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

phill99

I remember when I was at University years back, my Urban Economics Lecturer explained it like this: If a town has 30 estate agents and 1 petrol station and you were going to open another Estate Agency or a petrol station, which one would it be. We all, in our naivety, said: Petrol Station.


Her said. "No". An Estate Agency. He explained it based on market demand. If a town can only support on petrol station, but 30 Estate Agencies, it can easily support another estate agent, but will struggle to support another petrol station.

anotheruser

Like many jobs these days, high-street Estate Agents days' are marked.
10 years at best left...

Thrugelmir

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

Finding a suitable buyer for your property.

prosaver

purple bricks is catching on

AdrianC

phill99 wrote: »

I remember when I was at University years back, my Urban Economics Lecturer explained it like this: If a town has 30 estate agents and 1 petrol station and you were going to open another Estate Agency or a petrol station, which one would it be. We all, in our naivety, said: Petrol Station.

Her said. "No". An Estate Agency. He explained it based on market demand. If a town can only support on petrol station, but 30 Estate Agencies, it can easily support another estate agent, but will struggle to support another petrol station.

Hmm. Massive over-simplification there, I think...

prosaver

prosaver wrote: »

purple bricks is catching on

had a valuation on my house ..well under the market .....
me thinks quick sale.

had a word with my neighbours and they said they added another 10k to the selling price and sold it.. shocking.

I looked at the sold prices in my street on internet and found the estate agent was after a quick sale

get the cheapest estate agent commission and show the'' would be buyer'' around your house yourself.:)

bullinn1

Thanks for all of the interest though I really don't like EAs I'll almost certainly sell on-line and save around £3K ... "anotheruser" said that they have 10 years left, too long in my opinion, and marksoton ... I have a dog already. My submission was "how do they make money" I just can't work it out. If their outgoings are £15K/month (conservative) they have to earn £180K/annum to cover costs that's 45 houses ... 4 a month x 20 agents, that's 80 houses a month ... there really aren't 80 houses a month being sold in little old Christchurch ?

NB these calculations are on the "back of a fag packet" and could be extraordinarily wrong ... I didn't pass 'O' Level maths.

BrassicWoman

Fining a buyer is the eaiest bit of the job

Nursing nervous buyers and sellers through to a mutually agreed completion is the bulk of it

I had a chain, and I would not have been without my EA.

skintpaul

house same commission
rental fees / commission
referral fees to other services- lawyers, surveyors, etc.
mortgage / insurance commissions. (building cover, life cover = easy money!)

bullinn1

Thanks again chaps ... it's unbelievable really, I should have become an agent. I've known a few and some of them are bright and genuine, several were 'used car dealers' made good (I know, some good car dealers out there as well). The 'hybrid' on-line agents offer a local 'specialist' to help out with chains and stuff (though probably not the bondage variety) !