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Alfie Moon

Housing Market Is Dysfunctional Says Estate Agent

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You got laugh. Apparently the UK property market has been dysfunctional for the last few years, notes an Estate Agent ........ but still can't accept that the fundamental problem is that asking prices are somewhere between 20%-40% too high, thus pricing the majority of potential buyers out of the market.

See:

http://www.estateagenttoday.co.uk/News/Story/?storyid=3511&type=news_features

There is the opportunity to leave readers comments if you so wish.

Edited by Alfie Moon

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You got laugh. Apparently the UK property market has been dysfunctional for the last few years, notes an Estate Agent ........ but still can't accept that the fundamental problem is that asking prices are somewhere between 20%-40% too high, thus pricing the majority of potential buyers out of the market.

See:

http://www.estateagenttoday.co.uk/News/Story/?storyid=3511&type=news_features

There is the opportunity to leave readers comments if you so wish.

Good grief, that garish web page made my eyes bleed. Thanks!

Someone here once made the very obvious point that pretty much every house in the country would sell immediately if it was on the market for 10K, say. So the correct market price for any house is between 10K and the current asking price. You can find this price by reducing the asking price quite swiftly until you get two separate offers. Until you have an offer (preferably two) you are not at the market, you are simply wasting your time.

It's not rocket science.

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You got laugh. Apparently the UK property market has been dysfunctional for the last few years, notes an Estate Agent ........ but still can't accept that the fundamental problem is that asking prices are somewhere between 20%-40% too high, thus pricing the majority of potential buyers out of the market.

See:

http://www.estateagenttoday.co.uk/News/Story/?storyid=3511&type=news_features

There is the opportunity to leave readers comments if you so wish.

Dysfunctional??

I dont understand. A market is where buyers and sellers come together. They negotiate, and either come to agreement on the price for a sale, or disaagree and walk away.

That is how it is supposed to function. That seems to be how it is functioning. Or am I missing something?

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Dysfunctional??

I dont understand. A market is where buyers and sellers come together. They negotiate, and either come to agreement on the price for a sale, or disaagree and walk away.

That is how it is supposed to function. That seems to be how it is functioning. Or am I missing something?

I think he means his volumes are dysfunctional

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Dysfunctional??

I dont understand. A market is where buyers and sellers come together. They negotiate, and either come to agreement on the price for a sale, or disaagree and walk away.

That is how it is supposed to function. That seems to be how it is functioning. Or am I missing something?

That's the point - people aren't coming together as buyers and sellers, or negotiating, because there is no point in doing so as asking prices are so disconnected from the reality of peoples incomes and the availability of credit for mortgage loans - hence the ongoing collapse in property sales.

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My girlfriend sent me a house link yesterday.

£ 400K.

She said that was cheap !!!!!

Talk about brain washing.

I askedher how long it would take her to save up 400K.

The answer was 80 years.

£400K....4 bed detached with a small garden.

Dysfunctional, No S*** Sherlock.

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Good grief, that garish web page made my eyes bleed. Thanks!

Someone here once made the very obvious point that pretty much every house in the country would sell immediately if it was on the market for 10K, say. So the correct market price for any house is between 10K and the current asking price. You can find this price by reducing the asking price quite swiftly until you get two separate offers. Until you have an offer (preferably two) you are not at the market, you are simply wasting your time.

It's not rocket science.

Problem is that someone has to blink first. This is where ea's can do their bit. Encourage sellers to lower their price on the basis that once they sell, the house they want to buy will be reduced as well. Shouldn't be too difficult and everyone wins.

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Problem is that someone has to blink first. This is where ea's can do their bit. Encourage sellers to lower their price on the basis that once they sell, the house they want to buy will be reduced as well. Shouldn't be too difficult and everyone wins.

You are assuming that EAs are aware of the 'disease'... and that they themselves wish to be cured...

I am convinced, IMPO, that there are plenty of EAs who are caught up on the ego thing - 'I must be important as I am dealing with all these expensively valued houses'.

It is part of our culture currently - aspiration, celebrity, tied up with all that reality TV stuff, WAGs, etc, etc.

I suspect that for some EAs if they had to take 20% or 30% off the asking prices of houses in their houses it would actually have a depressing affect on their mentality. It would be perceived, IMPO, as a loss of ego and status - a loss of importance and 'Look at me, I am important'.

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You are assuming that EAs are aware of the 'disease'... and that they themselves wish to be cured...

Guys - can we get some more posting over at the OP link? You can post without registering.

It's getting interesting there - even a few EA's who are trying to adjust their vendor's expectations.

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You got laugh. Apparently the UK property market has been dysfunctional for the last few years, notes an Estate Agent ........ but still can't accept that the fundamental problem is that asking prices are somewhere between 20%-40% too high, thus pricing the majority of potential buyers out of the market.

See:

http://www.estateagenttoday.co.uk/News/Story/?storyid=3511&type=news_features

There is the opportunity to leave readers comments if you so wish.

It's good news - it seems to me that we just have to wait for reality to dawn - could take a while after the largest greed fest since the war. I think we all know people who are 'holding on and waiting for the market to pick up again'.

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You are assuming that EAs are aware of the 'disease'... and that they themselves wish to be cured...

I am convinced, IMPO, that there are plenty of EAs who are caught up on the ego thing - 'I must be important as I am dealing with all these expensively valued houses'.

It is part of our culture currently - aspiration, celebrity, tied up with all that reality TV stuff, WAGs, etc, etc.

I suspect that for some EAs if they had to take 20% or 30% off the asking prices of houses in their houses it would actually have a depressing affect on their mentality. It would be perceived, IMPO, as a loss of ego and status - a loss of importance and 'Look at me, I am important'.

Those who are aware of the 'disease' will be focusing their energy on getting chains sorted out based on lower prices as that is the only way they will generate sufficient sales to stay in business. Those who do not will be stuck with a window full of overpriced property that will stay on the market and not give them any income. Sellers who are serious and not just on an ego trip will see that others who have achieved a sale and have now moved on and are getting on with their lives did so by going through agents who told them the truth about prices and not those who told them what they wanted to hear.

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That's the point - people aren't coming together as buyers and sellers, or negotiating, because there is no point in doing so as asking prices are so disconnected from the reality of peoples incomes and the availability of credit for mortgage loans - hence the ongoing collapse in property sales.

Alfie,

not at all. If sellers dont want to sell, presumably because they value the property more than what is being offered by the highest bidder, then they can walk away. The market is still doing its job, the one who values the property the most, and is able to finance its ownership, is the one that has it. Thats what a market does.

It is functioning perfectly.

Mind you, estate agents might not be doing too well out of it at the mo with low volumes and all. But making them rich isnt the function of the market.

The function of the market is to give ownership to the person who values the 'thing' the most, and who can finance it at that price.

Nice definition of the function of the market that is.

Edited by leicestersq

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My girlfriend sent me a house link yesterday.

£ 400K.

She said that was cheap !!!!!

It is cheap if your paying the mortgage, even better if your not living there and still paying it for her (you move in together, get hitched, she has a sprog then boots you out after a couple of years).

Edited by goldbug9999

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Alfie,

not at all. If sellers dont want to sell, presumably because they value the property more than what is being offered by the highest bidder, then they can walk away. The market is still doing its job, the one who values the property the most, and is able to finance its ownership, is the one that has it. Thats what a market does.

It is functioning perfectly.

Mind you, estate agents might not be doing too well out of it at the mo with low volumes and all. But making them rich isnt the function of the market.

The function of the market is to give ownership to the person who values the 'thing' the most, and who can finance it at that price.

Nice definition of the function of the market that is.

Functioning perfectly??? With 1.1 million sellers that failed to find a buyer in the last 12 months? Nope, thats a market that is currently broken down only a small part of the overall market is left running/functioning at the moment. A perfectly working market is one where people buy and sell, not where people put something up for sale and nobody buys (in this case because the asking price is way too high beyond the reality of peoples incomes and the credit available for mortgage loans). In a perfectly functioning market the goods for sale would be moving through the market from seller to buyer, not piling up unsold in the warehouse (Rightmove, etc. in this case) because there is no market for them at the level of asking price being set.

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On the subject of irrationally high selling prices I blame women (as usual).

When a woman owns something, the price that they can sell it for is a reflection of their self worth especially when it is something major and personal like a house or car.

My ex put up a lot of resistance about accepting an offer of 10k below asking on our 240k marital home because she saw the low offer as a slight on "her" house and therefore on her.

Current GF stubbornly refused to knock 1k off a 7k car, because she resented the fact that the seller was getting such a good deal (even though she was happy with the amount of money she would get).

Personally I'm comming round to the idea that woman shouldn't be allowed bank accounts or the vote.

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I quote from the introduction:

"The agent said that in any normal market measured over the long term, there are 1.2 million residential property sales per annum and house price growth of around 3%, with first-time buyers accounting for half of all mortgage lending. "

And here lies the problem:

If we'd annual price growth of around 3% over the past 10 years there would not be a problem. Prices would of risen just 35%. Depending where live you prices have doubled, tripled and then some. This is the problem.

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I suspect that for some EAs if they had to take 20% or 30% off the asking prices of houses in their houses it would actually have a depressing affect on their mentality. It would be perceived, IMPO, as a loss of ego and status - a loss of importance and 'Look at me, I am important'.

:lol::lol:

Last year we agreed on a property, went down to get some face time with the EA.

me: is it worth this price

him: humm, actually we should really be pricing 30K higher, but the vendor is looking for a quick sale

me: silence resulting from a massive cognitive assault (I priced the place 30K below the asking)

me: how did you value the place ?

him: silence, looks at me with disbelief thinking "who the feck does this upstart think he is"

him: reluctantly starts tapping on the keyboard & shows me other property (not sold)

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:lol::lol:

Last year we agreed on a property, went down to get some face time with the EA.

me: is it worth this price

him: humm, actually we should really be pricing 30K higher, but the vendor is looking for a quick sale

me: silence resulting from a massive cognitive assault (I priced the place 30K below the asking)

me: how did you value the place ?

him: silence, looks at me with disbelief thinking "who the feck does this upstart think he is"

him: reluctantly starts tapping on the keyboard & shows me other property (not sold)

Ego is a huge problem in our Society - something we all have to battle with, but I believe it is especially prevalent regarding house prices.

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:lol::lol:

Last year we agreed on a property, went down to get some face time with the EA.

me: is it worth this price

him: humm, actually we should really be pricing 30K higher, but the vendor is looking for a quick sale

me: silence resulting from a massive cognitive assault (I priced the place 30K below the asking)

me: how did you value the place ?

him: silence, looks at me with disbelief thinking "who the feck does this upstart think he is"

him: reluctantly starts tapping on the keyboard & shows me other property (not sold)

If you want to know how something is priced, the answer is this. It is one pound more than the next highest bidder is willing and able to pay for it.

Sometimes that other 'bidder', might be the person who is selling, in which case no transaction occurs.

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On the subject of irrationally high selling prices I blame women (as usual).

When a woman owns something, the price that they can sell it for is a reflection of their self worth especially when it is something major and personal like a house or car.

My ex put up a lot of resistance about accepting an offer of 10k below asking on our 240k marital home because she saw the low offer as a slight on "her" house and therefore on her.

Current GF stubbornly refused to knock 1k off a 7k car, because she resented the fact that the seller was getting such a good deal (even though she was happy with the amount of money she would get).

Personally I'm comming round to the idea that woman shouldn't be allowed bank accounts or the vote.

They are better than men at spotting a con-man though. Just my experience with two wifes (not at same time of course).

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If you want to know how something is priced, the answer is this. It is one pound more than the next highest bidder is willing and able to pay for it.

Sometimes that other 'bidder', might be the person who is selling, in which case no transaction occurs.

Then they are not selling but kite-flying. I think there's something like 13 months of stock on the market at the moment?

Many sellers couldn't afford to buy their own house at current asking prices, so your fatuous point is moot.

A market in dry-up volume (nothing is selling) is telling you two things:

1. there is disagreement between buyers and sellers.

2. prices will break, one way or the other, quite dramatically.

A market's function is to clear. Prolonged dry-up indicates the market is dysfunctional.

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I quote from the introduction:

"The agent said that in any normal market measured over the long term, there are 1.2 million residential property sales per annum and house price growth of around 3%, with first-time buyers accounting for half of all mortgage lending. "

And here lies the problem:

If we'd annual price growth of around 3% over the past 10 years there would not be a problem. Prices would of risen just 35%. Depending where live you prices have doubled, tripled and then some. This is the problem.

Aye, and tripling in 10 years takes best part of 13%pa - is that officially hyperinflation?

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On the subject of irrationally high selling prices I blame women (as usual).

When a woman owns something, the price that they can sell it for is a reflection of their self worth especially when it is something major and personal like a house or car.

My ex put up a lot of resistance about accepting an offer of 10k below asking on our 240k marital home because she saw the low offer as a slight on "her" house and therefore on her.

Current GF stubbornly refused to knock 1k off a 7k car, because she resented the fact that the seller was getting such a good deal (even though she was happy with the amount of money she would get).

Personally I'm comming round to the idea that woman shouldn't be allowed bank accounts or the vote.

Women are the the reason we have a "State".

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Dysfunctional!!

:lol::lol::lol:

Mind you that's from an estate agent and self interest for sure.

Mind you that's from a builder and self interest for sure.

So UK first time buyers will be able to buy a home at almost exactly the point that UK employers will be looking to manage them out of employment and onto the employment scrapheap.

The UK. Dysfunctional. Yeah right, putting it mildly.

Never mind the Coalition will sort it :lol::lol::lol: .....................not.

Edited by billybong

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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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