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Eas Confused?

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Hmm, wondering if anyone else is noticing this? EA's in my area - some are showing reduced property prices, others are still hiking them up.

Are the price increases just so people can stick in a low offer and think they've got a bargain when it's accepted?

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I think it's simply because EAs have no more of a clue of what a property is worth (definition: what it will sell for) than anyone else does right now.

If nothing is selling, it's impossible to value something correctly.

e.g. the seller on the C4 forum was offered 182k. That's how much his property is worth to that buyer and it's the only offer on the table. So at this time, that's what his property is worth.

It might be that it was originally on sale with an asking of 250k and the vendor isn't happy about "losing" 68k. But then, that 68k maybe only existed for a short period at the start of last year, if ever, and it has gone now; it could be 2015 before it comes back.

But then someone else might walk into the EA (one of them) and offer 200k. You just never know, and the vendors will hold out for as long as possible to see if that person appears.

Some people have been holding out for two years now round here chasing the market down slowly but surely.

In the interim their chances of actually getting the higher price are being undermined by similar properties coming on cheaper, in some cases, very much cheaper; where two or more properties are almost identical the EA knows the price it *won't* sell at - the price of the other one(s) which have been on the market for years - and can advise pricing to under-cut.

Whether the vendor takes any notice is questionable. As the guy on the C4 forum is finding, the asking price is largely irrelevant.

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There is a house nearby which was purchased in mid-2004 (the peak) for £485K.

It's now back on the market for £575K. There seems to be a perverse logic in operation as if the dropping market can be denied by asking ever more fanciful prices.

Needless to say it has not sold.

Edited by Red Baron

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Just imagine being the one to pay £545K for the house after negotiating a £30K reduction...

IMO

in a years time the peak will be confirmed as being spring 2004 in most area's, then one day a 'friend' shows you netprices and you see that you have paid a post peak premium.

Those people who say 'property is best, you can't lose' will melt away to be replaced by, 'property can be good if bought in a bust after a boom.'

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I notice some properties in my area - all FTB type property

by the way - are being priced sensibly at about 10% less than january

prices.

However, here and there, houses still come on at silly prices.

In a rising market, a silly price is worth trying on - some fool

might buy it, after all.

But in a falling market, the time taken to "test the market"

in this way can be ill afforded, as chasing the market down

is extremely expensive.

The price mix is odd - even the same agent has a very ragged

mix of prices.

I did wonder if I was beginning to see some panic-selling at

very reasonable prices - time will tell.

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  • 301 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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