HouseSimple has become a “no sale no fee” only estate agency, after scrapping its pay upfront option.
Sellers will pay a fixed fee of £995 (including VAT), with no conveyancing tie-ins, on completion of a sale.
The fee compares with the 1% to 2% commission typically charged by high street agents on sale of a property.
HouseSimple previously offered customers the choice between a no sale no fee payment and paying a fee upfront.
Vendors will continue to receive a visit from a local property expert, professional photography, floorplans and valuation guidance.
HouseSimple will also manage the negotiations and sales progression through to completion.
Sam Mitchell, chief executive of HouseSimple.com, said the agency wants to provide real clarity of proposition for customers and believes the best way to do this is to offer one simple proposition.
He said the no sale no fee model ensures it is completely aligned with vendors’ objectives.
“It’s time for the online agents to show they are great at selling properties and we strongly feel that the pay upfront model doesn’t align businesses with their customers’ goals,” Mitchell stated. “We are excited about this change to the service we offer, as well as committed to supporting the customer all the way through their selling journey, beyond just listing their property, all the way through sales progression to a successful completion.”
The move comes after rival online agent Yopa introduced a no sale no fee option alongside its traditional fee structure in February.
One of the main criticisms of online flat-fee estate agents has been that people have to pay whether they sell their home or not, in contrast to traditional high street agents who take a percentage cut that is only charged if and when the home is sold.
Want to know the story behind Britain's latest property mogul? Why a company is going bust? Our coverage goes beyond run-of-the-mill news on key real estate issues.
Our subscribers are made up of the most influential Founders and CEO's in UK property. Gain a competitive edge and get informed - read what they read.
Understand exactly what the most senior figures in UK property are thinking. Exclusive opinion articles from powerful real estate influencers that move markets.