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moonriver

Lower Your Asking Price, Else We'll Take Your Property Off Our Books..

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Saw this on Itv Wales "The Ferret" last night.

Starts 6 minutes in.

http://www.itv.com/wales/the-ferret68094/

Elderly lady puts her Church Stoke house up for sale in 2008, asking price of £310,000. After 6 months, it still hasn't sold, and the manager of the estate agents contacts her to tell her he thinks her price is unrealistic, so she needs to reduce it now.

She refuses, and says she wants to keep it on the market till the Spring, to see what happens then.

I assume she thought, someone would come and pay her overinflated asking price, because it was spring?

So the estate agent told her he was taking her property off the market, then sends her a bill for £300.

She is not happy.

But there is a handwritten section in her contract saying that there would be a £300 charge for withdrawing the house from sale.

She thinks she shouldn't pay, because she was not the one withdrawing the property from sale.

The agent offered to reduce the bill, but she refused. And so she takes him to court, and the estate agent wins, meaning she has to pay up his withdrawal fee, along with costs.

A sgin of things to come?

Surely agents do not want all these unrealistic sellers, with their overpirced, so unsellable, properties languishing on their books indefinitely?

And as an ancedotal, someone I know, had their house in the midlands valued last weekend, He was hoping, and expected, to market it at £200,000. The agent told him that he wouldn't take it on at that price, and to stand a realistic chance of selling, he needed to market it at £145,000. However the agent said he wouldn't refuse to market it at a top price of £165,000, provided the seller understood that he could only expect to get a selling price of below £145,000.

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And as an ancedotal, someone I know, had their house in the midlands valued last weekend, He was hoping, and expected, to market it at £200,000. The agent told him that he wouldn't take it on at that price, and to stand a realistic chance of selling, he needed to market it at £145,000. However the agent said he wouldn't refuse to market it at a top price of £165,000, provided the seller understood that he could only expect to get a selling price of below £145,000.

And then in 6 months time he will have to pay the agent £300 because he will refuse to lower the price to £110,000.

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I like this a lot, but I wonder how much it actually costs an EA to keep a house on his books.

I assume that most contracts would allow for him to do no more than keep the details in a filing cabinet. No window or display space needed, and he's certainly not going to put it in the local rag. So his only costs would be if he actually shows someone round, and that might actually net a sale.

Of course, much better to dump a property that will never sell at the required price, and charge £300 to do so.

A bit of harsh reality will spread fairly sharpish I reckon.

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I assume that most contracts would allow for him to do no more than keep the details in a filing cabinet. No window or display space needed, and he's certainly not going to put it in the local rag.

I very much expect that if you have a property listed with an agent you have a legal right to expewct them to actually try and market it.

I may be corrected...

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I like this a lot, but I wonder how much it actually costs an EA to keep a house on his books.

I assume that most contracts would allow for him to do no more than keep the details in a filing cabinet. No window or display space needed, and he's certainly not going to put it in the local rag. So his only costs would be if he actually shows someone round, and that might actually net a sale.

Of course, much better to dump a property that will never sell at the required price, and charge £300 to do so.

A bit of harsh reality will spread fairly sharpish I reckon.

It may not be the costs of keeping it on the books - rather the impact it has on buyers' perceptions of the agent's pricing ie 'if this house is blatantly overpriced maybe they all are?'

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It may not be the costs of keeping it on the books - rather the impact it has on buyers' perceptions of the agent's pricing ie 'if this house is blatantly overpriced maybe they all are?'

Good point.

And I was wondering about the charge, in this lady's case, she would of had to have had a HIPS done back in 2008, so maybe, the agent was covering the cost of this too, with the £300 charge?

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If EAs aren't getting sales fees from buyers, then they're going to need a source of income from somewhere. Seems fair enough to take that from unrealistic sellers who are denying them the chance to make sales. Survival of the fittest really.

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Good point.

And I was wondering about the charge, in this lady's case, she would of had to have had a HIPS done back in 2008, so maybe, the agent was covering the cost of this too, with the £300 charge?

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I suppose some EAs are now twigging that having those over-priced properties means all other sellers want the sam over-priced asking prices.

Best to start ditching those who do not drop I guess?

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Good point.

And I was wondering about the charge, in this lady's case, she would of had to have had a HIPS done back in 2008, so maybe, the agent was covering the cost of this too, with the £300 charge?

Having worked for an EA, the lady had her property on the books for six months, and in this time, especially in the first few weeks, the EA will have run up costs such as man hours spent doing the photo's and measurements for the brochure, printing costs for brochure, postage, advertising costs in the local paper,cost of placing property on websites such as Rightmove, telephone costs, more man hours/petrol doing viewings. So I think that £300 quid is fair. Not that I am sticking up for EA's, in my opinion they are robbers in suits, but wanted to put forward a different slant.

Incidentally, in Suffolk they charge you up front for the brochures, so you have to stump up £295 before they will even market your property, that plus the cost of a HIP (thank goodness they are no more!!), was a fair old sum to find up front.

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Having worked for an EA, the lady had her property on the books for six months, and in this time, especially in the first few weeks, the EA will have run up costs such as man hours spent doing the photo's and measurements for the brochure, printing costs for brochure, postage, advertising costs in the local paper,cost of placing property on websites such as Rightmove, telephone costs, more man hours/petrol doing viewings. So I think that £300 quid is fair. Not that I am sticking up for EA's, in my opinion they are robbers in suits, but wanted to put forward a different slant.

Incidentally, in Suffolk they charge you up front for the brochures, so you have to stump up £295 before they will even market your property, that plus the cost of a HIP (thank goodness they are no more!!), was a fair old sum to find up front.

What brochure?

In my part of the world the brochure is usually two sheets of A4 in some kind of standard Word template with a few photos pasted into it. I would have thought most 12 years old could do one in a few minutes.

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What brochure?

In my part of the world the brochure is usually two sheets of A4 in some kind of standard Word template with a few photos pasted into it. I would have thought most 12 years old could do one in a few minutes.

Exactly most 12 year olds! Therefore its a mammoth task for the average EA, hence the cost.

Edited by SavingBear

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What brochure?

In my part of the world the brochure is usually two sheets of A4 in some kind of standard Word template with a few photos pasted into it. I would have thought most 12 years old could do one in a few minutes.

...ah...but....in the good old days all these incidental costs were absorbed by the hefty sales commission....today there are very few sales commissions but plenty of time wasters I would imagine....it's survival of the fittest and the time wasters are stalling the market..... :rolleyes:

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  • 145 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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