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Startup Advice

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  • Startup Advice

    Hi,

    I'm thinking of setting up an estate agents business but had a few basic queries and wondered if anybody would answer them?

    Basically how many houses a month could you expect to sell once fully established?
    On average how many properties do you have on your books and how many new one's do you get each month?

    Thanks in advance!

  • #2
    Re: Startup Advice

    All of this depends on so many factors that it's impossible to give you any answers that would actually be relevant.

    I know of several estate agencies that have started up within the last three years and their success rate varies massively - from one that has quickly become one of the most dominant agents in the town where they are based, to another who have taken on no more than 20 properties and sold no more than three since they started around 18 months ago.
    ____________________________________________
    Property for sale in Torquay

    www.thomasdobner.co.uk

    Comment


    • #3
      Re: Startup Advice

      Thanks IFA

      Perhaps I should re-phrase.

      What would be an achievable average?

      Obviously if I'm totally rubbish I'll get none, and if I'm mega successful I'll get hundreds - but simply from a business plan point of view I just need to know what I should at least be aiming for? Perhaps 0-20? 0-10? 0-5?

      Thanks again.

      Comment


      • #4
        Re: Startup Advice

        Sorry wannabe, I don't mean to be evasive but I still don't think it's as straightforward as that. For example - if you are a one man franchisee who's working from a home office your level of business is likely to be much lower than a High Street office with six staff.

        The answer depends on so many factors - your location, your business set-up, your geographic area of operation, your number of staff, your prior experience, your target market, your network of associates, the quality of your staff, the quality of your presentational skills, the quality of your website and advertising presence, the amount of hard graft you are prepared to put in etc. etc.

        Personally I think you should approach the question from a different perspective - ie calculate how much it will cost you to run your business in the way that you are planning to operate, look at the average sales prices and find out the typical estate agency fees in your area. From this you will be able to calculate how many properties you need to sell in any period to make a living from your business at the level of income that you need to earn for yourself. If the market share that you would need to grab hold of seems realistic for you then maybe think about giving it a go.

        You can get some insight into what the market is like (and also an idea of average number of listings you might be able to achieve) by searching on a property portal for recently listed property in your location (ie, go to Rightmove, zoopla or findaproperty and search for your town, then select the option that narrows your search down to property listed in the last week, or the last month etc). This will give you an idea of the size of the opportunity you have available local to you but it would be best to do this research over a prolonged period of time so that you can get a proper feel for the average number of listings during the course of a year.

        You might also be able to identify one or more agents that are similar in size to the business you plan to establish and monitoring the activity of those businesses might give you a better idea of how your business could perform. You can also use property portals to search for sold properties in the last week / month etc and from this you can possibly calculate the amount of commission you could expect to bring in.

        As an addendum to my last message - the business that I mentioned that is doing very well in a short period of time is run by two very well experienced directors who have been in estate agency many years between them and know the business and the local market very well. The business that has struggled to get off the ground for the last 18 months is headed by a single person who has never worked in property before but thought it would be a good thing to have a go at.

        From your questions I would guess that you don't have experience in the business, otherwise you would already have a good idea of your answers, and whilst I appreciate that a lack of experience or knowledge is not a guarantee of future failure it does mean that you have to be very certain that you know what you are doing before you invest time, effort and money into a business that you do not fully understand in advance.

        Sorry if that sounds rude, I don't mean it to, I just know that estate agency is not as easy as many people think and just because anybody can do it without qualifications or regulation doesn't necessarily mean that anybody can do it successfully.
        ____________________________________________
        Property for sale in Torquay

        www.thomasdobner.co.uk

        Comment


        • #5
          Re: Startup Advice

          Thank you IFA,

          No, you're not coming across as rude - honest answers is what I need!

          Thanks for your input, it has been very useful.

          Regards

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