Discussion
I was chatting to a mate of mine this evening who has a new, interesting angle on being an estate agent and he thinking about it.
One thing we wern't sure on is that we both believe there are some rules/regulations involved in actually being an estate agent but neither of us knew.
Done a really quick Google, but I couldn't really see much.
Any help would be great.
Cheers
The Moose
One thing we wern't sure on is that we both believe there are some rules/regulations involved in actually being an estate agent but neither of us knew.
Done a really quick Google, but I couldn't really see much.
Any help would be great.
Cheers
The Moose
I discussed this recently with the gf. With the big rates people have to pay these days, I can't see why you couldn't go in with fixed fee's or a lot lower rates to be a online estate agent. No rental of property, have plenty of web presence and get onto rightmove etc.
Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
illmonkey said:
I discussed this recently with the gf. With the big rates people have to pay these days, I can't see why you couldn't go in with fixed fee's or a lot lower rates to be a online estate agent. No rental of property, have plenty of web presence and get onto rightmove etc.
Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
Thing is, £1m properties are few and far between, unless you have experience dealing with them then you won't get the instruction (regardless of fee).Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
More likely your bread and butter will be around the £200k mark.
Now, call Rightmove and see what they charge to list your properties. Then the punters expect nice glossy details to be handed/mailed out. You need to get around to instructions (YOU need to measure up the properties and write the details). You need to arrange these new fangled HIPS packs. You need your own website.
Then to work solely online, you will still need an office, and someone to answer the phones who knows their onions - how frustrating is it to have great service upfront and then speak to some muppet on the back end?
You can't just tie up a sale and then move on. You need to make sure the sale goes through, and sales progression is an absolute art form. Sales Progressors are paid waay more than the muppets with gelled spikey hair.
Remember you only get paid on completion, and then remember how emotional moving house can be for the punter. I've seen my pipeline go from well over £100k of fees to less than £20k almost overnight because a few vendors threw a hissy fit over which light fittings they were going to leave, or if the surveyor found something that devalued the property.
Never underestimate the stubborness of Joe Public.
Now, take all that into consideration and you'll see why Estate Agency fees seem quite pricey, the margins are tighter than a ducks butt!
KingRichard said:
illmonkey said:
I discussed this recently with the gf. With the big rates people have to pay these days, I can't see why you couldn't go in with fixed fee's or a lot lower rates to be a online estate agent. No rental of property, have plenty of web presence and get onto rightmove etc.
Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
Thing is, £1m properties are few and far between, unless you have experience dealing with them then you won't get the instruction (regardless of fee).Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
More likely your bread and butter will be around the £200k mark.
Now, call Rightmove and see what they charge to list your properties. Then the punters expect nice glossy details to be handed/mailed out. You need to get around to instructions (YOU need to measure up the properties and write the details). You need to arrange these new fangled HIPS packs. You need your own website.
Then to work solely online, you will still need an office, and someone to answer the phones who knows their onions - how frustrating is it to have great service upfront and then speak to some muppet on the back end?
You can't just tie up a sale and then move on. You need to make sure the sale goes through, and sales progression is an absolute art form. Sales Progressors are paid waay more than the muppets with gelled spikey hair.
Remember you only get paid on completion, and then remember how emotional moving house can be for the punter. I've seen my pipeline go from well over £100k of fees to less than £20k almost overnight because a few vendors threw a hissy fit over which light fittings they were going to leave, or if the surveyor found something that devalued the property.
Never underestimate the stubborness of Joe Public.
Now, take all that into consideration and you'll see why Estate Agency fees seem quite pricey, the margins are tighter than a ducks butt!
KingRichard said:
illmonkey said:
I discussed this recently with the gf. With the big rates people have to pay these days, I can't see why you couldn't go in with fixed fee's or a lot lower rates to be a online estate agent. No rental of property, have plenty of web presence and get onto rightmove etc.
Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
Thing is, £1m properties are few and far between, unless you have experience dealing with them then you won't get the instruction (regardless of fee).Fees are around 1.5% now (+VAT) that's a silly amount of money on a million pound house!
Approach some people offering to do a introduction rate for them to get some new business.
More likely your bread and butter will be around the £200k mark.
Now, call Rightmove and see what they charge to list your properties. Then the punters expect nice glossy details to be handed/mailed out. You need to get around to instructions (YOU need to measure up the properties and write the details). You need to arrange these new fangled HIPS packs. You need your own website.
Then to work solely online, you will still need an office, and someone to answer the phones who knows their onions - how frustrating is it to have great service upfront and then speak to some muppet on the back end?
You can't just tie up a sale and then move on. You need to make sure the sale goes through, and sales progression is an absolute art form. Sales Progressors are paid waay more than the muppets with gelled spikey hair.
Remember you only get paid on completion, and then remember how emotional moving house can be for the punter. I've seen my pipeline go from well over £100k of fees to less than £20k almost overnight because a few vendors threw a hissy fit over which light fittings they were going to leave, or if the surveyor found something that devalued the property.
Never underestimate the stubborness of Joe Public.
Now, take all that into consideration and you'll see why Estate Agency fees seem quite pricey, the margins are tighter than a ducks butt!
I understand there are other costs involved, office costs etc. We didn't do a business plan
But remove the high street shop costs, you can lower your outgoings.
Moving house isn't a big deal to me, I've moved close to 20 times in my short life, but I understand the issues it causes for some people.
That's the problem... this isn't a business decision for the majority of people. They get offended that their B&Q kitchen doesn't add as much value as a custom kitchen with SMEG appliances. They get offended that people don't like the smell of their dog. The agent has to put up with all this absolute b
ks, because the vendor thinks that as a customer, he should always be right.
They're not.
If I ever went back into it in the future, I would deal solely with commercial and let the hair gel boys fight over Mrs Johnson and her stinking cats.
ks, because the vendor thinks that as a customer, he should always be right.They're not.
If I ever went back into it in the future, I would deal solely with commercial and let the hair gel boys fight over Mrs Johnson and her stinking cats.
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