Starting up an estate agency

princessamy86

chucknorris wrote: »

Thanks for your input and I do appreciate what you say about people being unrealistic about the value of their properties, it must be difficult to find the right balance between realism and picking up the business.

My wife and I currently own 8 properties that we rent out (and manage ourselves, me since 1991) so adding on lettings would be a certainty. I am glad I posted this thread because i am merely in the very early stages of considering whether to either go back to work or start a business. The real me is business orientated, however there is part of me that might just want to simply keep life simpler too.

It's very very rare that we won't take a property on because of price! You just can't afford to lose the potential business, the downside is you spend the next 3 months trying to squeeze blood out a stone and get the vendor to reduce the price. Whereabouts are you if you don't mind me asking?

chucknorris

stebiz wrote: »

Hi Chuck,

In answer to a couple of points. I tried the 'honesty is best policy approach' but human nature meant that many sellers went with who said they'd get the most. Sad I know, but that's how it was!

I never had too many in terms of sales, who did the 'dirty', maybe about 10% of them.

My main expense was advertising and salary. With all the hassle I had on a daily basis, it just wasn't worth it.

If you do go with it, I wish you all the best.

So my 11% experience wasn't abnormally high in your opinion then, that is something that I to be honest completely overlooked (even though back in 1991 I encountered it)

chucknorris

princessamy86 wrote: »

It's very very rare that we won't take a property on because of price! You just can't afford to lose the potential business, the downside is you spend the next 3 months trying to squeeze blood out a stone and get the vendor to reduce the price. Whereabouts are you if you don't mind me asking?

Dorking in Surrey

stebiz

chucknorris wrote: »

So my 11% experience wasn't abnormally high in your opinion then, that is something that I to be honest completely overlooked (even though back in 1991 I encountered it)

No, I think you are about right!!

princeofpounds

I don't know where you live, but one USP would be being open late and weekends.

I'm currently looking for a letting, and it's a realy pain because every agent wants to start at 9 and end at 6, which means i'm constantly ducking out of work.

Also never understood why all the dry cleaners in London close on sundays either.

princessamy86

chucknorris wrote: »

Dorking in Surrey

Not much experience of that type of market myself! It's commuter belt isn't it? You might get away with 1% or just slightly higher, the reason we can't do it in my area is because there's a lot of houses for around the £100k mark, 1% of that just isn't enough. We get a 1% fee on repossessions, it drives me mad because there's piles and piles of paperwork and we're walking away with £700 if we're lucky.

Oh and just to add my two pennies worth: it's very rare a buyer will approach a vendor direct or vice versa, I think it's happened once in 2 years of me working at this office. The worst offenders for not paying fees are new build developments: they tempt you in with sole access of marketing the development, use you for advertising and then refuse to allow you to conduct viewings. Before you know it, all properties have been sold and mysteriously none of the sales have gone through your office.

chucknorris

princeofpounds wrote: »

I don't know where you live, but one USP would be being open late and weekends.

I'm currently looking for a letting, and it's a realy pain because every agent wants to start at 9 and end at 6, which means i'm constantly ducking out of work.

Also never understood why all the dry cleaners in London close on sundays either.

My wife and I always thought the best hours for an agent would be Mon -Fri 11am - 7pm
Sat- Sun noon -6pm

Maybe close one weekday?

So the public can have access to you when not at work.

I must say though that what Stebiz has brought to my attention is quite a serious disadvantage which I had not considered (ie clients cutting out the agent). But I suppose it's even more important to be aware of the bad news as the good, I think this will put me off to be honest, it's creates a big hole in the feasability

Owain_Moneysaver

chucknorris wrote: »

My wife and I currently own 8 properties that we rent out (and manage ourselves, me since 1991) so adding on lettings would be a certainty.

IMO there is a big difference between sales and lettings, and the successful lettings agencies appear to be usually the ones that concentrate on lettings.

You also have experience in lettings, and presumably as a surveyor property maintenance and project management, so concentrate on that rather than on sales.

Might there be an opportunity to launch a project management service for BTL investors, they put up the capital for the property and you manage the refurbishment, getting the HMO consents etc, and deliver to them a fully refurbished property with vetted tenants.

That way you would be dealing with properties you had been involved in the refurb and would have planned that to reduce future maintenance liabilities.

princeofpounds

My wife and I always thought the best hours for an agent would be Mon -Fri 11am - 7pm
Sat- Sun noon -6pm

Maybe that would work outside of London. Here there are plenty of people who work until 9 quite regularly, but in reality the main problem is normally leaving before 6pm, and then having to take a 50min tube if you are looking on the outskirts, so nothing before 7 is doable.

If I were in london I'd aim for 9pm.

As for weekends that's not such an important issue as people are generally more flexible. There are plenty of people that work weekends but then they usually have off days during the week and so can do working hour appts.

Timalay

Surely this will be the best estate agents in the world, it'll be run by Chuck Norris. The houses will be sold before the people walk through the door.

Sorry to tempting.