Just a thought ... how do estate Agents make money ?

bullinn1

Rainy Saturday morning and I was just letting my thoughts wander as we had a valuation from an Agent yesterday ... he seemed pretty desperate (fee 0.75% + VAT) ... though we'll probably go on-line as that's still £4K.

I live in Christchurch Dorset, draw a circle a mile or so radius and most of the area is marshland or water but within that circle are 20 or more (maybe as many as 30) Estate Agents, there are 15 in the town itself, more than all the coffee shops and charity shops put together. Outside that circle you hit the neighbouring conurbations and they have their own agents. How can so many Agents survive on what must be slim pickings from such a small geographical area, there can't be that many properties on the market at any one time and even when they get there full fee (1% plus) there can't really be enough money to pay the rent on their very plush expensively furnished premises, glossy display stands and their extensive staff and overheads. If anyone has any ideas I'd love to hear them ....

Pixie5740

Commission from selling mortgages and insurance perhaps. Do some of them also operate as letting agents, that can be up to 10% of the rent for doing almost SFA plus all the juicy tenants finder fees and fees for unnecessary renewals.

bullinn1

Some of them do manage rentals but I haven't included the sole rental agents in my figures - there are another half dozen of them ! ... and do people really buy mortgages and insurance from an Estate Agent ? ... maybe they do but it can't be a big money spinner ...

Pixie5740

Yes some [STRIKE]suckers[/STRIKE] people do still use estate agent's in-house financial services.

SailorSam

A few hundred quid commission just for sticking a card in their window.
When the newsagent next door to them only charges 10p a week to put a card in his window.

bullinn1

"A few hundred" ... I think the average is well over £5K ....

Smartsaver7

In my case by over inflating the price of my house , stitching me up to a fixed rate based on that price instead of a % rate of final sale.

And before you ask it went to the property Ombudsman and it was found in my favour.

Next time will be using an online agent

marksoton

rogertb wrote: »

Rainy Saturday morning and I was just letting my thoughts wander as we had a valuation from an Agent yesterday ... he seemed pretty desperate (fee 0.75% + VAT) ... though we'll probably go on-line as that's still £4K.

I live in Christchurch Dorset,

Roger. I know it's Christchurch and the the highest population of OAP's in the UK but come on man.

You need to buy a dog or something.

Kyresa

If you go with a Romans estate agent recommended solicitor, of the £799 solicitor fees you are quoted, Romans take HALF of that

All adds up.

lincroft1710

Rightmove lists more properties for sale in neighbouring New Milton than Christchurch

principlecounts

SailorSam wrote: »

A few hundred quid commission just for sticking a card in their window.
When the newsagent next door to them only charges 10p a week to put a card in his window.

Think 4 P's: Product, Place, Price, Promotion.