| If you’ve always considered going into estate agency or property more generally, you may have been put off recently. The housing market has been the target of more than its fair share of newspaper headlines of late. But while house prices – which once seemed to be unstoppable in their moves skywards – have stayed fairly static, the crash that many in the media have been predicting has, as yet, failed to materialise. Indeed, in parts of the country hardly renowned for booming property markets – such as Wales and the North-East – prices have continued their upward surge. Increase in demand Given the pressure on housing in this country, this isn’t surprising. Hardly any new homes are being built compared to the historical average, and the population continues to grow, inflated by the high level of immigration. Meanwhile, divorce and later marriage means that more and more of us are living by ourselves or in smaller groups – in government speak, the average household size is declining. This means the same number of people will need more houses and flats than in the past. This big increase in demand and the slow increase in supply suggest that prices will, in the long term, continue to rise – good news for estate agents, as their fees are linked proportionately to prices. But in the short term, it is true that the market has slowed down as first-time buyers have put off purchasing until the situation becomes more stable. This has had the side-effect of forcing more people into the rental market. As a consequence, while prices in most areas of London (for example) have remained steady, rents have increased for the first time in several years. Of course, most estate agents don’t just sell houses and flats; they let them out as well, a practice which is increasingly lucrative, particularly in the capital and other major urban centres. As with sales, the agent takes a ‘fee’ as a percentage of the rent. Buoyancy in one half of the market while the other half slows down is testament to the fact that housing is one of life’s essentials – people will always need somewhere to live. So whatever the economic situation, estate agency will always be a viable business proposition. A 'people' business Unfortunately, the career in general has not always had a good press, with the public ranking it at the bottom of the scale for trust along with politicians and tabloid journalists. But it is a more complex and testing job than many might think, particularly as it involves the most expensive purchase that the vast majority of people will ever make in their lives. A spokesman for the National Association of Estate Agents (NAEA) explains: “Estate agency is a ‘people’ business – agents have to communicate with many different people – potential buyers and sellers, conveyancers and solicitors for example – and they have to be able to communicate effectively. “Good communication on the part of the agent can reduce the stress enormously, can make a sale go through more quickly and efficiently and will ensure that customers come back to the agency with more business.” The letting and management side of the market will test those interpersonal skills even more, as you will have to deal with an even wider circle of people, including cleaners, plumbers or builders. But the vagaries of the housing market means that anyone looking to move into estate agency will need to have a great deal of patience. The spokesman adds: “A long delay can ensue just after the agent has done the bulk of the work and he process of legally transferring land and/or property starts. “Sometimes cancellations can occur at a very late stage, about which little can be done, and so those to whom a career in ‘selling’ appeals may need to think twice about going into estate agency, as the final results can take some time to achieve.” Variety of skills required A basic knowledge of economics and a degree of numeracy, together with some appreciation of property law, are all desirable in any potential estate agent. As yet – although the Government has threatened to change this – you do not need to pass any exams or be a member of any professional body to legally practice as an estate agent, although some at the more ‘established’ end of the market are qualified surveyors. Others possess alternative qualifications such as diplomas or NVQs. However, none of these desirable traits should detract from the fact that the agent ultimately has to find a buyer for his or her client – and those with a knack for this will succeed. Given that agents can achieve typical fees of 0.5%-1%, meaning they earn around £1,000 on a typical house, the financial rewards are considerable. In Part Two, we take a look at how much it costs to set yourself up in estate agency, and how private practice compares to working within a franchise. We’ll also take a brief look at some of the recent changes to practice, such as sellers’ packs and the introduction of an ombudsman.
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