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spyguy

How Much Does An Ea Office Make?

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This follows on a bit from the launch of onthemarket.

I was looking at Rightmove's figures. Their profit margin is 75% on about about 150m of revenue.

All from EAs. HaHaHaHaHa. God, I wish I'd set something similar up.

RM charges 720/month for each office.

(On I side note I offered to help set up system - not a website - to do similar for 300/month/office).

My home town has 1 EA operating only in the town.

2 other local ones that operate in one other town.

A local solicitor that (still) sells houses as a side line.

And a few large, regional EAs who are based 50 odd miles away but advertise in the local papers).

A quick look on houseprice.io (fantastic site!) shows that there a total of 14 sales for Dec 14.

I would guess an average commission (being generous + keeping the maths easy) of 2k/house.

This is in the local area - the local town + ~15 mile radius, covering some very large villages.

So, Dec 14 saw about ~30k of revenue to be shared over 3 local offices.

I would guess (but I dont know) that the larger, cheaper EAs take half the business.

The EA operating only in the town has the equiv. of 7 full-time employees.

The satellite offices of the other 2 have about 3 full-time employees.

Take out - rent, rates, RM fees, utilities.

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The EA I work for has a submission program for details to multiple sites, not just RM.

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Foxtons had about 50 branches in 2014, 2014 EBITDA is forecast to be £46m,

http://www.foxtonsgroup.co.uk/investors/results/files/foxtons_group_plc_trading_update_20150127.pdf

I don't believe they have any debts to service, and I doubt depreciation or amortisation are all that significant in the scheme of things (how long before a desk wears out?)...so about a million quid a branch.

I guess that's pretty much the upper limit, and by their own admission it's rental business that driving any growth. So a local EA office outside of London that hasn't built much of a rental operation might be struggling to achieve a tenth of that.

Edited by silver surfer

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How many houses sell in the area a month and how much is made to divide by all of them. Have a guess at how many each sell and then you know.

Loads of them also do letting agency stuff and some are landlords themselves. In a really good position to take advantage of anyone selling?

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This follows on a bit from the launch of onthemarket.

I was looking at Rightmove's figures. Their profit margin is 75% on about about 150m of revenue.

All from EAs. HaHaHaHaHa. God, I wish I'd set something similar up.

RM charges 720/month for each office.

(On I side note I offered to help set up system - not a website - to do similar for 300/month/office).

My home town has 1 EA operating only in the town.

2 other local ones that operate in one other town.

A local solicitor that (still) sells houses as a side line.

And a few large, regional EAs who are based 50 odd miles away but advertise in the local papers).

A quick look on houseprice.io (fantastic site!) shows that there a total of 14 sales for Dec 14.

I would guess an average commission (being generous + keeping the maths easy) of 2k/house.

This is in the local area - the local town + ~15 mile radius, covering some very large villages.

So, Dec 14 saw about ~30k of revenue to be shared over 3 local offices.

I would guess (but I dont know) that the larger, cheaper EAs take half the business.

The EA operating only in the town has the equiv. of 7 full-time employees.

The satellite offices of the other 2 have about 3 full-time employees.

Take out - rent, rates, RM fees, utilities.

Just to say it`s houseprices.io https://houseprices.io/ apoligies for beign a bit perdantic, but it`s such a good site which Evicte on here built it deserves a bit more of a boost in trafic ,if there is no S on the end it goes 404

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