2021 has been a turbulent year and starting a business in these times is risky, especially in property. However, estate agents are thriving, and the market is booming. Property is selling faster than ever – leading to many new start-ups in the estate agency sector; be it online or traditional.
House prices are continually rising, and this growth will continue well into the next decade. According to quick house sale experts Ready Steady Sell; it is likely that over the next 10 years, house prices will rise by at least 5% per annum and in parts of London this will be as high as 12%. The country is projected to grow by 2% per annum over the next 10 years. The sun is shining on our property sector as never before; we have reached critical mass and it is only going to get better.
Starting out as an estate agent – is it a good move?
Starting an estate agency is risky business. Over the next five years, 42% of estate agents are expected to close and fail. However, with new technology such as online property portals or 3D visuals on websites that allow people to walk through a virtual property, consumers are increasingly flocking to web-based companies to find the property of their dreams. This is a real threat to traditional face-to-face estate agencies but there are many advantages for starting an online estate agency too. There is also an advantage to starting a traditional estate agency as the increase in demand for property is creating more work for estate agents. People are buying more houses and flats than ever before, and these new homeowners need an experienced team of estate agents to guide them through the process.
If you are thinking about starting your own estate agency, then you need to be in a position where you can weather the storm of poor sales or bad deals and still be able to pay yourself and keep going. We always advise potential entrepreneurs to think about this very carefully and when they do, to make sure they have a solid plan for business growth.
There are two main types of estate agency; Online and traditional. This article will focus on the nitty gritty details of starting an estate agency face-to-face, however, there are many elements that apply to both. We have spoken to several experienced entrepreneurs who have given us their thoughts on why you should consider starting an estate agency in 2021 and some simple advice for getting your business started successfully.
Who should consider starting their own estate agency in 2021?
1. “I have a passion for property”
More and more people are buying property in the UK. The government predicts that there will be nearly 1 million house sales a year over the next few years. There has never been a better time to get into the market and start your own estate agency.
2. “I am entrepreneurial and can see a space for myself in the industry”
Although it is risky business, there is an incredible opportunity to take advantage of in real estate as people want to jump on board with new developments or purchase their first home – whichever way you look at it its looking pretty good!
3. “I want to start a business with no prior experience”
Starting an estate agency does not require a great deal of previous experience and competence in the sector. Rely on your passion for property and ambition, rather than any experience.
4. “I have enough money to start my own business”
Although you do not need a great deal of money to start your own estate agency, you will need some working capital in order to market yourself and get your brand known. You should expect your sales to be slow at first and so investment is vital. You can always raise more capital as and when needed but having at least £60k is advised.
5. “I want to work for myself”
This is a really important factor because most estate agents only work for themselves and so long as you have your own business you can operate in a way that suits you. You can also choose how you would like to be paid, whether it be cash or commission or both, your choice; gives you all the flexibility and freedom to set your own hours as well as choose which areas of the country that you would like to serve.
6. “I am good at selling myself”
One of the best ways to start an estate agency is to market yourself as an expert in your field. You can show prospective clients your knowledge and expertise and get them thinking ‘that’s the person for me’. In turn, you will be well set to execute their plan via sale or purchase.
7. “I want to work for a larger company but can’t take a pay cut”
Many online estate agents are struggling to compete with large companies and so are having to cut costs so that they can survive. In some cases, these companies are outsourcing their estate agency staff to cheaper locations such as Brighton or Edinburgh. If you find that your wage is lower than others in the sector, then consider starting your own estate agency with the intention of building a business from scratch.
8. “I am passionate about property and want to share my enthusiasm with others”
You need to be excited about property, whether it is a lifetime passion or something you have grown up wanting. This passion will get people excited about buying property and about working for an online estate agent too.
9. “I am looking for a part-time job that can pay the bills”
There are many estate agents jobs that are available to people who want to work on a part-time basis. Estate agents or agents that work in the industry need to be able to have flexible hours because of their client base and while it is not necessary, a lot of businesses encourage this.
10. “I want something more than my 9-5 job”
If you find yourself doing something you don’t enjoy but need the money, then starting an estate agency could well be the answer for you. By working hard and creating your business plan you can start making more money than your current position and start living life on your terms.
