Single Survey Scheme ( Scotland)

[dunedin]

Am i right in saying the new Single Survey Scheme ( HIP ) IN England starts in Scotland in November ?

I have been thinking that as there is a cost involved in buying this Report, then it is only human nature that there will be a mad rush for anyone interested in marketing there property prior to Deadline day.

There after D Day ( November) i would imagine very little will go on the market, this drought could last right through till February March next year ?

Has anyone any experience off what happened in England when the scheme kicked in.

I know of someone who has bought a Franchise and his estate agency office is due to open around November this year, he understandably has invested a lot of money to get this venture off the ground.

I have advised him to open a new Estate Agency is business suicide, am i wrong ? or should he bash on and hope for the best.

He wil also have to pay the head office the Franchise owners a monthly fee to wear the badge.

Anyone got any constructive advice on the matter i could pass on to him.

A Concerned Friend.

[drhouse]

Originally Posted by dunedin

Am i right in saying the new Single Survey Scheme ( HIP ) IN England starts in Scotland in November ?

I have been thinking that as there is a cost involved in buying this Report, then it is only human nature that there will be a mad rush for anyone interested in marketing there property prior to Deadline day.

There after D Day ( November) i would imagine very little will go on the market, this drought could last right through till February March next year ?

Has anyone any experience off what happened in England when the scheme kicked in.

I know of someone who has bought a Franchise and his estate agency office is due to open around November this year, he understandably has invested a lot of money to get this venture off the ground.

I have advised him to open a new Estate Agency is business suicide, am i wrong ? or should he bash on and hope for the best.

He wil also have to pay the head office the Franchise owners a monthly fee to wear the badge.

Anyone got any constructive advice on the matter i could pass on to him.

A Concerned Friend.

The property Information Pack is due to come in at end November. The pack consists of a completed questionnaire, energy report and survey report. Estimated costs are between £500 and 1K. There is a likelihood that less properties will come on the market but that is a quiet time anyway. However, at the moment it is so deathly quiet anyway that it will make little difference. I believe some solicitors are trying to get the government to postpone the introduction because of the poor market but my belief is that it is better to get it over with now rather than wait till the market is moving and cause another slump !
As to anyone opening a new agency right now, they either know something we don't or are nuts. From the sound of it the person you are talking about has no estate agency experience. In the present market those with experience will have a better chance of survival. However, whether it is a good or bad market I don't believe that anyone lacking estate agency knowledge should be running an agency. It involves a lot more than putting a board up and sticking a photo in the window.

[googler]

Whilst it may seem superficially beneficial to put ones home on the market before D-day, and hence save a few quid, what happens a few weeks into December, when someone else in the same street puts their house up WITH an information pack?

Isn't the homeowner who jumped the gun going to be at a disadvantage, as people will say to each seller - 'Where's your HIP?' and the first homeowner won't have one to show. The buyers will have a pack, and more info on the second home, and might be more likely to buy that .... no?

[googler]

Originally Posted by drhouse

As to anyone opening a new agency right now, they either know something we don't or are nuts. From the sound of it the person you are talking about has no estate agency experience. In the present market those with experience will have a better chance of survival. However, whether it is a good or bad market I don't believe that anyone lacking estate agency knowledge should be running an agency. It involves a lot more than putting a board up and sticking a photo in the window.

In my neck of the woods, the 'experienced' and time-served firms are either shutting up shop or cutting back. One local of 30+ years 'experience' went into liquidation recently, and others who have been long-established, supposed market leaders, are cutting down their operations, and making redundancies. One supposedly 'experienced' firm opened a secondary office near me in the middle of last year - and this office had a 'To Let' board put up last week, and they seem to have retreated back to their original office.

I can see in the regular property supplements that the high-end 'experienced' agents, who up until recently were regularly publishing four or five pages of expensive display advertising each have cut down to half a page, or dropped out altogether in the last month or so. Either they can't afford it, or their clients can't.

Can I suggest it might be those with the lowest overheads that will survive, regardless of their experience?

Those who've picked office premises in high-rent areas, kitted them out with the latest designer furnishings, installed plasma display screens, coffee stations and browser PCs for the public, etc etc can maybe start counting down the days......

[drhouse]

Originally Posted by googler

In my neck of the woods, the 'experienced' and time-served firms are either shutting up shop or cutting back. One local of 30+ years 'experience' went into liquidation recently, and others who have been long-established, supposed market leaders, are cutting down their operations, and making redundancies. One supposedly 'experienced' firm opened a secondary office near me in the middle of last year - and this office had a 'To Let' board put up last week, and they seem to have retreated back to their original office.

I can see in the regular property supplements that the high-end 'experienced' agents, who up until recently were regularly publishing four or five pages of expensive display advertising each have cut down to half a page, or dropped out altogether in the last month or so. Either they can't afford it, or their clients can't.

Can I suggest it might be those with the lowest overheads that will survive, regardless of their experience?

Those who've picked office premises in high-rent areas, kitted them out with the latest designer furnishings, installed plasma display screens, coffee stations and browser PCs for the public, etc etc can maybe start counting down the days......

I would not disagree with your points. We are very lucky to have relatively low overheads as we share premises with other companies in related industries. Because we are independents we have always had to be particularly careful with our budget sourcing everything as cheaply as possible without losing quality. It would have been easy for us to spend a fortune in the past on all the trimmings but our 'experience' has shown that there are always lean times as well as good. However, we will also have to cut back on admin staff and I would be surprised if there was any agency currently who would not have to do this.
My use of the word experienced mainly referred to agents who are aware of the pitfalls of the business. In recent years I have seen many enter estate agency to make a quick buck - and a lot of them did - but now it is harder for them to do so I have seen several disappear. A lot of them have been the self employed associates who cannot afford to pay a fee to the office owner and have either no income or a very low one from sales.

[dunedin]

Originally Posted by drhouse

The property Information Pack is due to come in at end November. The pack consists of a completed questionnaire, energy report and survey report. Estimated costs are between £500 and 1K. There is a likelihood that less properties will come on the market but that is a quiet time anyway. However, at the moment it is so deathly quiet anyway that it will make little difference. I believe some solicitors are trying to get the government to postpone the introduction because of the poor market but my belief is that it is better to get it over with now rather than wait till the market is moving and cause another slump !
As to anyone opening a new agency right now, they either know something we don't or are nuts. From the sound of it the person you are talking about has no estate agency experience. In the present market those with experience will have a better chance of survival. However, whether it is a good or bad market I don't believe that anyone lacking estate agency knowledge should be running an agency. It involves a lot more than putting a board up and sticking a photo in the window.

Thanks for your comments, My friend who is planning to open up a new office in November, currently owns and runs 2 other estate agency offices via this Franchise. so he has experience, the other 2 shops have been going for a few years, and up until Feb this year, both the other offices were doing very well.
He has now commited too opening this 3rd office ( which he will rent) his total capital expendature in geting this new office open will be substantial.

Indeed the opening day has been Scheduled for 1st November 2008.

The latest news too report is that since the Stamp Duty possible Holiday Articles that was in the press recently, sales have taken a further blow, sales that were due to complete are now on hold.

So as we move forward too November things appear to be getting worse, Unfortunatly as contracts have now been signed to rent the office, Re- Furbish the office, and kit the office out, and off course the contract with Head Office, there is no turning back.

Head office have told him too work harder and fight through these tough times, my thoughts on there comments are they are siting pretty getting there monthly fee, regardless off whether any sales are made or not.

He is now just hoping that the market picks up very soon as he relies solely on estate agency fees to make a living.

Does anyone know if the market is likely too pick up shortly, as i fear that this could bankrupt my friend. ?

Any advice i can pass on to Him would be appreciated.

[dunedin]

Good news my pal has flung the towel in and abandoned opening up his new Re--x franchise, he has at last seen sense.