When it comes to selling your home, finding an estate agency that offers competitive pricing and a seamless selling process is crucial. One such agency that has been making waves in the UK property market is Strike, formerly known as Housesimple.
What sets Strike apart from traditional high street agents is its promise to sell your home for free. But how does Strike make money if they don't charge any fees?
In this insight, we look into the innovative business model of Strike and explore the various ways they generate revenue while providing a free basic service.
Strike generates revenue through premium services like professional photography, high-quality floorplans, premium online listings, and dedicated account managers. They also earn referral fees by connecting customers with trusted partners such as mortgage brokers and conveyancing solicitors.
Strike is a UK-based online estate agents that operates in England and Wales. Since its inception in 2019, Strike has gained traction in the market by offering a range of services, including buying and selling homes, property management, and mortgage services. As a digital estate agency, Strike leverages technology to streamline the buying and selling process, providing customers with a user-friendly platform and transparent pricing. The company has garnered positive reviews for its competitive pricing, value for money, and commitment to customer support.
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Strike's primary selling point is its free basic service, which allows homeowners to list their property without incurring any agent fees. So, what exactly does this free service entail? When you choose Strike, you can expect the following:
Strike enables you to list your property on popular online portals such as Zoopla for free, maximizing its visibility to potential buyers.
Strike allows you to build a personalized package that suits your specific needs. This flexibility ensures that you only pay for the services you require.
Despite being a free service, Strike offers assistance in negotiating offers and progressing your sale. This added support ensures that you have guidance throughout the selling process.
While these features form the core of Strike's free service, it's important to note that certain enhancements and additional services come at a cost. Let's explore these optional extras in more detail.
While Strike's basic service is free, the company offers premium services for customers who desire additional support or an enhanced selling experience. These premium services include:
To showcase your property in the best light, Strike offers professional photography services at an additional cost. High-quality photos can significantly enhance the appeal of your listing and attract more potential buyers.
Strike provides the option to include high-quality floorplans, giving potential buyers a clear understanding of your property's layout. This feature can be particularly beneficial in attracting serious buyers who value detailed information.
By opting for a premium listing, your property gains increased visibility on online property portals. This enhanced exposure can attract a larger pool of potential buyers, increasing the chances of a successful sale.
For personalised support throughout the selling process, Strike offers access to a dedicated account manager. This professional can provide guidance, answer your queries, and ensure a smooth selling experience.
By offering these premium services, Strike generates a consistent source of income, allowing them to maintain their free basic service for homeowners.
In addition to premium services, Strike also earns revenue through referral fees. When customers choose to work with Strike's recommended partners, such as mortgage brokers or conveyancing solicitors, the company receives a commission. This partnership arrangement benefits both parties involved. Customers gain access to streamlined services with trusted providers, while Strike generates revenue through the referral fees earned.
To truly understand the value proposition of Strike's free service, it's essential to compare estate agent fees in the UK. Traditional high street agents typically charge a percentage fee based on the final selling price of the property. This fee can range from 0.75% to 3.5% plus VAT, with additional charges for marketing, photography, and other services.
By offering a free basic service, Strike disrupts the traditional fee structure and provides homeowners with an alternative option. While some may argue that not having an experienced agent to negotiate on your behalf could result in a lower selling price, Strike's transparent pricing and customizable packages appeal to those looking for cost-effective solutions.
Strike is part of a growing trend in the real estate industry, where online estate agents are challenging the dominance of traditional high street agents. Online agents like Strike offer several advantages, including lower overhead costs and increased flexibility. With no physical shop fronts or branded vehicles, online estate agents can pass on these savings to customers while maintaining a high level of service.
However, it's important to note that online estate agents may not be suitable for everyone. Homeowners should consider factors such as their location, property demand, and their own comfort level with conducting viewings and negotiations.
One of the key indicators of an estate agency's performance is customer satisfaction. Strike, in its previous incarnation as Housesimple, has received positive reviews from customers for its competitive pricing, user-friendly platform, and transparent processes. However, it's worth noting that customer satisfaction can vary based on individual experiences and expectations.
Before choosing an estate agent, whether it's an online agency like Strike or a traditional high street agent, it's crucial to do your due diligence. Research multiple agents, read reviews, and consider factors such as reputation, customer support, and market dominance in your area. Ultimately, the decision should be based on a combination of factors rather than solely focusing on the cost aspect.
Strike, the free online estate agency, has disrupted the traditional fee structure in the UK property market. But, how do strike make money? By offering a free basic service, customisable packages, and a range of premium services. Strike has attracted homeowners looking for a cost-effective and transparent selling experience. Through referral fees and optional extras, Strike generates revenue while maintaining its commitment to free basic services. Whether you choose an online estate agent or a traditional high street agent, thorough research and careful consideration are essential to find the best agent for your specific needs.
Stuart is an expert in Property, Money, Banking & Finance, having worked in retail and investment banking for 10+ years before founding Sunny Avenue. Stuart has spent his career studying finance. He holds qualifications in financial studies, mortgage advice & practice, banking operations, dealing & financial markets, derivatives, securities & investments.
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