Jump to content
House Price Crash Forum
Sign in to follow this  
Guest worthless_site

How Are Estate Agents Surviving ?

Recommended Posts

Guest BAREBEAR_soon to be ALIVA

Simple question but they need quick turn around. Advertising, staff and premises costs are all expensive, so whats paying their wages ?

A lot are into rentals too but they only get 10% of the rent every month.

Share this post


Link to post
Share on other sites

Assuming the same number of EAs for Ol9:

Because house prices are so much higher they get more money per sale for selling half the amount in the low priced years...

http://www.home.co.uk/guides/house_prices_...mp;endyear=2009

Some pretty graphs...

Summary of Properties Sold in OL9 in March 2001

Total properties sold: 66

Average price of properties sold: £43,983

Summary of Properties Sold in OL9 in March 2002

Total properties sold: 66

Average price of properties sold: £49,848

Summary of Properties Sold in OL9 in March 2003

Total properties sold: 40

Average price of properties sold: £60,747

Summary of Properties Sold in OL9 in March 2004

Total properties sold: 79

Average price of properties sold: £58,829

Summary of Properties Sold in OL9 in March 2005

Total properties sold: 60

Average price of properties sold: £82,572

Summary of Properties Sold in OL9 in March 2006

Total properties sold: 71

Average price of properties sold: £104,801

Summary of Properties Sold in OL9 in March 2007

Total properties sold: 65

Average price of properties sold: £119,951

Summary of Properties Sold in OL9 in March 2008

Total properties sold: 38

Average price of properties sold: £103,338

Summary of Properties Sold in OL9 in March 2009

Total properties sold: 39

Average price of properties sold: £103,984

Edited by SarahBell

Share this post


Link to post
Share on other sites

I suspect the RIO brigade, combined with extensive staff culling and the weaker competition going pop is keeping many EA's heads above water, for the time being.

Edited by Concrete Jungle

Share this post


Link to post
Share on other sites
Guest BAREBEAR_soon to be ALIVA

Interesting figures !

Why so few sales in 2003 ?

Average prices today dont seem to be that much less than 2007 peak.

Accurate ??

Share this post


Link to post
Share on other sites

i think you'll find they're surviving quite well.

rentals although small will give them the cash they need to tick over and the lower volume of massivly inflated house prices sold will do it. They dont need to make much. What wont be happening is major capital expenditure. Plus they will loose the chaff, the silly people that opened doors, they will do it themselves.

i think alot of estate agents own their premises, especially the long established ones so their overheads are low. Of course, there will be some that are suffering.

Share this post


Link to post
Share on other sites
Interesting figures !

Why so few sales in 2003 ?

Average prices today dont seem to be that much less than 2007 peak.

Accurate ??

I see lots on one road for 104/105 where same street has sold for 84/85 so I think the market is slowly adjusting...

The few streets I'm interested in have also had one massively reduced price (repo) 84k when neighbours have sadly sold for more... (But will post figures on that when they appear)

Lots of stubborn older people trying to downsize are very reluctant to reduce price. Gas hikes etc have got to be seen as a bonus maybe ...?

Share this post


Link to post
Share on other sites
Guest BAREBEAR_soon to be ALIVA
i think you'll find they're surviving quite well.

rentals although small will give them the cash they need to tick over and the lower volume of massivly inflated house prices sold will do it. They dont need to make much. What wont be happening is major capital expenditure. Plus they will loose the chaff, the silly people that opened doors, they will do it themselves.

i think alot of estate agents own their premises, especially the long established ones so their overheads are low. Of course, there will be some that are suffering.

In the last crash we had big companies like Prudential and Halifax closing recently bought chains pretty dam quick.

What I dont get is people like Centro, their stuff is always over priced, their rentals are'nt anywhere near competitive and no tennants I know would dream of using them. Their shop is big and they have a fleet of about 5 cars.

What makes them different from the Prudential EA of yesteryear ? How are they possibly surviving, they were sh1t in the boom time !!

Share this post


Link to post
Share on other sites

There hasn't been an estate agent implosion here in Colchester, but they have clearly learnt from the last crash. I think they are surviving because:

* Most staff pay is commission, and poorly performing staff will tend to leave for other jobs rather than have to be made redundant

* Many have moved into lettings, which is a licence to print money

* Out of town offices have been closed

* Some have diversified (e.g. into IT systems)

* Costs have been reduced (print advertising must be cheap now, online advertising much be cheap as well)

* Many will have huge cash warchests from the boom years.

Share this post


Link to post
Share on other sites
i think you'll find they're surviving quite well.

rentals although small will give them the cash they need to tick over and the lower volume of massivly inflated house prices sold will do it. They dont need to make much. What wont be happening is major capital expenditure. Plus they will loose the chaff, the silly people that opened doors, they will do it themselves.

i think alot of estate agents own their premises, especially the long established ones so their overheads are low. Of course, there will be some that are suffering.

what a totally sh1t existence being an estate agent must be. Lying for a living & conning people every day.

what do you do for a living ?

Share this post


Link to post
Share on other sites

Below is a list of Estate Agents operating out of Gillingham covering the SP8 postal area. All these agents have more than one shop in nearby towns such as Shaftesbury, Wincanton, Sherborne and Salisbury so it hard to see where they get any other income from other than lettings which seems to becoming their mainstay at the moment.

· Chapman Moore

· Nova Homes (not shop based)

· Hambledons

· Commels

· Palmer Snell

· Chaffers

· The home Company (Opened 2009)

· Gilyard Scarth

· Colbert Smith

There are also these that also cover the area but do not have shops in the town. I would imagine they cover a much wider area therefore I have not included them in the charts below.

· Savills

· Strutt + Parker

· Chesterton �" Humberts

· Symonds and Sampson

· John D Wood

· Jacksons, Stops & Staff

· Fox Grant

Bellow are three graphs showing the sales by value and volume from 2001 to date. The data is based on the land registry and the calculations assume that the EAs in the top list achieve no other sales from beyond the SP8 postal area. The EAs in the bottom list are not included. The final graph uses this data to give average EA monthly takings based on 2% commission.

Volume.jpg

Value.jpg

Takings.jpg

Note, 2009 is a projected number based on the first four months data.

Now, there are some pretty wild assumptions in these graphs such as the commission not changing since 2000 and EA not achieving sales from beyond SP8 but it does give an overview of the situation they are facing and have been here since early 2008.

post-12574-1245841645_thumb.jpg

post-12574-1245841661_thumb.jpg

post-12574-1245841676_thumb.jpg

Share this post


Link to post
Share on other sites
what a totally sh1t existence being an estate agent must be. Lying for a living & conning people every day.

what do you do for a living ?

Don't let it bother you. I doubt if hardly any will exist in five years time.

Share this post


Link to post
Share on other sites
Guest BAREBEAR_soon to be ALIVA
Don't let it bother you. I doubt if hardly any will exist in five years time.

Well they seem to be existing now in these hard times what makes you think there will be hardly any left in 5 years time ?

Share this post


Link to post
Share on other sites
Guest X-QUORK
what a totally sh1t existence being an estate agent must be. Lying for a living & conning people every day.

You forgot to include mortgage advisors, IFAs and retail bankers. Take some fish oil GOM. ;)

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   292 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.