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Realistbear

E A : " We Have So Many Buyers It's Frightening"

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http://news.bbc.co.uk/1/hi/business/8193467.stm

Is the worst over for home sales?

By Ian "Bo-lox" Pollock

Personal finance reporter, BBC News

David Smith shows off his list of more than 300 potential buyers

Estate agent David Smith is much happier than he was a year ago when the BBC website last asked him how business was going.

Then, he refused to smile for our camera, as each of the three branches he managed was struggling to sell one home a week each.

"Things have got infinitely better, people are buying again," says David.

"Last year, we had hordes of people wanting to sell and nobody buying; now it's the exact opposite."

Intriguingly, he is almost swamped with potential buyers.

"We have so many buyers it's frightening," he says.

"Last month, in the three branches I cover we registered just over 300 buyers."

If there was low unemployment, easy credit and memories of what caused the collapse in our banking industry forgotten, the EA may have some credibility. But with rising unemployment, worsening affordability due to lower wages and unemployment together with the fact that we are nowhere near the end of the banking crisis, his "potential buyers" will remain just that: potential.

If was that EA I would be more frightend by the real economy and what it is doing to his business.

Edited by Realistbear

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http://news.bbc.co.uk/1/hi/business/8193467.stm

Is the worst over for home sales?

By Ian "Bo-lox" Pollock

Personal finance reporter, BBC News

David Smith shows off his list of more than 300 potential buyers

Estate agent David Smith is much happier than he was a year ago when the BBC website last asked him how business was going.

Then, he refused to smile for our camera, as each of the three branches he managed was struggling to sell one home a week each.

"Things have got infinitely better, people are buying again," says David.

"Last year, we had hordes of people wanting to sell and nobody buying; now it's the exact opposite."

Intriguingly, he is almost swamped with potential buyers.

"We have so many buyers it's frightening," he says.

"Last month, in the three branches I cover we registered just over 300 buyers."

If there was low unemployment, easy credit and memories of what caused the collapse in our banking industry forgotten, the EA may have some credibility. But with rising unemployment, worsening affordability due to lower wages and unemployment together with the fact that we are nowhere near the end of the banking crisis, his "potential buyers" will remain just that: potential.

If was that EA I would be more frightend by the real economy and what it is doing to his business.

He could have 3000 buyers for all I care.

just about ALL will be registered with every EA in the area.

what he needs is 300 COMPLETIONS.

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He could have 3000 buyers for all I care.

just about ALL will be registered with every EA in the area.

what he needs is 300 COMPLETIONS.

I thought he was doing well, going from 1 sale per office per week to 3 sales per office per week. Does that even cover rent and fixed costs nowadays?

Edited by kilroy

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Guest DissipatedYouthIsValuable

Uhuh, those buyers just keep queuing up outside these closed down estate agents, fighting over sealed bids.

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I thought he was doing well, going from 1 sale per office per week to 3 sales per office per week. Does that even cover rent and fixed costs nowadays?

depends what he means by a sale.

I passed a house nearby last week,

Had SSTC on it.

passed it again this morning on the way to a job.....FOR SALE.

passed it 2 hours later coming back to the office...SSTC.....double take from me.

is that 2 sales? or none at all?

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Meanwhile in the real (non-BBC) world:

Fixed mortgage rates nudge higher

LONDON (Reuters) - The cost of taking out a new fixed-rate mortgage rose to its highest level this year in July, extending a jump of around half a percentage point in June, figures from the Bank of England showed on Tuesday.

The rise partly reflects a shift in longer-term interest rate expectations but it also casts doubt over banks' willingness to take on new lending and the potential for a housing market recovery.

The average rate on a five-year 75 percent loan-to-value mortgage rose by 16 basis points to 5.7 percent, its highest level since October.

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depends what he means by a sale.

I passed a house nearby last week,

Had SSTC on it.

passed it again this morning on the way to a job.....FOR SALE.

passed it 2 hours later coming back to the office...SSTC.....double take from me.

is that 2 sales? or none at all?

Flippin' MP's

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If he has so many buyers, why is he spending time doing an advert for the BBC? If he is frightened by the qty of buyers, he should be concentrating 100% on the recruitment of staff and NOT ADVERTISING FOR MORE BUYERS!

Oh and we have all been on a EAs list of potential buyers, they ring you, they nag you and only a small percentage on the list are serious about buying.

Edited by moosetea

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And 300 instructions to sell

why? he needs sales. nothing else earns him money.

750,000 instructions for sale on rightmove alone.

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depends what he means by a sale.

I passed a house nearby last week,

Had SSTC on it.

passed it again this morning on the way to a job.....FOR SALE.

passed it 2 hours later coming back to the office...SSTC.....double take from me.

is that 2 sales? or none at all?

Maybe it depends on what side of the sign you're looking at.

Edited by Scunnered

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Maybe it depends on what side of the sign you're looking at.

that was my first thought.....i didnt check on the way out, but I did check on the return. same both sides.

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The poor old EAs are having a hard time of it at the moment. They have offloaded all their staff so the manager and the office cat are running around doing hundreds of viewings for people who don't realise they can't borrow the amount they need to buy the house they are viewing. The few that can get the loan then have the valuation come in at 10% below the agreed sale price and the deal falls through.

Estate Agents are busier than ever and earning sweet FA.

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http://news.bbc.co.uk/1/hi/business/8193467.stm

Is the worst over for home sales?

By Ian "Bo-lox" Pollock

Personal finance reporter, BBC News

David Smith shows off his list of more than 300 potential buyers

Estate agent David Smith is much happier than he was a year ago when the BBC website last asked him how business was going.

Then, he refused to smile for our camera, as each of the three branches he managed was struggling to sell one home a week each.

"Things have got infinitely better, people are buying again," says David.

"Last year, we had hordes of people wanting to sell and nobody buying; now it's the exact opposite."

Intriguingly, he is almost swamped with potential buyers.

"We have so many buyers it's frightening," he says.

"Last month, in the three branches I cover we registered just over 300 buyers."

If there was low unemployment, easy credit and memories of what caused the collapse in our banking industry forgotten, the EA may have some credibility. But with rising unemployment, worsening affordability due to lower wages and unemployment together with the fact that we are nowhere near the end of the banking crisis, his "potential buyers" will remain just that: potential.

If was that EA I would be more frightend by the real economy and what it is doing to his business.

I do not think that those 300 buyers have 25% deposits and earn 1/3.5 of the house price ....

they just think they have a right to get a mortgage for anything they want. they are mistaken ...

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The poor old EAs are having a hard time of it at the moment.

Thank goodness they are classed as an essential service & are thus free from paying business rates.

The country would be in a state of chaos without them.

Edited by Laura

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I thought he was doing well, going from 1 sale per office per week to 3 sales per office per week. Does that even cover rent and fixed costs nowadays?

Walked past an agent on our high street the other week;

they were having there weekly team talk or something.

White board facing the windows said something alone the lines of - 'Weekly break even = 12,000 Pounds'.

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"It is without question family funds, you can't save that sort of money in just one or two years."

Ah, sounds like the mark of a highly sustainable recovery then.

YOU DIMWIT!

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Had very little time the past few weeks to keep up with news etc so perhaps should not be surprised that I feel even more confused than ever.

On the one had we seem to have banks wanting 50% deposits and lending figures well down on last year let alone historical averages, on the other we seem to be having a housing boom!

There seems to be agreement that approvals need to double before the market will stabilise and then there are countless articles about people putting in offers but unable to get a mortgage, or valuations coming in at a realistic level for 2009 (25% + under peak), and there seems to be lots of evidence of Under Offers and SSTC coming back on the market time and time again as sales fail to complete.

OK its a "bull trap" its a "dead cat bounce" its down to endless ramping, its down to bank of Mum & Dad, its due to people with cash worried about inflation ...its due to so few properties coming on the market.....but there seems to be a mini boom going on far longer than most people expected......so are we currently witnessing the exteme of this swing .....are we about to see the start of the W shape now?

I liked Dr Bubb's image of this :

HPC Link Dr Bubb Rug Pull

Many HPCers are "stuck in the crowd" and influenced heavily by the resurgent mania around them.

(Maybe it is easier for me to be detached from it, living here in Hong Kong - we have our own manias here.)

This will die. And the higher the sentiment swings, the bigger the disappointment and disillusion when it

(eventually) swings back the other way.

When prices are speeding downwards in a few months time, after the rug pull, I will remind people that

the very painful next stage of the crash, would not have been fully possible without the huge surge in false

hopes that we are seeing now.

Edited by Sybil13

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Awww ... didums, the EA's valuation lies are exposed, by the very folks who's pockets they used to line ...

MortgageStrategy moan by EAs

... I guess the EAs can no longer keep the surveyors in pocket lining so the valuations now run in the direction the bank wants them to run (now who is lining who's pockets I wonder?) ...

So, yup, the SSTC -> UnSold path gets trodden harder and faster now than it was (even) a few months back ... is this not just a commensurate response to the gazumping of the past?

Was gazumping someone not just 'finding someone who will set a higher valuation'? And now the EAs face getting greedy sellers through the institutionalised gazundering (justified?) ...

In the gazumping world, the EAs never questioned (or complained about) how different surveyors could result in different valuations ...??!?!? How two-faced and childish is this?!?!?

Do EAs genuinely believe that with their *relative* lack of qualifications, experience or time (staff contention) they can more accurately represent a house's value in the current market than the targeted, dedicated and (potentially) better qualified surveyors?

Or do surveyors lie? They were the EAs lifeline in a world of Boom ... and now they are the EAs enemy? Sorry boys & girls ... you can't have it both ways!!!

I used to throw a stone down a well and count until I heard the splash ... turns out that might be the best way to predict house price changes in the coming months ...

*sigh*

Aidanapword

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_46184254_ian008.jpg

David Smith shows off his list of more than 300 potential buyers

Did anyone else not find the photo and the caption totally and hilariously juvenile? :lol::lol::lol:

Edited by bomberbrown

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3 branches and he only has 300 buyers????? Correction 'Potential' buyers. I can just see what would happen if he went onto Dragons Den with a business proposal like that!

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passed it 2 hours later coming back to the office...SSTC.....double take from me.

is that 2 sales? or none at all?

Flipping?

or more likely no sale. :)

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