Starting up an estate agency

Vincenzo

Chuck Norris,

I considered doing the same a few years ago. My biggest concern was the lead time between winning instructions and actually receiving the fees. Conceivably (sales) you might not receive any income stream for the first 6 months, possibly more. And even then you are unlikely to have sufficient volume to cover your costs.

I calculated that to ensure I could stay afloat long enough to become established I would need a minimum of 12 months running costs in cash at the outset. As you do not need the income this may not be such a big issue for you but for me it was the last nail in the coffin (thankfully!).

It strikes me however that these days a premises is not necessary and perhaps even a hindrance. Why not work from home utilising direct and indirect marketing to achieve instructions and the usual avenues for sales (rightmove etc)?

If you leaflet the area weekly advertsing a 1% fee I am sure it will not be long before you achieve instructions. Your experience and professionalism as a Surveyor will, I am sure, make up for any credibility you might lose by not having a premises. The premises could always follow later once you have tested your business model.

Incidentally in my area (not too far from Dorking) 1% fees are fairly standard from the local independents.

chucknorris

Vincenzo wrote: »

Chuck Norris,

I considered doing the same a few years ago. My biggest concern was the lead time between winning instructions and actually receiving the fees. Conceivably (sales) you might not receive any income stream for the first 6 months, possibly more. And even then you are unlikely to have sufficient volume to cover your costs.

I calculated that to ensure I could stay afloat long enough to become established I would need a minimum of 12 months running costs in cash at the outset. As you do not need the income this may not be such a big issue for you but for me it was the last nail in the coffin (thankfully!).

It strikes me however that these days a premises is not necessary and perhaps even a hindrance. Why not work from home utilising direct and indirect marketing to achieve instructions and the usual avenues for sales (rightmove etc)?

If you leaflet the area weekly advertsing a 1% fee I am sure it will not be long before you achieve instructions. Your experience and professionalism as a Surveyor will, I am sure, make up for any credibility you might lose by not having a premises. The premises could always follow later once you have tested your business model.

Incidentally in my area (not too far from Dorking) 1% fees are fairly standard from the local independents.

I'm slowly beginning to realize that this isn't such a good idea, which was really why I started this thread to confirm that realization once and for all. The main downside is that I can get a good salary by simply going back to work whereas there obviously are many unkowns associated with starting up a new business in which I have no experience.

MrsManda

chucknorris wrote: »

I'm slowly beginning to realize that this isn't such a good idea, which was really why I started this thread to confirm that realization once and for all. The main downside is that I can get a good salary by simply going back to work whereas there obviously are many unkowns associated with starting up a new business in which I have no experience.

Don't give up finding something you want to do with your time. Perhaps an estate agency isn't a good idea (in the last two years I've noticed 3 independent EAs have shut down in my local area) but there are plenty of other options.

SimonMrGreenWard

If this thread alone has put a dampener on the idea, starting your own business 100% isn't for you. I had 1000 people tell me my idea wouldn't work, 9 months in and I've just sold first licence/franchise and my office is doing okay.

You do need a lot of money to start up, but most importantly, you need to have a decent USP and put in a shed load of intelligent, hard work.

I don't do any paper advertising whatsoever. Complete waste of money. Charge fixed fees and get most properties that I go on valuation for. Getting called out is the hardest part!

chucknorris

SimonMrGreenWard wrote: »

If this thread alone has put a dampener on the idea, starting your own business 100% isn't for you. !

This thread was posted when I had virtually dismiised the idea but thought I would post it to see what input/ideas it brought before I finally dismiised the idea.

I have been running my own business since 1979.

Vincenzo

chucknorris wrote: »

This thread was posted when I had virtually dismiised the idea but thought I would post it to see what input/ideas it brought before I finally dismiised the idea.

I have been running my own business since 1979.

Do you mind if I ask what business you currently run? Is it related to your work as a Surveyor?

SimonMrGreenWard

"I'm slowly beginning to realize that this isn't such a good idea" That makes it sound like this thread is what made you think it's a bad idea.

It's actually a great idea to start an estate agency, the country is starting to change their views on how best to sell their home. Get in now and establish a business, or wait until the competition is so great for alternatives that it's going to be 100 times harder.

How can you decide if a business is viable or not after such minimal research.

lincroft1710

Your USP is being a Chartered Surveyor. Few agents these days have MRICS or FRICS after their names. I'd certainly invite a MRICS/FRICS to give me a valuation if I were selling and I'd certainly believe a 50 yr old rather than a 20 yr old (sorry 20yr olds no offence intended).

chucknorris

SimonMrGreenWard wrote: »

"I'm slowly beginning to realize that this isn't such a good idea" That makes it sound like this thread is what made you think it's a bad idea.

I have been slowly realizing this for about 6 months ever since I decided that I must do something more with ny time, I am too young at 52 to sit back in early retirement and do nothing


It's actually a great idea to start an estate agency, the country is starting to change their views on how best to sell their home. Get in now and establish a business, or wait until the competition is so great for alternatives that it's going to be 100 times harder.

How can you decide if a business is viable or not after such minimal research.

Because my alternative is to start working as a chartered quantity surveyor again and I can start on a very decent salary of >50k, I think it would be a while before I could earn this as an EA and not without rsik either.

It's been a slow journey realizing what I should do is probably what I used to do.

chucknorris

Vincenzo wrote: »

Do you mind if I ask what business you currently run? Is it related to your work as a Surveyor?

Not really although one of them is not totally isolated, I look after our investment properties and up to two years ago I was also a racecourse bookmaker (how different can you get from being a chartered surveyor than that?).

Since I gave up the racing it has left a gap that needs filling.