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rantnrave

"we May Have Put Your Asking Price Too High"

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Says an EA to vendors:

Estate Agent Today story

We may have put your asking price too high, Andrews boss tells his sellers

Friday 2nd September 2011

The chief executive of Andrews has urged his sellers to try a price reduction, ahead of his firm’s open house weekends this month.

On his firm’s website, Michael Robson admits that the initial asking price may have been too high.

He says: “A good estate agent will always aim to get the best possible price for your property, and as such, the price that a property comes on to the market for is typically slightly high.

“As the seller, you can retain the initiative with your first price reduction. Having tested the market with a slightly inflated price, you can get it just right with that first price reduction. We’re encouraging a number of our sellers to try this approach.”

Robson, who oversees the 80-strong sales and lettings branch network across the South of England, also tells sellers to try to get the price right first time.

He warns: “In a financially-sensitive market like the one that we are in currently, it’s critical to get the price right, as the higher you put the property on the market for, the less chance you may have of selling it.”

He goes on to note that “sellers need to be realistic in their prices and look at comparisons in their local market and what properties similar to them exchanged for (as opposed to what they were marketed for), and price within 5% of that amount”.

With the National Housing Federation this week warning that home ownership could slump, Robson says: “A healthy property market is not a luxury, but an absolute necessity.”

The blog is on http://www.andrewsonline.co.uk/about-andrews/chief-executives-blog

Edited by rantnrave

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Yes but if they try to put up a customers property for such realistic prices, the customer will be offended and go to another agent happy to put it up for a more deluded price.

The house volume crash is rational imo, and asking prices will only go down very slowly as each seller keeps changing agents until the delusion is exhausted.

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Nothing like seeing a load of estate agents going to the wall because their own costs are rising and their sales are slumping, effectively choking on their own vomit. Bring it on.

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With the National Housing Federation this week warning that home ownership could slump, Robson says: “A healthy property market is not a luxury, but an absolute necessity.”

...a profit can't be made without a turnover. ;)

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...a profit can't be made without a turnover. ;)

A hell of a lot fo what is left of UK manufacturing is serving housing (both new build and resold housing) - electrical, plumbing, timber, general building materials (although so much of it now actually foreign owned). Rental places have a fraction spent on them, done on the cheap and the tenants don't spend much on household goods either, hence the continuin collapse of household related companies in particular, trades are getting quiet again (partly seasonal) but govt and central bank action could easily turn this into a rout with home incomes pressure by the aggressive inflationary policy.

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“As the seller, you can retain the initiative with your first price reduction. Having tested the market with a slightly inflated price, you can get it just right with that first price reduction. We’re encouraging a number of our sellers to try this approach.”

:lol::lol::lol:

Who says Britain can't do black comedy any more..........

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Recession is good to shake down the market.

The innovative players survive, everyone else goes bust.

This chain is at least attempting to be innovative (or at least by estate agent standards). After 10 odd years of house prices only go up its going to take them some time to up their game. Points at least for effort.

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Nothing like seeing a load of estate agents going to the wall because their own costs are rising and their sales are slumping, effectively choking on their own vomit. Bring it on.

My heart bleeds for the spikey haired brigade :lol:

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“As the seller, you can retain the initiative with your first price reduction. Having tested the market with a slightly inflated price, you can get it just right with that first price reduction. We’re encouraging a number of our sellers to try this approach.”

If that isn't a sign to change agents, then you need to seek medical help.

You ask them to help price it correctly, and they say they needed to test the market? WTF. What have you been doing for the last X years?

And then this nugget of wisdom

“In a financially-sensitive market like the one that we are in currently, it’s critical to get the price right, as the higher you put the property on the market for, the less chance you may have of selling it.”

Really, I never knew that. You've just earned your 1000's of pounds comission.

Serious question. Is this a Ratners moment for them?

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Many sellers seem to believe that falling prices is something that happens to other people.

Estate Agents are often their own worst enemy, as in my experience there is always an EA that will be prepared to take on overpriced rubbish, and too many sellers fall for the ********.

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A hell of a lot fo what is left of UK manufacturing is serving housing (both new build and resold housing) - electrical, plumbing, timber, general building materials (although so much of it now actually foreign owned). Rental places have a fraction spent on them, done on the cheap and the tenants don't spend much on household goods either, hence the continuin collapse of household related companies in particular, trades are getting quiet again (partly seasonal) but govt and central bank action could easily turn this into a rout with home incomes pressure by the aggressive inflationary policy.

They can try and inflate all they want, primarily to try and inflate away their own indebtedness, but you can't force or make people spend what they don't think is good value or spend what they haven't got......after all, what is spent paying for something that is over priced means less can then be spent supporting local business. ;)

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Two very similar flats near to each other, one started at 450k and is now down at 350k asking, still not sold; second flat sold for 400k in 2007 and has just come on at an asking price of 475k which is 2007 +20%.

FLATS??? Seriously?

Almost half a million pounds, that's half of what a person could earn in a lifetime (before tax), and it just gets a flat!

This country is soooo disconnected from sensibility.

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:blink:

Its nuts that a flat costs that much. I was saying this to a property developer I know in my hometown, and he said I'm deluded for thinking flats should be less than 100k ... he said they costed under 10k less than a decade ago. :lol: I got out-beared.

(this is a developer that actually gets it!)

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FLATS??? Seriously?

Almost half a million pounds, that's half of what a person could earn in a lifetime (before tax), and it just gets a flat!

This country is soooo disconnected from sensibility.

i know. you only need a £110k deposit now for your 'starter' flat.... hahaha !!

this is beyond housing anyway. ive pulled any plans for one. dont want one anymore.

think buying a house is now the most stupid thing you could do if you even have the deposit.

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Recession is good to shake down the market.

The innovative players survive, everyone else goes bust.

This chain is at least attempting to be innovative (or at least by estate agent standards). After 10 odd years of house prices only go up its going to take them some time to up their game. Points at least for effort.

Rightmove started it and said they would promote and campaign for it (price reductions). Perhaps this is the start of that strategy filtering through. Or is this EA just mad?

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They can try and inflate all they want, primarily to try and inflate away their own indebtedness, but you can't force or make people spend what they don't think is good value or spend what they haven't got......after all, what is spent paying for something that is over priced means less can then be spent supporting local business. ;)

But most people buy a house with money they haven't got. And many other things too. And what do most people know about good value or taste, for that matter? That's precicely why we are where we are.

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Rightmove started it and said they would promote and campaign for it (price reductions). Perhaps this is the start of that strategy filtering through. Or is this EA just mad?

More likely just desperate.

I shall take great delight in letting the agent know who rings me this afternoon every 2nd week without fail that I think this agency is better, because it is working harder to reduce sellers price expectations.

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:blink:

Its nuts that a flat costs that much. I was saying this to a property developer I know in my hometown, and he said I'm deluded for thinking flats should be less than 100k ... he said they costed under 10k less than a decade ago. :lol: I got out-beared.

(this is a developer that actually gets it!)

:D

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But most people buy a house with money they haven't got. And many other things too. And what do most people know about good value or taste, for that matter? That's precicely why we are where we are.

Generally the stupid that want it and want it now, will borrow the max that anyone will lend them giving little regard to affordability or how they can pay it back and buy anything if they think it will go up in value....now look where we are. ;)

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To be fair to vendors for once it is perfectly rational for them not to lower their prices if the other participants in the Market also ask a high price. This is a classic 'prisoner's dilemma', where it pays to cooperate with the other players in a competitive situation if you are sure they will cooperate with you (I.e. lower their prices). In principal transparent pricing in the Market would ensure that everyone would cooperate, expect for the uncertainty of future discounting. If you cut the price of your property to sell and were left holding cash for six months to a year while everyone else kept their prices high you'd be screwed.

How to get out of the quandary then? Dramatic house price devaluation would concentrate a few minds wonderfully, but the rational expectations of vendors militate against that happening. Basically, in a static or gradually falling Market no one has any incentive to discount.

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Greater London so yes flats and just two bedrooms at that but they do have a seperate kitchen rather than one in the lounge.

What area? Linky?

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:blink:

Its nuts that a flat costs that much. I was saying this to a property developer I know in my hometown, and he said I'm deluded for thinking flats should be less than 100k ... he said they costed under 10k less than a decade ago. :lol: I got out-beared.

(this is a developer that actually gets it!)

:blink:

There are flats near you that have gone up in price by 1000% in less than 10 years?

Crikey!

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To be fair to vendors for once it is perfectly rational for them not to lower their prices if the other participants in the Market also ask a high price. This is a classic 'prisoner's dilemma', where it pays to cooperate with the other players in a competitive situation if you are sure they will cooperate with you (I.e. lower their prices). In principal transparent pricing in the Market would ensure that everyone would cooperate, expect for the uncertainty of future discounting. If you cut the price of your property to sell and were left holding cash for six months to a year while everyone else kept their prices high you'd be screwed.

How to get out of the quandary then? Dramatic house price devaluation would concentrate a few minds wonderfully, but the rational expectations of vendors militate against that happening. Basically, in a static or gradually falling Market no one has any incentive to discount.

What a baffling post.

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I see as usual the EA's on that site simply fail to grasp the point entirely.

Its not ANYTHING to do with price apparently, only due to there not being reckless 2007 level lending.

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  • 331 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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