of the trickier parts of buying and selling property, like fielding enquiries and assisting in negotiation.

The one difference in services between online agents and traditional agents is that online agents usually do not arrange showings. This task falls on the owner to coordinate viewings with potential buyers. However, it is not uncommon for the seller to show their house themselves even when selling through a traditional agent since often traditional agents are unable to come to viewings.

Therefore, the main difference is the cost of a traditional high street estate agent and an online agent. On average, online agents charge approximately £350 per property to advertise. The seller will keep 100% of the profits. This is in comparison to a traditional agent charging 1.5 percent commission. For example, for a property that costs £250,000, the commission would be £2,500.

The way business is conducted is moving online at a rapid rate. While high street agents are still in demand, one wonders if they will still be in demand in ten years. Selling and buying a home is big investment and involves important decisions not to be taken lightly. Having a professional and human contact in business dealing is still considered valuable. However, the cost of a traditional agent and an online agent is huge and many people are looking for ways to cut costs. While the public’s awareness of online agents grows, one must question the future of traditional agents.