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Ea Gives Me Honest Opinion

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I saw the local EA today (i am looking in the £250,000 range).He said without prompting anything over that Price

had 20K or 30K added over the current price and anyway not to buy anything now, just wait.

I came away slightly stunned!They must realize a drop in House Prices might actually be good for them.

Unless i was talking to the cleaner.

BS

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I saw the local EA today (i am looking in the £250,000 range).He said without prompting anything over that Price

had 20K or 30K added over the current price and anyway not to buy anything now, just wait.

I came away slightly stunned!They must realize a drop in House Prices might actually be good for them.

Unless i was talking to the cleaner.

BS

I'll most likely get slated for this, but surely it is in the EA interest to get sales more than overall price.

What benefit would the EA get from over inflating a property price. I would have thought the lower the price, the quicker the sale and therefore the turn over is there for them.

Edited by Bam

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I'll most like get slated for this, but surely it is in the EA interest to get sales more than overall price.

What benefit would the EA get from over inflating a property price. I would have thought the lower the price, the quicker the sale and therefore the turn over is there for them.

It's in their interest to ramp prices when houses/mortgages are flying off the shelves.

The opposite when things turn around, then they need volume rather than prices.

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It's in their interest to ramp prices when houses/mortgages are flying off the shelves.

The opposite when things turn around, then they need volume rather than prices.

which is surely what we have now?

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It's in their interest to ramp prices when houses/mortgages are flying off the shelves.

The opposite when things turn around, then they need volume rather than prices.

I've said this for a long time. No point selling one house a week at 200k when you can sell ten a week at 150k.

Could EAs actually become HPC allies?

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No point selling one house a week at 200k when you can sell ten a week at 150k.

So true. Considering the sort of people who become Estate Agents don't need any qualifications, it's not surprising it will take them all a couple of years to figure this out!

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I've said this for a long time. No point selling one house a week at 200k when you can sell ten a week at 150k.

Could EAs actually become HPC allies?

I am personally of the opinion that the EA trade attracts a certain kind of mentality. Just as you end up with people becoming servants or Royals adopting the heirs and graces of Royalty I personally think that some EAs get a huge snob and status self-esteem hike from dealing in expensive property.

It is another aspect to the great British Class snobbery thing. Pathetic but there you go.

Edit:

Ego is a constant weakness of us all but it is especially true of the Brits when it comes to cash, status and snobbery.

Edited by The Masked Tulip

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I've said this for a long time. No point selling one house a week at 200k when you can sell ten a week at 150k.

Could EAs actually become HPC allies?

A bit like a country that switches sides when it looks like the other side is going to win - just so they can save their own worthless hides. We should continue to treat them as such

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I for one have never understood why EA's are such rampers.

They should be more like slimy little middle-men sucking up to both parties with only their own interests at heart.

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I've said this for a long time. No point selling one house a week at 200k when you can sell ten a week at 150k.

Could EAs actually become HPC allies?

I actually think most of the price setting comes from the seller rather than the EA. It certainly was in our case, we had our placed valued at £250k by the EA, and as we were in no hurry to sell we put it on for £280k, we had several viewings and someone offered us £265k. So we took it, they thought they got a bargin and so did we.

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I saw the local EA today (i am looking in the £250,000 range).He said without prompting anything over that Price

had 20K or 30K added over the current price and anyway not to buy anything now, just wait.

I came away slightly stunned!They must realize a drop in House Prices might actually be good for them.

Unless i was talking to the cleaner.

BS

Perhaps he has had a lot more wasted time recently, because more sales have been falling through at the mortgage valuation stage, due to overpriced asking prices? So he now prefers to wait until sellers are willing to reduce their prices to a more realistic level, before starting negotations?

But whatever his reasons, it is good to hear this for a change.

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Something else that was refreshing to hear today. The Daily Politics panel were talking about 'asset bubbles' and actually stated that to be housing and commercial property, therefore recognising that housing is basically an overvalued asset. I get the feeling that sentiment is definitely on the turn.

IMO house asking prices are being set by the vender to either offload the debt quick, while they can or cash in the equity before it reduces. (Un)fortunately the majority of remaining house buyers are not having any of it. Rock on June 22nd, I think there is going to be a few BIG changes.

Edited by Spongethrower

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all our local EAs are struggling because they all know property is overvalued and they have no velocity in the market place - but as soon as they are sent out to value places they all KNOW they have to be the highest to get the business. The owners want confirmation that their property is worth a small (or large) fortune, and the person who "gives them" the biggest fortune gets the house on their books.

Then, it doesn't sell, but every penny less than that initial assessment is a penny "lost" by the seller, hence they can't "afford" to go any lower or they are not willing to "take a loss of £XX,XXX". I've seen land registry figures showing people are making over 500k in profit on their house if they sell and yet they still say "I can't take a loss of XX,XXX" from the asking price.

I have a friend who is an estate agent and he STILL has to overvalue or he knows he won't get them on his books. He does (however) remember a time in the 90's when estate agents would not take on a property unless the owner was willing to be realistic about the price - as it cost the estate agents money to market it for zero return if it was never going to sell. Perhaps those days will one day return.

I think a lot of this is to do with the highly vested media, because if people have just read the daily mail telling them their house is going UP UP and AWAY then they don't want to hear a dose of realism from an estate agent.

Sticks in vase in corner adds £10k. Motorway noise, that adds £50k. Rising damp, that adds £50k. Infestation of mice, surely another 25K? They are a very rare breed of mouse, seldom seen in the UK.

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I'll most likely get slated for this, but surely it is in the EA interest to get sales more than overall price.

What benefit would the EA get from over inflating a property price. I would have thought the lower the price, the quicker the sale and therefore the turn over is there for them.

maybe the ea realised that he would be waisting his time and get no commission if/when the sale falls through, whether it be becaus of the banks survey or buyers savvy when prices do start sliding

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all our local EAs are struggling because they all know property is overvalued and they have no velocity in the market place - but as soon as they are sent out to value places they all KNOW they have to be the highest to get the business. The owners want confirmation that their property is worth a small (or large) fortune, and the person who "gives them" the biggest fortune gets the house on their books.

Then, it doesn't sell, but every penny less than that initial assessment is a penny "lost" by the seller, hence they can't "afford" to go any lower or they are not willing to "take a loss of £XX,XXX". I've seen land registry figures showing people are making over 500k in profit on their house if they sell and yet they still say "I can't take a loss of XX,XXX" from the asking price.

I have a friend who is an estate agent and he STILL has to overvalue or he knows he won't get them on his books. He does (however) remember a time in the 90's when estate agents would not take on a property unless the owner was willing to be realistic about the price - as it cost the estate agents money to market it for zero return if it was never going to sell. Perhaps those days will one day return.

I think a lot of this is to do with the highly vested media, because if people have just read the daily mail telling them their house is going UP UP and AWAY then they don't want to hear a dose of realism from an estate agent.

Sticks in vase in corner adds £10k. Motorway noise, that adds £50k. Rising damp, that adds £50k. Infestation of mice, surely another 25K? They are a very rare breed of mouse, seldom seen in the UK.

i got 4 valuations, picked the ea that was best and happened to have lowest rate, they gave the lowest estimate but i told them what i wante it marketed for. Ea's work for you, dont let them forget it and dont ever forget who they are working for when you are the buyer.

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EAs complaining that property overvalued is like an england player complaining the world cup is full of boring football ;)

In the end I think it most likely comes down to the fact that EAs are pretty simple sorts, so they value houses the way they have always been valued, instead of thinking "hmm, growth in supply and nothing selling...does this mean the price needs to move?"

It also struck me that the last 8 or 9 EAs I've been in contact with were so young they must have grown up during a period when prices only ever moved north. But give it a few months of trying and failing to sell much at an overinflated price and the hard fact that their business is based on deal flow will kick in.

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EA's ramp (or used to ramp) because they think that by ramping it increases revenue (and remember revenue is a function of turnover and price). It's the only explanation, and it's worked in the past. The constant "you've got to buy now because prices only go up" works when prices are rising, credit is easy and there is plenty of property on the market. Like any people, it takes time for them to understand that this strategy will no longer work after the best part of 10 years and to move to a new strategy.

I think so few places were on the market recently that Agents had a tough time. On the one hand you don't get instructions by valuing at low prices, on the other you don't get sales by valuing at high ones. I think because agents were competing desperately for instructions they had to go with the sellers sentiment and value at high prices to win instructions from their competitors. Now with the demise of HIPS and other changes more property is coming onto the market, so agents can be more choosey about what they pick to take on and can be more aggressive on pricing with the sellers.

Agents make money by making sales. They don't make money by marking houses too high and having them sit on the market for months unsold. They also don't make money by overvaluing, only to have prospective buyers fail at the mortgage stage.

I don't see why any agent would tell you to go away and come back later, unless he had no property that was suitable for you or was massively overworked.

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all our local EAs are struggling because they all know property is overvalued and they have no velocity in the market place - but as soon as they are sent out to value places they all KNOW they have to be the highest to get the business. The owners want confirmation that their property is worth a small (or large) fortune, and the person who "gives them" the biggest fortune gets the house on their books.

Then, it doesn't sell, but every penny less than that initial assessment is a penny "lost" by the seller, hence they can't "afford" to go any lower or they are not willing to "take a loss of £XX,XXX". I've seen land registry figures showing people are making over 500k in profit on their house if they sell and yet they still say "I can't take a loss of XX,XXX" from the asking price.

I have a friend who is an estate agent and he STILL has to overvalue or he knows he won't get them on his books. He does (however) remember a time in the 90's when estate agents would not take on a property unless the owner was willing to be realistic about the price - as it cost the estate agents money to market it for zero return if it was never going to sell. Perhaps those days will one day return.

I think a lot of this is to do with the highly vested media, because if people have just read the daily mail telling them their house is going UP UP and AWAY then they don't want to hear a dose of realism from an estate agent.

Sticks in vase in corner adds £10k. Motorway noise, that adds £50k. Rising damp, that adds £50k. Infestation of mice, surely another 25K? They are a very rare breed of mouse, seldom seen in the UK.

I suspected our estate agent had valued our house too high to get our business, so when someone hadn't "snapped it up" after a month or so I rang to ask if they thought it was on at the right price. All I got was a lecture about how difficult the market was at the moment (if only they knew how much time I spend on HPC!). I would have thought they would be really keen to get sellers to reduce.

They did send us a letter about a week later suggesting we reduce the price (as if it was their idea!!), so we did what they suggested and still no takers (apparently people like the place and would pay the asking price or close to, but are not in a position to make an offer due to not having offers on their own houses).

It is a strange choice between reducing to increase chances of selling, or waiting (we are in no hurry ) and holding out for a higher price as apparently there are interested people out there...

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EAs complaining that property overvalued is like an england player complaining the world cup is full of boring football ;)

In the end I think it most likely comes down to the fact that EAs are pretty simple sorts, so they value houses the way they have always been valued, instead of thinking "hmm, growth in supply and nothing selling...does this mean the price needs to move?"

It also struck me that the last 8 or 9 EAs I've been in contact with were so young they must have grown up during a period when prices only ever moved north. But give it a few months of trying and failing to sell much at an overinflated price and the hard fact that their business is based on deal flow will kick in.

they may very well overvalue them, but the vendor also has a lot to do with price setting. We sold our place £15k over what the EA valued it at.

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what gets me is that, for example the EA and vendor value a house at £250K. the EA in their marketing hype claims "its a fantastic opportuntiy in a sought after location". Then the neighbour who has a similar house and who is desperate to sell has their house valued at £200K and the EA claims that it is "REALISTICLY PRICED!!". all that does is imply that the £250K house has been intentionally overpriced by £50K!.

No one questions it, they get away with it and the EA laughs all the way to the banK! Roll on June 22nd

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what gets me is that, for example the EA and vendor value a house at £250K. the EA in their marketing hype claims "its a fantastic opportuntiy in a sought after location". Then the neighbour who has a similar house and who is desperate to sell has their house valued at £200K and the EA claims that it is "REALISTICLY PRICED!!". all that does is imply that the £250K house has been intentionally overpriced by £50K!.

No one questions it, they get away with it and the EA laughs all the way to the banK! Roll on June 22nd

ha!

I'm sure this has been ranted about on here many times before, but I feel the same about the term "affordable housing" eg "planning permission has been granted for 200 new homes, 20% of which will be affordable housing"

So 80% will be unaffordable?! And they are quite happy to admit it??

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Not wanting to go with the first valuation we invited 3 estate agents round. The valuations differed by over £200k, a not insignificant sum.

We went for the highest valuation, not just for money reasons but they were the only diligent, well organised EA.

First house hunters to see it , bought it, and we accepted 10% under the asking price, still more than the top valuation of the other two agents.

I cringe to think about how we could have gone with the lower "more realistic" valuation and then dealt at 10% below that.

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It's incredibly sticky on the way down, most of us are utterly screwed now. Sellers can't afford to sell at the prices the buyers can afford to pay. Sellers have already spent the money via 'equity release', or need the asking price to have enough to pay the next seller. Those that haven't bought already can't raise the money to pay the asking price.

No-one sells and no-one buys.

I can't see how a crash can happen in these circumstances, just a very long drawn out wait as one generation treads water in work that won't pay enough to live waiting for the previous generation to die off so they can get their houses.

The thing that baffles me the most is why there are so many people bothering to turn up for work.

Anyway, a new business idea. An estate agent that doesn't sell houses. They can get houses on their books by giving the most over the top valuation. Then the houses stay on their books because no-one can afford them. Here's how it differs from all the other estate agents -> this one charges to advertise their property in their window. 50 quid a month. Have enough of those and you're sorted, plus there's little overhead apart from the rent on the office. Don't need any staff other than those targetting sellers, because no buyers will be calling or viewing.

Edited by cybernoid

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I can't see how a crash can happen in these circumstances

It's all about motivated sellers.

You lose your job. You're motivated.

You die. Your heirs are motivated.

You divorce. Your ex is motivated.

These force sales through a dead market and set the prices.

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  • 146 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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