I was seduced into a so-called 'great value' online estate agent contract, which required me to pay after 10 months.
I put my four-bedroom London home on the market in November 2024 because I was forced to downsize after losing my wife to breast cancer and my job in the NHS within the space of a year.
I am past retirement age and unable to find further work, yet unable to retire due to ongoing financial pressures.
We had previously increased our mortgage to fund an extension, and unfortunately, we did not have life insurance in place. I
was therefore left with a substantial mortgage just as a low fixed rate ended — creating a perfect financial storm.
Against this backdrop, the online estate agent’s hard sell of a 'quick sale' for £2,098 was extremely attractive, particularly when compared with a traditional estate agent fee.
I was impressed by the personable and enthusiastic agent, who praised my property, recommended an asking price of £780,000, and appeared to give it his full attention.
Sadly, once I signed the contract, this enthusiasm evaporated. In six months, there were just two viewings.
It became clear that, having already secured their fee, the online estate agent had little incentive to actively market my property compared with homes listed on a no-sale-no-fee basis.
I eventually instructed another agent, who immediately recommended a more realistic price and generated many viewings, although the property remains unsold due to the flat market.
When the 10-month period ended without a sale, I made a formal complaint to the online estate agent and then to the Property Ombudsman.
The Ombudsman rejected my complaint on the basis that the terms and conditions were clearly stated.
Only after my complaint did the online estate agent arrange a handful of additional viewings, but this did not reflect the level of interest generated by other agents over the same period.
I am now being pursued for £2,098. This is a sum I cannot afford without selling my home. What seemed like a cheap deal has turned into an expensive nightmare.
I believe I was seriously misled into believing the online estate agent would work hard to sell my property quickly at a fair price. While I accept that a sale cannot be guaranteed, the fee demanded is wholly disproportionate to the service I received.
I want the online estate to cancel or reduce the sum I reportedly owe. What are my options?
Jane Denton, of This is Money, replies: Conventional high street estate agencies typically charge buyers a percentage of the sale price.
Traditional estate agent fees generally range from 1 per cent to 3.5 per cent of the property's sale price. Some also offer fixed fees.
Many newer online estate agents promise to sell properties quickly, easily, and at a fraction of the cost of their bricks and mortar rivals.
A relatively new breed of online estate agencies offer to cut the cost of selling by thousands of pounds via a range of basic fees that can be paid upfront or later down the line.
Online-based estate agencies often require the seller to do most of the work themselves, from taking photos and creating an advert to dealing with buyer enquiries, conducting viewings and negotiating offers.
However, many online-only estate agents have evolved into hybrid agencies, employing local property experts to manage buyer enquiries, accompany viewings and negotiate offers.
An online-only estate agency won't suit everyone, and may be best suited to sellers confident in handling most of the process themselves.
Critics argue that some online estate agents are little more than glorified call centres, yet some don't even have a phone number to call. Complaints also often centre on transaction handling, fair treatment and problems with timescales.
The Property Ombudsman has already rejected your complaint on the basis that you signed the terms and conditions of the online estate agency in question.
With this outcome in mind, I would be cautious about going down a legal route to further your claim. This could be time-consuming, stressful and end up costing more than the sum you paid the agency.
I asked three experts for their thoughts on your case.
James Naylor, a partner at Naylor Solicitors, says: Bereavement, job loss and mortgage pressure create significant strain, and it is easy to see why the promise of a quick, inexpensive sale would have appealed.
Legally, the starting point is the contract you signed. The key provisions are the payment terms, any clause making the fee payable after a fixed period even if there is no sale, and any commitments about marketing or service.
Many online agents use a fixed-fee model, sometimes payable at the outset and sometimes, as in your case, triggered after a set period whether or not the property sells.
That differs from a traditional 'no sale, no fee' arrangement, where the agent is paid only on completion.
If the terms stated that £2,098 became payable after 10 months irrespective of a sale, the agent is likely to rely on that clause now the period has expired.
This likely explains why the Property Ombudsman did not uphold your complaint.
You say enthusiasm faded and there were only two viewings in six months, which raises the question of breach.
However, disappointing results alone do not amount to breach.
The issue is whether the agent failed to carry out specific marketing obligations set out in the agreement.
Consumers do benefit from statutory protection. Under consumer law, terms must be fair and transparent.
A core price term avoids scrutiny only if it is prominent and written in plain language.
If the 'pay after 10 months' obligation was buried in small print or overshadowed by assurances of a 'quick sale', there may be scope to argue it was not properly highlighted.
It is also worth considering whether the £780,000 valuation was realistic and evidence-based.
An inflated valuation used to secure your instruction may be relevant if it induced the agreement, although I note the property remains unsold.
You should also check whether proper cancellation information was provided, as this can affect enforceability.
Litigation over a sum of this size is rarely proportionate. A sensible next step would be to write openly to the agent setting out your concerns, and then make a separate ‘without prejudice’ proposal to resolve the matter for a reduced sum or by instalments.
That approach maintains pressure on the merits while signalling a willingness to settle.
Always look beyond the headline fee and examine the structure of the deal. Ask when the fee becomes payable and who carries the risk if the property does not sell. Just as importantly, pause before signing.
Sales pitches create momentum; contracts create liability. When circumstances may be already difficult, the last thing you need is a contract that adds to the burden.
Olivia Egdell-Page, a partner and head of property at Joseph A. Jones & Co., says: As with any professional service, you do rather get what you pay for, and while some agents will always garner work based on prestige and charge accordingly, there are also agents who offer bargain basement prices, which typically reflects in the service they offer.
Where you engage anyone to undertake work for you, payment upfront is never a good idea.
I’m afraid your experience is a stark reminder to check and confirm the terms and conditions are exactly as you understand them to be before signing, and to think carefully about opting for the cheapest route.
An estate agent with a physical presence is much more likely to have a better knowledge of the local area, and may even have a bank of local buyers who are ready and waiting for a property just like yours.
As the Ombudsmen has advised, the fact that you signed a contract to confirm the terms of the agreement with the agency does mean that challenging this at a later stage may not be successful, and indeed the costs of pursuing this with them may quickly exceed the amount you are seeing to recover.
Liam Gretton, owner of Liam Gretton Bespoke Estate Agent on the Wirral Peninsula, says: Online estate agency models are not inherently bad, however they are structurally different and can remove a human element.
Like any industry, there are the good, the bad, the ugly and the incredible.
When a fee is paid upfront, or becomes payable regardless of outcome, I believe the incentive shifts. Traditional no-sale-no-fee agents only get paid when you do sell.
In a flat or uncertain market, pricing strategy is everything. If a property is launched too optimistically, it can lose momentum in the first few weeks and that early window is critical.
Once buyer interest cools, it becomes harder to recover.
A strong, local and I would say personal agent who is actively involved, regularly reviewing feedback, adjusting positioning and proactively speaking to buyers can make a significant difference.
Marketing isn’t an agent taking photos, creating a fancy floorplan and just putting a property on a portal. It is managing pricing, perception, urgency and negotiation.
The challenge with some online or fixed-fee arrangements is that once the listing goes live, the service can become process-driven rather than relationship-driven.
Sellers must be clear on what they are and are not paying for. I always advise homeowners, particularly those under financial pressure, to look beyond the headline fee. Ask more prevalent questions.
What is your average sale agreed percentage? On average, how much percentage do you increase offers? What is your fall through rate? Who will be handling my viewings? How often will we review price?
What happens if the market shifts? And, most importantly, how motivated is the agent to get me the best possible outcome?
Property transactions are emotional and high-stakes. I've always been a believer that if you pay cheap, you pay twice and even when selling property, the cheapest option or the option of an upfront payment is not always the most economical in the long run.
