The Centre fo Economic and Business Research has said this week that house prices will rise by 16% in the next four years. This, following a further decline in values during 2011 however.
When house prices rise more people try to buy them, fearing that they will otherwise miss the wave.
This makes the estate agents’ job (even) easier because far from having to actually sell anything as such, they simply administer a process that displays property details on various property websites. Less effort ensues when those properties are snapped up quicker.
So in 2012 and beyond, why pay an already bloated estate agency industry even more to sell your home than now (as prices rise and the percentage commissions they insist upon yield bigger fees)?
S0, could a healthier property market actually lead to the paradox of the further demise of the traditional estate agency industry as people cotton on to the growing phenomenon of low cost online estate agents as the alternative to losing your shirt when selling your home?
We think it’s inevitable.