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munjie

Houses Listed By Ea With A 30k Range - Whats The Deal With This?

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I am a FTB looking at making an offer on a house that is up for sale and am a bit confused about what price I should offer as the EA has it listed for quite a large range.

The EA has the property listed with a price range of 160 to 190 which is crazy if you ask me. We have been looking at similar sized places in built up areas near by that are up for 165k and think that 190k is totally over the top!! It appears to me that the EA has no clue as to what to price the house at.

Has any one any ideas as to why the EAs do this and with such a huge price range?

Also, I would be grateful for any suggestions as to what I should offer bearing in mind that the current vendor paid 157k in October 06? How much have prices decreced on this?

Thanks.

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House prices have fallen to early 2004 levels so you need to identify what similar properties were selling for at that time, in that road, or locality. Anyone thinking of making an offer then needs to protect themselves, to a reasonable degree, against future price falls and so take 20% or more off the early 2004 selling price for such properties in that area.

Estate Agents are not very bright and are desperate. It is very common for Estate Agents to employ completely and utterly stupid sales techniques that work against the probability of achieving a sale - you have found just one example of this.

Edited by Alfie Moon

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I'm of the thought that it's a sales gimmick. You offer the bottom of that 'band', it's accepted and you think you've got a bargain. You haven't got a bargain at all, if anything perhaps you've overpaid.

I'm not sure you'll be able to get 20% off 2004 prices though. That just might be pushing things a little too far. . . then again if you wait for the depths of this winter.

Who knows. :rolleyes:

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Also, I would be grateful for any suggestions as to what I should offer bearing in mind that the current vendor paid 157k in October 06? How much have prices decreced on this?

Thanks.

Which region of the UK are you in?

An 'average' property located in the UK which was valued at £157K in Q3 of 2006, would be worth approximately £144K in Q2 of 2009.

Prices in your region/town/street may have gone down more or less than this.

Edited by Mammon

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The "range" thing is a common Haart strategy

I've seen it used by EAs to talk sellers down gently - the sellers think people will offer at the top of he range; the buyers take the lower price and knock 20% off :)

I agree that it's dumb.

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We have an estate agent up here who does something similar - but they normally do auctions so I think they just like to list a "guide price".

We actually bought from them back in October and discounted from the lower figure.

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We have an estate agent up here who does something similar - but they normally do auctions so I think they just like to list a "guide price".

We actually bought from them back in October and discounted from the lower figure.

The all seem to do this now. All it does it put people off bidding. People can bid whatever they like, so this foolish tactic merely loses them potential bids.

The 'offers over' XXX do the same.

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