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deadjune

Is It The Eas Or Sellers Greed?

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I have been in the hunt for any sensible

family home in South London and the last 6 months

I have seen loads of properties listed for 2007 prices++++

Made sensible (or non-sensible if you think about how ridiculous prices are anyway)

offers of 2007 minus 5% - all rejected outright with 'laughs'.

Case one; Bought 440k in 2007, wants 550k (NO IMPROVEMENT)

Case two; Bought 477k in 2007, wants 585k, (NO IMPROVEMENT)

Case three; Bought 430k in 2005, wants 785k (a lick of paint and a new kitchen)

Case four; Bought ? in 1960s, peak of similar semis~500k, wants 650k (NO IMPROVEMENT since the 80s)

EA said that they "achieve 2007 prices often now".

On the other hand the funny thing is that the EA on all three occassions said that

they told the sellers that they are unrealistic, but they would

not reduce their expectations!

What is the matter here? I think that we tend to blame it always

on the EA, but it seems there are alot of greedy/delusional

sellers out there that think they DESERVE the maximum possible return-

regardless of economic reality. In the above cases they seem

to be worse than the EA.

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Sentiment at the minute is positive so the sellers are trying to screw the buyers over for whatever they can get. It shouldn't be long now before the coin flips as it would appear the current rally has run out of steam and the market is getting flooded.

Don't worry, in a few months it will be you doing the laughing, at both the estate agents and the sellers.

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Basic psychology - no one wants to make a loss. Doesn't make for comfortable conversation at the next dinner party.

Wait it out. Maybe they will sell at that price, but once the government cuts start to bite people will slowly, gradually, painful start to become more realistic.

A rise in IR would help nicely too.

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I have been in the hunt for any sensible

family home in South London and the last 6 months

I have seen loads of properties listed for 2007 prices++++

Made sensible (or non-sensible if you think about how ridiculous prices are anyway)

offers of 2007 minus 5% - all rejected outright with 'laughs'.

Case one; Bought 440k in 2007, wants 550k (NO IMPROVEMENT)

Case two; Bought 477k in 2007, wants 585k, (NO IMPROVEMENT)

Case three; Bought 430k in 2005, wants 785k (a lick of paint and a new kitchen)

Case four; Bought ? in 1960s, peak of similar semis~500k, wants 650k (NO IMPROVEMENT since the 80s)

EA said that they "achieve 2007 prices often now".

On the other hand the funny thing is that the EA on all three occassions said that

they told the sellers that they are unrealistic, but they would

not reduce their expectations!

What is the matter here? I think that we tend to blame it always

on the EA, but it seems there are alot of greedy/delusional

sellers out there that think they DESERVE the maximum possible return-

regardless of economic reality. In the above cases they seem

to be worse than the EA.

use PropertyBee and focus on properties with reduced prices ....

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As is widely known, completion surveyors can be sued by lenders where it's deemed an over valuation has taken place. I'd advocate going further, by bringing in legislation which makes the original valuer (The EA) equally as liable. Subsequently, a completion surveyor under suit from a lender (or,even, a cash buyer) would have recourse to make a counter suit against the original valuer. That would focus minds!

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As is widely known, completion surveyors can be sued by lenders where it's deemed an over valuation has taken place. I'd advocate going further, by bringing in legislation which makes the original valuer (The EA) equally as liable. Subsequently, a completion surveyor under suit from a lender (or,even, a cash buyer) would have recourse to make a counter suit against the original valuer. That would focus minds!

At the risk of being pedantic, EAs do not 'value' properties in the legal sense of the word. The provide a market appraisal, which is simply a figure where the property should be pitched at to invite bids. It is up to the buyer and their lenders valuer to satisfy themselves that any agreed figure is able to be substantiated by other comparable evidence in the market.

The EA acts for the seller, the mortgage valuer is supposed to be there as a safety net for the lender, and by association the buyer.

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There is this comment rom an EA over on the Welsh sub-forum.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=142650&st=30

Mainly it's both of the reasons I mentioned.

Mortgages are not easy to get hold of and yes many properties are over-valued in certain areas.

Surveyors do have a better idea of house values than EA's has all we do is give an appraisal of what we believe is a fair price although has I have stated before some/many vendors have re-mortgaged and need to sell at certain prices which are usually not achieveable, but for an EA to gain the instruction they will put it on the market at the vendor's asking price.

I've done this on the odd occassion in a bid to increase the number on my books, but it has a negative effect if it is over-valued too much especially with you guys on here :o

I now refuse to take on the instruction. I mean what is the point? You only get sales falling through which you have put lots of time and effort in to.

Quite a lot of my landlords are keen to sell, but my valuation of most of them are short of their outstanding mortgages.

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At the risk of being pedantic, EAs do not 'value' properties in the legal sense of the word. The provide a market appraisal, which is simply a figure where the property should be pitched at to invite bids. It is up to the buyer and their lenders valuer to satisfy themselves that any agreed figure is able to be substantiated by other comparable evidence in the market.

The EA acts for the seller, the mortgage valuer is supposed to be there as a safety net for the lender, and by association the buyer.

At the risk of being pedantic, for most people, buyers and sellers, the asking price or valuation, whatever you wish to call it, is seen as being written in stone and I believe that many believe, wrongly IMPO, that the EA's valuation no different to a surveyor's valuation.... hence why they often get a shock when the bank turns them down for a mortgage after the surveyor has seen the property.

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At the risk of being pedantic, EAs do not 'value' properties in the legal sense of the word. The provide a market appraisal, which is simply a figure where the property should be pitched at to invite bids. It is up to the buyer and their lenders valuer to satisfy themselves that any agreed figure is able to be substantiated by other comparable evidence in the market.

The EA acts for the seller, the mortgage valuer is supposed to be there as a safety net for the lender, and by association the buyer.

Well aware of that, Mildura. My proposal seeks to make EAs more accountable for their part in the process. If you are prepared to actively market a property at a given guide, then you should be prepared to hold your reputation and a legal responsibility to account as well.

Edit: I meant to add that it should be a requirement that guide prices for sale are established by registered and qualified Surveyors, meaning EAs would require one on staff - or they couldn't trade.

Edited by Hawksmoor

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Well aware of that, Mildura. My proposal seeks to make EAs more accountable for their part in the process. If you are prepared to actively market a property at a given guide, then you should be prepared to hold your reputation and a legal responsibility to account as well.

Edit: I meant to add that it should be a requirement that guide prices for sale are established by registered and qualified Surveyors, meaning EAs would require one on staff - or they couldn't trade.

+1

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Well aware of that, Mildura. My proposal seeks to make EAs more accountable for their part in the process. If you are prepared to actively market a property at a given guide, then you should be prepared to hold your reputation and a legal responsibility to account as well.

Edit: I meant to add that it should be a requirement that guide prices for sale are established by registered and qualified Surveyors, meaning EAs would require one on staff - or they couldn't trade.

I would have no problem with that proposal. Ultimately the process would become more straightforward for all. Why our previous governement were unable to give the house buying process the much needed reform it so badly needs, rather than muck about with HIPs, which practically everybody consulted agreed were a waste of time, efort and money.

Most sellers are greedy and most EAs are far too prepared to put overpriced property onto their books. It's been that way for as long as I can remember and I suspect it'll be that way for a while to go yet. Sad though it is.

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use PropertyBee and focus on properties with reduced prices ....

Best suggestion of the thread.

Make you own crash!!!! - It is possible to overpay in both a rising and a falling market. Equally you can get a bargain in a strong market, as well as a weak one, if you look hard enough.

Without wanting to sound like a smart git, this is exactly what I managed to do when I bought in Sept 2009 - I paid about the same price as the house sold for in 2004 and a full £150k less than the 2008 price. It can be done, but you have to be prepared to look at a lot of houses, work out who needs to sell and then play hardball having all your ducks in a row so you can wave a carrot when you need to.

I was negotiating with a developer who had part-exchanged the house to enable them to sell one of their new developments. Coming up to a quarter end they needed the money and so they dropped their trousers.

Edited by Mikhail Liebenstein

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snip

What is the matter here? I think that we tend to blame it always

on the EA, but it seems there are alot of greedy/delusional

sellers out there that think they DESERVE the maximum possible return-

regardless of economic reality. In the above cases they seem

to be worse than the EA.

As a newbie, you might have missed the links to the secret diary of an estate agent which gives it to you from his point of view-

like any blog, some entries are better than others (and some of the current ones are in the doldrums, like the market) but some of the archive stuff is priceless.

http://www.agentsdiary.blogspot.com/

Enjoy! (No, I'm in no way connected, but I follow it with amusement)

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  • 149 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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