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Eas Are Being Realistic

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Just put in a second offer today at around 35-40% off asking price. We're talking here about £150,000 reductions on £500,000ish houses. Both houses have been on the market empty for at least a year and are one of the four Ds, i.e.

  • Death
  • Dementia
  • Divorce
  • Debt

What is interesting is:

  1. EAs no longer laugh at you when you make offers.
  2. Estate agents instead laugh at your jokes, no matter how bad.
  3. If you have cash, any offer is a reasonable offer.
  4. There is no longer a disappointing offer as far as the agent is concerned. It's just the vendor who will be disappointed.

The agents are saying or implying:

  • Make sure you are proceedable
  • Make an offer
  • We'll do our best to get your offer accepted

Edited for English.

Edited by WantHousewithLand

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Just put in a second offer today at around 35-40% off asking price. We're talking here about £150,000 reductions on £500,000ish houses. Both houses have been on the market empty for at least a year and are one of the four Ds, i.e.
  • Death

  • Dementia

  • Divorce

  • Debt

What is interesting is:

  1. EAs no longer laugh at you when you make offers.

  2. Estate agents instead laugh at your jokes, no matter how bad.

  3. If you have cash, any offer is a reasonable offer.

  4. There is no longer a disappointing offer as far as the agent is concerned. It's just the vendor who will be disappointed.

The agents are saying or implying:

  • Make sure you are proceedable

  • Make an offer

  • We'll do our best to get your offer accepted

Edited for English.

So they've become a bit like an audience at a Lenny Henry stand up gig?

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i can well believe it.

the available empirical evidence [e.g. in 'freakonomics'] shows you that EAs tend to get much higher prices for houses when they're selling their own place than when they're selling on behalf of a client... in other words there's a divergence between their objectives [maximum sales volume for minimum time spent] and that of the seller [maximum price] when you're working on commission, it's much, much, better to push volume of sales than to be locked in months of shadow boxing, shopping around for the right buyer, and so on, given that you only get 1% of whatever the higher price is...

if the buyer has a price of [say] £150k in mind & the seller [say] £200k, it makes total sense for the EA to be, as far as possible, pushing both sides to move on price, looking for something in the middle.

Edited by the flying pig

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Both houses have been on the market empty for at least a year and are one of the four Ds, i.e.
  • Death

  • Dementia

  • Divorce

  • Debt

Great, I only need to find an elderly, senile, broke battleaxe and put in an offer!

VMR.

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Sorry but you are deluded if you think EA's are being realistic.

If they where being realistic in this market then they would change their business model to:

- make the vendor pay for marketing of the property or

- refuse to take on properties that obviously would not sell or

- acepting properties that they view as highly priced but with upfront fee attached

In my view EA's are stuck in a groove they do not seem to be able to get themselves out of - i.e. accepting properties that will not sell, this only serves to clog up their books and raises expectation for vendors.

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Just put in a second offer today at around 35-40% off asking price. We're talking here about £150,000 reductions on £500,000ish houses.

The agents are saying or implying:

  • Make sure you are proceedable

  • Make an offer

  • We'll do our best to get your offer accepted

Those are very close to the numbers I'm looking at but the agents in South Cambs are having none of it so far.

The last one told me "at that price, I'd buy it myself". I dont think he will try to hard to get the vendor to accept my -35% offer.

VMR.

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Sorry but you are deluded if you think EA's are being realistic.

If they where being realistic in this market then they would change their business model to:

- make the vendor pay for marketing of the property or

- refuse to take on properties that obviously would not sell or

- acepting properties that they view as highly priced but with upfront fee attached

In my view EA's are stuck in a groove they do not seem to be able to get themselves out of - i.e. accepting properties that will not sell, this only serves to clog up their books and raises expectation for vendors.

I think you make a good point, but to be fair, these properties were taken on the books at least a year or two ago, so the EA will already have a contract with them.

We may see evidence of what you suggest later in the year.

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1

If they where being realistic in this market then they would change their business model to:

- make the vendor pay for marketing of the property or

2

- refuse to take on properties that obviously would not sell or

1 er...I thought they already did, how do they make money when nothing sells?

2 I've talked to a couple who have, on the basis that they couldn't sell them overpriced and viewings would be a waste of their time

edit> I'm not defending them by the way, in case it looks like that

Edited by mr slump

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It is not all EA's obviously, the more enlightened ones will see the light and the others will continue to fail. I noticed the other day there was a list compiled of the 10 hardest places in the UK to sell a property. An area I know a little bit about was in the list and at least one agent in that area has never reduced a property in the last year or so. I suspect he hasn't sold much either.

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Which areas do those realistic EAs come from?

VMR.

Cheshire. Two EA's have gone bust the rest aren't selling. They are now getting realistic, 6 months ago I got laughed at with my 30>% reductions...........but now 'I am a serious buyer who can move quickly'.

The problem is the rate of the reduction and vendors trying to keep pace with events, its overtaken the psychological valuation. EA's are now helping the vendor with their expectations it is a change in attitude.

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1 er...I thought they already did, how do they make money when nothing sells?

2 I've talked to a couple who have, on the basis that they couldn't sell them overpriced and viewings would be a waste of their time

edit> I'm not defending them by the way, in case it looks like that

For 1 what I meant was a marketing fee, payable upfront on all properties (as it used to be done) - should have made that clearer.

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Sorry but you are deluded if you think EA's are being realistic.

If they where being realistic in this market then they would change their business model to:

- make the vendor pay for marketing of the property or

- refuse to take on properties that obviously would not sell or

- acepting properties that they view as highly priced but with upfront fee attached

In my view EA's are stuck in a groove they do not seem to be able to get themselves out of - i.e. accepting properties that will not sell, this only serves to clog up their books and raises expectation for vendors.

But generally this will only work if all agents in a given area adopt this stratergy. Otherwise I would expect that most sellers will go for the agent who charges no upfront fees and who quotes the highest valuation.

there will always be exceptions, of course.....

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For 1 what I meant was a marketing fee, payable upfront on all properties (as it used to be done) - should have made that clearer.

I thought they all did

to pay for the stupid for sale board, listings etc

and that was part of the problem

profit from nothing even if theres no viewing

surely if they listed and marketed the houses for free then the incentive would be on the EA to demand realistic pricing

if they were all free the vendors who wouldn't reduce would be turned away

if the only profit was from a % commision we'd see a much faster slapping off of denial

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The problem EAs have is that when a new property comes onto the market, they have to quote a high figure because they are in competition with other EAs. If they quote a figure that the seller perceives to be low, then the seller will simply go to another EA (as encouraged by certain property shows). EAs would rather sell two cheap properties than one expensive one - it really isn't in their interest to inflate prices, and they know it, but they have to quote high because of the competition . I'd love to be able to grab data from Property Bee and see how many prices get knocked down within a month of the property coming to market, after the seller has signed up with a particular EA.

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I thought they all did

to pay for the stupid for sale board, listings etc

and that was part of the problem

profit from nothing even if theres no viewing

surely if they listed and marketed the houses for free then the incentive would be on the EA to demand realistic pricing

if they were all free the vendors who wouldn't reduce would be turned away

if the only profit was from a % commision we'd see a much faster slapping off of denial

nope. A few do, but not many.

The rest take a fixed % if/when a sale completes.

Whilst many sensible ;) ea's are trying to educate sellers that in order to secure a buyer at the moment prices HAVE to be realistic, not all are taking the advice. Denial still evident i'm sorry to report.

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nope. A few do, but not many.

The rest take a fixed % if/when a sale completes.

Whilst many sensible ;) ea's are trying to educate sellers that in order to secure a buyer at the moment prices HAVE to be realistic, not all are taking the advice. Denial still evident i'm sorry to report.

thanks for that

I think over here in NI maybe more do

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North-West and Southern Scotland

They were two areas in the Wirral and one in Cheshire in that Sunday Times `hardest place to sell a house` list so not much realism in those parts of the North-West I think...

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They were two areas in the Wirral and one in Cheshire in that Sunday Times `hardest place to sell a house` list so not much realism in those parts of the North-West I think...

Sorry, I should have been more specific. Cumbria and Dumfries and Galloway.

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They were two areas in the Wirral and one in Cheshire in that Sunday Times `hardest place to sell a house` list so not much realism in those parts of the North-West I think...

Realism from the vendor? or the EA?

I live in Cheshire EA's are getting more realistic.

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I made an offer on a house today 35% lower than the asking price and got an email back saying you need to speak to our financial advisor.

So as i read in another thread I did this and he was happy I have the means to fund the deposit and the offer has been put through to corporate sales?

The email said they have to check all offers to see they are valid, once they know you are they put the offer through.

I don’t think it will be accepted by the repo company but I was not laughed at.

The financial advisor did say, the offer is low and I don’t think they will accept but not full of themselves so much now.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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