PAY ANYWAY/ONLINE ONLY MODELS - THE FACTS FOR ASHFORD

You can't pick up a newspaper without seeing an advert on ways to "save money" by using an online only agent at a low fee, but the reality for most can be very different.

Before I go in to more detail, here are the head line figures for our local area of Ashford, Kent.

The online only/pay if you sell or not models, have listed a combined total of 165 properties in 2018. Out of which, 99 have had their statuses changed to "SSTC" meaning that a buyer has been found. (Of course, some of these listings will go on to be sold in 2019 but we are factoring in those listed at the end of 2017 in the sales numbers for 2018, so the offset makes it a fair comparison)

Industry averages tell us that at least 25% of those sales agreed will not go through to completion, meaning that only 74 of those 165 vendors will have got what they think they have paid for. The 25% fall through rate is a generous figure too, being that if a sale is agreed these firms do little, if no progression work at all, despite what they tell you.

It is also worth noting that out of the 165 listings, 83 were reduced in price, indicating that the initial marketing prices were wrong.

Not quite the impression you get when you see the adverts or the when the sales person visits your home telling you about all the money you are going to save. Combine this with the recent demise of Emoov and Tepilo where vendors had paid upfront or agreed to pay anyway only to see the company go bust.

There is a place for this model, but anyone agreeing to pay regardless of a sale being achieved should be able to do so with their eyes open.

The sale and purchase of a home comprises a wide range of variables; local and national market conditions, political situations, regulatory changes,  survey reports, local development and planning updates, mortgage criteria, personal timescales and situations. So as a potential vendor, you need to ask yourself what is best for you? An agent who has taken your money regardless or one who will see you through to the day you move.

Statistics taken from Rightmove 19th December 2018 over GH geographical area covered during 2018.