Estate agency business project

[sarah baker]

Hi,

I'm an A-level student and part of my business studies assignment is to write a business plan for a business of my choice. I've decided to do a letting/estate agency but am struggling to find out the costs to advertise with them. I have given them a call but they weren't forthcoming with any figures.

What I really need to know is the cost to advertise per month for lettings and/or sales. I appreciate this seems to vary from company to company but a guide would at least get me started.

I'd also like to know how payment is accepted. i.e is it in one yyearly payment, direct debit spread over a the year or another alternative.

Any advice would really help me move my project along as I seem to be at a bit of an impass at the moment

Thanks for taking the time to read my post
Sarah

[sarah baker]

Anyone?

Please.....

[Ownerhome]

Hi Sarah

There were some replies to your post....but unfortunately they were deleted!! I'm sure that if you wait, one of the agents on the forum will reply to you.

I'm sure that I saw one of the replies recommending that you look at Landlordzone website..you can also try UKlettingagent.co.uk.

Sorry I cannot help more

[googler]

Typically;

A letting agent will take a percentage of the monthly rent on the property for his/her services - around my way, this is usually 9-10% of the rent (a rental of £500 per month will therefore yield £450 or so for the landlord, and £50 or so for the agent)

A selling agent will charge a fee which will be paid at the time the property settles, or concludes - usually coincident with the entry date. Most agents will take an upfront payment from their clients to cover upfront expenses - sale boards, schedules, etc. - the type of thing that they can't recover from their suppliers if the sale doesn't conclude. The level of these fees will vary according to location - places like London tyoically command higher fees. Opinions vary on 'standard' or 'average' fees, with, I'd suggest, a range of 0.75% - 2.50% of the selling price.

Is this the kind of thing you're looking for?

[brian]

Originally Posted by Ownerhome

There were some replies to your post....but unfortunately they were deleted!!

Yes, apologies for that - we had a disruptive member signing up with multiple aliases, making normal posts - then re-editing them to be abusive.

[Ryan Forbes]

HI Sarah
I am a Sales Agent and have an estate agency franchise.. Would be happy to help. You can email me ryanforbes (at) remax.net

[sarah baker]

Originally Posted by googler

Typically;

A letting agent will take a percentage of the monthly rent on the property for his/her services - around my way, this is usually 9-10% of the rent (a rental of £500 per month will therefore yield £450 or so for the landlord, and £50 or so for the agent)

A selling agent will charge a fee which will be paid at the time the property settles, or concludes - usually coincident with the entry date. Most agents will take an upfront payment from their clients to cover upfront expenses - sale boards, schedules, etc. - the type of thing that they can't recover from their suppliers if the sale doesn't conclude. The level of these fees will vary according to location - places like London tyoically command higher fees. Opinions vary on 'standard' or 'average' fees, with, I'd suggest, a range of 0.75% - 2.50% of the selling price.

Is this the kind of thing you're looking for?

Thanks for the input so far, I have all the above information. What I was after is how much estate agents pay to rightmove for the privilege of advertising rental properties on the sight and the payment options rightmove offer such as monthly by direct debit or in full annually.

As I said in my initial post I tried to contact rightmove direct but they weren't forthcoming. I then did it under the guise of a potential customer but they wanted to set up a meeting.

Thanks
Sarah

[drhouse]

Originally Posted by sarah baker

Thanks for the input so far, I have all the above information. What I was after is how much estate agents pay to rightmove for the privilege of advertising rental properties on the sight and the payment options rightmove offer such as monthly by direct debit or in full annually.

As I said in my initial post I tried to contact rightmove direct but they weren't forthcoming. I then did it under the guise of a potential customer but they wanted to set up a meeting.

Thanks
Sarah

Hi Sarah,
This information is for Residential Sales not Lettings

I was with Right Move until earlier this year. They charged at that time £300 per month per branch with an additional £50 per month to show the company logo. Now I think for that there was a ceiling on the number of properties listed and if you went over that it cost more. Sorry I can't remember what that ceiling was or the additional costs. I know we went over the limit but weren't charged. I have heard today that Rightmove are now looking at new fees for 2010 with a substantial increase. However, it seems they are offering to maintain present fees if the agent agrees to take 'extras' every month - around £200 worth! This could be highlighting specific properties etc. Rightmove take a monthly direct debit. I would imagine lettings only would be cheaper

There are lots of free websites and a number of 'pay per lead' - you pay in an amount say £50 or £100 they add your properties to the site and deduct £1 from your account for every buyer lead they send - someone who has clicked on a property and requested more info, viewing etc. They deduct £5 for a seller lead.

There are other paying portals - Property Finder Prime Location etc but their monthly costs vary quite a lot.

[googler]

Originally Posted by sarah baker

What I was after is how much estate agents pay to rightmove for the privilege of advertising rental properties on the sight and the payment options rightmove offer such as monthly by direct debit or in full annually.

As I said in my initial post ....

Er.... no you didn't - no mention of Rightmove there.

[Ownerhome]

Originally Posted by googler

Er.... no you didn't - no mention of Rightmove there.

Does it really matter?

drhouse has given her the info that she needed, so pointless reply!

I thought that this forum was to give advice, not pull people up on menial omissions.

Hope you have all the info you need Sarah and good luck with your assignment