Jump to content
House Price Crash Forum
The Masked Tulip

Swansea Ea Chain Allegedly Put Staff On 4 Day Week

Recommended Posts

I am informed that one Swansea EA firm allegedly has put most of its staff on a 4 day week as of yesterday.

In the past 24 hours I have noticed several of their asking prices have dropped by sizeable chunks - 7Kish to 30Kish drops - but the 30Kish drop still has a ludicrous asking price even now IMPO.

That does not sound like a Spring bounce if the staff go on a 4 day week?

Edited by The Masked Tulip

Share this post


Link to post
Share on other sites

Three of the agents in our locality are running with a member of staff less than they had 12-15 months ago.

One is a national chain the other two are local area agents with a number of offices in a 10-20mile radius.

Share this post


Link to post
Share on other sites

I am informed that one Swansea EA firm allegedly has put most of its staff on a 4 day week as of yesterday.

In the past 24 hours I have noticed several of their asking prices have dropped by sizeable chunks - 7Kish to 30Kish drops - but the 30Kish drop still has a ludicrous asking price even now IMPO.

That does not sound like a Spring bounce if the staff go on a 4 day week?

Foolish!

The correct response to falling revenue is to retain all staff and hours but drop salaries. This reduces your burn rate and has the desirable side effect of putting the fear of God into the staff so they work twice as hard.

B)

Share this post


Link to post
Share on other sites

I suppose putting people on a 4 day week is preferable to sacking a few - if it became public knowledge that a few had been made redundant it would have a deterimental affect on all the property bullish stuff.

Share this post


Link to post
Share on other sites

Foolish!

The correct response to falling revenue is to retain all staff and hours but drop salaries. This reduces your burn rate and has the desirable side effect of putting the fear of God into the staff so they work twice as hard.

B)

No, no, no! How can you grow if you don't "invest"?. They should employ two more staff and increase all wages by 10%. Profits are bound to go up then.

Yours, Ed Balls.

Share this post


Link to post
Share on other sites

No, no, no! How can you grow if you don't "invest"?. They should employ two more staff and increase all wages by 10%. Profits are bound to go up then.

Yours, Ed Balls.

I would love to see Ed Balls either work as a private sector manager, sticking to a budget and trying to be productive, or better still, actually run a private company for a period and see how it goes

Share this post


Link to post
Share on other sites

I would love to see Ed Balls either work as a private sector manager, sticking to a budget and trying to be productive, or better still, actually run a private company for a period and see how it goes

Give it 6 months and you will be watching it on the BBC or Channel 4.

Share this post


Link to post
Share on other sites

No, no, no! How can you grow if you don't "invest"?. They should employ two more staff and increase all wages by 10%. Profits are bound to go up then.

Yours, Ed Balls.

HAHAHAHA!!!! Love it! :lol:

Share this post


Link to post
Share on other sites

I've noticed that my locals EAs have a skeleton staff on Saturday.

They've stopped opening Sundays.

Hardly rushed off their feet.

Share this post


Link to post
Share on other sites

I've noticed that my locals EAs have a skeleton staff on Saturday.

They've stopped opening Sundays.

Hardly rushed off their feet.

They must be on the bones of their @rse

Share this post


Link to post
Share on other sites

One EA chain told me that "the phone is not ringing" today.

They said they are surprised by how few sellers are ringing them up for valuations. They had expected March to be busy but so far it has been quiet.

Share this post


Link to post
Share on other sites

I personally expected a lot more valuations to be booked in around this time of year especially when interest rates will be going up soon.

Most fixed rate deals will have expired by now since rates were slashed, so all of a sudden most owners will have had their mortgage payments halved. Good deals are not there at the moment, so I suspect a large percentage of home owners are tracking interest rates and most should expect them to rise which will urge many to get their property on the market.

A lot of the valuations I have done lately have been due to couples splitting up which is happening more and more now with finances getting tighter which is usually the main reason for relationships breakdowns.

Share this post


Link to post
Share on other sites

I personally expected a lot more valuations to be booked in around this time of year especially when interest rates will be going up soon.

Most fixed rate deals will have expired by now since rates were slashed, so all of a sudden most owners will have had their mortgage payments halved. Good deals are not there at the moment, so I suspect a large percentage of home owners are tracking interest rates and most should expect them to rise which will urge many to get their property on the market.

A lot of the valuations I have done lately have been due to couples splitting up which is happening more and more now with finances getting tighter which is usually the main reason for relationships breakdowns.

It is very noticeable how few houses are coming on the market. There appeared to be far more in the Oct to Dec period than now.

Share this post


Link to post
Share on other sites

This is the story from Realistic EA NI on a market that has already dropped 40%

http://www.housepricecrash.co.uk/forum/index.php?showtopic=105924&view=findpost&p=2928366

We have a similar property with 10% yield and I would say £400 per month profit, but I can't shift it.

Investors are looking at different things at the moment. They only seem interested in the big investments or land. These really are looking long term.

A couple of years ago I would have had a dozen or so people trying to get a piece of the BTL market and fighting over a property like this. Just goes to show what happens when the banks tighten up.

Valuation numbers are really down ATM.

I agree with the NI EA about those EA's that are realistic with prices will keep the sales moving, but the problem we have is too many people following the advice of the EA that gives the highest price. Too much greed out there.

I suppose many EA's and banks were being greedy a few years ago, but so too were the vendors and now that many EA's are doing what they can to get sales the vendors are the ones that are not moving on their expectations.

Not sure who is to blame. Each situation is different, but at the moment I am blaming some local EA's for going in with a high value with the intention of getting the vendor to lower once contracts are signed.

Edited by SwanseaPropertyAgents

Share this post


Link to post
Share on other sites

We have a similar property with 10% yield and I would say £400 per month profit, but I can't shift it.

Investors are looking at different things at the moment. They only seem interested in the big investments or land. These really are looking long term.

A couple of years ago I would have had a dozen or so people trying to get a piece of the BTL market and fighting over a property like this. Just goes to show what happens when the banks tighten up.

Valuation numbers are really down ATM.

I agree with the NI EA about those EA's that are realistic with prices will keep the sales moving, but the problem we have is too many people following the advice of the EA that gives the highest price. Too much greed out there.

I suppose many EA's and banks were being greedy a few years ago, but so too were the vendors and now that many EA's are doing what they can to get sales the vendors are the ones that are not moving on their expectations.

Not sure who is to blame. Each situation is different, but at the moment I am blaming some local EA's for going in with a high value with the intention of getting the vendor to lower once contracts are signed.

It is a slow slow process to get people to drop their prices.

I have been keeping an eye on several EA chains and note via Propertybee when a house first comes on the market and how long it takes to get any price drop. It is often 6 months if not a year. After that price drops seem to come in every 3 or 4 months.

I spoke with one EA this week who told me several of his asking prices will drop at the end of the month - vendors are holding out for buyers this month but it ain't going to happen.

Then once they drop their asking price they refuse point blank to accept lower than it.

It is stalemate.

Share this post


Link to post
Share on other sites

Then once they drop their asking price they refuse point blank to accept lower than it.

Spot on.

Many will not drop because they want room to negotiate because that is normal practice.

The best way I have found recently to get vendors to lower is to put them to auction with Zoopla. It costs the vendor nothing if sold other than our 1% commission fee, so they see it as a bonus.

This usually gets me to gain a reserve price which then allows me to negotiate if the property does not sell at auction. It usually gets a few offers, so they see there is interest at lower prices. I can then try and get a reduction in price.

It's still a long drawn out process, but I suspect I will have a lot of reductions in the next month or two.

Share this post


Link to post
Share on other sites

Then once they drop their asking price they refuse point blank to accept lower than it.

Spot on.

Many will not drop because they want room to negotiate because that is normal practice.

The best way I have found recently to get vendors to lower is to put them to auction with Zoopla. It costs the vendor nothing if sold other than our 1% commission fee, so they see it as a bonus.

This usually gets me to gain a reserve price which then allows me to negotiate if the property does not sell at auction. It usually gets a few offers, so they see there is interest at lower prices. I can then try and get a reduction in price.

It's still a long drawn out process, but I suspect I will have a lot of reductions in the next month or two.

I can see a very slow decline drawn out in Swansea over the next 12 months. People dropping just 3% and refusing to drop lower.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.