PropTech – or property-related technology – is a rising disruptor in the UK’s property services sector. While more traditional estate agencies remain first choice for many home-buyers, the solutions being offered by PropTech firms, are making them increasingly popular among a growing number of home-sellers and buyers.
The latest indication that demand for a well-managed PropTech concept that delivers what it says it will, comes in the form of a new £8 million investment into Nested – the “chain breaking” online estate agent.
Nested conducts an initial, online property valuation, based on publicly available data, the seller’s answers to a few important questions and an algorthym designed for this specific purpose. This valuation is subject to change following a visit from a property surveyor once you decide to list your property with them.
But, where it really differs from traditional estate agencies, is that it guarantees to sell your property for the price it valued it at in 90 days. Or, if it doesn’t Nested will buy the property from you itself after 90 days.
“PropTech online valuation systems are becoming more advanced as is evidenced by the increase in firms using them,” said Newington Green estate agent, M&M Property. “In many cases, however, nothing is finalised without a physical visit from an experienced surveyor, suggesting even the most tech friendly PropTech firm isn’t completely ready to do away with qualified, professional surveyors just yet.
There are some clear benefits to using online estate agencies like Nested, including:
- Speedy initial valuation.
- Guaranteed sale by a set date.
- Certainty for your next move – be it into rented accommodation or your own home.
- Everything being easily available online.
However, the valuation-side of PropTech has so far only extended to the seller’s valuation - and not for mortgage purposes, for buyers. This suggests that while technological advances can be used by the property industry, the likelihood of any sale being completed without an actual surveyor making an appearance at the property, remains unlikely – for now at least.
“Estate agents and surveyors are a much-maligned part of the home buying and selling process in the UK,” said central London estate agent LDG. “But, the fact is that in most cases, they are reliable property professionals who are doing a job that can’t be easily undertaken in any other way.”
However, while the end of estate agents, valuers and surveyors may not be nigh, Nested isn’t the only property company opting for a more PropTech-based approach to the business. Estate agency Zoopla’s purchase of property valuation company Hometrack earlier this year, shows that Zoopla has plenty of faith in the sector.
Of course, it’s unlikely to change Zoopla’s basic proposition – a UK-wide property website with a large online presence, who continues to develop its position as a property expert. But, access to the popular online property valuation service proved by Hometrack, indicates it doesn’t want to miss the boat, should PropTech get bigger, more quickly than it can keep up with alone.
“By buying a well-established PropTech company like Hometrack, Zoopla is making sure it’s got all bases covered when it comes to where the estate agency business goes next,” said Robert Holmes. “All things considered, it’s looking like it will be an interesting few years for estate agents and the property market.”
