Eas - A Little Anecdotal

[tomandlu]

I've just signed the initial contract on a new rental. The woman handling the paperwork had never done it before - she was normally in sales, but, she said, "we've got hundreds of properties, but can't sell anything, so they've got me doing this now."

I had a brief chat with her and her colleague which pretty much confirmed what we know - no funding available, sellers unwilling to drop their prices ("hanging on by the fingernails" was the EAs phrase), and properties just sitting on the books.

[GloomMonger]

Exactly the same from me. I renewed my lease and while waiting for the docs and armed with my HPC knowledge and powers I probed the girl next to me. She said the same thing, nothing selling and most of their work was letting.

[spiney]

armed with my HPC knowledge and powers I probed the girl next to me.

sounds like fun to me!!

Spiney.

[leicestersq]

I've just signed the initial contract on a new rental. The woman handling the paperwork had never done it before - she was normally in sales, but, she said, "we've got hundreds of properties, but can't sell anything, so they've got me doing this now."

I had a brief chat with her and her colleague which pretty much confirmed what we know - no funding available, sellers unwilling to drop their prices ("hanging on by the fingernails" was the EAs phrase), and properties just sitting on the books.

What part of our empire would this be?

Detroit?

[tomandlu]

What part of our empire would this be?

Detroit?

Close... Tooting, S. London.

[The Masked Tulip]

Just had a similar conversation with an EA.

Rentals is incredibly buoyant, they have a waiting list of people wishing to rent, but, although they sold two houses in the last week, sales are almost non-existent.

Apparently bank surveyors in Swansea are coming back with hugely under-valuing the properties when mortgages are applied for and 30% is the norm for a mortgage deposit now if not 40%. Apparently most people cannot get a mortgage.

They have a problem with sellers and asking prices - partly due to sellers having unreasonable expectations of the market, partly due to neighbours telling them the house is worth, partly due to people in loads of debt and alot, apparently, to one or two competitor EA chains who are hugely over-valuing property.

An example was given to me of one firm who had a house on the market for over a year at 240K and every viewer said it was over-valued. Seller has now gone to another EA who has it on the market for, wait for this, 290K.

[Killer Bunny]

I got my haircut today. (You may well indeed ask 'so what'.)

My cutter is extremely well known and liked in this area and we often talk about HPs and economics. (Its true!)

Anyhoo, he's great mates with most of the EAs in the area and he knows full well what's coming.

So, in the same chair, this morning was the top EA in the area talking to my man. 'Correcting' was the word used - and it was like pulling teeth to get that out of him. Example - EA values at £1.4m, seller says £1.8m. 4 weeks not a single viewer.

Of course reality is value is £1.0m.

[Caveat Mortgagor]

An example was given to me of one firm who had a house on the market for over a year at 240K and every viewer said it was over-valued. Seller has now gone to another EA who has it on the market for, wait for this, 290K.

Try this little snippet for insanity then

No 4 New build bought April 2007 for £208k

http://www.nethouseprices.com/index.php?con=sold_prices_street_detail&street=SAVANNAH+CLOSE&locality=COVENTRY&town=COVENTRY&cCode=EW&year=All&house_style=All&house_age=All&search_radius=&outcode=CV4&incode=9GS

Does anyone have the urge to shudder about buying a new build at peak? Obviously not these brave souls! Came onto the market in March for £365k, but jump in quick cos theyve since knocked £15k off.

http://www.rightmove.co.uk/property-for-sale/property-29067692.html

Edited September 29, 2010 by Caveat Mortgagor

[juvenal]

Exactly the same from me. I renewed my lease and while waiting for the docs and armed with my HPC knowledge and powers I probed the girl next to me. She said the same thing, nothing selling and most of their work was letting.

Ditto from a Dorset EA's part timer I know. Nothing selling

[eric pebble]

I got my haircut today. ................

So, in the same chair, this morning was the top EA in the area talking to my man. 'Correcting' was the word used - and it was like pulling teeth to get that out of him. Example - EA values at £1.4m, seller says £1.8m. 4 weeks not a single viewer.

Of course reality is value is £1.0m.

Of course reality is value is £1.0m. £1.

[bingobob]

I've just signed the initial contract on a new rental. The woman handling the paperwork had never done it before - she was normally in sales, but, she said, "we've got hundreds of properties, but can't sell anything, so they've got me doing this now."

I had a brief chat with her and her colleague which pretty much confirmed what we know - no funding available, sellers unwilling to drop their prices ("hanging on by the fingernails" was the EAs phrase), and properties just sitting on the books.

The wife and I are currently looking for a rental property and I'm finding the number of 'accidental landlords' and their demands a little annoying. Basically these are the guys that have attempted to sell their houses and have failed to get an offer of what the house is worth and are now having to rent out to cover their mortgage and costs (no doubt they've completed on another property and thus find their current house surplus to requirements). They tend to be looking for unrealistically high rents (to cover a high ltv repayment mortgage) and they will only ever commit to a 6 month lease (after which time they expect to re-market the house for sale when no doubt the market will be booming again), many expect to be able to keep some of their own posssesions in the loft/garage etc. I saw a house earlier in the week where the landlord felt it would be fine to continue trying to sell the house even though he would be signing a 6 month lease with a new tenant. I mentioned this to an EA whilst viewing a property today and he openly admitted that it was becomming a problem.

[lurker07]

But London's different, flying of the shelves .... oh dear just looked at the number of recent sales for some North London post codes and there are very few sales, perhaps London is not different after all and the recent sales seem to be showing red boxes, ie sold for less than previously sold. The yellow bits on Property Bee tend to be price reductions, new EA phone numbers or SSTC back to Available. Still lots of 2007 asking prices from the deluded.

Indeed. All I see in North London Zone2 is a slow drip-drip of price reductions.

Considering certain areas, there needs to be a lot more drip-drip before people accept the reality that their property is no longer a goldmine and more of a millstone.

[TeddyBear]

Close... Tooting, S. London.

Just looked the number of sold places for July listed on houseprices for SW17 - looks like 90. Let's say generously that half as many again sales not yet registered due to inefficient solicitors or some not going to show at all as repossession. That wouldn't even get us up to 150 sales. This will be sales agreed during the mini boom here of Spring 2010.

Lots of high end sales in there, very little at the lower end...bottom of the market is creaking and waiting to topple the pyramid perhaps?

A rise in interest rates is going to make the "just rent it out" brigade think again.

[Limpet]

Talking to a bloke at work today, who`s been in contact with EA`s recently. He say`s the concensus of opinion is that if you want to sell quickly (ie within a month) then you need to be pricing at 2002 levels.

[The Masked Tulip]

Talking to a bloke at work today, who`s been in contact with EA`s recently. He say`s the concensus of opinion is that if you want to sell quickly (ie within a month) then you need to be pricing at 2002 levels.

Is that just you toying with us and wishful thinking on your part?

[The Masked Tulip]

I'm rather banking on the fact that my 20% deposit will be enough when th etime comes early 2011. That would be a blow to be told I now need another 40k deposit, Can't see it happening myself.

Sorry, that is what the EA told me. The EA raised the issue of mortgages and desposits. I ventured that they required 20% now and the EA came back with the 30% and 40% figures.

I would suspect that it all depends upon the indivudals and the part of the country. Perhaps, with my part of the country being so public sector dominated, that the banks are truly asking for such sums. How can I find out - just go and enquire about a mortgage?

Oddly, the EA couldn't see a link between the deposits banks were wanting and house prices being over-valued. The banks not lending was considered the main reason for lack of sales... plus all the other stuff he/she told me.

[cybernoid]

I saw a house earlier in the week where the landlord felt it would be fine to continue trying to sell the house even though he would be signing a 6 month lease with a new tenant. I mentioned this to an EA whilst viewing a property today and he openly admitted that it was becomming a problem.

Yep. I've been noticing this for a couple of years now. I always check if a rental i am interested in is up for sale, just by searching rightmove for the same postcode. Often it's obvious, if the same estate agent is letting and selling the property the letting description will be the same as the sale one, so you'll have measurements of rooms etc and things like 'no chain'...

If it's for sale as well, it's off the list of potential rentals. Simply not worth the hassle. You can be certain the estate agent will be illegally entering the property when you're at work and showing people around... And accidental landlords are bloody awful, no clue about your rights or the regulations etc etc. Avoid avoid avoid. They expect their debt to become your problem.

[eric pebble]

You can be certain the estate agent will be illegally entering the property when you're at work and showing people around... And accidental landlords are bloody awful, no clue about your rights or the regulations etc etc. Avoid avoid avoid. They expect their debt to become your problem.

Get a camera/recorder and catch them at it: They take them to court and SUE THEM for trespass, burglary, THE WHOLE LOT. :angry: :angry:

[The Masked Tulip]

That'll change things if that turns out to be the case. My mortgage advisor seemed to think that a 20% deposit was considered a decent bet by banks. He said no problem at that level.

You can get 90% mortgages according to Yorkshire BS.

I think you will be OK. If 30% deposits were common then surely few mortgages would be offered?

[Fairies Wear Boots]

But London's different, flying of the shelves .... oh dear just looked at the number of recent sales for some North London post codes and there are very few sales, perhaps London is not different after all and the recent sales seem to be showing red boxes, ie sold for less than previously sold. The yellow bits on Property Bee tend to be price reductions, new EA phone numbers or SSTC back to Available. Still lots of 2007 asking prices from the deluded.

Like another post, it seems to be a slow trip down for London. Seeing stuff on at reasonable prices (for the market) not selling and speculative 2007 pricing not selling.

I often wonder how much more you can get off the people who have priced realistically in London? Anyone have a feel for this?

[Timak]

Close... Tooting, S. London.

Very interesting.

Friends of mine are trying to sell in that part of the world - they paid circa £300k in 2007, been on the market for around £280k for the last 3 months with little interest.

Still given you can rent things like this a few streets away for £1100 a month it is hard to make a case for buying. The second bedroom sounds like it is either infinite or doesn't exist depending on your views

Check out the single bedroom

[Redcellar]

Very interesting.

Friends of mine are trying to sell in that part of the world - they paid circa £300k in 2007, been on the market for around £280k for the last 3 months with little interest.

Still given you can rent things like this a few streets away for £1100 a month it is hard to make a case for buying. The second bedroom sounds like it is either infinite or doesn't exist depending on your views

Check out the single bedroom

What is God size? I have never heard that expression in my life. Typical EA speak?

[pete.hpc]

I made some initial inquiries about a mortgage a couple of weeks ago, said I currently had a 10% deposit and that after looking on a lot of high street lender sites, I thought 90% LTV would be ok, if not the most competitive rates

Advisor; "sure, sure, we'll start looking at that. How long until you could get 15 or 20%?"

So I said, 6 months for 15%, another year for 20%

Advisor; "to be honest, probably best to just come back to me when you have 20%"

Market is dead

The HPI indexes are currently meaningless

We've thrown everything at it, and it's still dead. Prices have to fall further

[Willy Wonka]

Teddy bear

if you looked at the July figures today then you have the august and September updates included in you figures.

This means that, roughly, 30 properties were registered as sold in July as documented in the august release

and then the remainder to take the figure to 90 is documented in the September release just made.

You will find the the October release will take the July figure to a about 100.

( the last 10 are those houses sold at the end July - the solicitor has 30 or so days to notify land resistry and pay stamp duty, so some house cometed miss the sept release ( which has data ending the end august - sothose tardy solicitors hold theoney and give notice to land registry start sept not end august thus missing the sept release)

I have been plotting sw18 - the origin nappy valley - sales for years...

Peak sales were about 2000 a year ! Literally free money for agents

dropping to 800 in 2008, 2009 had 1050 sales

We are on course for about 1100 this year - depending on last few months.

Dint forget august numbers represent June offers agreed!

[plummet expert]

Try this little snippet for insanity then

No 4 New build bought April 2007 for £208k

http://www.nethouseprices.com/index.php?con=sold_prices_street_detail&street=SAVANNAH+CLOSE&locality=COVENTRY&town=COVENTRY&cCode=EW&year=All&house_style=All&house_age=All&search_radius=&outcode=CV4&incode=9GS

Does anyone have the urge to shudder about buying a new build at peak? Obviously not these brave souls! Came onto the market in March for £365k, but jump in quick cos theyve since knocked £15k off.

http://www.rightmove.co.uk/property-for-sale/property-29067692.html

Try a more mature HPC.....across the pond in Florida. Not just limited to repo's now, you can buy a brand new 5 bedroom, 3 bath, with swimming pool for £94k. Yes, just £94k. two years ago, the same thing was £222k. Now let's have this same change here. Doubt it will be quite as good as that, but 25-50% fall depending on area is my bet over the next 2.5 years.