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Buying an estate agents a few questions

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  • Buying an estate agents a few questions

    Does anyone think like me that the market is on the up,
    and now would be a good time to invest in buying an established estate agents.

    I currently have an offer pending. But as an invester in property iam new to actuly running an estate agents.
    So i will be employing a manager and a couple of agents.

    I have a few questions.

    What is the avarage monthly salary for a manager to run the office, and how much commission does the manager earn?

    What is the avarage monthly salary for an estate agent, and how much commission do they earn.

  • #2
    Originally posted by NEIL View Post
    Does anyone think like me that the market is on the up,
    and now would be a good time to invest in buying an established estate agents.

    I currently have an offer pending. But as an invester in property iam new to actuly running an estate agents.
    So i will be employing a manager and a couple of agents.

    I have a few questions.

    What is the avarage monthly salary for a manager to run the office, and how much commission does the manager earn?

    What is the avarage monthly salary for an estate agent, and how much commission do they earn.
    If you want to be taken seriously, my advice would be to use a spell checker.

    Comment


    • #3
      If you're going to buy an established business with (I assume) the manager and agents that are there at the moment, then I'd suggest that you pay them the same as they're getting at the moment......

      In the current climate, I'd also suggest, rather than asking how much commission everyone gets, that you work out how much commission is available in your marketplace (you take a recent months' worth of sales from Zoopla, calculate the total sale value and apply the average commission charged in your area to this figure). Armed with this figure, estimate this agency's current market share and apply this percentage to the commission available for a month.

      This will give you an approximation of the business income coming in. Deduct your expenses, and then come back and let us know how much is left to pay the salaries, if any.

      Some people would say the above is part of a business plan.

      Do you have a business plan?

      If you haven't at least done some preliminary investigation along these lines, there's little likelihood we can help you.

      Comment


      • #4
        ..and if the market IS on the up, why are the EAs actually selling the business to you?

        Comment


        • #5
          Funny, but I keep picturing the OP in The Dragon's Den, pitching this to Theo, James, and the others and imagining the comments that would result.....

          What research has the OP done so far?

          Is there a business plan?

          What profit did the EA make last year? What turnover? What's projected turnover for next year? etc etc

          Comment


          • #6
            think the answer is pretty clear .... more research needed

            Comment


            • #7
              Thanks; I had an afterthought -

              "If you're going to buy an established business with (I assume) the manager and agents that are there at the moment, then I'd suggest that you pay them the same as they're getting at the moment...... or else they're likely to convert themselves to an ex-manager and ex-agents in the blink of an eye."

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              • #8
                Originally posted by NEIL View Post
                Does anyone think like me that the market is on the up
                Not here - the supposed busiest months of the year for property buying were relatively quiet.

                Watching out to see how things look over the winter, and not expecting good things.

                Comment


                • #9
                  Originally posted by brian View Post
                  Not here - the supposed busiest months of the year for property buying were relatively quiet.

                  Watching out to see how things look over the winter, and not expecting good things.
                  I had a relatively good July and an excellent August but September so far has been poor. It's a bit like a heart monitor with blips but I have a horrible feeling it will flatline over November and December. I'm not giving up yet though

                  Comment


                  • #10
                    We operate a Central Portugal estate Agency, we have seen a slight increase in sales to buyers from the uk, over the last 2 months, this increase might be telling us something about how things are over there. maybe its getting better and people are selling, which allows them to make the move to Portugal.

                    on a different note, any estate agents over there that are feeling a bit fed up with the uk market, we do have some sales roles available in a couple of our Satalite branches. if you fancy swapping what your selling now to sell in the sun!
                    www.gekkoportugal.com
                    A guide to buying property in Portugal
                    www.chavetejo.com
                    INCI Estate Agents, AMI 7856

                    Comment


                    • #11
                      Re: Buying an estate agents a few questions

                      There are a number of answers to this question depending on different variables which should be taken into account when deciding on a wage, like experience and location of the EA. In my office I would expect to pay a manager between £25-30,000 if there were no commission and for a sales negotiator about £15,000 with a commission structure on top, that way they need to work to get the busines.

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