First up I would like to admit to lifting this thread directly from The Property Pin. Does anyone have any thoughts or news on our local estate agents current cash flow and short to medium term business prospects? I presume if they are not selling houses they are not making any money despite the fact that they have ongoing costs (rent, rates, electric bills, phone bills, insurance, and wages etc). How much does it actually cost to break even for say a medium sized EA office? What volume of sales / commission need to be generated on a monthly basis to cover these costs. How long can some of the offices continue to function with little or no sales and therefore little or no income? Sorry for posting lots of questions and not addressing any of the points myself - just wanted to stimulate discussion and get some feedback from someone with knowledge of the industry or an idea how much it costs to run such an operation.
The link to the original Property Pin article is given below
http://www.thepropertypin.com/viewtopic.ph...asc&start=0
Full Version: What Is Sustaining Irish Estate Agents ?
A prudent EA would have put some aside during the good times to cover the bad times. Those that haven't will go bust - or "merge"
QUOTE (Vespasian @ Jan 19 2008, 10:26 AM) 
A prudent EA would have put some aside during the good times to cover the bad times. Those that haven't will go bust - or "merge"
QUOTE (Vespasian @ Jan 19 2008, 10:26 AM)
A prudent EA would have put some aside during the good times to cover the bad times. Those that haven't will go bust - or "merge"
I would imagine that quite a lot of that money may have been "invested" in property
I'm very worried about an estate agent with offices in Enniskillen and Irvinestown with a staff of twelve.
I'm very worried indeed.
let's imagine he hadn't sold a property in about three months and the only money coming in was from overpriced valuations on desperate punters remortgaging their equity away to meet credit card bills.
If this by some chance happened to be the case then might it be he would have to consider letting go staff or closing an office?
I'm very worried indeed.
I'm very worried indeed.
let's imagine he hadn't sold a property in about three months and the only money coming in was from overpriced valuations on desperate punters remortgaging their equity away to meet credit card bills.
If this by some chance happened to be the case then might it be he would have to consider letting go staff or closing an office?
I'm very worried indeed.
QUOTE (superbrugha @ Jan 20 2008, 08:29 AM)
I'm very worried about an estate agent with offices in Enniskillen and Irvinestown with a staff of twelve.
I'm very worried indeed.
let's imagine he hadn't sold a property in about three months and the only money coming in was from overpriced valuations on desperate punters remortgaging their equity away to meet credit card bills.
If this by some chance happened to be the case then might it be he would have to consider letting go staff or closing an office?
I'm very worried indeed.
I'm very worried indeed.
let's imagine he hadn't sold a property in about three months and the only money coming in was from overpriced valuations on desperate punters remortgaging their equity away to meet credit card bills.
If this by some chance happened to be the case then might it be he would have to consider letting go staff or closing an office?
I'm very worried indeed.
I'd only be worried if you worked there...if not sit back and enjoy the
between him and his staff
QUOTE (subby @ Jan 20 2008, 05:44 PM)
I'd only be worried if you worked there...if not sit back and enjoy the between him and his staff
between him and his staffdon't know whats sustaining them but I was on the lisburn road yesterday and looked across the road at an estae agents - can't remember the name
but they had 5 members of staff sitting there and another person looking out the window on the top floor
oh yeah and one potential customer picking up a few brochures
I was travelling along Ormeau Embankment the other day and witnessed the sight below - I just had to take a photograph and post it on the site. It looks like some of the photos taken in London during the property crash of 1991-1993. I believe there are several new developments due to near completion over the next couple of weeks in the Ormeau area - I presume these will struggle to sell as well.
I couldn't resist posting this photo on a couple of threads - it seemed relevant. If you click on the image you get to see the photo full scale. I suspect that we are going to see a lot more of this over the next year or so.
Click to view attachment
I couldn't resist posting this photo on a couple of threads - it seemed relevant. If you click on the image you get to see the photo full scale. I suspect that we are going to see a lot more of this over the next year or so.
Click to view attachment
There are 2 new UPS for sale signs up on my street, and thats on top of the 4 others. Houston, we have a problem!
QUOTE (Vespasian @ Jan 30 2008, 11:05 PM)
There are 2 new UPS for sale signs up on my street, and thats on top of the 4 others. Houston, we have a problem!
As I mentioned on the main thread, my sister in law got a call from her agency, MCW, the other day, to ask if she could pay her reg/advertising fee ('this week, if possible.') They are trying to sell their home in S/E Belfast and have not had a single viewer. It was my understanding that this fee is normally charged at the end of business.
Local agents are bound to be having cash flow problems, let's face it, it would be odd if they weren't.
QUOTE (Mr Mephisto @ Jan 30 2008, 10:06 PM)
I couldn't resist posting this photo on a couple of threads - it seemed relevant. If you click on the image you get to see the photo full scale. I suspect that we are going to see a lot more of this over the next year or so.
Click to view attachment
Click to view attachment
Classic. Well spotted and snapped. Would make a good picture under a newspaper headline
QUOTE (Mr Mephisto @ Jan 30 2008, 10:06 PM)
I was travelling along Ormeau Embankment the other day and witnessed the sight below - I just had to take a photograph and post it on the site. It looks like some of the photos taken in London during the property crash of 1991-1993. I believe there are several new developments due to near completion over the next couple of weeks in the Ormeau area - I presume these will struggle to sell as well.
I couldn't resist posting this photo on a couple of threads - it seemed relevant. If you click on the image you get to see the photo full scale. I suspect that we are going to see a lot more of this over the next year or so.
Click to view attachment
I couldn't resist posting this photo on a couple of threads - it seemed relevant. If you click on the image you get to see the photo full scale. I suspect that we are going to see a lot more of this over the next year or so.
Click to view attachment
Hey, that's me running in the background - I thought you were just some weirdo taking a picture of me in my lycra shorts !
That picture is just some students having a laugh.
Seriously, even if it was real - which it is not - it shows how buoyant the market is.
Seriously - now is the time to buy - with offers like that savvy buyers will be rubbing their hands together with glee.
Buy Buy Buy before prices get out of control.
Buy on the bounce people!
Seriously, even if it was real - which it is not - it shows how buoyant the market is.
Seriously - now is the time to buy - with offers like that savvy buyers will be rubbing their hands together with glee.
Buy Buy Buy before prices get out of control.
Buy on the bounce people!
I know that I am quoting myself again, however I am keen to cross fertilise a couple of threads with some supporting evidence from a bona fide expert raising the issue of cash flow for estate agents and developers
QUOTE (Mr Mephisto @ Feb 1 2008, 12:21 AM)
I’m sure all of you serious commentators out there have already read this document – “The University of Ulster Northern Ireland House Price Index for Q3 2007”
http://www.bankofireland.co.uk/pdf/BoI_Hou...dex_Q3_2007.pdf
Some excellent commentary from Alan Bridle which I have quoted below - I thought it was worth posting in support of some of the arguments on several threads. Obviously you don’t reach such a senior position in the banking industry without knowing what you are taking about. I know that some people would automatically classify Mr Bridle as a Vested Interest, however I would like to point out that he did go on TV during the peak of the boom and clearly stated that the rapid growth in house prices was unsustainable. His position may have actually been stronger than this, however I can’t quite remember his exact words and I don’t want to miss quote him. If any of you find a copy of his TV appearance last summer (I think it was a UTV special on the N.Ireland property market) on the web could you please post the weblink (hyperlink)
Mr Brindles Comments:
“This indicates that the brunt of the slowdown is not being felt by home owners watching the value of their properties devalue by the day, but rather by those who make a living from activity in the market – estate agents, mortgage intermediaries, lenders and those developers who need to sell units to generate cash to pay off borrowings”
Alan Bridle
Senior Manager, Research
Bank of Ireland Business Banking UK
Email alan.bridle@boini.com
Do you think we should email Mr Bridle an invite him to join the forum along with Jamie Delargy and Helen Carson?
I think MD23040 could give Mr Bridle a healthy debate on economics
http://www.bankofireland.co.uk/pdf/BoI_Hou...dex_Q3_2007.pdf
Some excellent commentary from Alan Bridle which I have quoted below - I thought it was worth posting in support of some of the arguments on several threads. Obviously you don’t reach such a senior position in the banking industry without knowing what you are taking about. I know that some people would automatically classify Mr Bridle as a Vested Interest, however I would like to point out that he did go on TV during the peak of the boom and clearly stated that the rapid growth in house prices was unsustainable. His position may have actually been stronger than this, however I can’t quite remember his exact words and I don’t want to miss quote him. If any of you find a copy of his TV appearance last summer (I think it was a UTV special on the N.Ireland property market) on the web could you please post the weblink (hyperlink)
Mr Brindles Comments:
“This indicates that the brunt of the slowdown is not being felt by home owners watching the value of their properties devalue by the day, but rather by those who make a living from activity in the market – estate agents, mortgage intermediaries, lenders and those developers who need to sell units to generate cash to pay off borrowings”
Alan Bridle
Senior Manager, Research
Bank of Ireland Business Banking UK
Email alan.bridle@boini.com
Do you think we should email Mr Bridle an invite him to join the forum along with Jamie Delargy and Helen Carson?
I think MD23040 could give Mr Bridle a healthy debate on economics
QUOTE (Mr Mephisto @ Feb 1 2008, 12:26 AM)
I know that I am quoting myself again, however I am keen to cross fertilise a couple of threads with some supporting evidence from a bona fide expert raising the issue of cash flow for estate agents and developers
Yes, I understand the need to fertilise, but most people can read this article once and decide whether to reply or not. It might be better to keep each article in its particular topic zone.
This was waiting for me in my inbox, it's an email from a Belfast EA:
Apparently according to them, people are buying and the magic formula has been to reduce everything by 20%. So there you go, EA's are being sustained by the sale of houses reduced by 20%, and the market is moving!
QUOTE
Hello, good morning
Please click on the link below to access our website where you will find latest properties and latest price reductions
www._______________________.com
State of the market
For many months now we have been reducing prices of first time buyer houses in East Belfast in line with demand. The vast majority of the houses that we have reduced by 20% from their peak value of last year are now sold or sale agreed and all the houses that we have featured in our 'Exceptionally Good Value' mailing list are now sold or sale agreed.
If you are thinking of buying, and are perhaps sitting on the sidelines thinking that nobody else is buying anything then you may be interested to know that this is not the case. Call and speak to any of us at ________________________and hopefully we can offer you some houses at a fair market price.
________________
This one won't be on the website yet, it is a terrace in very good order but perhaps the main sellng point is the size of the extension. Huge kitchen with huge second bedroom above. The bathroom is in what was originally the back bedroom. It will be going on at £160,000.
Best regards
_________________
Please click on the link below to access our website where you will find latest properties and latest price reductions
www._______________________.com
State of the market
For many months now we have been reducing prices of first time buyer houses in East Belfast in line with demand. The vast majority of the houses that we have reduced by 20% from their peak value of last year are now sold or sale agreed and all the houses that we have featured in our 'Exceptionally Good Value' mailing list are now sold or sale agreed.
If you are thinking of buying, and are perhaps sitting on the sidelines thinking that nobody else is buying anything then you may be interested to know that this is not the case. Call and speak to any of us at ________________________and hopefully we can offer you some houses at a fair market price.
________________
This one won't be on the website yet, it is a terrace in very good order but perhaps the main sellng point is the size of the extension. Huge kitchen with huge second bedroom above. The bathroom is in what was originally the back bedroom. It will be going on at £160,000.
Best regards
_________________
Apparently according to them, people are buying and the magic formula has been to reduce everything by 20%. So there you go, EA's are being sustained by the sale of houses reduced by 20%, and the market is moving!
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