A new breed of discount property brokers, 'virtual agents', is appearing in Britain.
These online estate agencies offer to market homes at one-tenth of the price of traditional estate agents.
According to Peter Joseph, founder of online estate agency Think Property, there were only 10 web agencies in Britain six months ago, but now there are about 100.
The virtual agencies typically charge a fixed-rate fee that works out at less than commissions at traditional estate agencies. Many online agents will market homes for less than GBP400,000 (HK$5 million), but a typical fee charged by traditional agencies is 1.5 per cent of the sales price, which means the vendor of an average-priced property would need to pay about GBP3,615 if an agent finds a buyer. According to the Land Registry, the average price of a British home is GBP241,000.
Most services provided by traditional agencies are offered by online firms, including property valuation, negotiating a sale and putting up a 'For Sale' board outside the home.
However, online firms focus solely on marketing a client's home through internet property portals like Zoopla and Rightmove, dispensing with traditional media, including magazine adverts and leaflets.
Joseph said marketing online is the most effective way to sell a home. 'Everybody searches for property online, so why do we need the traditional high street estate agency model?' he said.
