Part 2 of 2
Here is Part 2 of our two-part article on getting started in knowing your local area.
Local Research – Local Rent or Sale Levels – Part 2 of 2
As explained in our previous article, initial research is a vital stage in setting up an agency business. Below we summarise the easiest way to familiarise yourself with important information about local rental and sales levels.
Rentals and sales values for various types and sizes (by number of bedrooms) of property vary throughout the country. Therefore, you will need to discover the levels that apply generally in your planned working area before starting your agency business.
It will be part of your service to provide a value appraisal (approximate rental or sales valuation) of a property to be let for your landlord or seller clients. We show you the full process in our training, but a landlord will respect your opinion of the rental his property is likely to attract, and this will often be one of the first questions on his/her mind. A vendor will trust your knowledge of the market, and will clearly want to attract the highest possible price.
Of course, offering the property at a realistic market rate rather than overpricing it will make all the difference between letting or selling it speedily, or having it hanging around for weeks – a situation which benefits no-one.
Don’t worry, you won’t need to be precise with your valuations. In fact there is no such thing as a precise valuation, as various local agents will have slightly different ideas on the same property.
Sourcing the Information
The simplest route to gaining an overview of local value levels is to search on zoopla.co.uk or a local property website for properties to let in your town. Take a copy of the resources we provide: ‘Research Sheet – Average Local Rental / Sales Levels’ and starting with studio flats, enter the advertised rentals following the instructions on our research sheet.
Then do the same with 1, 2, 3, 4, and 5 bedroom flats and houses. We suggest you complete at least 3 sheets, so that you are comparing about 45 properties of each size, totalling them all onto the last sheet.
When you have completed the research sheets, and used a calculator to work out the average value as we explain, you will arrive at 6 figures: the average rental or sales values of each size of property according to number of bedrooms, i.e studio flats through to 5 bedroom properties. These 6 figures really are the only ones you need to commit to memory before starting an agency business in your area.
Carrying out the Valuation
When you value a property, you’ll use these figures as a basis from which to work, and make a small adjustment (say between 5% and 10%) either up or down, depending on whether or not the property is furnished, its general condition, location in a nice/not so nice road, and proximity to transport, shops and other local amenities which are benefits that tenants favour.
Although this research may seem somewhat laborious, it is a vital stage in becoming a local agent, and will make all the difference between you making elementary mistakes, and getting things right from the word go, and consequently impressing your clients.
The average figures arrived at on your research sheet, combined with these adjustments, will enable you to give quite accurate valuations right from the start. And remember, there is no such thing as a precise valuation, as different agents will have slightly varying opinions.
You can read alot more about rental valuations in Section 5 of the Southcourt Business Package and Training Course.
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For that reason we recommend that you get the ball rolling by ordering your business package today.
You can order from this website readydev.isodrive.uk or by phone on 020 3397 0070.
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