Your reports, please, from the front line

We're based in North Kent/South East borders. Trading for 8 years, opened main branch (from small office) in 2005, and just opened a new branch September this year. there have been quite a few closures in our area, some of the big corporates closing downthe small satellite branches etc, and some more surprising closures too! We have made no redundancies, although one member of staff was not replaced when they left and another part time member has been reduced.
Each month we keep a close eye on the bank balance, and we find ourselves planning the next 3 months of income to see where best to focus our attention.
Whilst we would all like to be making money hand over fist, this is an important lesson for us all in business. We recognised this year just how muhc money we wasted in previous years, and we've also found many other ways of generating extra revenue and cutting costs. For those of us who are established sensibly and can negotiate our business through these tricky waters, we will come out the other side a more efficient and streamlines entity.
I do agree with the comments made by many that there are a lot of agents still happy to over value to win the instructions, for the sake of a few hundred quid in referral fees. This is incredibly counter-productive and very damaging to an already delicate property market.
I'd like to see the future, and would love to see what sort of comments an article like this is producing in a years time.

• 21 November 2008 10:11 AM

My agency is in a small town which really is more of a large village. At the start of the year there were 4 agents but 2 have now closed. From the outside things don't look too positive for the other either. Given the choice would I rather have had a slow year or a minimum 50% reduction in competition? To be honest I would rather take the latter. I maintained newspaper advertising throughout the year until this month wanting to retain a usp. Now its gone and being my biggest cost I am seriously thinking whether to bother again next year. Without it, it will certainly mean long term survival. Roll on 2009.

• 20 November 2008 05:03 AM

It's no surprise that estate agents are struggling as the majority of them can't spell and their grammar is awful. It certainly doesn't help to show us in a good light. I dread to think what sort of brochures they are all churning out. As we are well educated and bright estate agents here in the North West, with impeccable spelling and grammar, we are finding that sales are happening. We operate a cheerful office, no doom and gloom here!!

• 20 November 2008 03:46 AM

Worst market ever. The public need to know how bad. Honesty avoided at all costs by many agents making it very difficult to advise vendors of the true situation. Wake up out there!

• 20 November 2008 10:19 AM

with some time on my hands recently I listed my properties on the free to list sites : Globrix, Zoomf, Ooodle & Trovit, have to say that I've been plecently surprised by the volume and quaility of leads generated from them collectively. There's no such thing as a free lunch so wheres the catch?

• 20 November 2008 09:19 AM

I admire much of the 'Dunkirk spirit' being shown by agents here - although I really think you all need to be more realistic about branch closures (I.E. there are many more to come). But guys you have all GOT to be more realistic on prices. There is futures market traded by the really big residential property player - homebuilders and institutions etc. It trades min. size £5 million at a time. I just spoke to DTZ and these prices indicate a further fall of 34% from Oct 2008 levels, with no price recovery until 2012 at the earliest - and prices not back to today's level until 2017. Remember that a fall of 50% from the peak only takes us back to Feb 2002 levels - so overvalued was the market. You know where the FTSE was in Feb 2002? 5,100. You know where it is today? 4,100! It can happen, and it will.

• 19 November 2008 03:35 AM

I run a small agency in the city fringe (London) and this is without doubt the worst year I have ever know and to be honest I cant wait to see the back of it. Even if next year is going to be tough I can help thinking that with a bit of PMA we can start on a fresh note and ride out the doom and gloom. We have done all that we can now, trimmed all the fat so to speak without affecting the business, down to three full time and one part time staff member, put fee’s up ect. At the moment, lettings have gone off the boil completely but sales enquiries are up. In our immediate area, there have been no casualties yet, a few agents have gone in “off patch areas” but thankfully we seem to be holding on. Its changed the way we look at things with regard to our time, why stay sitting around until late if the phones aren’t ringing. If its quiet then we’ll close at our normal closing hours. Phones can be diverted and emails can be picked up on blackberries ect.
In my opinion, this thread is the best the EAT has ever started on its site, its nice to hear that your not the only other agent suffering. Agents should stick together, especially in times like this.
On a personal note, if this down turn has done anything, its made me appreciate what I have got rather than obsessing about what I haven’t got!

• 19 November 2008 02:18 AM

Well said Gary. This problem exists in every town!

• 19 November 2008 01:36 AM

I am delighted to read many educated comments form fellow professional agents across the UK. In Gower, South wales, we currently have a few offers to deal and registering prospective buyers on a daily basis. At last our vendors are being realistic. Hang on to your hats as i firmly believe the market will pick up in the spring. NOW IS A GREAT TIME TO CONSIDER BUYER.

• 19 November 2008 01:26 AM

We started Property Personnel up 20 years ago so we have been here before, and this recession is FAR worse than the last, especially if you are an estate agent, or specialise in recruiting estate agents! However, we are still placing people in jobs, and rather surprisingly we are struggling to fill some of our vacancies. The reality is that at least 80% of the estate agents registering with us seeking employment are getting out of the industry. Some are taking the opportunity to go travelling, some are returning to education, others are re-training, and many are getting into other sales jobs, with recruitment being a popular choice as the skill sets required are so similar.

Those candidates that we are placing have one thing in common. They have had to do what most of your vendors should be doing-take a reality check. Salaries, especially in residential sales, are significantly lower than 12 months ago, and are continuing to drop. Any estate agent holding out for a similar salary to last year’s will simply not get a job!

As a matter of interest, we are based in Staines, Middlesex, and 6 estate agencies out of about 12 have closed in the last year. www.propertypersonnel.co.uk

• 19 November 2008 01:20 AM

I'm an independant and I've got buyers but unfortunately have to compete with overpricing by the corporates. Properties go on the market with a five month tie in at a stupid price. Other vendors therefore expect more also.As a consequence the general view is that nothing is selling. Couldn't be further from the truth. I suspect they are being paid for instructions and thereby selling hips packs (I heard £450 yesterday)and tying in conveyancing. There is a market but only at realistic prices. If you can get only one property considerably reduced you will create phone calls and viewings which will create a buzz in the office. We've also increased our average fee. Next year there will be more realism so hang on in there!

• 19 November 2008 01:19 AM

In my town on the Est Coast, three agents have already gone under with most other agencies cutting back on staffing. I know of four others that are on the brink of closure including one of the larger agents within our town, but think that is down just to bad management. We need to keep our chins up, and keep on going. The rental market is booming in our home town and thats what will keep us going through the harder times. Just wish agents would be realistic on valuations with some still valuing on last years prices !!!

• 19 November 2008 12:50 PM

We started our business only four months ago and so have been fortunate enough to start with contigency as opposed to being forced to. I have been in agency for many years and quickly cam to the conclusion that for the interim we would not employ staff but would be more flexible with our appointment times and make ourselves available via phone divert ect. We have though re-shaped our lettings model and thrown in many extras as far as service is concerned and this is paying dividends as we our stock levels and cash flow inproves. We do still sell properties but regard this as a "bonus" and try to forget any potential pipeline income until it is banked. I have also walked away from many valuations empty handed because my competitors are being unrealistic with prices, even after being shown factual comparible evidence some vendors go on at up to £40,000 over market value.

• 19 November 2008 12:44 PM

We are noticing a slight upturn in activity, which indicates that people can't wait for ever, if they need to move. Prices are quite a bit lower, but that makes it a good time to buy. Unless you have to sell in under two years, you should benefit from considerable growth. Full marks to the Public for not being beaten down by the negative Press. Agents, who are not in debt and are prepared to use energy and initiative, will survive and will be justly rewarded and admired in the future. They will be establised in their community for some years to come, so hold on if you can.

• 19 November 2008 12:37 PM

Should have said earlier, 2 agents have gone from our high street and another is still there but never open! This time last year we all opened Sundays, now none of us do. Of the two agents that have gone, one was corporate and the other independent.

• 19 November 2008 12:24 PM

I have read with interest comments by other agents. I have been an estate agent for over 25 years, this recession is about as bad as it gets and worse to come I fear. However, I think it is possible to survive, I opened up this particular agency at the beginning of the last recession and it was tough, but after 3 years it got better. So hang in there guys and gels, there is light at the end of the tunnel.

DI

• 19 November 2008 12:07 PM

COME ON ALL. THERE IS SOME GOOD NEWS OUT THERE. OVERSEAS PRESS IS STARTING TO REPORT ODD GOOD STORIES RE PROPERTY. There will always be a place for good agents with local knowledge, experience and know-how. Agency is going through a transitional period. Many agents ignor the power of the web and in turn still have poor sites. Guys, your web is today your prime sales window. A phone can be answered anywhere. High Street offices in the future will be less, al the same it will be many, many years before agents are not in the High Street. I can envisage small agents in some towns clubbing together as their own brokers sharing a central reception and equipment. Yes this already happens. But together such agents could cut their costs, be in a better location. Agency is changing. Its either change, have diverse incomes and do it funded the old way, or accept no change and find that you go in to work to find no business.
Horse and cart and typewriters were once commonplace. www.inea.co.uk

• 19 November 2008 11:55 AM

You're right Trin, there has been an increase in activity which is most welcome. We run two branches in North west Cumbria which thankfully seems to be one of the last areas to be hit. Our second branch opened four months ago when we bailed out an agent in trouble but no further agents have closed and generally things have been ticking over nicely. It's been very useful to read regular postings from elsewhere in the country so we are primed for what is to come and have already renegotiated rates to keep overheads down and increased our fee levels which is helping. Whatever the market conditions divorce, death, births, job relocations etc. will always mean people have to move and the positive & proactive ones among us will find enough business to see it through. Good luck everyone.

• 19 November 2008 11:44 AM

What we need in my opinion is positive news that property is selling provided it is realistically priced. Too many people are under the misapprehension that “nothing is selling”, which couldn’t be further from the truth. If we bring a property to the market at the “right price”, then it will go. Too many agents are still being unrealistic with their values and unable to grasp the requirement for a very different approach. The days of hard selling are over, and should be replaced with sensible intelligent discussion about why it is important to list at a realistic price, thus allowing a far higher probability of achieving a sale. We find people are willing to listen because the vast majority wants to move. They also read papers and watch the TV, so what we are telling them comes as no great surprise. For local movers the effect of the market downturn is largely neutral, unless you’ve reached negative equity or are trading down by some margin.

• 19 November 2008 11:28 AM

People will always need a home, estate agents must be more proactive, we have seen a trickle of buyers back in the market and at present lack the stock to sell, we think the 50,000 job estimate is rubbish, in Surrey Quays only 1 agent has closed, we have just opened a new office in Brockley with 2 further offices opening next year.

• 19 November 2008 11:18 AM

In the Purbecks, Dorset - my Estate Agent office is the only one to close so far. The estate agency business is now virtual with minimal overheads. The other agents are all hanging on in there as the area is a desirable place in which to live. There are still sales taking place judging by a few Agents sold boards. My first job in a medium size Estate Agents business in Portsmouth was 41 years ago. Whilst there have been quiet spells in the property market previously - this one is different for many reasons. The good news this time is that First time buyers will be able to return to the market without depending so heavily on parents funding.

• 19 November 2008 11:10 AM

Wise words from Vossy. Clearly an experienced agent and these are the type of agencies who will survive. I in contrast have worked in the business for 12 years, but set up on my own 18 months ago. We ave a steady lettings & management division but even that is extremely tough. Finally, the media has announced the fall in rental prices, particularly here in the South East due to over supply. Cut overheads and organise ready for the upturn. We have 3 members of staff, 2 part-time. INot enough of the unqualified, unscrupulous agencies out of the way yet in my view, although 2 have gone out of 6 on this High Street. 1 agency I cannot understand continues to open with no maket presence at all. Those who work smart and hard will get through on service alone. Certainly agree with breaks from the office daily. Get out there and you never know who you will meet.

• 19 November 2008 11:01 AM

Anyone else noticed a sudden feel of positivity in the past few days? This morning I have booked more viewings than I did for the whole of last week! Mainly investors, coming out of the woodowrk again. Are people starting to view things differently? Are those that were 'waiting to see what will happen' now thinking that they know what is going to happen, and as much as it's not going to be great, they may as well carry on with life/investments again? We are based in Kent, our team of 6 is now 4 and the 4 are doing less hours, but we're ticking over.

• 19 November 2008 10:58 AM

With the godsend that is HIP's and EPC's there is still money to be made in the housing market. More and more Estate Agents are turning to providing their own (to the huge annoyance of solicitors!) packs with good levels of profit. I have seen only one Estate Agent in my area close (corporate) and the rest seem to be holding there own. Good luck guys for next year...I'm sure you will be fine.

• 19 November 2008 10:51 AM

Based in North London...I have been a professional agent for 24 years and this is the worst I have seen and as hard as I try it is very difficult to be upbeat about sales HOWEVER we have a large rental/management division which will see us through. We had a staff of 7 and now have 3. We pulled out of paper advertising over 1 year ago and have cut down on the portals..its all about keeping overheads low. We still value property for sale but do not put on any property which is not sensibly priced and we certainly do not negotiate our fees as every deal now has to count even more so than before. Its very hard but keep your spirits up, take a 1 hour lunch break everyday just to get out of the office, and you will all be fine!!!

• 19 November 2008 10:39 AM