Belvoir Lettings is launching into the residential sales market.
The franchise chain has announced a sales pilot, with a total of 14 offices participating in a 12-month nationwide trial. Ten of the offices are franchisee businesses and the remaining four are company-owed and include three Redwoods branches.
In addition, two offices have already got their estate agency businesses up and running.
All of the offices involved in estate agency will have their branding changed so that the ‘lettings specialist’ wording is removed.
There has been enthusiasm among the 155 Belvoir franchisees for the project, with 70% supporting the sales pilot.
Belvoir CEO Dorian Gonsalves said: “It will be a traditional sales model – high street, not online – charging traditional fees.
“At first, we see ourselves offering a sales service for landlords, but no doubt as our board presence increases, we will be attracting other sellers.”
The launch into sales follows the move a year ago by lettings competitor Martin & Co also to go into sales – apparently with success.
In early 2012, as it launched on to the AIM stock market, Belvoir said it would not consider going into sales. However, later on last year – tellingly – its founder and now chairman Mike Goddard said it was a case of “never say never”.
The launch comes after Belvoir has concentrated purely on lettings for its 19-year existence.
Gonsalves said: “Most sales agents have a lettings business as a bolt-on service to their primary business but Belvoir will operate the other way round – as a lettings specialist that also offers a property sales service.
“We are constantly seeking new opportunities: 2013 will be a record year for Belvoir and we have an exciting and ambitious strategy for growth in the coming years.
“Another key reason for deciding to participate in the trial is to create new acquisition opportunities for sales and lettings businesses. We have already acquired a number of lettings businesses this year and intend to continue assisting franchise owners to acquire their competitors at the same time as developing our network of company owned outlets.
“The sales pilot is obviously a very exciting new initiative for Belvoir, and we look forward to reporting further developments as the trial gets under way.”
The announcement of the sales initiative came as Belvoir – which aims to have 200 franchises by 2016 – announced strong results for the first six months of this year, including a record July.
Group revenues were up 35% to £2.5m although operating profits dipped 11% to £0.78m, because of acquisition costs relating to its purchase of the Redwoods branches in Hampshire. A total of 45 franchisees each had revenues of over £100,000 during the first half of this year.
Franchisees pay an initial £22,500 to join Belvoir and then 12% of monthly turnover. All have to undergo mandatory training.
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Comments
Hmmm... a case of what goes round, comes round, methinks.
Wonder how many of these offices are actually being run by ex-resi agents who jumped ship the minute the seas got a bit rough and landed in the calmer waters of the Lettings world?
Interesting, then, to see how they fare back in amongst those that actually braved the storm and came through the other side.
Naming no names...
wardy - good to see, matey! I've missed your views recently - and other stalwarts and defenders of our industry don't seem to come by too often these days either!
As we don't have much chance to 'gang up' on Mr RR these days, what's your take on the onlines vs traditionals stories like this one:
http://www.estateagenttoday.co.uk/news_features/Online-agent-Hatched-throws-down-the-gauntlet-over-VAT
?
Your comments would be welcomed on that story...
Any listed company needs to create positive PR to help their share price, up from 140 in july to 188 now, so guess thats worked even if the dont ever flog a property
still lurking about!
still lurking about!
HEY WARDY!!
Nice to see you back, matey! ;o)
Please !!!! don't tell me that a letting agent can't do sales, but that a sales agent can do lettings.
jeeze PeeBee! have you got the energy after the kicking you gave hatched earlier?
"In addition, two offices have already got their estate agency businesses up and running."
Really? t'internet doesn't seem to be aware of that fact...
Perhaps someone at the company would like to enlighten us where their properties are being marketed online so we can savage the website... ;o)
In answer to the first post I can't speak for the rest of my fellow Martin & Co franchisees, but I've been offering an estate agency service for some time now.
Its worked well for us - we've proved that we can list them, sell them, and generate fees at a level which makes it worthwhile. Its no secret that I'll be developing this side of the business further over the next 12 months.
Good luck to Belvoir - competition is always good for the industry as a whole. If Tim and his team at Belvoir Leicester decide to launch an estate agency service I'll wish them well.
Surprise!!
Nice, reminds me though. What happened to Martin & Cos storm on the sales market?