The end of High Street Estate Agents?

PasturesNew

lush_walrus wrote: »

From the seller. I assume your point is who through? If so a commercial agent. Not sure what your point there is.

The point was, a joke.
OP said they'd brought the business.
Most people find one in the right place and would've bought the business.

cells

In a lot of towns the big 3-5 agents take most the market and the rest get a scrap here and there so averaging across all the agents doesn't make sense.

Also it's not that expensive an industry to operate in.
Something like £50k rent plus £150k for three staff and office expenses. £200k annual costs.

In London selling one a week at 1% commission puts you into profit. Also most do rentals too and its about a 50/50 split for revenue.

michaels

kabayiri wrote: »

Really?

I think you could channel skip all day and all evening and watch wall to wall telly about houses : auctions of houses ; doing up houses ; nasty landlords and slum houses ; selling houses ; dream houses ; SOS housing stories.

If you don't fancy telly, the Daily Mail and Express will oblige with a few dozen house articles a week.

We are much more house savvy these days.

Sure there are lots of things we could all do with a bit of a youtube for 'how to' but nonetheless we choose to pay someone to do it....

Bluebirdman_of_Alcathays

PasturesNew wrote: »

The point was, a joke.
OP said they'd brought the business.
Most people find one in the right place and would've bought the business.

Quite.


For years we have entrusted the sale of our most valuable asset to spivs lacking a basic command of the English language. The sooner the business model dies the better.

kabayiri

michaels wrote: »

Sure there are lots of things we could all do with a bit of a youtube for 'how to' but nonetheless we choose to pay someone to do it....

I think we all need a bit of salespiel soft soaping, to make us believe that our beloved house is "really the pick of the crop on this road".

It was telling that the Apprentice contestants who were good at selling naffly made sandwiches and salads didn't have the sensitive approach needed to sell high value property. Clearly, EAs have a well honed sales competency.

As PN points out, the percentage of house price commission might come under pressure though. Is there really twice or three times as much work in selling a detached house compared to a terrace?

In our local freebie paper, the EA is fighting back by offering free conveyancing, and a guarantee to sell the house in 9 weeks. That's not difficult; quite a few nearby houses have sold recently - none took more than a week.

HENRY78

I just think at this moment in time with mortgage companies quite rightly being more stringent in their lending practises and the general cost of moving more and more people will be looking at the EA charges in more detail as that 4/5k charge (Certainly in the SE) means so much in terms of affordability.


I could quite easily sell my property by myself but appreciate that not everyone is that confident or that way inclined when showing people round negotiating etc. I just think its bonkers that you could use for example purple bricks for a fixed fee at a fraction of the cost a high St EA would charge.


We all do more and more online. Its not going anywhere and I think the high st EA Is going to really suffer and you know what? good riddance!!

PasturesNew

cells wrote: »

Also it's not that expensive an industry to operate in.
Something like £50k rent plus £150k for three staff and office expenses. £200k annual costs.

Business rates can be horrific. Lob in £25k for business rates and basic office expenses.

And don't forget, those "3 staff at £150k" doesn't take into account the "posh Director bloke and his son that are running the business and expect to continue to live exceedingly well" Add in another £150k for those two (minimum).

£425k = £8000/week.

cells wrote: »

In London selling one a week at 1% commission puts you into profit.

But not everybody's in London. If I were to sell my house they'd get about £3k .... I doubt they sell a house/week to be honest.

HENRY78

kabayiri wrote: »

I think we all need a bit of salespiel soft soaping, to make us believe that our beloved house is "really the pick of the crop on this road".

It was telling that the Apprentice contestants who were good at selling naffly made sandwiches and salads didn't have the sensitive approach needed to sell high value property. Clearly, EAs have a well honed sales competency.

As PN points out, the percentage of house price commission might come under pressure though. Is there really twice or three times as much work in selling a detached house compared to a terrace?

In our local freebie paper, the EA is fighting back by offering free conveyancing, and a guarantee to sell the house in 9 weeks. That's not difficult; quite a few nearby houses have sold recently - none took more than a week.

LOL!!!! Most are absolutely useless!!!

kabayiri

cells wrote: »

...
In London selling one a week at 1% commission puts you into profit. Also most do rentals too and its about a 50/50 split for revenue.

London is a good example where independent EAs could offer other USPs.

One could be : speed of response. In a heated market, even a delay of a few days could mean losing out on that dream home.

I'm sure the really good EAs will survive, just like the bookshops which are really well liked will survive.

wotsthat

Remember when the internet was going to kill off newspapers?