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Estate Agents New Cunning Plan

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Almost all the new properties coming onto Rightmove recently,in the southwest, are being advertised as though they are property auction lots, i.e. "guide price £140k- £150k". Well, i don`t know about you, but the only figure i would see, is the lower one, and would be offering considerably less than that. Maybe it`s a psychological thing. They want £140k, so if they include a higher figure as well, they think people would not negotiate downwards on £140k. Do you think E.A`s employ psychologists to dream up this nonsense?

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Almost all the new properties coming onto Rightmove recently,in the southwest, are being advertised as though they are property auction lots, i.e. "guide price £140k- £150k". Well, i don`t know about you, but the only figure i would see, is the lower one, and would be offering considerably less than that. Maybe it`s a psychological thing. They want £140k, so if they include a higher figure as well, they think people would not negotiate downwards on £140k. Do you think E.A`s employ psychologists to dream up this nonsense?

I have tried to offer lower than the guide with several houses with no joy the vendors are brainwashed by the agents into thinking that the minimum they will get is the lower guide price.

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Almost all the new properties coming onto Rightmove recently,in the southwest, are being advertised as though they are property auction lots, i.e. "guide price £140k- £150k". Well, i don`t know about you, but the only figure i would see, is the lower one, and would be offering considerably less than that. Maybe it`s a psychological thing. They want £140k, so if they include a higher figure as well, they think people would not negotiate downwards on £140k. Do you think E.A`s employ psychologists to dream up this nonsense?

It's the 'Get Moving Open House' weekend invitations that tickle me! Why would anyone be interested when they can view at their convenience any other time? Is the idea to try and herd potential buyers together so that they sense some competition!

Had my first downbeat conversation with an EA yesterday in this wealthy part of Cornwall. I said "I don't want to waste anyone's time who isn't prepared to negotiate." She said, "We prepare the vendors expectations so i think you find that noone will mind you putting in an offer below asking price."

Hmmm ... First time in this neck of the woods I have heard that. It is usually, "prices are on the up, gazzumping going on ...".

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Its not uncommon for me to contact estate agents ref a number of identical properties on a certain street where the asking price is £180-190k.

[And quote the 1997 sold price of £59-65k, followed by telling them, I dont think its worth over £80k.]

Most EA will agree to contact their vendor and offer £100k.

These are not serious calls for me, as I am not interested in buying at that price. [And I genuinely do not believe they are worth £100k.]

Gives them something to do......

The properties never seem to sell, just change estate agents every so often.

Edited by Dan1

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Almost all the new properties coming onto Rightmove recently,in the southwest, are being advertised as though they are property auction lots, i.e. "guide price £140k- £150k". Well, i don`t know about you, but the only figure i would see, is the lower one, and would be offering considerably less than that. Maybe it`s a psychological thing. They want £140k, so if they include a higher figure as well, they think people would not negotiate downwards on £140k. Do you think E.A`s employ psychologists to dream up this nonsense?

Ive noticed allot of POA in the southwest. Its all becoming a bit dirty....

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I have tried to offer lower than the guide with several houses with no joy the vendors are brainwashed by the agents into thinking that the minimum they will get is the lower guide price.

You must be looking at the werong properties with the wrong agent. IMO, agents are softening up sellers by keeping the previous asking price at the top of the range. Sellers who previously may not have budged on asking price are probably being told ' you dont have to take an offer' but in reality, the agent is, by quoting a price range instead of an asking price, inviting offers below asking price.

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The "ranges" around here are more ridiculous--£280,000-£340,000 is not uncommon.

2 reasons for such pricing:

1. The seller (EA) is hoping to start A FRENZY AMONG BUYERS WITH AN OFFER TO START PLACING BIDS.

2. THE SELLER HOPES TO GET THE LOWER PRICE THINKING THE UPPER RANGE WILL CAUSE THE BUYER TO THINK THEY ARE GETTING A GOOD DEAL IF THE LOW PRICE IS ACCEPTED. "Sale" mentality.

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Its the best way of finding out what a property is actually worth because buyers then act like its an auction. The biggest problem with the technique is that if the guide is too high, no-one goes to see the property and/or buyers aren't prepared to get there. If they priced at guide £120k, it would probably drum up a fair bit of interest. Might not, though.. :lol:

Almost all the new properties coming onto Rightmove recently,in the southwest, are being advertised as though they are property auction lots, i.e. "guide price £140k- £150k". Well, i don`t know about you, but the only figure i would see, is the lower one, and would be offering considerably less than that. Maybe it`s a psychological thing. They want £140k, so if they include a higher figure as well, they think people would not negotiate downwards on £140k. Do you think E.A`s employ psychologists to dream up this nonsense?

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we had a similar experience last week viewing this property:

williton property £160k

The EA informed us that the vendor has friends trying to sell similar properties at about 300k but with no takers so this particular vendor has gone on at 160k, no doubt to drum up interest. He informed us that there is no way the vendor would accept 160 but was looking for minimum 200k plus.its going to auction in 2 weeks. Isn't that slightly fraudulent? maybe this is another new trick desperate EAs and vendors are using to get viewers in.

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then there are :

offers in excess of £xxxxxx

offers in the region of £xxxxxx

fixed price £xxxxxx

guide price £xxxxxx

offers over £xxxxxx

what is a poor buyer to make of those. EA speak for 'I don't know what the correct asking price is but I will set it high so that I get the instruction and hope for an idiot buyer to walk thru the door' :blink:

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The "ranges" around here are more ridiculous--£280,000-£340,000 is not uncommon.

Worst I have seen is 180-230K.

I get the impression from talking to the EA that they're expecting to accept offers as close as possible to the top figure, wereas (for the particular agent that uses this method of pricing the most) I am still seeing the lower price as too high.

tim

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I have tried to offer lower than the guide with several houses with no joy the vendors are brainwashed by the agents into thinking that the minimum they will get is the lower guide price.

If I saw a price range like that I'd always think I could get the lower price. It does signal that they are happy with the lower price. In todays not really moving market, you'd offer that and if someone else wants to gazzump you, fair play. You look for something else.

The same with jobs. I applied for a contract and the range was x to x +20 a day. I read that as x and was glad they offered me the job. When the contract came through, (we never discussed rate further) the rate was x. Of course the housing market is now more buoyant! Or am I missing out on twenty notes a day?

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Almost all the new properties coming onto Rightmove recently,in the southwest, are being advertised as though they are property auction lots, i.e. "guide price £140k- £150k". Well, i don`t know about you, but the only figure i would see, is the lower one, and would be offering considerably less than that. Maybe it`s a psychological thing. They want £140k, so if they include a higher figure as well, they think people would not negotiate downwards on £140k. Do you think E.A`s employ psychologists to dream up this nonsense?

I can see a get out for realistic/honest EAs:

If Mortgage_Valuation < Deluded_Vendor_Price Then

....Guide_Price = "guide price £" & Mortgage_Valuation & "k - £" & Deluded_Vendor_Price & "k"

Else

....Guide_Price = "guide price £" & Mortgage_Valuation & "k"

End If

E.g. guide price £120k - £189k :P

PS I just know that if some mental C programmer sees that code they will try to rewrite it as 1 line using variables called x, y & i.

I've felt for a long time that because of the English property rules vendors have nothing to lose by seeing what offers come in without naming a price. At least they would know what the minimum was if forced to move.

woo hoo finally worked out how to indent/tab on here

Edited by xux42

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Almost all the new properties coming onto Rightmove recently,in the southwest, are being advertised as though they are property auction lots, i.e. "guide price £140k- £150k". Well, i don`t know about you, but the only figure i would see, is the lower one, and would be offering considerably less than that. Maybe it`s a psychological thing. They want £140k, so if they include a higher figure as well, they think people would not negotiate downwards on £140k. Do you think E.A`s employ psychologists to dream up this nonsense?

New cunning buyer's plan.

Buyer's offer somewhere within the guide range of £0 and £120k. The vendor can happily then chose any number in between. Seriously, why would you offer a range? I've never seen or heard of the likes personally. Is it that they are too thick to get the house properly valued, or are trying to conceal it's actual value (£0 - £100k if they insist on playing silly beggars).

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In a similar vein, whever I see "Offers invited over £X", I still think of X as the starting point to work downwards from

Agreed. I think we all do so either this is self defeating for ea's or the rest of the population is dimmer than they look.

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Another thing I've noticed regarding my forays into the Southwest are the "special price for this weekend only!!!" adverts. What in God's name is that all about?

This weekend, next weekend and every weekend forever after, amen!

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we had a similar experience last week viewing this property:

williton property £160k

The EA informed us that the vendor has friends trying to sell similar properties at about 300k but with no takers so this particular vendor has gone on at 160k, no doubt to drum up interest. He informed us that there is no way the vendor would accept 160 but was looking for minimum 200k plus.its going to auction in 2 weeks. Isn't that slightly fraudulent? maybe this is another new trick desperate EAs and vendors are using to get viewers in.

See what it goes for.. not fraudulent is it .. No one has to accept offers. I see there's a strip of land as well - optional 'extra' .. I'll guesstimate at 190k tops.

(or is that too high ?)

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  • 239 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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