The pace of closures amongst estate agents appears to be accelerating.
Over the last week, we have had reports of firms going into administration from Sussex through to Sheffield, and including some long-established agents that have managed to survive two world wars, the 1930s depression and the recession of the early nineties.
Notably, some of the firms have kept their lettings operations.
More estate agents closing down
03 November 2008
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Comments
Well if Estate Agents are diligent and intellignet they will be able to persuade vendors to sell at lower prices. Unfortnately the Vendors were convinced by EA's about the absurdly
stupid price valuations of their houses and are now are in self-denial that prices can fall. After all "House prices never do down" do they ?.What goes around comes around.
I stumbled across this site whilst pottering around the web. I'm sorry to hear so many Estate Agents feeling the pinch and hope many of you are able to come out the other side of this terrible time. Whilst I don’t wish misfortune on anyone I do hope that some of the red braces brigade that got into agency over recent years, to make a quick buck, now decide that recruitment really is more suited for them and head back never to return. Hopefully this will leave more of the honest and established guys who have more of an understanding that it is not all about the quick sale but more about your long term reputation, that is important
One other thing - Chip fat (or whatever your name is) may I suggest that use your computer for what you initially intended and go look at some porn, leave adult conversation to the grown ups. I think this site is aimed at more your class of idiot WWW.ispentomuchtimemaste**atingwhenishouldhavebeendoinghomework.COM
"Nothing is foolproof to a sufficiently talented fool." Anon
Amazing to hear some people wish financial hardship on others! Children losing their parents due to divorce under mounting financial pressure or at worst someone ending their life because of the strain! The we hate estate agent mentality is pretty funny considering most of the people saying this dont actually know one! Remeber in this hard hard time we face, some people will be very glad of the estate agent who gets their house sold to ease the hard times they are faced with. An Estate Agent is a job title only, the people who are EA's and those in need of the service they offer are much more important than the we hate them mentality! You probably guessed I am an estate agent, but atleast I can hold my head up in the knowledge I would never wish hardship on anyone! NOBODY is safe in todays economic climate regardless of what you do and one simple fact is the longer agents suffer the longer the economy does. so sensible lending, realistic agents AND vendors helping people move HOME is needed, and touch wood without the stupid price hikes whitnessed in recent years! everyone can be a winner!
good grief what a load of whiners. always think positively there are other ways to make money and be successful, life doesnt stop just because we have a recession some business flourish, use your brains and instead of posting on this stupid media driven,dram queen website use your brainpower to think of some other way to keep your cheap suits and shiny leased audi. written from the beach in the caribbean making at least 8% on every overseas sale
Can anybody tell me what conditions were set by the Government when they provided the multi billion pound pot of taxpayers money for the banks to dip in to. They certainly aint lending it yet to buyers!!!! Maybe the Government forgot to add the conditions.
When slagging off estate agents, remember they also have families to support. Not only have their incomes dropped to near zero but they have also been hit by the vast increase in the cost of living, so a double whammy!
We have several offices and so far we have made no end of cuts in expenses but thank goodness we have not had to lay staff off - yet, that will be our last resort. (NOT LOOKING FOR SYMPATHY, JUST SOME UNDERSTANDING)
To those slating estate agents qualifications or lack of. I would like to inform you my two colleagues who I made redundant due to the downturn, both got jobs within the public sector (working for the government / taxpayer) within days.
Ah! Now we know the true source of incompetence and muppetry!!!
P.S. I am a millionaire and will remain so!!!
There is obviously a great deal of concern in this topic. Looking positively, those agents who provide a good service, have put money aside when times were good and have adapted during the changing market by concentrating on where the current demand is ie auctions and lettings and have managed to reduce their uneccesary overheads, stand a good chance of surviving the downturn. There really is a rainbow at the end of the storm!
My Brother who lived abroad needed to sell a house in the last recession, it was a slow market so the EA told him a sell price which was ridiculously low but said it was the market price. I phoned up as a putative buyer "sorry its sold it was an absolute bargain". Many lying EA's will burn in hell for ever.
It’s very interesting to read all your comments and to see such a disregard for companies and individuals. Let me remind you all that it’s is not just estate agents who are in this predicament. I was under the impression that this site was for discussion and debate. Not for insults and derogatory comments. I feel for those who are facing redundancy and for business owners who could lose everything. A number of you seem to think that you are infallible to the market and what is occurring, if this is the case than I wish you every success. For those who are doing what they can to survive. Keep doing it!
A little bit of decorum would be appreciated by the readers.
www.thisisderbyshire.co.uk/news/deal-saves-140-jobs-estate-agent/article-446011-detail/article.html
ONE of Derby's biggest estate agents Burchell Edwards, says it has saved 140 jobs after it was put into voluntary administration – and bought out almost immediately by its management.
If I was an estate agent competing in their area, I would give this news article to the potential customers, to show how some estate agents, can continue in business why creditors owed money loose out. Not an estate agent I would put my trust in, would you!
There'll be no sympathy because the majority of people dislike estate agents as there are many abuses, and basically none of you are qualified for anything much. The model is bust and the web will replace you even more during this slump. I suggest you all get some actual qualifications and real skills, and move on.
Nothing better than seeing a load of Estate Agents whinging. I truly hope you all lose your jobs and go Bankrupt.
With transactions down more than 60% in my area (northwest)agent closures are inevitable either because of lack of initiative, adaptability, common sense or basic business sense; there just isn't enough pie to go around. As an agency of just short of two years trading, in an area served by agents dating back 150 years, our reception into the market by the establishment was hostile to say the least. Our style of business however is more up to date, flexible and proactive and allows us to survive and prosper. We suggested to every agent in the city that an American model of sharing buyers, referral fees and working together to keep the market moving is ultimately of benefit to us all. Every door has been slammed in our face. The internet has irreversibly changed the nature of the business and will continue to do so over the coming years, yet local agents continue to cling to local paper advertising at £1500 per page as their flagship marketing strategy. They accumulate listings which they have little ability to move and thereby add to their cost base without increasing revenue. In this country we value longevity, tradition and the established order but this will not save businesses in this market, it's basically adapt or die. Every other agent has now shed staff, cut hours, closed satellite offices, reduced salaries and commissions. I would estimate that 40% will not be around this time next year. People will mourn their closure and the loss of established faces but the bottom line is that they will be left with agents who provide a more efficient, modern and broad ranging service which is ultimately to their benefit.
Anyway folks, it's been a long day.
Frankly, apart from accusing me of working for Connells, nobody.... that's nobody has delivered a constructive argument to my many posts. Some of you are drowning in your own naive, unqualified, oblivious, self importance.
Thought for the day:......If a firm has less than 4 years costs in the bank (and I mean in the bank - no remortgaging the house, no overdraft facility etc.). Then that firm is questionable, at best.
Discuss
Chips is definatley a connells boy! I can smell the blue stratos.
This market is both sad and difficult. We've seen some really hard working experienced agents close as well as the newer ones. I wouldn't wish it on any of them or their staff. Truth to tell, if the market doesn't pick up more will follow. The money markets have a lot to answer for. The government has been irresponsible. People in the past have been greedy. I'm thinking about a new cookery book - Budget Meals for Estate Agents!
We've cut back in every way possible without affecting our credibility - have we had a good October? Well, the lights are on and the door is open so I suppose the answer is yes.
Best wishes to those less fortunate!
"Posted By Paul Warren on Monday 3rd November 2008
This will make you laugh! Chips Willis works for Connells. Ha Ha! "
Paul Warren, I do not work for Connells (I do not work for anybody except the Inland Revenue), I have traded on my own account for many, many years.
I've just read the comments posted in this section & quite honestly I can't believe what a bunch of knobheads some of you appear to be. And what's more - some of you don't even have a half decent command of the English language. You've spent too many years writing cliched sale particulars - my advice - whilst you're quiet enrol yourselves on a GCSE English course, in the likely eventuality you might have to compile a CV !
This will make you laugh! Chips Willis works for Connells. Ha Ha!
Get a life and get on with your work all of you if you wanna nice christmas...
If CHRIS WHIPPS has enough time to keep commenting on other people's estate agency going down the pan, it might just be his own soon. A lesson in business CHRIS! People in glass houses.....
"Posted By Jane Leics on Monday 3rd November 2008
I think it is sad that agencys are closing their doors after many years and unlike Mr Willis i think it is a shame whether agents have been selling for 25 years or 25 weeks. In these tough times we should stand shoulder to shoulder. "
Jane, you're right. There's a firm round the corner from us about to close. If the owner takes out his ear ring, changes his purple and refrains from calling me "mate"............... I might allow him to cut my lawn.
Watchful Eye, Have just spotted this..."I agree with 'some' of Chips comments. However, to have no sympathy with a business struggling to survive due to lack of experience shows him/her to be a bigot of the highest order." Do you honestly believe what you have just written ?
If a doctor is inexperienced, he/she will misdiagnose and hurt/kill someone.
Maybe if your accountant messes up your accounts and lands you with a penalty from the taxman, it will be ok because he/she is inexperienced.
With respect, your comment beggars belief.
I, or in fact my role, was made redundant last week and I offer this warning to any others living with the threat of redundancy: Make sure you know your rights and that you employer follows procedure as laid down by statutory law. My soon to be out of a sales estate agency business boss thinks that just because times are tough he can flout every employment law in force and I'd hate to see others, not so clued up in employment law, suffer a fate where you do not receive fair treatment and redundancy pay if eligible.
lee,
Here it is.....
charliebigpotatoes.co.uk
Chips, i find some of your stuff amusing and can kind of get where your coming from. But you give it such charliebigpotatoes. Tell us all the firm you own or work for so we can look at your web and see how hot you are.
Well done Richard Copus, its time someone stood up for the NAEA, they are doing a lot to make the industry more professional in the eyes of the public, something which is clearly needed to distinguish us from the tarnished image some agents still display.
Watchful Eye is obviously not watchful enough! Whatever the shortcomings of the NAEA, it has raised the profile of estate agents enormously over the past few years and has put in place the examinations that Watchful eye wants, i.e. the Technical award for entry and the Diploma for the more advanced. The Government is to blame for not making these standards mandatory for all agents. The NAEA is a member based organisation and if more members took an active interest in it there would be less to moan about.
Chips Willis does he do any work as he appears to be on here all day glad he's not selling my house!
It seems to be the fashion today to be uncaring and unsympathetic. You have only to look at the debacle of J Ross and R Brand and the reaction of many of their so called friends. It seems that Chips Willis is another example of a certain type of greedy and uncaring estate agent, the kind that gives all of us professional agents such a bad example amoungst the public.
Is it any wonder the industry has one of the lowest commissions payment structure in the western world. In the States for example realtors not only command fees of between 5% to 8% but they also command high respect in the community comparable to a lawer or doctor. Need any more be said!
I have been an Estate Agents for 26 years, 16 of them as my own business, I have sold my expensive Volvo XC90 and have a much cheaper car, I have frozen my pension, stopped my private Health Insurance and cut back on the number of websites, I have reduced from 4 to 1 and overall saving of £2700 per month on everything. We all have to make sacfices but I will still be business when others fall by the wayside, follow my example and cut to the bone because the good times will return.
Good luck everybody
Watchful Eye,
I have been trading for decades. I have never had a whiff of a negligence claim etc against me or my firm. Unfortunately, our PII premiums are too high due to aforementioned, inexperienced jokers.
Good riddance to them
Oops a daisy ! Double post (fat thumbs).
Anyway posters, not to worry.
You can always go into lettings !
These "area director" people are the most vunerable, they should be cacking themselves (non-fee earning, self important parasites).
It's December, the 'phone rings, it's the regional parasite...
"OH NO !!!...I've been pushed, my leased Audi is going and I've only just bought another cheap shiny suit...MY CHRISTMAS IS RUINED !!!!"
The people who should be really worried at the moment are the "area director" type people working for large chains. They are historically very vunerable (mainly due to their parasitic nature and lack of fee earning).
I can hear it now:......."OH NO! I've been given the push, I've got to give my leased Audi back....MY CHRISTMAS IS RUINED !!"
I agree with 'some' of Chips comments. However, to have no sympathy with a business struggling to survive due to lack of experience shows him/her to be a bigot of the highest order. It's amazing how many of my fellow long term Estate Agents are happy to jump on the grave of failed newcomers. It's little short of disgusting and makes me realise that the public view of Estate Agents isn't that far from the truth in cases like our friend Chips.
The NAEA are clowns.
They sold us down the river on HIPs.
I honestly couldn't expect them to go to the toilet properly let alone raise the awareness of our so called "profession"
Why are the National Association of Estate Agents doing nothing? Er, Oh I know, because they never do! What Estate Agents need is a raised profile in the minds of the public, exams to prove competency and a full on marketing program to inform the public that we are doing a job that is making huge losses. Our fees need to fall in line with Europe and the USA in order to survive. For that to happen we need a regulatory body that is prepared to support and develop the industry. The ONLY thing that the NAEA seem competent at is collecting fees.
Reading these comments, it amazes me. All this talk about people losing their jobs, homes etc.
I repeat: Anybody who didn't spot this coming 3 or 4 years ago is either blind, oblivious or an idiot (or all three).
The inexperienced here are basically frightened. They are frightened because...a) They don't know how to trade in a retracing market b) They don't know how to manage costs and cashflow and c) They have never seen this before.
The good agents who rode out the last storm will ride this one out to prosper and flourish.
The agents with high gearing, high fixed costs, inexperienced listers (who only know how to cook a price) and with glip negotiators who really don't know the first thing about negotiating (apart from filling in an offer form and trying to flog a mortgage) will founder.
It's business, it's as simple as that.
I have no sympathy. Life can be tough sometimes.
Your Move, RE/MAX and Century 21 have closed many franchise operations in Glasgow recently and would expect more to follow.
It's all very well talking about firms "amalgamating".
If you mix s*** with s***....... you get s*** !
If your turnover has reduced to less than half what it was you need to take decisive action sooner rather than later. I pray that those who have downsized quickly will be able to survive. Hoping it is going to get better soon is not an option. Look at this years income and reduce overheads accordingly. I wonder if we will see some amalgamations of firms. Whatever the reason every closure is a human story, jobs lost, invested money lost, sometimes homes on the line.
Here here Mr ANON, Without sounding Callus the closure of old and new firms are inevitable if good business sense was not used. Old fashioned as it my seem but money in the bank and not owed is the key to survival, it is not rocket science - on the contrary, if you can't afford it do without it! It will be companies like ours that will not only ride out the current market but shall increase market share as we go!
I feel sick!! Old firms are going under, people are loosing their jobs, families will be suffering and some of you are gloating. Thats really quite sad.
"Brian on Monday 3rd November 2008
HenryAdams Sussex have closed a number of branches recently tough times everywhere lets hope Mr Chips Willis's words dont come back to haunt him as established so called good firms are not immune! "
They are if they're hedged Brian.
HenryAdams Sussex have closed a number of branches recently tough times everywhere lets hope Mr Chips Willis's words dont come back to haunt him as established so called good firms are not immune!
We are getting agents together to pull out of rlghtmove from January unless they slash their subscription charges by half. Please sign the petition if you wish to join in at wwwdotpetitionspotdotcom/petitions/rightmoveboycott. (fill in the ‘.’s where it says dot)
Please pass this on to as many fellow agents as possible.
If someone set up, say, in the late nineties, opened more branches and thought that the market would keep steaming ahead....basically they deserve to go under because they have shown a degree of stupidity beyond belief.
There are too many of these recent firms run by "property professionals" who think that a website and a floorplan is all you need.
The strong, innovative and talented firms will soon prosper (regardless of the market) and mine will be one of them.
This slump is a blessing in disguise. The dross is leaving.
The Estate Agency business is as much about wathcing markets, contingency plans and good business sense as any other. Many agents strip their companies of profit, take huge wages and have left nothing in reserve, spending money on advertising and other overheads prior to income for the expected up turn in the markets from Easter basically didn't happen as expected, if residual profit was used it would not have been such a harsh position that has affected many agents.
I think it is sad that agencys are closing their doors after many years and unlike Mr Willis i think it is a shame whether agents have been selling for 25 years or 25 weeks. In these tough times we should stand shoulder to shoulder.
Patchings in worthing west sussex established 1825 has very sadly gone a week ago, another local agents to close is James Strong in Rustington West Sussex.
Either name names or stop putting out these stories. Its one thing to tell us someone somewhere is closing down but it is only story/fable/hearsay unless you tell us who.
If an old established firm closes, then that's sad.
The good news is that the spivs who set up in the rising market are going to the wall.
Good riddance and thanks for the stock !