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Pick Holes In This Idea (Please).

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I am a “motivated seller”, and would be grateful for some opinions on the following idea:-

I approach some EA’s (say 6) in my area and put to them this proposition:-

“You find me a buyer for my house, and , on completion of the deal, I pay you 3% of the purchase price . I do not care how you (EA) find the buyer – I do not care if you do not even advertise it in the press, online or anywhere else. I will not pay you... anything.. until the deal is complete and purchase money is paid to me (i.e. “in the Bank”). I will not sign any form of contract with you – except a simple letter containing the above, drawn up by my solicitor and accepted (signed) by you. “

My house is currently valued at around £200k – so if the EA got me the buyer (and the purchase money gets into the Bank) the EA would get £6K; (for each £10K reduction in the purchase price the EA would “lose” £300).

It all seems so simple (simple-minded?) that there are probably problems with it – but as doccyboy said in a recent post “there are no silly questions on the N.I. forum”. However nit–picking of the idea would be welcome.

By the way I would like to express my respect for the posters on this forum (I only look at the Northern Ireland forum – as almost everything about NI property matters is unique); I would be surprised if there is a higher level of debate and information – giving, elsewhere on HPC.

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If you were in the FTB price category an EA probably could b.s. some youngster into thinking your house is the bees knees. At 200k you are looking at a hardened second time buyer who sees beyond the vases of flowers and pot pourri and is wiser about spending their money. You can try giving an EA extra money to sell and I'm sure they'll happily take it but I don't see where they can magic buyers from. If the price is too high then people will not buy, no matter how much the EA hounds them.

To sell quick you must sell low. Price it below all the comparable houses and you'll be sale agreed within a fortnight.

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Right that is a challenge.

1. How motivated are you as a seller? Have you checked the prices of similar houses near you on the land and property register in GT Victoria Street to give you an accurate picture of what you might expect to get?

2. Why don't you take out an ad in the Homefinder section of the BT offering your house for sale. Will cost you a lot less than 6K. Also do a website and print copies of an ad and put them up on public notice boards.

3. Why don't you write on Propertypal website blog offering a challenge to any NI EA who thinks they can sell your house in a difficult market.

4.Try to find out which EA is selling houses just now - they will be the ones with the realistic prices and know their jobs.

5. Try RealisticEA for advice.

doccyboy you sure have a fertile (property) mind!

I have to say that my approach is more likely to be "price-slashing" than "effort". In other words I am more inclined to pay someone else (heavily?) to do the necessary work, However there are certainly some of your suggestions that I could do myself (might even get some pleasure/satisfaction out of doing so). "Approaching" RealisticEA is certainly a good idea - though I would not want to step on his "professional" toes.

Thank you for your ideas .

P.S. Message for you on IOM

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If you were in the FTB price category an EA probably could b.s. some youngster into thinking your house is the bees knees. At 200k you are looking at a hardened second time buyer who sees beyond the vases of flowers and pot pourri and is wiser about spending their money. You can try giving an EA extra money to sell and I'm sure they'll happily take it but I don't see where they can magic buyers from. If the price is too high then people will not buy, no matter how much the EA hounds them.

To sell quick you must sell low. Price it below all the comparable houses and you'll be sale agreed within a fortnight.

Total agreement with the above.

My opinion - don't overcomplicate it for EA's - you'll only confuse them. Your house will sell - it will have a selling price even in this market - most likely below its rateable value.

Property News/Property Pal get wide coverage and word spreads, even in your locality due to the sign. People are nosey and miss little.

The question is are you willing to sell for the current selling/market price? Can you risk waiting and the price dropping further?

BTW, who 'valued' your property and when. What would it go for at auction, in your opinion?

I'm sure it's stressful and hope it all works out for you.

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There are a few flat-rate agents, for example this one in NI that charges a £500 flat rate if you can be bothered to take your own photos. DIY EA

Some of these flat-rate DIY EAs also copy your listing to RightMove, so you get the best of both worlds (well, apart from not having your house in the front window of the local EA shop) eg Housenetwork for £425+VAT. Maybe the first link does too, for all I know.

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If you were in the FTB price category an EA probably could b.s. some youngster into thinking your house is the bees knees. At 200k you are looking at a hardened second time buyer who sees beyond the vases of flowers and pot pourri and is wiser about spending their money. You can try giving an EA extra money to sell and I'm sure they'll happily take it but I don't see where they can magic buyers from. If the price is too high then people will not buy, no matter how much the EA hounds them.

To sell quick you must sell low. Price it below all the comparable houses and you'll be sale agreed within a fortnight.

Hi polythene

There is no way in which my house is FTB material. I quite like doccyboy's suggestion of issuing a challange online to EA's (see his post) to come up with buyers. I realize that EA's can not usually magic buyers up, but I retain the feeling that there are people "out there" who "know" where the buyers are (perhaps I am too prone to conspiracy

theories!). I read the N.I. forum every day but do not see anyone say/admit that they have drastically lowered their price and have sold their property quickly. To contradict what I just said earlier it seems to me that there just NO buyers about.

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I see from your other posts you have been trying to sell for at least a year having dropped the price from 250k and don't currently live in the house. I would really suggest the property is over priced for the current market. Interest rates can only go up from here so the choice is take the "hit" on the property or potentially face a greater during the second leg down brought about by rising interest rates.

I see you say you bought this house in 06 and spent 25% of RV "improving" it. Some reports have us at 04 price levels so perhaps the value added by these improvements has been lost in the crash.

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Hi polythene

There is no way in which my house is FTB material. I quite like doccyboy's suggestion of issuing a challange online to EA's (see his post) to come up with buyers. I realize that EA's can not usually magic buyers up, but I retain the feeling that there are people "out there" who "know" where the buyers are (perhaps I am too prone to conspiracy

theories!). I read the N.I. forum every day but do not see anyone say/admit that they have drastically lowered their price and have sold their property quickly. To contradict what I just said earlier it seems to me that there just NO buyers about.

most of us on here are actually buyers. I am anyway just at a price I want to pay. That's not necessarily what you need to sell at though.

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Total agreement with the above.

My opinion - don't overcomplicate it for EA's - you'll only confuse them. Your house will sell - it will have a selling price even in this market - most likely below its rateable value.

Property News/Property Pal get wide coverage and word spreads, even in your locality due to the sign. People are nosey and miss little.

The question is are you willing to sell for the current selling/market price? Can you risk waiting and the price dropping further?

BTW, who 'valued' your property and when. What would it go for at auction, in your opinion?

I'm sure it's stressful and hope it all works out for you.

Hi Shotoflight

I take your points onboard.

I realize that I will probably have to sell below rateable value - although that is almost 20% below current "offer price". I realize also that "valuations" are becoming almost irrelevant in N.I.'s present parlous state. In respect of auctions - no doubt you have seen the other topic on this forum i.e.the "Ballymena NON-auction" in which, I think, only one of the thirty lots sold!

Northern Ireland is truly a place apart.

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I see from your other posts you have been trying to sell for at least a year having dropped the price from 250k and don't currently live in the house. I would really suggest the property is over priced for the current market. Interest rates can only go up from here so the choice is take the "hit" on the property or potentially face a greater during the second leg down brought about by rising interest rates.

I see you say you bought this house in 06 and spent 25% of RV "improving" it. Some reports have us at 04 price levels so perhaps the value added by these improvements has been lost in the crash.

Hi 2buyornot2buy

Thanks for your two posts.

I started to compose a reply to you but as it is getting rather late, I will postpone my post till the morning.

Regards

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There are a few flat-rate agents, for example this one in NI that charges a £500 flat rate if you can be bothered to take your own photos. DIY EA

Some of these flat-rate DIY EAs also copy your listing to RightMove, so you get the best of both worlds (well, apart from not having your house in the front window of the local EA shop) eg Housenetwork for £425+VAT. Maybe the first link does too, for all I know.

Hi BlinkTooFast

Sorry for the slow reponse - but thank you for your post.

Regards

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most of us on here are actually buyers. I am anyway just at a price I want to pay. That's not necessarily what you need to sell at though.

I don't know what normal EAs fees are exactly but for simplicity let's say it's 1%, so on a £200k house they would 'earn' commission of £2K. But in the current market would have to put in a lot of effort (more likely luck) to get a buyer at full asking price. If I understand your proposal correctly, they could offer it at 35% below valuation and maybe get it sold a lot more easily at £130k and still earn £1.8k commission, just £200 less than a normal contract. The nil commission price point for the EA seems to be £100k (again if I understand your proposal), in which case nearly every EA will have a contact somewhere willingly to buy at 50% discount, maybe for a wee £5k back hander? Are you really that motivated to sell? At the very least I think you need to set a minimum price at which you are prepared to sell.

Personally, I think you give EAs too much credit for being able to make a sale happen. Most people on here will tell you will that the primary determinate in getting a sale is price and not how well any particular EA markets your property. My default position with regard to EAs (which I think many on here also share) is treat everything they say with at best suspicion, if not total disregard. The way things are at the minute, you don't need to pay more to get an EA to sell your house, there's no competition in this market for their 'professional' services. Keep it simple, reduce your asking price gradually to find the market price and you'll eventually get a buyer.

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There are several fixed price EA's around my way. One gives you the option of fixed price £400 all in or else pay £200 up front and £800 on completion. They are doing a roaring trade, picking up business from the more traditional firms and shifting a reasonable number of houses but at realistic prices.

The houses with dewey-eyed, over priced vendors are just gathering dust like they were last year with the big boys. Everything will sell for a price, if the price is low enough. No amount of fancy deals with EA's will move a property that is over priced, so it all depends on just how motivated (and realistic) you are.

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Hello Binchy, that is an interesting proposal but on this occasion I have to reluctantly agree with lolacarrascal who says that the primary factor in selling any property is its asking price. Certainly professional looking brochures and online listings will help attract buyers but this has to be aligned to a realisitc asking price. No matter how good an EA is at his/her job, they will not be able to find you a buyer at an unrealistic price even if you paid them 10% commission.

From my point of view if a vendor offered me this deal I would simply tell them I would do it at my usual fee as long as they agreed with my asking price that would likely generate some buyers.

By the way, who valued your house at 200k and how recently?

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Hello Binchy, that is an interesting proposal but on this occasion I have to reluctantly agree with lolacarrascal who says that the primary factor in selling any property is its asking price. Certainly professional looking brochures and online listings will help attract buyers but this has to be aligned to a realisitc asking price. No matter how good an EA is at his/her job, they will not be able to find you a buyer at an unrealistic price even if you paid them 10% commission.

From my point of view if a vendor offered me this deal I would simply tell them I would do it at my usual fee as long as they agreed with my asking price that would likely generate some buyers.

By the way, who valued your house at 200k and how recently?

Yes who did "value" the house? If it was Tempelton I suggest you ask a few more agents for their opinion.

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Hello Binchy, that is an interesting proposal but on this occasion I have to reluctantly agree with lolacarrascal who says that the primary factor in selling any property is its asking price. Certainly professional looking brochures and online listings will help attract buyers but this has to be aligned to a realisitc asking price. No matter how good an EA is at his/her job, they will not be able to find you a buyer at an unrealistic price even if you paid them 10% commission.

From my point of view if a vendor offered me this deal I would simply tell them I would do it at my usual fee as long as they agreed with my asking price that would likely generate some buyers.

By the way, who valued your house at 200k and how recently?

Good Morning Realistic

Thank you for your response. It does seem as though the crushing weight of opinion is in favour of "keep dropping your price till a (plausible ) buyer appears". I am aware that some of my thinking is contradictory in that while I am prepared to price-slash, I am loathe to register with a number of EA's even though the registration fee in each case might only be a few hundred pounds. I was recently approached by a 2nd EA (I have only had one to date) who said that he would work as a joint-agent on a "winner-takes-all" basis. However when I asked him to put that in writing, his (written) reply did not really make clear what he meant. I have read on the forum that many EA's will give a (any?) valuation just to get the registration fee, and then do little (or no) work on it as they know that it just ain't going to sell.

I think that there is a general recognition on this forum that you are an " honourable" EA and you often tell us what you have managed to sell in the preceding period, however

do you know how I can find out what other agents have "sold" and more importantly "Sale-completed-on" ? Is there a trade body or even Government Agency to which you must report. doccyboy has suggested (see above) that I find out the "success-rate" of various EA's in the area - but - apart from "taking their word for it" I would not really know.

It may be that I may just have to keep chopping bits off the price till I get "success" but I would be interested in your and others' comments on the "EA situation".

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I see from your other posts you have been trying to sell for at least a year having dropped the price from 250k and don't currently live in the house. I would really suggest the property is over priced for the current market. Interest rates can only go up from here so the choice is take the "hit" on the property or potentially face a greater during the second leg down brought about by rising interest rates.

I see you say you bought this house in 06 and spent 25% of RV "improving" it. Some reports have us at 04 price levels so perhaps the value added by these improvements has been lost in the crash.

Good Morning

The consenus certainly seems to be that price-reduction a.k.a. "realistic pricing" is the (only?) way forward. I remain pessimistic but am pleased to see (your second post) that there really are some real-live (potential) buyers out there!

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I don't know what normal EAs fees are exactly but for simplicity let's say it's 1%, so on a £200k house they would 'earn' commission of £2K. But in the current market would have to put in a lot of effort (more likely luck) to get a buyer at full asking price. If I understand your proposal correctly, they could offer it at 35% below valuation and maybe get it sold a lot more easily at £130k and still earn £1.8k commission, just £200 less than a normal contract. The nil commission price point for the EA seems to be £100k (again if I understand your proposal), in which case nearly every EA will have a contact somewhere willingly to buy at 50% discount, maybe for a wee £5k back hander? Are you really that motivated to sell? At the very least I think you need to set a minimum price at which you are prepared to sell.

Personally, I think you give EAs too much credit for being able to make a sale happen. Most people on here will tell you will that the primary determinate in getting a sale is price and not how well any particular EA markets your property. My default position with regard to EAs (which I think many on here also share) is treat everything they say with at best suspicion, if not total disregard. The way things are at the minute, you don't need to pay more to get an EA to sell your house, there's no competition in this market for their 'professional' services. Keep it simple, reduce your asking price gradually to find the market price and you'll eventually get a buyer.

Hi lolacarrascal

There are a lot of wise words (and good arithmetic) in your post - as all other posters seem to agree, sale-price reduction seems to be the answer. I will screw up my resolution and go-see the EA.

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Good Morning Realistic

Thank you for your response. It does seem as though the crushing weight of opinion is in favour of "keep dropping your price till a (plausible ) buyer appears". I am aware that some of my thinking is contradictory in that while I am prepared to price-slash, I am loathe to register with a number of EA's even though the registration fee in each case might only be a few hundred pounds. I was recently approached by a 2nd EA (I have only had one to date) who said that he would work as a joint-agent on a "winner-takes-all" basis. However when I asked him to put that in writing, his (written) reply did not really make clear what he meant. I have read on the forum that many EA's will give a (any?) valuation just to get the registration fee, and then do little (or no) work on it as they know that it just ain't going to sell.

I think that there is a general recognition on this forum that you are an " honourable" EA and you often tell us what you have managed to sell in the preceding period, however

do you know how I can find out what other agents have "sold" and more importantly "Sale-completed-on" ? Is there a trade body or even Government Agency to which you must report. doccyboy has suggested (see above) that I find out the "success-rate" of various EA's in the area - but - apart from "taking their word for it" I would not really know.

It may be that I may just have to keep chopping bits off the price till I get "success" but I would be interested in your and others' comments on the "EA situation".

There is no perfect answer. However, the strategy of chasing the market down also has its pitfalls. Buyers may smell fear/desperation and decide to wait for further falls. Other similar houses may come on cheaper incl repos.

I am aware averages cause arguments - leaving that aside - UUJ suggest 15% drops pa. (to March past) 1.25% per month. In your case, £2,500 down per month. Not precise - type of house etc., and prices could have stabilised but there is a view on this forum (lolacarascal, me, others) that the velocity is increasing and will increase over coming months.

NB Not all money spent on a house increases its value and shoddy work can detract.

I ask again, who valued the property and when?

What is the property's Rateable Value, How much did you pay for it.

Not to be nosey but it has a material impact on any comments & opinions you will receive. Guess it depends on the strength of your motivation. PS Realistic NI's comments were sensible.

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There are several fixed price EA's around my way. One gives you the option of fixed price £400 all in or else pay £200 up front and £800 on completion. They are doing a roaring trade, picking up business from the more traditional firms and shifting a reasonable number of houses but at realistic prices.

The houses with dewey-eyed, over priced vendors are just gathering dust like they were last year with the big boys. Everything will sell for a price, if the price is low enough. No amount of fancy deals with EA's will move a property that is over priced, so it all depends on just how motivated (and realistic) you are.

Hi Stainless Sam

Sorry for the delay in response - there were so many posts flooding in! All agree that "realistic pricing" is the way forward. I like the idea of "fixed pricing" and may ask around local EA's to establish which (if any) of them operate this non-traditional method. Other posters on the topic might give me their opinion/knowledge-of "fixed pricing".

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There is no perfect answer. However, the strategy of chasing the market down also has its pitfalls. Buyers may smell fear/desperation and decide to wait for further falls. Other similar houses may come on cheaper incl repos.

I am aware averages cause arguments - leaving that aside - UUJ suggest 15% drops pa. (to March past) 1.25% per month. In your case, £2,500 down per month. Not precise - type of house etc., and prices could have stabilised but there is a view on this forum (lolacarascal, me, others) that the velocity is increasing and will increase over coming months.

NB Not all money spent on a house increases its value and shoddy work can detract.

I ask again, who valued the property and when?

What is the property's Rateable Value, How much did you pay for it.

Not to be nosey but it has a material impact on any comments & opinions you will receive. Guess it depends on the strength of your motivation. PS Realistic NI's comments were sensible.

Hi Shotoflight

Thanks for your interesting post.

As I may have mentioned before on the Board, I am a "blow-in (is that term still used?) of about 6 years vintage. I came over to NI for "legitimate" reasons (family/marital connections, prospective "peaceful retirement" etc.) but appear not to have "done my own research" on the local property market, properly. No doubt doccyboy, yourself and others on HPC NI saw the crash here coming (but, surely, not the severity) - but I in was in semi-blissfull ignorance. However, I am confident that the work done on my house was "well-done" (but agree that it probably has not increased its "value" much).

I (we - my wife and I) bought in 2005 at £156K - just £1K above the RV and spent "about" £40K (new kitchen, Garage and other bits). Serious illness caused us to move (downsize) in August 2009. The local EA who has the majority of properties around here suggested £245K! selling price which we held for a year, then £200K and now £185K.

As I compose and type my posts rather slowly, perhaps others have posted in the meantime, but I hope that the information I have given will help inform future comments.

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Hi Shotoflight

Thanks for your interesting post.

As I may have mentioned before on the Board, I am a "blow-in (is that term still used?) of about 6 years vintage. I came over to NI for "legitimate" reasons (family/marital connections, prospective "peaceful retirement" etc.) but appear not to have "done my own research" on the local property market, properly. No doubt doccyboy, yourself and others on HPC NI saw the crash here coming (but, surely, not the severity) - but I in was in semi-blissfull ignorance. However, I am confident that the work done on my house was "well-done" (but agree that it probably has not increased its "value" much).

I (we - my wife and I) bought in 2005 at £156K - just £1K above the RV and spent "about" £40K (new kitchen, Garage and other bits). Serious illness caused us to move (downsize) in August 2009. The local EA who has the majority of properties around here suggested £245K! selling price which we held for a year, then £200K and now £185K.

As I compose and type my posts rather slowly, perhaps others have posted in the meantime, but I hope that the information I have given will help inform future comments.

RV plus 20% could be tough getting buyers through the door.

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RV plus 20% could be tough getting buyers through the door.

Yes, I am sure that you correct, and I know now that I must reduce my expectations.

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  • 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%



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