If you’re interested in property, profit and a rewarding career as your own boss, you’d be perfectly suited to a role as an estate agency franchisee. But in such a wide and growing industry, choosing the right franchise opportunity for you might take some careful consideration. In this article, you’ll discover what’s out there, and what’s right for you.
There are currently around 354,000 people employed in the property and housing sector in the UK. With roles ranging from estate agents and property managers to administration and support jobs, there’s something for everyone in this vibrant and exciting sector.
— Collins Property Recruitment
During 2020, in spite of global uncertainty and pandemic, the annual price of a UK home rose substantially, particularly in the latter half of the year, up 7.6% in November [Office for National Statistics]. It’s clear from this fact that the real estate market in this country is strong and able to weather even very difficult storms, making it a solid investment choice. Here are four types of estate agent franchise business to consider investing in...
1. A high street estate agent
As you can probably tell by the job title, a high street estate agent is based in an office, in a high street, and should offer clients an extensive understanding of the local property market, helping to provide realistic valuations, informed advice and purchase support. If you have what it takes to run an estate agent franchise of this type, you can find huge reward and profit in this kind of career.
Becoming a franchisee and opening up a high street estate agency is one of the more expensive investment options available in the sector, thanks to higher overheads and staff requirements, but it also boasts a higher return on investment, and the biggest advantages to this type of estate agent franchise are:
- The chance to help your local community and connect with local people
- The chance to help people find them dream homes
- The ability to capitalise on street traffic and walk-in demand
- The ability to expand, potentially, and become a multi-unit franchisee down the line
Choosing the right high street estate agent franchise
Before you make a large financial and professional commitment like this one: Do your research, get your finances in order, and ensure that you have the skills you need to succeed. Are you personable? Communicative? Good with people? Are you able to negotiate? Are you able to lead, work in a team and delegate? All of these skills will be crucial to the success of your high street estate agency.
Budget will be one of your biggest considerations, and the cost of investment, though likely to be fairly high, will vary greatly depending on the size, location and brand recognisability of your chosen franchise business. For example, to become a Northwood franchisee you’d need to make a minimum initial investment of £50,000, while to become a Century 21 franchisee, you’d need to make a minimum initial investment of £10,000.
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2. A hybrid estate agent
A hybrid estate agent franchise can mean one of two things:
1. A franchise that offers franchisees multiple different investment levels/options, some of which are office-based like the above, and some of which are online, like the below.
2. A franchise that offers services to clients both in-office and online.
Hybrid represents the best of both worlds. It’s a system that balances personalization with speed and caters perfectly to the different needs of today’s sellers. It’s a model that, for the foreseeable future, will be hard to beat.
— Gary Barker, Forbes
As Gary Barker says, a hybrid estate agent is essentially the best of both worlds, allowing for franchisees and/or clients to create a real estate experience that suits and speaks to them, outside of the rigidity of a property business that has both feet in one world - either online or office-based.
Choosing the right hybrid estate agent franchise
With so many different investment options, packages and levels on offer, choosing where to put your money isn’t always easy. If you’re wondering whether a hybrid estate agent franchise could be right for you, ask yourself the following questions:
- Am I looking for a lower-cost investment (and operational) option?
- Am I looking for a franchise opportunity that’s easy to manage?
- Do I want to be moving with the trends and accepting technological advances?
- Would I like to be flexible about my working location and working hours?
3. An online estate agent
Now, we come to the other side of the coin. The non-traditional, fully online estate agent franchise, able to be run largely from the comfort of your own home. Online real estate businesses can be just as viable, profitable and helpful as agencies with office premises, supporting clients in the selling and purchasing of property via a digital medium.
Services offered by online estate agents tend to be a little more basic, as they must largely be conducted remotely, but this also makes this kind of franchise a much more affordable and flexible option. To operate an online estate agency successfully, you’ll need to be a driven, self-motivated person with very good communication skills that can cross the boundaries of space and allow you to connect with customers.
Choosing the right online estate agent franchise
Remote, online and van-based service sectors are growing in 2021. They’re convenient, efficient and in-demand, and often cost-effective not just for you, the potential franchisee, but for the client, too. Plenty of online estate agency opportunities are available, and they vary in price, as offline opportunities do, based on size, location and brand recognisability. Redstones, for example, requires a minimum investment of £14,995, and in return:
- You won’t need prior experience
- You’ll receive extensive training and support
- You’ll be helped to achieve the ARLA qualification
- You’ll be given professionally produced marketing materials
- You’ll receive help with brand, promotions and PR
- You’ll attend regular, supportive network meetings
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4. A lettings agent
Though many franchise opportunities in the real estate sector are with businesses that cover both sales and lettings, there are some franchise businesses that specialise in one or the other. If you’re more interested in the fast-paced, quicker turnover world of rentals, there are plenty of suitable options out there for you, too. As a lettings agent, you’ll need to:
- Provide quality customer service
- Manage people
- Use your initiative
- Put your business management skills to work
- Persuade and negotiate
Choosing the right lettings agent franchise
You’ll find a variety of lettings specialists on Point Franchise, and you’ll see that prices vary greatly, again, from franchise to franchise. It’s all about doing your research and pinpointing the opportunity that suits you. It might well be with a franchise business like No Letting Go.
To become a No Letting Go franchisee, you’ll need to make a minimum investment of £17,950. You won’t need prior experience, but you will need to be (along with all the qualities listed above):
- Ambitious and hard-working
- Positive and determined
- Self-motivated and driven
Become a franchisee and join the real estate sector today
Hopefully, this article has helped you to narrow down your real estate dreams. Next step, choose the ideal franchise. Browse a wide range of estate agency and property investment options, or get informed about the market you’re about to enter by discovering how the real estate sector is bouncing back post-COVID.
Cara Squires, Point Franchise ©