The World of Averages
Let’s talk about averages. Average asking price, average days to sell, average commission, average properties per agent…..these are all things we have been looking at when compiling some data recently. It’s a world of averages out there!
Using the Rightmove House Price Index published last week (and some industry websites) we’ve compiled the following:
| Average days to sell a property | 68 |
| Average commission % | 1.6% |
| Average days between sale and completion | 84 |
| Average national asking price | £303,190 |
Using those figures we have calculated that, on average, an estate agent earns £31.91 per day for each property between listing and completion (that’s the average 1.6% fee divided by the total of 152 days). That figure doesn’t take into account the costs you pay out either so it’s not even what you get at the end.
Take those same calculations but apply it regionally where possible and you get an agent in London earning £67.79 per day for each sale at the top end and an agent in the North East earning just £15.63 per day for each sale at the bottom end!
Here is the regional breakdown:
We looked at these averages in relation to what we do, which is outsourced sales progression services for estate agents. We looked at what you earn for the days you have to work on that sale. So you would take the ‘average days to sell’ days of 68, we would take the ‘average days between sale and completion’ of 84 (although we do hand the case back to you at point of exchange). Using those averages (and taking our ‘average fee’ out of the equation for you) you would earn £69.13 per day if you outsourced. Using the same examples above – a London agent would earn £149.33 and a North East agent would earn £32.73 per sale per day.
We’re not trying to blind you with numbers here; we don’t work for free of course! But the point is, do you want to earn your fee for 152 days of work or do you want to earn your fee for 68 days of work? Now you’re thinking ‘but I won’t actually have to work on every one of those 152 days’. You would be right of course. But, the question is how many of the days can you spare the time to pro-actively progress that sale? How many more valuations could you win? How many more sales could you agree?
We don’t have those averages I’m afraid. But what we can tell you is that to pro-actively progress the ‘average stock per agency’, you would need at least 46 working days of resource. That’s an average that should make you consider your options if you don’t already have a dedicated sales progression resource!
Savvy Sales Progressors provides outsourced sales progression services for estate agents. Take a look at our website for more information. You can also try our unique online calculator to see whether outsourcing will be more financially beneficial than an in-house resource: www.savvysalesprogressors.co.uk
You May Also Enjoy
HMRC ramps up scrutiny of residential property valuations as it cracks down on inheritance tax avoidance
Renters urged to understand their new rights before major law change
The Foundation of Your Home: Why Your Subfloor Dictates Your Flooring Destiny
Almost £1.4m difference in property prices between the start and finish lines of London Marathon
Demand drops year-on-year for commercial property from high base
