Start-Up Estate Agent aged 19?

[Theoffice007]

Right so I have a dream and haven't slept quite a few nights thinking about it and I thought I'd let it all out here and hope to take in some USEFUL advice.

I'm 19 and am currently a University student and a property enthusiast. My local area has a slight problem, there are tons of houses going up for let and sale but there are no estate agents for 4 miles and as a result, estate agents from other areas benefit from this.

This is what my plan is (nothing official so don't grill me), I want to start a estate agent with the help of a friend who will be a business partner. Flipping burgers at McDonalds has enabled me to save £5,000 and he also has £5,000 saved up giving us £10,000 to splash.

Benefits:

-We've both done Marketing for 3 years and know pretty much everything in the field. (1 year A-level and 2 years Uni)
-Although advertising could be quite costly, We intend to use gumtree a lot as there is little/no costs involved and maybe think about rightmove later.
-We have a friend who's a professional web designer and will run the website at very little cost.

The couple of concerns I have are firstly, will anyone take a couple 19 year olds seriously? We're both good salesmen as we've been selling various other products for a profit.
Also would £10,000 be enough to get a small little office for some time and to get up and running?
Finally, are we really old enough to take such big responsibilities that could affect peoples lives drastically if anything was to go wrong God forbid?

Also are we in need of any qualifications or need to watch out for any legal issues? I've done some research but it's all pretty outdated.

Like I said only a idea so should I pursue this dream or go back to flipping burgers lol

Thanks.

 

[DavidAshdown]

I say go for it !

Do your research a bit more but don't worry about your ages, if your professional thats all that matters.

Good luck to you.

 

[help4545]

First no problem with a 19 year old as long as you know the in's and out's of the business from selling right through to completion.

Second its a tough market at the moment estate agents are making there money from letting at the moment Not selling.

Is £10000 enough? Plan out your budget, you must budget for at least no incoming for six months, don't forget you only get paid on completion.

You need to be on the big boys website not sure I can say names but I'm sure you know which one its about £500 a month. Don't start off being mickey mouse estate agents be professional from the start.

There is other cost which you may not even think about i.e cost of sale board's , cost of putting the sale broads up. Go through the selling and letting step's then work out what you need.

You don't need any exams to be an estate agent or be long to any trade association.Hope that helps.

 

[10032012]

I say go for it !

Do your research a bit more but don't worry about your ages, if your professional thats all that matters.

Good luck to you.

Are you having a laugh? lol

The OP is very naive. A-level and 2 years at uni... considers himself to know almost everything about marketing without any real life experience.

Straight-away school boy error... marketing is much more than just advertising, but its one thing advertising property on a site like gumtree but how are you going to get people interested in the first place? (i.e. property for sale or rent)

I think you need to stay at McDs for a few more years...

1) Your age isn't completely relevant - you can always employ (older) people when your business getting more serious. I don't think anyone cares about your age is you are professional and get results.

2) If you do not know the value of money, then you are going to burn that £10k and hit the wall in 2 months time. You only need enough money to cover 2-3 months... not the whole year. I don't know where you are located as to determine the cost of rental etc. You cannot be serious about business if you haven't looked around for potential property. I would suggest a local virtual office solution to begin with... but I doubt one exists in your area by what you have told us.

3) 19 isn't really that young for entrepreneurs. if you aren't up for the job then don't waste peoples time. If your gut instinct is saying you can't do it, then don't!

OP - what research have you done? what sources?

 

[CSS1]

I disagree with the above poster.

You sound like you have enthusiasm for the industry you want to be part of and that's half the battle.
Your age shouldn't be a factor and you shouldn't let it worry you. You have the start up funds (10k should be more than enough, I could do similar for less than 1k)

If I could offer one piece of advice it would be to consider your business model very carefully - that's how you will get people to use you as opposed to another agent, not everyone uses Gumtree (me included)

 

[DavidAshdown]

Are you having a laugh? lol

The OP is very naive. A-level and 2 years at uni... considers himself to know almost everything about marketing without any real life experience.

Straight-away school boy error... marketing is much more than just advertising, but its one thing advertising property on a site like gumtree but how are you going to get people interested in the first place? (i.e. property for sale or rent)

I think you need to stay at McDs for a few more years...

1) Your age isn't completely relevant - you can always employ (older) people when your business getting more serious. I don't think anyone cares about your age is you are professional and get results.

2) If you do not know the value of money, then you are going to burn that £10k and hit the wall in 2 months time. You only need enough money to cover 2-3 months... not the whole year. I don't know where you are located as to determine the cost of rental etc. You cannot be serious about business if you haven't looked around for potential property. I would suggest a local virtual office solution to begin with... but I doubt one exists in your area by what you have told us.

3) 19 isn't really that young for entrepreneurs. if you aren't up for the job then don't waste peoples time. If your gut instinct is saying you can't do it, then don't!

OP - what research have you done? what sources?

There is a lot to be learned but the OP's main concern was age.......don't put off young entrepreneurlism and spirit (see his heading).

OP: get as much advice as you can and you can get loads on this forum regarding starting in business, but you sound like you have a good head on you and determination. Listen and learn but don't be put off by age.

 

[Deleted member 61074]

Ignore Rightmove at your peril, i know its costly, but tbh thats where the buyers are. I wouldnt dream of looking on Gumtree for a house to buy, i might look for a house to let there.

 

[CSS1]

I agree, I don't know how much rightmove cost but it's where most buyers go..

 

[Theoffice007]

I'm still currently on my Economics with Marketing (BSc) course with a year to go, My lecturer said that's pretty much all I need to know about Marketing from the University of Bristol, I'm pretty sure if he's saying I'm ready then that's far from naive.

I know exactly what marketing is about and the most costly factor is advertising, hence why I only mentioned that

Getting people interested is not a problem, I forgot to say I have my dad and uncle with 25+ years of estate agency experience to teach us all that however as they both have full time jobs they won't be able to help with the running over a long period of time.
Also on a recent survey done online, 63% of estate agents in London found gumtree more useful in attracting customers rather than the mainstream sites for letting!

I'm not saying thats the main way forth in the long run but just to begin with.

My Uncle and Dad would be all my research and sources I'll need with the most up-to-date info however I thought I'd mention it here to see if this was a realistic target and not just something that'd label me a looney in the family!

As for 'aren't up for the job', what part of property enthusiast and this being a dream did you not understand sir?

Is £10000 enough? Plan out your budget, you must budget for at least no incoming for six months, don't forget you only get paid on completion. This is the best reason I have for starting at this age, becuase I have no responsibilities such as bills, mortgage/rent to pay as that is all done by my parents so My friend and I aren't expecting immediate profits!

Thanks for the replies!

 

[DavidAshdown]

I agree with CSSI. I was 14 when I started, cleaning windows on Saturdays and during school holidays and had my own round and business at 16. I knew nothing but learned very quickly. You won't learn much about business tossing burgers. Go for it !

 

[DavidAshdown]

BTW, I like your story OP.

After setting up my own window cleaning business at 16, my father felt I needed a more 'solid' business and having a passion for property I went into estate agency. I sold my window cleaning business to a rival at 18 and by the time I was 20 I owned a mansion flat and was soon running a lucrative property business.

If you want to know more PM me but either way I applaud your enthusiasm. At your age, any lack of knowledge is easily over come by enthusiasm and can easily be learned a lot less painfully than at an older age when responsibilities stunt your growth !

 

[10032012]

Aren't you all being a lil harsh (on me!)

You are a full-time uni student (ok that is not full-time work hours), I assume you don't still work at McDs in your spare time and serious about setting up a business such as this?!

You might as well do a job properly... that is working full-time. You are considering renting an office for part-time working there? Why not work from home then?

You are naive. You forget to mention someone with industry experience and for some reason (I assume) you have not asked your own family about the specifics of the industry. You have two people who can advise you for FREE and not utilising that?

Its not about age or discouraging young entrepreneurship... if you cannot write on a piece of paper £10k... look around for commercial property... work out how much of that budget you will put forward for it... minus that total... use your education to work out a marketing plan... determine your initial marketing budget... write that down... minus that from the total etc.

Someone university educated... but don't do the basic common sense. I think instead of getting in a strop and not thanking me... you need to be a little more thorough with your approach. At the moment its at the stage of someone who left school without qualifications! You want to be an estate agent yet you seem to avoid researching the costs of commercial lettings/rentals etc. - its a different part of the sector you want to go in!

 

[Theoffice007]

I told you why I haven't explained this to them, please read the answers.....

All I want is some feedback positive or negative both helps me, as far as a thank you is concerned, I thank you for your feedback.

I've got it AAAAAAALLLLLLLL planned out and like I've said a million times I only want some blummin feedback from some strangers who have experience in the business, too much to ask for?

As for the office space, It will be pre-occupied 9-5 everyday by either myself or my business partner. working from home has already been discouraged by both of us, not an option.

 

[Theoffice007]

Quite funny the 'thanking' part, I thanked your comment just like everybody elses ages ago lol.

Maybe if you weren't so charged up for some unknown reason you might have realised.

 

[help4545]

Explore all avenues of revenue.

You have sells, lettings get involved with an independent mortgage broker get a kick back off them.Solicitor trades etc the list goes on and on.

Your brochures are expensive, get the solicitor you use the mortgage broker all the trades that will service your letting to go on the back of the brochures they paid for the advertising for going on them, you then get your brochures for free. Think and double think when it comes to spending money.

Look to be in profit in year two, can not see how you would be in profit in one year 2-3 months before you get money is far to quick you may get a bit from letting in this time but it would not be much. Been in this industry for 15 years started at the bottom with no money so I know what I'm on about.

 

[DavidAshdown]

Aren't you all being a lil harsh (on me!)

You are a full-time uni student (ok that is not full-time work hours), I assume you don't still work at McDs in your spare time and serious about setting up a business such as this?!

You might as well do a job properly... that is working full-time. You are considering renting an office for part-time working there? Why not work from home then?

You are naive. You forget to mention someone with industry experience and for some reason (I assume) you have not asked your own family about the specifics of the industry. You have two people who can advise you for FREE and not utilising that?

Its not about age or discouraging young entrepreneurship... if you cannot write on a piece of paper £10k... look around for commercial property... work out how much of that budget you will put forward for it... minus that total... use your education to work out a marketing plan... determine your initial marketing budget... write that down... minus that from the total etc.

Someone university educated... but don't do the basic common sense. I think instead of getting in a strop and not thanking me... you need to be a little more thorough with your approach. At the moment its at the stage of someone who left school without qualifications! You want to be an estate agent yet you seem to avoid researching the costs of commercial lettings/rentals etc. - its a different part of the sector you want to go in!

Sorry, but I really disagree with your comments on the basis you have misunderstood the OP's real point.

Yes, I agree he needs to know a lot more about the business and all the associated headaches that go with it, but I think his real concern was whether at 19 he was too young and I say.....no, not at all.

 

[DavidAshdown]

Quite funny the 'thanking' part, I thanked your comment just like everybody elses ages ago lol.

Maybe if you weren't so charged up for some unknown reason you might have realised.

Hold up, chill a bit here, you asked for advice, don't upset forum members, everyone has an opinion and they are only offering their suggestions as part of their support. You will find lots of help and advice on here but take it constructively.

 

[Theoffice007]

Explore all avenues of revenue.

You have sells, lettings get involved with an independent mortgage broker get a kick back off them.Solicitor trades etc the list goes on and on.

Your brochures are expensive, get the solicitor you use the mortgage broker all the trades that will service your letting to go on the back of the brochures they paid for the advertising for going on them, you then get your brochures for free. Think and double think when it comes to spending money.

Look to be in profit in year two, can not see how you would be in profit in one year 2-3 months before you get money is far to quick you may get a bit from letting in this time but it would not be much. Been in this industry for 15 years started at the bottom with no money so I know what I'm on about.

Thanks for the info, really appreciate it and may decide to message you soon!

Brochures,Signs and even a personal website will be considerably cheap for me as a lot of my best friends are professionals with companies of their own in those industries.

My main worry is the age and the legal aspect of things, also the start up capital for a year or so.

 

[Theoffice007]

Hold up, chill a bit here, you asked for advice, don't upset forum members, everyone has an opinion and they are only offering their suggestions as part of their support. You will find lots of help and advice on here but take it constructively.

I'm by no means trying to upset anyone and in no sarcastic way whatsoever I actually am grateful for his feedback, it allows me to explore points/flaws I may have missed out on.

 

[Quickpacksupplies]

I say good luck to you !

 

[13acrelandscapes]

I started a small letting agency at 20 worked from the front room of my flat and started with less than £500, with a bit of get up and go was making good money in a couple of months. I found my age was never an issue as i made sure i knew what i was talking about before answering anything.
The only is as with all business you will be starting early and finishing very late and the admin of a property business is so bloody boring it hurts!
Best of luck it is deffinately possible if you put your all into it

 

[DavidAshdown]

Thanks for the info, really appreciate it and may decide to message you soon!

Brochures,Signs and even a personal website will be considerably cheap for me as a lot of my best friends are professionals with companies of their own in those industries.

My main worry is the age and the legal aspect of things, also the start up capital for a year or so.

Friends are not always the best people to turn to. They will still want paying a fair rate and if things are not quite right its sometimes harder to complain.

 

[Theoffice007]

Friends are not always the best people to turn to. They will still want paying a fair rate and if things are not quite right its sometimes harder to complain.

When I say friends, I mean almost brothers we've been a very close bunch for many many years now, They've already confirmed that at slightly higher than break-even price is guaranteed for me (Way less than the usual RRP for others)

 

[Theoffice007]

I started a small letting agency at 20 worked from the front room of my flat and started with less than £500, with a bit of get up and go was making good money in a couple of months. I found my age was never an issue as i made sure i knew what i was talking about before answering anything.
The only is as with all business you will be starting early and finishing very late and the admin of a property business is so bloody boring it hurts!
Best of luck it is deffinately possible if you put your all into it

True inspiration!

 

[10032012]

Get down to your local library and photocopy an fact sheet/information guide!! Cobwebs do them if I remember correctly.

 

[Theoffice007]

Get down to your local library and photocopy an fact sheet/information guide!! Cobwebs do them if I remember correctly.

Checking the website out now! Seems pretty useful although I can't click on any factsheets

 

[Theoffice007]

Is/will the read for estate agent be worth £5.99?

 

[Young Recruit]

Right so I have a dream and haven't slept quite a few nights thinking about it and I thought I'd let it all out here and hope to take in some USEFUL advice.

I'm 19 and am currently a University student and a property enthusiast. My local area has a slight problem, there are tons of houses going up for let and sale but there are no estate agents for 4 miles and as a result, estate agents from other areas benefit from this.

This is what my plan is (nothing official so don't grill me), I want to start a estate agent with the help of a friend who will be a business partner. Flipping burgers at McDonalds has enabled me to save £5,000 and he also has £5,000 saved up giving us £10,000 to splash.

Benefits:

-We've both done Marketing for 3 years and know pretty much everything in the field. (1 year A-level and 2 years Uni)
-Although advertising could be quite costly, We intend to use gumtree a lot as there is little/no costs involved and maybe think about rightmove later.
-We have a friend who's a professional web designer and will run the website at very little cost.

The couple of concerns I have are firstly, will anyone take a couple 19 year olds seriously? We're both good salesmen as we've been selling various other products for a profit.

Also would £10,000 be enough to get a small little office for some time and to get up and running?

Finally, are we really old enough to take such big responsibilities that could affect peoples lives drastically if anything was to go wrong God forbid?

Also are we in need of any qualifications or need to watch out for any legal issues? I've done some research but it's all pretty outdated.

Like I said only a idea so should I pursue this dream or go back to flipping burgers lol

Thanks.

Hi Theoffice007,

You have nothing to loose by starting this business and you are displaying some traits of a good business person by saving up five grand, this is an achievement and shows that you have focus and are willing to work.

Even if this venture wouldn't work out you will learn things about the real business world and yourself that you can never learn at uni. Also, the fact that you showed drive, initiative and maturity at this young age will impress employers if you ever need to apply for a job.

Your age is the best age to learn these types of lessons. Look at the business as a shot on goal, if you score fantastic, if not you still have more opportunities and you keep learning whilst you play the game!

People will take you seriously as long as you market yourself correctly.

I have recently carried out some industry analysis for the Estate Agents and Services market and would be happy to send you parts of it to help you with your research and planning. I have things like trend analysis, PEST analysis, competitor analysis, consumer dynamics. All marketing related stuff so I'm sure you'll find it interesting. Don't worry I'll give you it for free!

JA

 

[businessfunding]

I'm still currently on my Economics with Marketing (BSc) course with a year to go, My lecturer said that's pretty much all I need to know about Marketing from the University of Bristol, I'm pretty sure if he's saying I'm ready then that's far from naive.

Thanks for the replies!

Your lecturer should be sacked; with the best will in the world you know lots of theory and little practice. It's a good starting point but pretty far from 'all you need to know'.

In honesty, you are not too young to start up, but you are too inexperienced to operate in this sector yet (I'd question why you want to)

If you want to understand the business spend some time with an established agent and learn the ropes a bit - what they do right, what they do wrong.

Estate Agency is not a good cashflow business - start working on this first f you are serious.

 

[Esk247]

I'd agree with what's been said. Too young to start up a business? NO. Too in-experienced to deal with property negotiations? POSSIBLY.

If you are going to do this then stick to one form of estate agency e.g. if you want to let out shops, stick to purely Commercial as there are different bits of paperwork and Commercial law is a different beast to residential property sales.

As for:

My lecturer said that's pretty much all I need to know about Marketing from the University of Bristol, I'm pretty sure if he's saying I'm ready then that's far from naive.

My lecturer said I was ready to start working in design and engineering at 19. Was I hell.

Marketing is a huge sector encompassing many aspects. More than what you've covered at Uni by far. It's vast and has many different hurdles that you cannot replicate in a class room. How can you have learned all about Marketing in a few years at Uni??? There are people in their 30's who are still not able to become heads of marketing departments because they lack experience.

There's local marketing, national marketing, global marketing, branding, online marketing, search engine marketing, paper based, mobile marketing, telephone marketing.....and many more.

Can you not develop some sort of App/Website/Set of tools for estate agents or property viewers instead? Your age will mean that you will get Princes Trust funding (possibly) and could look for investment if your idea starts winning clients and awards.

 

[Theoffice007]

Hi Theoffice007,

You have nothing to loose by starting this business and you are displaying some traits of a good business person by saving up five grand, this is an achievement and shows that you have focus and are willing to work.

Even if this venture wouldn't work out you will learn things about the real business world and yourself that you can never learn at uni. Also, the fact that you showed drive, initiative and maturity at this young age will impress employers if you ever need to apply for a job.

Your age is the best age to learn these types of lessons. Look at the business as a shot on goal, if you score fantastic, if not you still have more opportunities and you keep learning whilst you play the game!

People will take you seriously as long as you market yourself correctly.

I have recently carried out some industry analysis for the Estate Agents and Services market and would be happy to send you parts of it to help you with your research and planning. I have things like trend analysis, PEST analysis, competitor analysis, consumer dynamics. All marketing related stuff so I'm sure you'll find it interesting. Don't worry I'll give you it for free!

JA

That would be great Sir, and would also make a great read thanks a lot!

From the look of things on the forum, I'm quite happy the majority of people doesn't find age as a concern which was my biggest worry!

 

[Theoffice007]

I'd agree with what's been said. Too young to start up a business? NO. Too in-experienced to deal with property negotiations? POSSIBLY.

If you are going to do this then stick to one form of estate agency e.g. if you want to let out shops, stick to purely Commercial as there are different bits of paperwork and Commercial law is a different beast to residential property sales.

As for:

My lecturer said that's pretty much all I need to know about Marketing from the University of Bristol, I'm pretty sure if he's saying I'm ready then that's far from naive.

My lecturer said I was ready to start working in design and engineering at 19. Was I hell.

Marketing is a huge sector encompassing many aspects. More than what you've covered at Uni by far. It's vast and has many different hurdles that you cannot replicate in a class room. How can you have learned all about Marketing in a few years at Uni??? There are people in their 30's who are still not able to become heads of marketing departments because they lack experience.

There's local marketing, national marketing, global marketing, branding, online marketing, search engine marketing, paper based, mobile marketing, telephone marketing.....and many more.

Can you not develop some sort of App/Website/Set of tools for estate agents or property viewers instead? Your age will mean that you will get Princes Trust funding (possibly) and could look for investment if your idea starts winning clients and awards.

I understand how huge of a topic marketing is, some things we aren't even aware of how much marketing has gone into it, however what he was trying to imply is that my first year grades of 96% (First) and second year of 92%(First) is more knowledge of the field than most estate agents around due to the lack of qualifications needed. Also I'm pretty certain I've covered the basics and slightly more which is more than enough required to become a successful estate agent.........I think.

 

[Young Recruit]

I understand how huge of a topic marketing is, some things we aren't even aware of how much marketing has gone into it, however what he was trying to imply is that my first year grades of 96% (First) and second year of 92%(First) is more knowledge of the field than most estate agents around due to the lack of qualifications needed. Also I'm pretty certain I've covered the basics and slightly more which is more than enough required to become a successful estate agent.........I think.

My favorite definition of the marketing process is:

'To create and deliver value to a target market for a profit'

If you can do that consistently then you understand enough about marketing.

JA

 

[Young Recruit]

My favorite definition of the marketing process is:

'To create and deliver value to a target market for a profit'

If you can do that consistently then you understand enough about marketing.

JA

Sorry that should have read:

'To create, communicate and deliver value to a target market for a profit'

JA

 

[Jet Virtual]

My advice would be not to get an office but to spend your limited funds on marketing. Focus on getting as many prospects as possible.

Customers = profit
Office & Equipment = losses

Spend ALL your time and money on getting business in the door.

Best of luck!

Daniel - AKA Mr Virtual

 

Are you having a laugh? lol

The OP is very naive. A-level and 2 years at uni... considers himself to know almost everything about marketing without any real life experience.

Some people learn in six months what others don't learn in a life time.

Age and time are not necessarily related to learning.

 

[Mitch3473]

Jump in. If you can't swim, you'll soon learn.

 

[Christine Hough]

See if you can use noticeboards around town (or even interactive screens) rather than pay for an office, which always seems intimidating to me.

And please use a virtual telephone answering service 24/7 (or therabouts 14/7 perhaps 8:00am -10:00pm) . Viewers often cannot do things in works time

Just sold a house after 3 yrs on the market and difficulty in contacting estate agents is a major issue. Even my solicitor complained about trying to reach them!

 

[Theoffice007]

Thanks to all the above, a real confidence boost!

See if you can use noticeboards around town (or even interactive screens) rather than pay for an office, which always seems intimidating to me.

And please use a virtual telephone answering service 24/7 (or therabouts 14/7 perhaps 8:00am -10:00pm) . Viewers often cannot do things in works time

Just sold a house after 3 yrs on the market and difficulty in contacting estate agents is a major issue. Even my solicitor complained about trying to reach them!

This is my sole reason for a office space, I have that motivation and enthusiasm needed to make estate agent A stand out from the rest.
My personal dealings with estate agents aren't very pleasant either, especially for lettings as the receive such little in fees. Simple things like register a customers details in the system and call them back when a property is available is something not even Baker Pearce do Properly!!

If I was to work from home, what is the first steps I take in actually creating a company and registering it, also how much start up capital would be needed for something like that?

Thanks a lot guys/girls I really do appreciate this!

 

[Christine Hough]

I was thinking of something like this
http://www.office-response.co.uk/?gclid=CMiJroyB_LICFUXHtAodhA8ALw

I suggest that because offices are a tad intimidating especially when u are there and someone else phones in and you hear more than you want to at times!

You cannot be there all the time as you will sometimes be out viewing properties and this makes sure all calls are covered.

The money it saves would probably pay for several noticeboards around the town and give you more visibility... and in time use interactive screens



Or get yourself a camper van and have a mobile office to go and visit people and places where people are gathered!