How are estate agents surviving?

neverdespairgirl

BBC article shows that the times are tough for EAs. Shame.

The number of properties being sold across the UK has hit a 30-year low. So how are estate agents managing to survive?
Phrases like "would suit DIY enthusiast", "efficient use of space" and "incredible potential" have made them figures of fun.
But estate agents - with their unique line in salesmanship - are struggling through a very dark period. In September, they sold on average less than one property per week each, the worst since 1978, says the Royal Institution of Chartered Surveyors.
Halifax Estate Agents has announced plans to close 53 of its High Street branches by the end of 2008, while the Centre for Economics and Business Research has estimated 15,000 estate agents will have lost their jobs by the same date.
"The agents are carrying out the most sensible course of action and doing what any business would do in this sort of situation," says Chris Wood, president-elect of the National Association of Estate Agents. "They're cutting costs wherever they can.

http://news.bbc.co.uk/1/hi/magazine/7669052.stm

Conrad

EAs are surviving on rental management income, spouses income, drawing on home equity, cutting costs.

Some I think are bound to fail, and I'm surprised the closures are still minimal in my area. You might find some will give until spring and then throw in the towell if no marked improvment.

Realy

Rentals,
Reposessions,
And getting houses to market at a sensible price.

I know my family member won't take on houses if people want to put them on at an unsellable price. Whats the point of marketing somthing unsellable other than to waste money.

Jorgan_2

Fortunatley the company I work for doesn't have flash offices, fleets of Mercs/Audis/Beemers, (we drive our own cars) so are overheads have been kept low. The property paper went fortnightly rather than weekly which saved a few thousand each month. And we tapped into the reposession market two years ago, which means we sadly have a ready supply of properties available at competitive prices.

On a personal level I have only borrowed for my mortgage, no loans or massive credit card bills for. I believe its called living within your means, something I've always done & am very happy about.

Thanks for your concern Neverdespairgirl.:D

howler_2

"I'm even considering getting a job stacking shelves at Tesco to get some extra cash."

Bit of an insult to Tesco employees for EA's to think they are qualified to work there. I've always found Tesco sell goods which are accurately, openly and fairly priced, as described and the staff to be knowledgable and helpful.......

going2die_rich

Realy wrote: »

I know my family member won't take on houses if people want to put them on at an unsellable price. Whats the point of marketing somthing unsellable other than to waste money.

So that you have them tied in and hope they reduce it while with you.

Pointless in letting the customer go to your competitors. After all, not many people really looking to sell wont drop their prices eventually if they get no interest. Point blank refusing to take them on is just losing you adverts in your window. No one sells with the agent offering the losest valuation after all.

Realy

going2die_rich wrote: »

So that you have them tied in and hope they reduce it while with you.

Pointless in letting the customer go to your competitors. After all, not many people really looking to sell wont drop their prices eventually if they get no interest. Point blank refusing to take them on is just losing you adverts in your window. No one sells with the agent offering the losest valuation after all.

Depends if you want to sell. You can give them a valuation it will sell at if they want to sell do you think they make money by not selling and just advertising?
He sold 11 last week, from what he hears not many doing that. I think the number of sold boards in the area helps.
If he is selling repos in the same street what is the point of saying you will get twice that when he knows they wont.

You could have 1M houses on your books but if you dont sell any your closed.

Austin_Allegro

howler wrote: »

"I'm even considering getting a job stacking shelves at Tesco to get some extra cash."

Bit of an insult to Tesco employees for EA's to think they are qualified to work there. I've always found Tesco sell goods which are accurately, openly and fairly priced, as described and the staff to be knowledgable and helpful.......

LOL good point!

Old lady in Tescos: 'scuse me dear, have you got them tins of baked beans for 18p?

Former EA now shelfstacker: Hahaha is this a joke? Sorry, you won't find tins of beans for that price around here....18p? If I pass that offer on, it would be an insult to the vendor...

Old lady: Oh. Well what 'ave you got for 18p? It's all I've got left of me pension this week.

Former EA: for 18p I can offer you this partially rotted sardine from the bins. It has great potential but requires some cosmetic alteration.

Old lady: Cosmetic alteration? Wossat mean?

Former EA: it means you have to cut the mouldy bits out. Now do you want this, because I've already had three offers on this today, and in the current market, it won't last long. There's a severe shortage of decaying seafood you know.

Old lady: Well alright then dear, you're the professional I suppose, you know best....(fumbles for coppers in her purse)

Former EA. Good. Now you must excuse me, I'm building the worlds largest baked-bean tin pyramid....

hethmar

Well the small independents stashed the cash during the boom period - our local owner/ea is still driving around in his Rolls

Realy

howler wrote: »

"I'm even considering getting a job stacking shelves at Tesco to get some extra cash."

Bit of an insult to Tesco employees for EA's to think they are qualified to work there. I've always found Tesco sell goods which are accurately, openly and fairly priced,

If only farmers held your veiw. It's ironic as many farmers have had to use EA's to sell barns etc to support their business due to the presures supermarkets put on their prices.:rolleyes:

adr0ck

howler wrote: »

I've always found Tesco sell goods which are accurately, openly and fairly priced, as described and the staff to be knowledgable and helpful.......

you are taking the mick? please say you are