UK Landlord Forum / Life

Having had several bad experiences with estate agents, both as buyer and vendor over recent years, I am now seriously considering setting up as an estate agent to offer the type of service customers expect when selling their most valuable investment.

Any advice or sources of relevant information would be gratefully received.

Well, you don't need any specific qualifications, that's why a lot of cowboys run estate agents. So you could start trading asap as an EA.

However, would it be wise to start an agency when the market is so dry? I doubt you'd make much return at the moment.

Just to clarify the point. I have taken redundancy from my employer after 18 years. Having monitored the housing market for some time now I anticipate establishing a small independent business, servicing an area within an approximate radius of 15 miles of my location.

Whilst I understand that no formal qualifications are required, my main question is regarding the most efficient way to build an initial portfolio of properties for sale.

Hmmm...just out of curiosity, are there currently a lot of properties for sale in your target area?

I would personally just put flyers through the doors of properties that have "for sale" signs up, and offer cheap rates to start with. I'd underprice the other agents...

Unfortunately, I really don't have any experience in this field. Hopefully other people can think of a few good ideas.

I agree with property fag .

To start out with , set your estate agent fees lower than any other agents in the area.
Id even make example flyers of how properties would be presented for any interested sellers. Maybe making the photos bigger on the flyer than the other estate agents. Promote how you really want them also to be involve in the wording etc .

Also maybe you could include some kind of free service if a customer agrees to tie themselves into you for say 8 weeks .

ie ; You could visit the house and give them an idea of how to present there home . Or when taking the photographs of the property you could send the photos - maybe 2 for each room via email . So they can actually choose which they prefer .

Basically do everything you can to involve them etc .

Hope this kind of helps 

The main thing that puts me off agents is the fact they charge so much. I think most people feel the same. Consequently a lot of people are starting to sell privately online...

If you can offer a great service with lower costs, the word will spread...

Thanks to everyone so far.

Droping leaflets at properties with "For Sale" signs, was my first thought but I wasn't sure if this was an acceptable method within the industry.

In reply to Propertyfag's question regarding the number of properties for sale in the local area, there aren't excessive ammount. The major problem in the area is the attitude of total indifference from local agents towards customers.

Hey Taz,

When you say:

QuoteThe major problem in the area is the attitude of total indifference from local agents towards customers.

Are you referring to buyers, or sellers, or both?

I have to echo what propertyfag has said though about entering that sector at the moment. We have already seen consolidation of estate agents in our neck of the woods and "Estate agent street" in our town has lots of "To Let" signs. The problem for estate agents has been a double wammy - the Home Information Packs have contributed to there being less houses coming on to the market (so less potential customers) and the rate of sales has fallen dramatically (less potential buyers). We can start another thread to talk about supply and demand and it's effect on house prices - but the bottom line for estate agents, whichever way you cut it is that industry revenues are in steep decline and more than one or two respected firms are going to go to the wall.

I'm a contrary investor always on the lookout for a back trend, but I never bet against the industry itself.

That said - if you are determined to forge ahead - all the very best to you. It's that kind of spirit that makes Britain great.

Quote from: Taz8130 on March 13, 2008, 07:13:00 PM
Thanks to everyone so far.

Droping leaflets at properties with "For Sale" signs, was my first thought but I wasn't sure if this was an acceptable method within the industry.

In reply to Propertyfag's question regarding the number of properties for sale in the local area, there aren't excessive ammount. The major problem in the area is the attitude of total indifference from local agents towards customers.

Yeah, i know what you mean about dropping leaflets coming across as bad practise. But ultimately, it's no different than any other competitor in any other industry offering better rates. If I have a mortgage, would it be wrong of some other company to offer me a better rate? Nope. It's perfectly fine.

What you could do is drop the leaflets through the doors of everyone on the same street as the house which is for sale. That way if the neighbours do talk, or if anyone questions your method, you could say that you weren't specifically targetting the house for sale, but the general area...

Ahhh sneaky sneaky . Plus then you may odv get people that where planning to sell anyway.

If I ever decided to set up my own estate agents I would do this ......... however I will never be doing this .

Sounds good to me!

cheers

simhar

Web: Properite Landlord Software - http://www.properite.co.uk

With every new business you need to get a bullet proof business plan in order, this will tell you all you need to know from your target custom to yout marketing strats etc.  Good luck with it and keep us posted.

www.teneric.co.uk will have a template for you im sure