Online UK agency introduces "No Sale-No Fee" option

Online estate agency HouseSimple is launching a new “No Sale-No Fee” option for vendors. In a move towards aligning their online business model with more traditional high street practices, HouseSimple will replace their Pay-as-you-Go fee option with a new fee of £795 +VAT, which will be offered alongside their existing £395 +VAT fixed fee option payable on completion of the sale or after twelve months. However, there are strings attached: the £795 +VAT fee jumps to £895 +VAT if vendors decline to use one or the other of the firm’s recommended mortgage provider and conveyancer, and £995 +VAT is payable if vendors choose not to use either of the recommended parties.

Some onliners have changed their model to include No Sale-No Fee options and now HouseSimple has followed suit with a charge of £795 including VAT.

Online agents have long been criticised for in theory saving money for sellers but in practice taking up-front and/or fixed fees which the vendor had to pay, even if a property did not sell.

Online agency HouseSimple is introducing a High Street agency style No Sale-No Fee option for vendors, with a reduced fee if they choose to use the firm’s recommended conveyancer and mortgage providers.

This will run alongside its existing £395 including VAT fixed fee option, where the fee is payable on completion of the sale or after 12 months. It replaces the Pay-as-you-Go fee option, which HouseSimple trialled last year.

However, to qualify for the £795 fee option a vendor would need to use both a conveyancer and a mortgage provider recommended by HouseSimple.

If the vendor uses one or the other - but not both - the fee is £895, and £995 if they use their own conveyancer and mortgage broker. All fees are including VAT.

“We have introduced the No Sale No Fee model because we recognize this is a structure that the British public are familiar and comfortable with. For people who have never sold a property online before, there is always likely to be a degree of uncertainty about paying up front. It’s understandable for them to think, if I pay my money upfront, how committed will they be to selling my house?” admits the agent’s chief executive, Alex Gosling.