Start-Up Estate Agent aged 19?

[Theoffice007]

I was thinking of something like this


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!

Thanks for the link! I've read some testimonials and they have some good reviews (I know negative ones never exist haha) and it could save quite a bit of time for yourself.

Could you explain how this works more in depth please because I haven't quite got the jist of it and have you yourself used this product before?

I guess I feel less professional if these things are done outside of office.

Thanks again!

 

[10032012]

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

Your nearest large library will have a subscription. It will then cost something like 10p per A4 page to photocopy. They are usually 4 pages (you could do back-to-back A3).

It could cost the same for travel to library etc.

£5.99 I would say its worth it. They wont tell you everything but they research industry bodies, qualifications, etc.

 

[10032012]

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

No, you will drown. Happens all the time. Causes death.

 

[Theoffice007]

Your nearest large library will have a subscription. It will then cost something like 10p per A4 page to photocopy. They are usually 4 pages (you could do back-to-back A3).

It could cost the same for travel to library etc.

£5.99 I would say its worth it. They wont tell you everything but they research industry bodies, qualifications, etc.

My nearest library is less than 3 minutes by walk, I might check that out tomorrow, thanks!

 

[PDRD]

Go for it, but will you not need to qualify as an FNAEA to be a member of NAEA? I would assume it would be difficult to get houses on the books if you are not a member?

 

[Christine Hough]

I think the profit for estate agents lies largely with selling mortgages.
You may need qualification to do that.

Re virtual office, no I have not used it, just a suggestion to inspire other ideas too. Although I would look into it in if running an estate agency. It must be cost effective against running an office and maybe employing someone to cover when you are not there or in a meeting. But then you also need contact with your browsing public to raise your profile and sell/let the properties.

Best wishes, but don't throw away your 10k lightly, only when you have a clear plan and can see exactly how it would run and why you would be better.

 

[Theoffice007]

Go for it, but will you not need to qualify as an FNAEA to be a member of NAEA? I would assume it would be difficult to get houses on the books if you are not a member?

Not really, infact most smaller estate agents don't have this...(know this because I asked a few )

 

[Theoffice007]

I think the profit for estate agents lies largely with selling mortgages.
You may need qualification to do that.

Re virtual office, no I have not used it, just a suggestion to inspire other ideas too. Although I would look into it in if running an estate agency. It must be cost effective against running an office and maybe employing someone to cover when you are not there or in a meeting. But then you also need contact with your browsing public to raise your profile and sell/let the properties.

Best wishes, but don't throw away your 10k lightly, only when you have a clear plan and can see exactly how it would run and why you would be better.

I have a business partner and we're putting in £5,000 each however of course a lot of thought will go into this, not only because of the money we may lose but I just think it'll be immoral to deal with customers when we ourselves are not clear what we wish to do.

It's a big responsibility however I am more confident about this than I ever have been! The extra drive I have and the experience of family members should get me through hopefully!

 

[PDRD]

I think the profit for estate agents lies largely with selling mortgages.
.

Not sure your correct there, I know our local one that a friend manages was selling an average of 35 per month at the peak, with fees of 1.25% and an average sale price of £140k = £60k+ each month.

Good money if you can get it.

 

[trixyben]

Do you not have to have some qualification relevant to property sales/law etc to act as an estate agent?

 

[Theoffice007]

Do you not have to have some qualification relevant to property sales/law etc to act as an estate agent?

Not at the moment and I've been told on other forums none is required, good to have but not required.

 

[aakash]

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 !

 

[CSP98]

I have personally been invloved in the start up of two succesfull estate agents offices and can tell you you will need more like 100k to even get started. The advertising costs ie rightmove zoopla, local paper ads etc...Business rates, stationary, printing, cars, petrol, the list goes on and on. Then theres sign writing the office, getting the right office managment computer tools, furniture. Even if you sell enough houses in you opening month of trading you will have to wait for them to complete before you get paid which takes typically 8-12 weeks from the point of sale.

My advice would be to seek a job with a local estate agent and gain some experience in the trade before you contemplate going any further.

 

[help4545]

Go for it, but will you not need to qualify as an FNAEA to be a member of NAEA? I would assume it would be difficult to get houses on the books if you are not a member?

No you don't need to be a member to sell house's. The only law for estate agent is if you sell mortgages the broker must be directly authorized by the FSA or be part of a network.

Proc fee's on mortgages is not good money, if the mortgage is going with the Halifax you will get around £80 to £200. Average proc fee is around £250 which is going down year by year.

 

[tony84]

I would see what shops are around you, see if they have an upstairs they would be prepared to let to you - for a monthly fee. The benefit of this is that you dont have to worry about utility bills etc which can be a headache.

£10k isnt a small sum of money so i would think about it seriously. You will have a long time before you have any income unless you can get some landlords with rental properties.

Im presuming the properties are in the bristol area? If thats the case then i imagine you should get a decent return from a house sale with it being down south...but i could be wrong.

However, with no financial commitments, no dependents etc it could be ok. I would potentially wait until you finish uni though and atleast that way you can do a part time job at the same time as your business so you can financially support the business whilst its in start up phase.

 

[FIZIX Agency]

I left uni and set up a business and have been very successful; and marketing is a big part of my career. So to say a young person can't is disingenuous; but to think you know it all at that age is also disingenuous; you have a lot to learn and have to learn it fast.

Anyway; my brother in law left school; got a job with a local estate agent, worked there for 5 years and ended up in his mid 20's teamed up with a fellow property guy and has made a good living out of it.

Nothing wrong with learning with an established agent; you'll be much wiser for it when you do to alone.

 

[mickeym]

Is there any reason why you need to have an office on the high street?

If most of your marketing is either online or in local publications maybe you'd be better working from home and spending less until you get yourself off the ground. I started my business when I was 18, albeit a different business sector, but I didn't bother with premises and worked from home - 5 years on and I still do, I keep more of the profits this way.

As for your age, I wouldn't let that be a concern. As long as you know what you're talking about people will be happy to deal with you. How many estate/letting agents have people who are late teens or early twenties working for them? It isn't that unusual. Does the client need to know that you are the owner of the business? If not let them make up their own idea, you could be an employee of somebody else for all they know.

Best of luck and as others have said go for it. There needs to be more people like you in the world.

 

[10032012]

Is there any reason why you need to have an office on the high street?

If most of your marketing is either online or in local publications maybe you'd be better working from home and spending less until you get yourself off the ground. I started my business when I was 18, albeit a different business sector, but I didn't bother with premises and worked from home - 5 years on and I still do, I keep more of the profits this way.

As for your age, I wouldn't let that be a concern. As long as you know what you're talking about people will be happy to deal with you. How many estate/letting agents have people who are late teens or early twenties working for them? It isn't that unusual. Does the client need to know that you are the owner of the business? If not let them make up their own idea, you could be an employee of somebody else for all they know.

Best of luck and as others have said go for it. There needs to be more people like you in the world.

It depends. There are people who will not consider an estate agent/employment agency etc. if they are not on the high street.

I guess the high rates etc. associated with being in these places give a general sense of financial credibility and success. Please no one argue with me, there is nothing to say this is the case on a technical basis but many people think that subconsciously.

The bottom line is you will need to work harder if you do not have the passing trade. Both getting clients and those people looking for a new home. The retail-front offices are important to long-term success. However, for a start up I would suggest avoiding the high-street and investing the savings in marketing.

I have to say, in my area, even with long established estate agents with 1-2 high street retail-fronted offices with property listings in the windows, they send out "sell your home" leaflets every 2 weeks. Mostly for brand awareness - it also creates potential leads for those who are happening to sell their home.

 

[simon field]

... but there are no estate agents for 4 miles...

Op, do you consider 4 miles to be a long way?

 

[tony84]

Op, do you consider 4 miles to be a long way?

I would.

I have literally just bought a house (completed 2 weeks ago). It was up with the only estate agent in the town centre. A house 3 doors away and round the corner is up with the same company.

There is another town centre about 3-4 miles away which is much bigger, that has atleast 4-5 other estate agents i can think of yet none of them are in this area.

If your the only estate agent and there are plenty of properties with a decent demand theres no reason why you cant be successful.

 

[simon field]

I would.

I have literally just bought a house (completed 2 weeks ago). It was up with the only estate agent in the town centre. A house 3 doors away and round the corner is up with the same company.

There is another town centre about 3-4 miles away which is much bigger, that has atleast 4-5 other estate agents i can think of yet none of them are in this area.

If your the only estate agent and there are plenty of properties with a decent demand theres no reason why you cant be successful.

I guess I must live in the middle of nowhere then Tony!

 

[Rasta Pickles]

The couple of concerns I have are firstly, will anyone take a couple 19 year olds seriously?

How are you presenting yourselves?

Hair gel? Guy liner (i.e make up)? Turn up like that here and you'll have to explain missing teeth to your boyfriend.

If you turn up in a smart suit, as is (i.e leave your hair as nature intended) and can speak properly without adding "innit" to every sentence then you'll be fine.

 

[Theoffice007]

I'm thinking high street merely because I will most definitely be the first port of call for any local that want to let, by or sell.
However, seeing some replies indicates to me that working from home would save me a lot of money in the long run but will it affect the amount of clients I pick up also remains a mystery.

I'm pretty well presented and in fact haven't used gel for many years lol and my punctuality face to face is of high standard, it's just my baby face haha that's getting me worried.

Thanks for the replies guys/girls this is really helpful

 

[Christine Hough]

Whether you have an office or not, you do need a 'shop window'

You need something in front of people to regularly remind them about you and how to contact you. Hence I said notice boards etc. (could be side of a van which goes around too)This is where you display properties. Maybe even a local newsheet. This is where you can be really novel and creative!!

People do not sell their homes very often and so there will be little repeat business and you will be out there always reaching new people. But you may get some referrals.

 

[10032012]

Any suitable property available on the high street?

 

[Theoffice007]

Hi Christine,

That's some great advice and in a way I've kind of acted upon that. Yesterday I rang up the person who publishes the local magazine to receive a valuation if I was to take a whole page for advertisement, he told me to call him back tomorrow so he could discuss with other members and give me a accurate price.

There are some great commercial properties on the high street with the necessary license to open a estate agent however prices are around £13,000 PA. Question: Would this need to be paid upfront or in monthly instalments? If it's monthly I'd say it's affordable however upfront would exceed our budget.

 

[PDRD]

The rent would be paid a couple of months up front with a decent deposit put down.

Are there any small accountants or solicitors on your high street? Quite often they have a blind down in the window and just have a bit of sign writing, so maybe you could approach them to use the 'front office' as your base or maybe just rent the window space? Quite often they rent the building so may have an upstairs or back room that they could move into to operate from.

 

[Theoffice007]

The rent would be paid a couple of months up front with a decent deposit put down.

Are there any small accountants or solicitors on your high street? Quite often they have a blind down in the window and just have a bit of sign writing, so maybe you could approach them to use the 'front office' as your base or maybe just rent the window space? Quite often they rent the building so may have an upstairs or back room that they could move into to operate from.

Unfortunately not, there's only a supermarket and a couple news agents with various other shops around.

I've been talking to a few members who have posted on this thread and working from home doesn't seem such a bad idea and they convinced me enough to give it a second thought. However I may ring up the agents involved in letting that property and find out how it works.

 

[10032012]

The rent would be paid a couple of months up front with a decent deposit put down.

Are there any small accountants or solicitors on your high street? Quite often they have a blind down in the window and just have a bit of sign writing, so maybe you could approach them to use the 'front office' as your base or maybe just rent the window space? Quite often they rent the building so may have an upstairs or back room that they could move into to operate from.

brilliant suggestion - but no solicitor or accountant will risk their reputation with some unknown business (i.e. no previous trading) as it would imply a recommendation on their part.

However, there is no harm in trying I suppose.

 

[PDRD]

There is no harm in starting from home first, try to keep expenditure to a minimum and then 'if' it does not take off you can just start again with an office under a different brand.

 

[10032012]

How long has the units been empty? Work it out by your memory and Google Streetview... use this as a bargaining tool. If they are asking £13k for property that has been empty for some time... and you don't really need the property, you can then afford to make an offer.

Perhaps a period of free rent or a reduced rate in the first 12-18 months with increasing rent thereafter. You will need to pay business rates on the premises too and don't forget fitting a shop unit out even to have a board in the window, can be rather expensive.

It might also be beneficial to meet a few bank managers to discuss potential bank finance. You could also try Princes Trust (someone already mentioned this) for funding... but beware they will have a 6-9 month turnaround minimum for you to see any monies at all. If you cannot wait a year then its obviously not a viable option.

 

[Theoffice007]

How long has the units been empty? Work it out by your memory and Google Streetview... use this as a bargaining tool. If they are asking £13k for property that has been empty for some time... and you don't really need the property, you can then afford to make an offer.

Perhaps a period of free rent or a reduced rate in the first 12-18 months with increasing rent thereafter. You will need to pay business rates on the premises too and don't forget fitting a shop unit out even to have a board in the window, can be rather expensive.

It might also be beneficial to meet a few bank managers to discuss potential bank finance. You could also try Princes Trust (someone already mentioned this) for funding... but beware they will have a 6-9 month turnaround minimum for you to see any monies at all. If you cannot wait a year then its obviously not a viable option.

Not long about a month now maybe 5-6 weeks (Don't know if that's long or not in commercial property however I assume not) It's advertised by Ferrari and they're pretty established and have a huge target audience in the field, very much doubt negotiations will be listened to.

My best option is to speak to a princes trust advisor and get their say in it too, at the moment I don't mind investing the money and working from home and look to rent a place in the long run.

I've had a good thought about it and taking the rent and costs of setting up the shop, it'll be slightly over budget.

 

[Christine Hough]

Don't forget, rates and utility costs.

 

[Theoffice007]

Don't forget, rates and utility costs.

That's the thing, I haven't included them because I'm over budget excluding them.

 

[Deleted member 61074]

Interestingly my mother just bought a property through an estate agent who when we started the buying process was internet only and worked from a home office. He advertised all his properties on both rightmove and findaproperty. He seemed quite effective in finding properties to sell and was very effective in getting his for sale signs on house. His initial strategy was stay local and plaster his signs all over the place to make his presence felt.

He had a small window in the local high st too.

6 months later he went into partnership with another small agent in the same town who happened to have a high st shop front.

Personally i'd consider this sequence of event quite a sensible one.

One question though - how are you going to source the properties to sell?

 

[Theoffice007]

Interestingly my mother just bought a property through an estate agent who when we started the buying process was internet only and worked from a home office. He advertised all his properties on both rightmove and findaproperty. He seemed quite effective in finding properties to sell and was very effective in getting his for sale signs on house. His initial strategy was stay local and plaster his signs all over the place to make his presence felt.

He had a small window in the local high st too.

6 months later he went into partnership with another small agent in the same town who happened to have a high st shop front.

Personally i'd consider this sequence of event quite a sensible one.

One question though - how are you going to source the properties to sell?

Source in what context? If you're on about valuation that will be my father and uncle with their qualifications and experience.

 

[arcon5]

Having studied business at university and going in to business from a small high street store I can tell you with 100% certainty the theory and practicality behind it all are miles apart. You may learn to swim, or like me may drown and financially cripple yousrselve for years.

I love your optimism, but comments like you know everything about marketing and your lecturer thinks your ready, for me take a lot of the credibility out of the idea.

Even if you do know everything about marketing, that doesn't resolve every other aspect of the business.

How are you planning on winning over landlords and home owners? This is crucial as there are many established agencies out there with procedures and part of core websites like rightmove and more importantly knowledge. Because the owner has spent hundreds of thousands of pounds on this asset - they are unlikely to hand over control to anybody!!

In fact, the fact you are looking to use gum tree and avoid at first the biggest and most powerful sales platform speaks volumes.

I don't want to be critical but just offering my two cents as somebody who has been in a similar situation.

My advise would be to work for somebody else and have them teach you everything. Then once you know the industry, you can take the plunge and learn how to actually run a business which is a whole different ball game

 

[Deleted member 61074]

Source in what context? If you're on about valuation that will be my father and uncle with their qualifications and experience.

Source, as in find houses to sell ie the bit before valuation

 

[Theoffice007]

Getting my ad out on the local magazine which is delivered to every house directly and leaflets on each door

 

[10032012]

Getting my ad out on the local magazine which is delivered to every house directly and leaflets on each door

Why not print some leaflets and deliver door to door?