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Wig

Ea Sentiment

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As a potential buyer I've been having some interesting conversations with EAs over the past weeks.

Recently rather than going through the usual scripted conversations, I have used their update calls as an opportunity to conduct a piece of my own market research, in that I bang on about the market being overpriced, (when you take into account wages, the economy, number of unsold properties etc etc) then I sit back and pay attention to how they respond.

Tellingly to me, the vast majority aren't trying to deny that prices are overinflated. I've used phrases like ridiculous pricing, and fantasy prices and one EA conceded that

"1/3 of the market is probably priced about right, 1/3 is probably overpriced, and 1/3 is as you put it fantasy pricing"

For an agent to concede the point was reassuring that maybe they've given up trying to fly the lala kite and are as frustrated with the vendor aspirations as the rest of us...

Or most of them have...

My personal favourite, a gem from a few days back:

"We've seen the bottom now, you won't be able to buy at any lower than they are now"

I actually laughed down the phone at that one, and they repeated it, which made me laugh again.

:D

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I've tried the same strategy because it's just so funny to hear their response. usually it makes my day :lol: (bit sad maybe, but I can offload some frustrations that way!)

Most of the EAs I speak to with the same message just sigh with dispair nowadays; some concede they don't understand the market themselves anymore. Hardly anyone actually thinks the market will go down (in lala land prices never go down so this makes sense)

The most recent one I made an offer to 20% below asking wasn't very happy, but she's still chasing me nevertheless. I see it as a sign of changing times (this is in docklands where -quote from EA - "we can get much higher prices now than in January").

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"1/3 of the market is probably priced about right, 1/3 is probably overpriced, and 1/3 is as you put it fantasy pricing"

My personal favourite, a gem from a few days back:

Nice opinion - pretty accurate I would say, but I'd add the caveat that the first 1/3 will fall into the middle bracket over time making it 2/3 overpriced, 1/3 fantasy.

EAs I've spoken to have been pretty honest - business bad, bad for people on commission etc.

I have heard a lot of friends opining that because prices are lower now, it's a good time to buy. This comes from the idea that house prices only go up and therefore any dip is a time to buy. My opinion is that there's probably a long time to go until it's a good time to buy if things continue as they are.

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Right time to buy!!!

I doubt anybody really knows when it is the RIGHT time to buy. It boils down to the reasons for buying in most cases.

We all have our own opinions on when prices will stop falling, but all prices do not fall. I've seen some properties stay on the market for several years in during downturns and the vendors refuse to reduce in the hope that a recovery will make their house worth the asking price again. Many people have no idea of how long the market can take to recover let alone the start of house prices rising again.

I would personally say that prices will slowly fall for another 12 months before the market actually stabilises, then it will probably stay like that for 4 or 5 years before anything else happens. I would be happy to believe in this if the market was the same across the entire UK, but it's not and that is where the problem is. Some areas have probably already bottomed out while other areas have begun to rise. Many are still falling, but it is not the whole area market just certain parts. In Swansea the lower end market seems to have fallen correctly, but the higher end stuff is still way over priced.

If the market does flounder around for a few years, then buying at the RIGHT time and RIGHT price will be a case of bargain hunting and waiting for repo's or probate property. If you are seriously looking to buy now or in the near future, then I would suggest getting on good terms with a couple of EA's and making sure that they inform you the minute that they have one of those bargains available.

When prices were climbing I know many EA's were buying up investment property for themselves and those are the ones desperate to keep prices up. Others did not get greedy. It's probably best to look at the EA's that are putting new instructions on the market at sensible prices and ignore the others.

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Right time to buy!!!

I doubt anybody really knows when it is the RIGHT time to buy. It boils down to the reasons for buying in most cases.

We all have our own opinions on when prices will stop falling, but all prices do not fall. I've seen some properties stay on the market for several years in during downturns and the vendors refuse to reduce in the hope that a recovery will make their house worth the asking price again. Many people have no idea of how long the market can take to recover let alone the start of house prices rising again.

I would personally say that prices will slowly fall for another 12 months before the market actually stabilises, then it will probably stay like that for 4 or 5 years before anything else happens. I would be happy to believe in this if the market was the same across the entire UK, but it's not and that is where the problem is. Some areas have probably already bottomed out while other areas have begun to rise. Many are still falling, but it is not the whole area market just certain parts. In Swansea the lower end market seems to have fallen correctly, but the higher end stuff is still way over priced.

If the market does flounder around for a few years, then buying at the RIGHT time and RIGHT price will be a case of bargain hunting and waiting for repo's or probate property. If you are seriously looking to buy now or in the near future, then I would suggest getting on good terms with a couple of EA's and making sure that they inform you the minute that they have one of those bargains available.

When prices were climbing I know many EA's were buying up investment property for themselves and those are the ones desperate to keep prices up. Others did not get greedy. It's probably best to look at the EA's that are putting new instructions on the market at sensible prices and ignore the others.

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When prices were climbing I know many EA's were buying up investment property for themselves and those are the ones desperate to keep prices up.

John Francis have listed a large number of investment properties in the Uplands / Brynmill area of Swansea (mainly HMO) in the last 24hrs - 48hrs.

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When prices were climbing I know many EA's were buying up investment property for themselves and those are the ones desperate to keep prices up.

John Francis have listed a large number of investment properties in the Uplands / Brynmill area of Swansea (mainly HMO) in the last 24hrs - 48hrs.

I would imagine they are all owned by one person and they are either giving up, needing to sell or the MHO's need a new licence and there is too much work required.

JF only moved in to lettings last year, so I would not have thought that they were one of the agents to be buying up investment properties unless they were flipping them.

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Just had a look on their website.

Most of the prices seem to be based on rents achieveable and not on the value of the property. Asking way too much for most investors to consider.

I've been looking to source HMO properties all year for some investors, but there is little around that is value for money. One of our landlords put a property on the market last year with one of the large EA's. They valued it at £260k and still say it is worth it now after no interest. I would personally say that it needs to be around £190k to sell. I know I could get it sold for £180k, but not sure I could get much more.

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  • 297 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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