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researchmug

Another Honest Ea

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I went to view a house last night (to rent) and got into a conversation with the estate agent.

He said that only stupid people are buying property at the moment.

He told me that they are seeing very limited supply and that sellers are deluded about prices, either waiting for market to miraculously return to 2007 or putting their homes on for unrealistic prices. He told me that they want to sell at 2007 prices but buy at 2009 prices.

I asked him why he didn't tell sellers that their houses are priced too high and he admitted that he'd like to but because of the competition between agents for very few property's he can't afford to be to brutally honest with them. He said sellers are mostly going on the market with the agent that values the highest alongside charging the least and he has to compete with that.

But the best bit was when he told us that his business is basically paying the bills on the back of the occasional "nutter" who is still willing to come along and pay 2007 prices or near for one of the few properties on their books, and they are still out there.

He thought that prices would continue to fall for years yet and that it would be madness to buy at the moment.

so effectively he by his own admission is over valuing properties and has a limited supply of over priced properties in his window. Occasionally an idiot will walk in a pay over the odds for a property which is just keeping his business afloat.

surely this anecdotal evidence would make the recent 1.2 percent rise in properties look more like the market in it's dying throws, as opposed to a bounce?

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I went to view a house last night (to rent) and got into a conversation with the estate agent.

He said that only stupid people are buying property at the moment.

He told me that they are seeing very limited supply and that sellers are deluded about prices, either waiting for market to miraculously return to 2007 or putting their homes on for unrealistic prices. He told me that they want to sell at 2007 prices but buy at 2009 prices.

I asked him why he didn't tell sellers that their houses are priced too high and he admitted that he'd like to but because of the competition between agents for very few property's he can't afford to be to brutally honest with them. He said sellers are mostly going on the market with the agent that values the highest alongside charging the least and he has to compete with that.

But the best bit was when he told us that his business is basically paying the bills on the back of the occasional "nutter" who is still willing to come along and pay 2007 prices or near for one of the few properties on their books, and they are still out there.

He thought that prices would continue to fall for years yet and that it would be madness to buy at the moment.

so effectively he by his own admission is over valuing properties and has a limited supply of over priced properties in his window. Occasionally an idiot will walk in a pay over the odds for a property which is just keeping his business afloat.

surely this anecdotal evidence would make the recent 1.2 percent rise in properties look more like the market in it's dying throws, as opposed to a bounce?

I think the agents comments say it all. Too few houses coming to the market and agents need every pound they can get to stay afloat.

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I do feel sorry for the agents, as you say they have their own competition to deal with, the problem is there are so many, and one nutter estate agent will come along and unsettle the others with high prices and low commission, if they sell enough im sure it would work too, but probably wont and then go out of business probbably draggin the others down with them!...

its a crazy situation!

Buy hey ho!

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Whereabouts are you mr mug?

I think we are seeing activity in our area with cash rich buyers coming into the market in enough numbers to influence sellers into believing the hype.

I would call them "savvy investors" but they are cannon fodder to my mind: scared into thinking that the money is safer there than in the bank, which is of course is the intention.

Edited by bobthe~

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Interesting comments by the OP.

My wife spoke with an agent in Guildford yesterday who basically said the same thing. "The market is in a bit of false bubble at the moment, as interest rates only have one way to go and only a few people with more money than sense were buying."

I also have a few friends round Reigate who are EAs and they are saying similar things in private, but I know they would never say such things to prospective buyers.

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I went to view a house last night (to rent) and got into a conversation with the estate agent.

He said that only stupid people are buying property at the moment.

He told me that they are seeing very limited supply and that sellers are deluded about prices, either waiting for market to miraculously return to 2007 or putting their homes on for unrealistic prices. He told me that they want to sell at 2007 prices but buy at 2009 prices.

I asked him why he didn't tell sellers that their houses are priced too high and he admitted that he'd like to but because of the competition between agents for very few property's he can't afford to be to brutally honest with them. He said sellers are mostly going on the market with the agent that values the highest alongside charging the least and he has to compete with that.

But the best bit was when he told us that his business is basically paying the bills on the back of the occasional "nutter" who is still willing to come along and pay 2007 prices or near for one of the few properties on their books, and they are still out there.

He thought that prices would continue to fall for years yet and that it would be madness to buy at the moment.

so effectively he by his own admission is over valuing properties and has a limited supply of over priced properties in his window. Occasionally an idiot will walk in a pay over the odds for a property which is just keeping his business afloat.

surely this anecdotal evidence would make the recent 1.2 percent rise in properties look more like the market in it's dying throws, as opposed to a bounce?

I recently had a similar conversation with a Reigate estate agent that I know slightly and who was getting fed up with sellers rejecting perfectly reasonable offers. However, also being in the Reigate rental market for a large-ish family home, I am finding the diversity of asking prices for rental even more bewildering than those for sale.

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Interesting comments by the OP.

My wife spoke with an agent in Guildford yesterday who basically said the same thing. "The market is in a bit of false bubble at the moment, as interest rates only have one way to go and only a few people with more money than sense were buying."

I also have a few friends round Reigate who are EAs and they are saying similar things in private, but I know they would never say such things to prospective buyers.

My mum's comment on Reigate: "house prices will never fall in Reigate."

This along with you just need to bite the bullet, etc.

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Well, I can't say I've chatted to an EA, however I think the cash buyers have run out in Camberley as not even flats that are on the market for 40% below 2007 prices are selling. I thinkthe 6 weeks starting in April saw alot of sales, but since then, not a lot.

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