About to make an offer for an estate agents

[NEIL]

Hi, Iam about to make an offer for an estate agent business.

Before I make an offer can someone please answer I few questions.

As the business has not traded for a few months the staff have now left.
So I will need to recruit.

For an average size shop how many agents would you advise me to hire?

What is the average weekly wage, and commission an experienced agent would earn, for both letting's and sales?

Does a manager work on a flat wage basis, or do they work on both commission and a wage?

How much would I need to spend on advertising each month?

Many thanks

[omostra06]

research first....work out the answers to these questions and many more before you make an offer for a business, other wise you might find yourself in the same boat as the previous owner!

[googler]

Did you need to start another thread on the same topic, so soon after the first?

"For an average size shop how many agents would you advise me to hire?"

How many were in the 'shop' before they all left....? I assume you'll be interviewing your hire prospects - when they ask YOU what your experience is, and why they would want to work for you, what will you tell them?

"What is the average weekly wage, and commission an experienced agent would earn, for both letting's and sales?"

As I said in the other thread, you need to work out how much business is out there in your market for you to get. Project how much of that pie you can take a slice out of, and work out what business income that gives you. From there, deducting your expenses will tell you how much is left to pay wages to your stafff and give your business a profit. One of the reasons I put it this way is that there's a county town not too far from me - looking at Zoopla, for May & June there were a total of 8 property sales in that town, and in its surrounding postcode area. There's currently NINE separate EAs working in that town. If you had 1 of those 8 sales, and you had nine competitors in your town, how much income do you reckon you would have gained?

"Does a manager work on a flat wage basis, or do they work on both commission and a wage?"

All questions about commission will depend on what rates you, as a NEW agency to your area, can command.

"How much would I need to spend on advertising each month?"

Depends on how much you can afford once all other expenses have been covered. Instinct tells me you want lots of advertising in the first few months.

Like I said in the other thread, have you got a business plan, other than asking people here for advice?

[NEIL]

Many thanks for the reply.

Please can you tell me what further research should I undertake, as well as what questions should I ask the seller before I make a formal offer.

[googler]

Originally Posted by NEIL

Many thanks for the reply.

Please can you tell me what further research should I undertake, as well as what questions should I ask the seller before I make a formal offer.

Wow.

Maybe I'm missing the point of this forum, but when you come here and ask an initial question, we follow up with more probing questions, I feel the the general modus operandi is that you might .... answer these further questions, such that we may help you further. OK, I'll try again.

Are you running any other businesses at present, or do you own any other businesses at present? (Hopefully we won't find one of the Dragon's Den panellists at the other end of this post). If so, how many, and what type of businesses are they? How long have you owned and run them? Have you had an accountant look at the accounts for this agency you want to buy? Do you know what the rates, utilities, etc cost for the premises? There's a list of questions as long as my arm, and I would hope by this stage you're not just asking them here.

Crucially - WHY is the current owner selling? Assuming they're not selling for personal reasons, if he or she couldn't make it work, what difference will you make? If you can't hire the same staff that worked there before, where will you find good staff or better staff to make it a success?

OR

Is this your first business venture?

[NEIL]

Hi

I have been a developer/landlord on and off for 15 years.

The person selling the business is retiring.

The business has a prominent location which has been trading for 20 years. But the shop its self needs modernisation. Especially as the current window display has property listings for summer 2004.

The business comes with current letting's renewals and management contracts.

I have just one more question, what is a reasonable monthly sales target I should set the 2 sales/letting's negotiators that I will employ.

I know that some of the questions I have asked are obvious, but I need to make sure I am leaving no stone unturned.

Again I would like to thank you.

Neil

[googler]

Now we're getting places....

[googler]

A month on, I'm curious - did you buy?

[googler]

Another month on, I'm still curious - did you buy it, have you found staff, are you paying them more or less what you expected, etc...