In the last quarter of 2018, a news article* on UK property industry news portal, Property Industry Eye, quoted statistics from research carried out by independent consumer advice group The Advisory. The article compared proactive local estate agents against passive online intermediaries; with the findings showing that “High street agents get a 5% better price than onliners in almost three-quarters of cases, generate 48% more viewings, 64% more offers, and in 73% of cases a 5% higher sale price.”
Carried out by respected consumer advice expert Gavin Brazg, the research also revealed that ‘professional house sellers’, such as builders offering part exchange, corporate asset managers and banks disposing of repossessed properties, “choose to put their sales in the hands of local, no sale no fee, high street estate agents.”
A separate independent article**, published by property industry online publication Estate Agent Today in November 2018, also revealed statistics compiled by an estate agency analyst. The article illustrated the conversion rates of six of the biggest online agencies and revealed them to uniformly only achieve an average conversion rate of 33.5% across the group.
Cardiff estate agent MGY’s Directors’ end of year review of 2018 has identified that these findings are in alignment with MGY’s performance in the Cardiff property market over the last 12 months. After a promising start last February, MGY’s three offices, located in Cardiff Bay, the Heath and Radyr, have continued to perform exceptionally well throughout the year. In fact, MGY internal figures*** not only show that the company is out-performing their online competitors but indicate that they are out-performing their high street peers too.
The company’s report revealed that from 1st January 2018 to 31st December 2018, MGY’s three offices achieved an average of 97% of asking price. In addition to this, the three offices consistently achieved an aggregate 95% conversion rate (instructed properties to sales), which is more than double online agent figures cited in the Estate Agent Today findings.
Such excellent figures are of particular interest and importance to MGY’s three Directors because, since the full retirement of MGY founder Mike Young, 2018 was the first year that the strategic future of the company has been fully in their hands.
In response to the analysis and the results, MGY Director Mark Iles says, “It has been a period of strategic manouevring and focused determination at MGY. Our people work incredibly hard to achieve the best results for all our clients, whether they are selling or buying, renting or letting. We are on a continuous programme of professional refinement, we routinely compile stats and data to provide vital insights into how we can advance our systems and polish our customer service. We do this to ensure that not only do our customers receive maximum effort and attention from us but that those efforts also translate into excellent financial returns for each and every one of them. We look forward to even bigger and better things in 2019.”
*Source: Property Industry Eye article entitled “High Street Agents get a better price than onliners in almost three quarters of cases claim’ by Rosalind Renshaw 8 November 2018 propertyindustryeye.com/
**Source: Estate Agent Today article entitled ‘Online Agencies Sales Conversion Rates Revealed by Analyst by Graham Norwood 14 November 2018 estateagenttoday.co.uk
***Source: MGY Sales Performance Report 2018 from 01/01/2018-31/12/2018