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Pauly_Boy

Estate Agents Putting Pressure On Sellers

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I suspect EAs are on the verge of charging people to sell their property.

Do EAs sell peoples property for free then?!!!

Thanks for responses on EA boards advertising school fetes btw - this has literally only sprung up in our area in the past couple of weeks - it was driving me mad trying to find property on rightmove that had boards outside!!!

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So let me get this right. The EA does not advise and set the price, the seller does?

What does an EA do that the Internet doesn't?

Can't sellers just advertise it themselves on a website, takes some photos, use their expert status to set a price and the wording, then all you need is an online booking system to arrange for the flood of viewers (only bit that's missing).

What does an EA do? Polite responses only please.

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So let me get this right. The EA does not advise and set the price, the seller does?

What does an EA do that the Internet doesn't?

Can't sellers just advertise it themselves on a website, takes some photos, use their expert status to set a price and the wording, then all you need is an online booking system to arrange for the flood of viewers (only bit that's missing).

What does an EA do? Polite responses only please.

The possibilities of the internet and current low transactions is going to see a radically different EA industry emerge once this bubble has unwound.

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The possibilities of the internet and current low transactions is going to see a radically different EA industry emerge once this bubble has unwound.

It seems they somehow slipped through the net. All other services and shops are online, i.e. skip the highstreet, yet EAs remain as the only way to sell and buy houses, no direct Internet only route? (maybe there is but I don't know it)

Rightmove and the others are just advertising boards and helped them do less. They don't even have to advertise as much any more, used to have rags pushed through the door with their expensive looking advertising of houses.

Why not cut out the middle man like every other business has?

I'm not anti EA, really I don't know what value they add to the whole process, or are they just another cog in the machine that could be removed?

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It seems they somehow slipped through the net. All other services and shops are online, i.e. skip the highstreet, yet EAs remain as the only way to sell and buy houses, no direct Internet only route? (maybe there is but I don't know it)

Rightmove and the others are just advertising boards and helped them do less. They don't even have to advertise as much any more, used to have rags pushed through the door with their expensive looking advertising of houses.

Why not cut out the middle man like every other business has?

I'm not anti EA, really I don't know what value they add to the whole process, or are they just another cog in the machine that could be removed?

Wasn't some official review being conducted about how the internet can be used more in the buying and selling of houses? How about an 'add to basket' button in Rightmove?

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It is the negotiation skills and general skullduggery that keeps EAs in business. Most sellers do not have this ability. Buyers may hate Foxtons for this but a lot of sellers love them for the same. They get the best price for them.

If prices were fixed like holidays and there was more protection around the house buying process - then the EA would disappear overnight like the high street travel agent.

Some people will always want an EA eg sellers who are overseas/would feel vulnerable about opening the door to or negotiating with strangers. But I agree that it's probably going to only a few that survive the current crash.

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So let me get this right. The EA does not advise and set the price, the seller does?

What does an EA do that the Internet doesn't?

Can't sellers just advertise it themselves on a website, takes some photos, use their expert status to set a price and the wording, then all you need is an online booking system to arrange for the flood of viewers (only bit that's missing).

What does an EA do? Polite responses only please.

The EA will advise the vendor on what to expect to get in the current market. The vendor normally thinks their property is somehow more special than the rest and will add on another 5-10%.

EAs work out the serious buyers and serious sellers and get them together and negotiate a price as quickly as possible normally in the best interests of the vendor and get their commission. They also have an advantage in knowing the most recent sale prices as they are on the ground whereas Land Registry has a three month lag so they should advise vendors on trends.

There is little reason why this could not all be achieved by private individuals, but they would have to pay the upfront costs of marketing which normally the EA does. The EA does this as they expect to recoup the costs on the sale.

Also for many buyers their first action is to register with an EA.

I suspect that before too long one of the property portals will open up to private sellers. Then vendors won't ask such ridiculous prices as they will be bearing the cost of the sale.

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It is the negotiation skills and general skullduggery that keeps EAs in business.

When you are both a buyer and a seller, it is interesting to see the difference in approach.

FTBs have it hardest as they don't have the experience of selling and knowing what happens on that side.

It gets tricky though when you buy and sell through the same agent.

When an agent has sold your place they seek a place for you and they tend to impress on the vendor that this person is the best buyer so they get double commission.

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Presumably there is a perception within the public, that Estate Agency is a profession & you are paying for a professional service - that the person marketing your property on your behalf might be professionally qualified? The assumption that the EA is as integral to the house sell process as is the banker or the solicitor.

Am thinking similar - at some point Rightmove will make most high street EAs redundant - which in my home town means potential for at least a dozen new coffee shops! All we need is comparable "Parkers guide to used car prices" - "Rightmove's guide to used house prices"

Is it REALLY that complicated?!

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<br />It is the negotiation skills and general skullduggery that keeps EAs in business. Most sellers do not have this ability.  Buyers may hate Foxtons for this but a lot of sellers love them for the same. They get the best price for them. <br /><br />If prices were fixed like holidays and there was more protection around the house buying process - then the EA would disappear overnight like the high street travel agent. <br /><br />Some people will always want an EA eg sellers who are overseas/would feel vulnerable about opening the door to or negotiating with strangers. But I agree that it's probably going to only a few that survive the current crash.<br />

Houses are a place to relax, live in, bring up a family NOT fekkin speculating on, - talked up in price by a bunch of short-term 'spivs' in it for a fast buck!

Here's what happened to some within a year of the cr_ash who caused their own demise!

26 Dec 2008

More than 30,000 estate agents have lost their jobs since the start of the credit crisis, according to research which highlights how the housing crash has wreaked havoc across the economy.

Around 4,000 estate agency offices - approximately one in four - have closed, leading to the loss of jobs not just for the sales agents themselves, but also valuers, negotiators, weekend viewing staff, administrators and mortgage advisers.

http://www.telegraph.co.uk/finance/recession/3964909/Housing-market-crash-has-led-to-32000-estate-agents-losing-their-job.html

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The EA will advise the vendor on what to expect to get in the current market. The vendor normally thinks their property is somehow more special than the rest and will add on another 5-10%.

EAs work out the serious buyers and serious sellers and get them together and negotiate a price as quickly as possible normally in the best interests of the vendor and get their commission. They also have an advantage in knowing the most recent sale prices as they are on the ground whereas Land Registry has a three month lag so they should advise vendors on trends.

There is little reason why this could not all be achieved by private individuals, but they would have to pay the upfront costs of marketing which normally the EA does. The EA does this as they expect to recoup the costs on the sale.

Also for many buyers their first action is to register with an EA.

I suspect that before too long one of the property portals will open up to private sellers. Then vendors won't ask such ridiculous prices as they will be bearing the cost of the sale.

Good points thanks.

I agree it sounds like it will open up. Just like the insurance market did with the mongoosedirect, or whatever it is called.

All the stuff you mention is availabile on the Internet, so just create a portal that pulls it all together. Even easier than the insurance ones I think.

... You think your house is worth X, previous sales prices acheived are Y therefore you should market at Z.

Your wording should include ... twigs in a vase.

Here's a free booking viewings tool and some printed notes to read on what to say and not to say.

Simples.

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...just create a portal that pulls it all together...

Sadly it's not simples. The Estate Agents Act 1979 and The Consumers, Estate Agents and Redress Act 2007 makes it something of a closed shop. And a few private selling portals have opened up, but none have the penetration of Rightmove or PrimeLocation.

I think there will be a tipping point where EAs give up on sales and concentrate on more lucrative lettings.

http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft031.pdf

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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.

You wont get zero houses. Some people will walk away, others will listen if you tell them the facts, and give you the business.

And if you guide them into pricing at the lower edge of the market, you will get sales. The other estate agents will get the sellers that they dont want, ones who charge too much.

And if you can generate sales, word of mouth gets around, and then other sellers will turn up, and they will listen to what you say whereas they didnt before.

Telling the truth is a long term strategy. Respect is hard won, but worth winning.

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Sadly it's not simples. The Estate Agents Act 1979 and The Consumers, Estate Agents and Redress Act 2007 makes it something of a closed shop. And a few private selling portals have opened up, but none have the penetration of Rightmove or PrimeLocation.

I think there will be a tipping point where EAs give up on sales and concentrate on more lucrative lettings.

http://www.oft.gov.uk/shared_oft/business_leaflets/general/oft031.pdf

Read the link thanks.

Actually its simpler than I thought. The insurance sites are the same, they discharge a great deal of responsibility as they act purely as an advertising place. The details of the insurance are up to us and the insurance company.

Having read the leaflet you could do exactly the same. Just offering a source for people to manage the transaction themselves. The same as if you or I decide not to use an EA at all. We can still sell our house.

No certification or registration seems to be required. I think you can even dodge the OFT registration for redress too, since you could claim you are not an EA.

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Houses are a place to relax, live in, bring up a family NOT fekkin speculating on, - talked up in price by a bunch of short-term 'spivs' in it for a fast buck!

Here's what happened to some within a year of the cr_ash who caused their own demise!

Couldn't agree more with the first point.

As for the "crash" - What crash. Houses are still too expensive (much too expensive) for people in general to buy. There has not, therefore, been any sort of a crash. When ordinary people can afford to buy a modest home with 3 or 4 times income, then you will have had your crash. We are a very long way indeed from that.

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Couldn't agree more with the first point.

As for the "crash" - What crash. Houses are still too expensive (much too expensive) for people in general to buy. There has not, therefore, been any sort of a crash. When ordinary people can afford to buy a modest home with 3 or 4 times income, then you will have had your crash. We are a very long way indeed from that.

But that's just return to mean. Crashes always overshoot - think x2 to x3 income at the bottom!

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about time, EA i am sure will be $hitting it soon, if not already,

if i was going to be putting any offers in they would be 20% off from prices now, not at the peak,

Don't know where you are, but in my area (Winchester area) any offer less than 10% of asking gets laughed at. (And properties being snapped up at full asking - so frustrating!)

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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.

Er... don't they already do that? Surely that's how they make their money???

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The possibilities of the internet and current low transactions is going to see a radically different EA industry emerge once this bubble has unwound.

I do hope so.

It is about time that Rightmove dropped it's restrictive practice of only allowing EAs to advertise on there. Let the general public place adverts for their homes. Placing a value on a property is not rocket science. A house next door to my aunt (200 miles away) has just come onto the market. She asked me to guess what the asking price was. After giving me full details of the internal spec., I did a bit of research on the internet (took about half an hour) and came up with £225,000. Turns out the EA asking price is £220,000.

I rest my case.

Edited by DownsizingDiva

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I do hope so.

It is about time that Rightmove dropped it's restrictive practice of only allowing EAs to advertise on there. Let the general public place adverts for their homes. Placing a value on a property is not rocket science. A house next door to my aunt (200 miles away) has just come onto the market. She asked me to guess what the asking price was. After giving me full details of the internal spec., I did a bit of research on the internet (took about half an hour) and came up with £225,000. Turns out the EA asking price is £220,000.

I rest my case.

Hmm maybe but for every clued-up, reasonable individual there's a dozen shaven-headed oinks with tattoed knuckles who would be £50k out in the wrong direction and a nightmare to have to deal with directly.

Come to think of if that's a perfect identikit picture of the average BTL landlord :ph34r:

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Er... don't they already do that? Surely that's how they make their money???

I assume he means an up-front fee rather than a percentage of the sale.*

* isn't that how it works?

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Hmm maybe but for every clued-up, reasonable individual there's a dozen shaven-headed oinks with tattoed knuckles who would be £50k out in the wrong direction and a nightmare to have to deal with directly.

Come to think of if that's a perfect identikit picture of the average BTL landlord :ph34r:

You are right, of course. Shame really. If only everyone could put a sensible value on their home and advertise it in the right place, AND be reasonable enough to deal with directly. So there remains a place in society for Estate Agents. Depressing, isn't it?

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Am thinking similar - at some point Rightmove will make most high street EAs redundant - which in my home town means potential for at least a dozen new coffee shops! All we need is comparable "Parkers guide to used car prices" - "Rightmove's guide to used house prices"

Is it REALLY that complicated?!

It must still be a bit more difficult that in Britain, people still seem to rate how big a house is by the number of bedrooms.

If the (much more sensible) system as used on the continent of quoting square metres (or sq feet) were used, it would then be easy to set a price ie x m3 in such and such an area plus / minus a bit for this, that and the other.

Edited by Johnny Cash

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What we need is a rigorous formula for valuing houses. Then simply take the valuation away from both seller and estate agent and cronies, and it is simply a formula worked out by the square footage, location, age, quality of fittings, depreciation of wiring/roof/plumbing etc, external thijngs such as schools, crime rates, other insurance risk factors, broadband speed etc. One giant furmula; hell, I bet I could write one, and we no longer have need for the numpty factor. Simple black and white, accurate to the nearest pound house valuation based on science, not airy fairiness.

The car industry don't have this problem do they? Imbeciles who refuse to change the asking price for their second hand car, which they just "can't afford to" sell for less than what they were conned into paying for it. Then why the f**k advertise to sell it then? Morons. I'll celebrate any estate agent's downfall just as much as the next schadenfreude, with a hearty laugh.

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      • down 5% +
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