Rightmove are changing their fees! Since slashing their fees earlier this year, property portal giant…
Rightmove are changing their fees!
Since slashing their fees earlier this year, property portal giant Rightmove have recently made the decision to return to their full price fee structure. Rightmove make their money by charging estate agents a tariff or fee to list properties on their website. This move is likely due to the increase in market activity as a result of the stamp duty holiday, and release of bottled-up demand caused by the lockdown. Exchange Train users have asked if and how this will affect them and their agents…
What impact will this have on estate agents? What can we assume from Rightmove’s decision?
Ultimately, high street estate agents are about to find themselves paying proportionally more to use Rightmove’s services than they have been previously. This is simply because they are still in the middle of their own recovery back to pre-COVID trading volumes. To add some context, in July this year we saw the total number of transactions reach 76% of those seen in July the previous year. For our estate agents, this means they will likely be down on their revenue compared to this time last year.
What does this mean for those buying or selling a house?
Whether buying or selling, Rightmove’s decision could see estate agents move their listings (your house) to other competitor portals such as Zoopla or OnTheMarket to reduce their costs. Depending on your point of view, this could be a good thing or a bad thing. Good in the sense that estate agents could pass fee savings on to the seller, meaning you get to keep a greater percentage of your property’s value. The potential downside – since Rightmove has the largest share of the portal market – is that your property might not be visible to as many people and could therefore take longer to sell.
If you are interested and wish to know more, take a look at Property Industry Eye’s recent articles on the topic.