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Estate Agents Putting Pressure On Sellers

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Well I was speaking to an old friend yesterday and she said something that left me in shock!

One of the biggest ramping estate agents in the area (Romans) have told an old mate to reduce the asking price of his flat or they'll take it off the Market! The flat is 3yrs old, bought at peak prices, so the seller is in the common position of not being able to reduce the price as he'll make a 'loss'. To make it even more complex, he bought it with a friend who has since moved out!

Just one of many who are stuck between a rock and a hard place.

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Well I was speaking to an old friend yesterday and she said something that left me in shock!

One of the biggest ramping estate agents in the area (Romans) have told an old mate to reduce the asking price of his flat or they'll take it off the Market! The flat is 3yrs old, bought at peak prices, so the seller is in the common position of not being able to reduce the price as he'll make a 'loss'. To make it even more complex, he bought it with a friend who has since moved out!

Just one of many who are stuck between a rock and a hard place.

They should all do this. I'd did read about some doing it on MSE last year. Where abouts is this?

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Well I was speaking to an old friend yesterday and she said something that left me in shock!

One of the biggest ramping estate agents in the area (Romans) have told an old mate to reduce the asking price of his flat or they'll take it off the Market! The flat is 3yrs old, bought at peak prices, so the seller is in the common position of not being able to reduce the price as he'll make a 'loss'. To make it even more complex, he bought it with a friend who has since moved out!

Just one of many who are stuck between a rock and a hard place.

Where's this - Surrey, Berks, Hants area?

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Well I was speaking to an old friend yesterday and she said something that left me in shock!

One of the biggest ramping estate agents in the area (Romans) have told an old mate to reduce the asking price of his flat or they'll take it off the Market!

Can't understand why EAs aren't all taking this approach. Why should they waste their time marketing a property that won't sell?

After all better for EA to get £5K in the next 3-4 months than to never get the £6K. They need to get some turnover to survive and cutting prices will be the only way to achieve it.

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Can't understand why EAs aren't all taking this approach. Why should they waste their time marketing a property that won't sell?

After all better for EA to get £5K in the next 3-4 months than to never get the £6K. They need to get some turnover to survive and cutting prices will be the only way to achieve it.

i think the biggest problems people still in the mode where they are giving their house away if they reduce the price,

would take all EA's to do it, if one does it the others get the house to sell or try to, i think they are out to just try and survive at the moment,

i cant see and EA doing well at all

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i think the biggest problems people still in the mode where they are giving their house away if they reduce the price,

would take all EA's to do it, if one does it the others get the house to sell or try to, i think they are out to just try and survive at the moment,

i cant see and EA doing well at all

I think round my way so little is selling that many EAs, IMPO, are coming at it from a process of ramping the asking prices - that way, if they sell one they get a bigger commission.

Probably reinforces their belief that it is all the fault of the bankers.

Of course, as I have said before, several EAs I know are big into BTL so they are doubly vested interests in keeping up prices.

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Well I was speaking to an old friend yesterday and she said something that left me in shock!

One of the biggest ramping estate agents in the area (Romans) have told an old mate to reduce the asking price of his flat or they'll take it off the Market! The flat is 3yrs old, bought at peak prices, so the seller is in the common position of not being able to reduce the price as he'll make a 'loss'. To make it even more complex, he bought it with a friend who has since moved out!

Just one of many who are vainly hoping to find a greater fool!

Fixed. :D

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I think round my way so little is selling that many EAs, IMPO, are coming at it from a process of ramping the asking prices - that way, if they sell one they get a bigger commission.

Probably reinforces their belief that it is all the fault of the bankers.

Of course, as I have said before, several EAs I know are big into BTL so they are doubly vested interests in keeping up prices.

If they're in to buy to let surely it's the yield that's important. The capital gain is good, but you need to be thinking long term about that.

I reckon the high end agents are probably still doing OK, but those that are at the low end and didn't manage to diversify in the past few years are probably ******ed.

Given a choice between having 100 properties on the books at a 0% chance of selling and 20 at a 50% I know what I'd rather have. It was only a matter of time before agents started beating up sellers. In a situation where they have no sales they have little to lose.

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There is no choice, the estate agent is right to say it as well, reduce your price or there's absolutely no point. 3 years - that warrants quite a substantial drop as well. If the person needs to move, they simply have to save up the difference in price before they can afford to move. It's simply the cost and risk of buying at the market peak.

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In a situation where they have no sales they have little to lose.

They have everything to lose. Their business for a start. Unless EAs get turnover they are toast.

The last four years have been hard on EAs due to the lack of volume. And no matter what they do including cutting commission and ramping prices to get the business, the hard facts are that they are not selling at the levels necessary for a viable business.

They are surviving on lettings right now, sales are almost a bonus.

The next five years should see the extinction of the EA. Destined for the same dumper as the travel agent.

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people who bought at the peak will obviously suffer the most,

but the thing is , is anyone seeing any big reductions? i mean i travel a lot and most places i go prices are not much down on the peak,

i think houses are still 50% over valued,

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One of the biggest ramping estate agents in the area (Romans) have told an old mate to reduce the asking price of his flat or they'll take it off the Market!

Right now if I had to name one estate agency that is likely to survive the next decade.....

It would be Romans.

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I think round my way so little is selling that many EAs, IMPO, are coming at it from a process of ramping the asking prices - that way, if they sell one they get a bigger commission.

Probably reinforces their belief that it is all the fault of the bankers.

Of course, as I have said before, several EAs I know are big into BTL so they are doubly vested interests in keeping up prices.

That's a key difference from the last crash I think. Then EAs were happy to reduce prices because it meant volumes increased and so their incomes increased. Now there are so many EAs into BTL that they will sacrifice commission from their 'day job' rather than effectively talking down the value of their beloved BTL portfolio. The trouble is cashflow will catch up with them sooner or later.

Edited by Neil D Possitt

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But all the EAs cost are done, photos, floorplans etc, they will not take it off the market. Only reason they might is if they can charge the seller for the photos and HIP etc otherwise they will keep it on and try and get the seller to reduce the price. Just sabre rattling.

I suspect EAs are on the verge of charging people to sell their property. HIPs killed off a lot of the volume of sales around 2007. EAs cursed this as it meant that speculative sellers disappeared and some of them turned into bonafide sales. They haven't come back mainly due to the stealth effects of SDLT.

I wouldn't say it is sabre rattling. EAs are always keen to find buyers, but with the prices at current levels and the restrictions on credit, they can't. Also it doesn't look good for an agent to have a property on its books for too long.

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But you don't get the instructions if you tell vendors that. Then you had have 0 houses with 0% chance of selling.

Estate Agents are loving it on the way up but too thick to have any strategy on the way down, other than hope.

I will add that there still are a surprising amount of mugs out there who'll buy. So I doubt EAs are that bothered at the moment.

How many EAs today have staff that know how to operate in a falling market?

EAs are just like the rest of the population: the problem is perceived as lack of credit and it's only a matter of time until that returns to normal.

A large chunk of them get bonuses to list new property, so will try to win the instruction above their competitors.

So, win the instruction and then get the vendor to whittle down their price when no-one's come to view after three months. That way, the EAs have evidence that the vendor is being too optimistic.

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The days of these parasites chasing higher and higher offers are over. The tanker is turning so they will now only get any action if they do the reverse of this. I cant believe how little of this seems to be happening. They seem to be content on sitting on their hands whilst transactions evaporate and their business's disappear rather than offer sellers incentives to lower prices and make something happen.

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Might be off topic, or relevant, but Ive noticed a lot of EA boards going up in my area, which dont have "for sale" on them - rather the name of the EA plus advertising some school fete or similar event.

What gives? Are these properties for sale, or are the EAs now having to diversify by running an ad firm where they charge local schools etc a fee for advertising local events?

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Might be off topic, or relevant, but Ive noticed a lot of EA boards going up in my area, which dont have "for sale" on them - rather the name of the EA plus advertising some school fete or similar event.

What gives? Are these properties for sale, or are the EAs now having to diversify by running an ad firm where they charge local schools etc a fee for advertising local events?

No, they are showing that they are still in business. Sometimes, the EAs make a donation to the school to do this.

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Might be off topic, or relevant, but Ive noticed a lot of EA boards going up in my area, which dont have "for sale" on them - rather the name of the EA plus advertising some school fete or similar event.

What gives? Are these properties for sale, or are the EAs now having to diversify by running an ad firm where they charge local schools etc a fee for advertising local events?

This has been fairly common for a few years. I doubt the EAs charge the schools fpr this, in fact they probably incur the (small) cost of printing the banners to go on their exisiting signs.

It is great advertising for EAs as they get to leave their boards up for weeks outside properties they are not marketing when they would be forced to take them pretty quickly on houses they sell.

A lot of buyers and sellers choose their EA on the basis of who seems to be doing the most business in the local area. One EA in my area must have 50 boards yup advertising a school fete (2 weeks ago!). On a casual drive around, it is their board/logo/phone number that would resonate with buyers and sellers even though there are 2-3 other agencies that are actually doing more business.

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Can't understand why EAs aren't all taking this approach. Why should they waste their time marketing a property that won't sell?

After all better for EA to get £5K in the next 3-4 months than to never get the £6K. They need to get some turnover to survive and cutting prices will be the only way to achieve it.

EA`s are stuck between a rock and a hard place. If they market property at vendor`s "wish for" price, it doesn`t sell. If they insist on realistic asking price, thet don`t get instruction.

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<br />about time,  EA i am sure will be $hitting it soon, if not already, <br /><br />if i was going to be putting any offers in they would be 20% off from prices now, not at the peak,<br />

Banks and their shareholders should be forced by law to take a 50-50 haircut on any losses derived from selling a main house bought since the Millenium due to their blatant 'luring' and the mislending by their bonus driven staff (many of whom fiddled the mortgage applications)

BTL's get nothing for being greed fueled speculators exploiting their fellow townspeople & forced to learn that prices go down as well as up.

Edited by erranta

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If they insist on realistic asking price, thet don`t get instruction.

It all depends on the vendor. If they are serious about selling they won't go for the highest price. Often EAs will have a specific buyer in mind and will offer a lower commission as they expect the buyer would be prepared to pay £xxxK . Of course, the vendor may think they can get more and take their chances on the vagaries of the market but sensible sellers who are looking to move quickly would jump at the chance at making a quick sale. I did it last year and got asking price. None of the subsequent viewers were prepared to beat the offer.

If an EA has a buyer who is very committed to your type of property and your area then they may be a better bet than the one saying you would get more.

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  • 312 Brexit, House prices and Summer 2020

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      • down 5% +
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