How do Estate Agents earn a livelihood?

johndaman66

How do Estate Agents earn a livelihood - genuine question.

I appreciate there is activity and considerable turnover of property in Dublin/ Cork/ Galway and other such larger hubs and there will always be rental activity in these places - may have being tough going over the past few years but am sure things are improving and EA's there are earning a crust.

However, smaller regional towns must be a different story. Take my own local town for example. Was never a hub but was holding its own up until 10/ 15 years ago. now its just pretty much a dead ghost town with no less than 6 Estate agents:eek: Three of them are one man bands but the others have at least 2 if not 3 working in their offices.

I'd be shocked if there are much more than 2 house sales on average every week between all of them and thats possibly being generous. At an average asking price of circa €130k and assuming a 1% commission thats €2,600 between all of them. Counting at least 10 working people between all these offices thats at around €250 each at best - I appreciate my workings are a bit crude - back of a beer mat sort workings and some are selling more than others - still though

Two of them also have auction rooms and have auctions on a Saturday every month or so but as far as I can see they are for the most part selling a load of rotted and rusty junk that nobody is buying much (called into one one saturday) - hardly very lucrative. Another one is a County Councillor so appreciate the Estate Agent is more a sideline. Still though this guy has ads in his window of houses with the prices they were 3 or 4 years ago on the ads (the prices have being dropped consistently since) and I reckon the prices on the ads in the window are 3 - 4 years out of date. The ads are very faded and no more then legible with the sun having being shining on them for so long.

I suppose my point is how/ why do these guys keep at this business when clearly it cant be that worthwhile a profession for them.

TheDriver

Rentals, big yearly income as letting agents

Santa Cruz

TheDriver wrote: »

Rentals, big yearly income as letting agents

Certainly in Dublin I know small letting agencies that are managing 30/40 properties taking maybe 5/6% of the annual rental income.

johndaman66

TheDriver wrote: »

Rentals, big yearly income as letting agents

Is there though? In large well built up areas Im sure thats where the gravy is for them but again to come back to the example of my own local town there is sweet FA employment worth talking about there apart from shops and small numbers of solicitors, insurance brokers etc - not much besides. Cant imagine thats a big money spinner in such a town where it would seem that a lot of owners seem to advertise in the local newspaper anyway if they're renting out their property instead of going through an EA

johndaman66

Santa Cruz wrote: »

Certainly in Dublin I know small letting agencies that are managing 30/40 properties taking maybe 5/6% of the annual rental income.

I appreciate Dublin/Cork/Galway and to a lesser extent probably Limerick this is quite lucrative for Estate Agents but my question is purposely focusing on smaller regional towns where I reckon there is very little in the way of managed properties, if any - its a lot different out in the sticks:P

pwurple

In rural areas? I'd say they don't. They possibly do it part time, or the other person in a couple is the main earner and what they make is small change.

TheDriver

You'd be surprised at number of rent allowance etc going on in every community. Also farm sales, rental and commercial lettings. I don't know how some EAs have time for bidding wars

MouseTail

pwurple wrote: »

In rural areas? I'd say they don't. They possibly do it part time, or the other person in a couple is the main earner and what they make is small change.

In rural area, many would be auctioneers at marts.

L1011

Letting in rural areas is hugely common - both farmland and due to people not bothering buying because renting is quite cheasp.

Santa Cruz

Of course in rural areas they can double up as TDs, undetakers and general gombeen men

johndaman66

MYOB wrote: »

Letting in rural areas is hugely common - both farmland and due to people not bothering buying because renting is quite cheasp.

While I agree with you on letting of farmland being quite common I do think its also often word of mouth. Farmers would tend to know one another very well and know of the next ones land was idle, approach one another etc. with no EA involved at any stage in it all...not all the time but a lot of the time thats the way it tends to happen around here.

I would nearly need to disagree with you on the renting of residential property in rural areas. While it happens I wouldn't think its overly common and a lot more prevelant in larger towns and cities. I think too that people living in rural areas are very often of the more traditional mindset that rent is dead money, not seing the wood for the trees. A daft or myhome search of my local area shows pretty much no property up for rent worth talking about. I appreciate too though that many living in rural areas are apprehensive about advertising publically for fear of break ins while EA may still have their property on their books.

Santa Cruz wrote: »

Of course in rural areas they can double up as TDs, undetakers and general gombeen men

Agreed there. Many would have their fingers dipped in other jars, moreso the older guys. Still surprising the amount of younger guys getting into it who seem to be focusing solely on being Estate Agents

NipNip

Valuations, commissions on sales and now rentals.