Sell your house at Tesco for £200!!

trolleymate

googler wrote: »

Learning to spell might be a good 'stert' .....

Missed you Googler.
Wonce eye sort out spelling, have you any constructive advise on how to stert up a Fixed Price Property Marketing company.

trolleymate

googler wrote: »

trolleymate was asked this earlier, but has yet to reply....

Already been answered, have a look back over posts.
Then get back to me if you need any further advice.

googler

property.advert wrote: »

What Estate Agents singularly fail to understand is that if they are prepared, to value a house worth £100,000 and put it on their books at 1.5% and collect £1500 on a sale, and they are prepared to do this, they are not doing any more work on a house which costs £500,000 and upon which they would like to trouser £7500.

No-one can honestly begrudge them a living but it is the extra £6000 which is unwarranted. They have never understood that and just expect us to feed their desire for better company cars.

So unless they sort themselves out, I will laugh all the way as they die off as an outdated concept.

The base question is - do they make a profit on the £1500? If not, then that's what's called a 'loss leader' and the fees on the higher value properties subsidise the lower........ and all the fees for the sales that reach a successful conclusion subsidise those that don't, and all the free work that's done for the public at large.

I asked this elsewhere - would you pay an EA by the hour?

I'll add to that - would you pay an EA to visit a home for your valuation? If not, why not?

I also asked elsewhere - if the EA is charging 1.5%, and sells 3 houses at the following levels, and charges this percentage;

90,000 * 1.5% = 1350
180,000 * 1.5% = 2700
400,000 * 1.5% = 6000

then the total income, pre-expenses, is £10,050. For the EA to maintain the same income level would seem to demand a flat fee over these transactions of 10000 / 3 = £3,350

The owner of the £400k property will be laughing, the other two crying.

googler

trolleymate wrote: »

Missed you Googler.
Wonce eye sort out spelling, have you any constructive advise on how to stert up a Fixed Price Property Marketing company.

Certainly.

Appear professional at all times in written and verbal communications.

1 Prepare a budget.
Depending on results of the above, 2 secure start-up funding.

3 Prepare a business plan, part of which will no doubt focus on income vs. expenses - and will hopefully determine if you, like your pals in the existing Fixed Price agencies that you've cited, can actually make a living on £499 per property. Can you?

4 There is no 4. You'll no doubt be busy with 1 - 3 for a while.

---

Here's a thought - are your Fixed Price pals actually doing this FULL TIME? If it's merely a sideline to their other business interests or occupations, that might have some bearing on the discussion........

googler

trolleymate wrote: »

Already been answered, have a look back over posts.
Then get back to me if you need any further advice.

Obviously I've misplaced the reading specs, as I can't find it - not in this thread anyway.

Perhaps you'd oblige me with the post number in which you answered it. You know, the #48, #49 indicator......

trolleymate

googler wrote: »

The base question is - do they make a profit on the £1500? If not, then that's what's called a 'loss leader' and the fees on the higher value properties subsidise the lower........ and all the fees for the sales that reach a successful conclusion subsidise those that don't, and all the free work that's done for the public at large.

I asked this elsewhere - would you pay an EA by the hour?

I'll add to that - would you pay an EA to visit a home for your valuation? If not, why not?

I also asked elsewhere - if the EA is charging 1.5%, and sells 3 houses at the following levels, and charges this percentage;

90,000 * 1.5% = 1350
180,000 * 1.5% = 2700
400,000 * 1.5% = 6000

then the total income, pre-expenses, is £10,050. For the EA to maintain the same income level would seem to demand a flat fee over these transactions of 10000 / 3 = £3,350

The owner of the £400k property will be laughing, the other two crying.

As I have said in previous threads, there have been fixed price agents working for the last three years for fixed prices from £499.00. Valuation, sign, marketing on Rightmove, marketing locally, and providing all the other services to boot.
Properties prices ranging from £60000 to £400000. To be still in business and business growing they must be doing it right, they are selling properties and there customers must be happy enough to recommend them.

Think we have covered all the figures in more ways than enough.

More options, more competition, no monopoly, leads to fairer pricing.

As a Landlord and property developer I know where my business will be going when selling. Even with negoitiations on multiple properties Fixed Price agents come out on top every time in both service and price.

Sold.

trolleymate

googler wrote: »

Certainly.

Appear professional at all times in written and verbal communications.

1 Prepare a budget.
Depending on results of the above, 2 secure start-up funding.

3 Prepare a business plan, part of which will no doubt focus on income vs. expenses - and will hopefully determine if you, like your pals in the existing Fixed Price agencies that you've cited, can actually make a living on £499 per property. Can you?

4 There is no 4. You'll no doubt be busy with 1 - 3 for a while.

---

Here's a thought - are your Fixed Price pals actually doing this FULL TIME? If it's merely a sideline to their other business interests or occupations, that might have some bearing on the discussion........

Thank you for your advice.
I am sure I will make many friends in the Fixed Price market place.
Will keep you updated on progress. You may very well learn something new.
Hope you find those spectacles, torch, whatever.

trolleymate

By the way your figures in #134 are flawed to say the least.

Any thoughts on a poll anybody. Too early ?

trolleymate

Night, night Googler, look forward to your inspirational posts tomorrow.

Patr100

So fixed fee EAs are paid regardless of whether they sell your house? Yes or no?