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Today I Spoke To An Estate Agent For The First Time In 15 Years


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HOLA441

Hi All,

Currently looking at options of whether we should extend or move.

Having spent about 6 weeks looking at what's on sale i'm disappointed by the nasty overpriced slave boxes around where I live.

Finding anywhere significantly better than where we currently are launches us into really silly money.

However, one place caught my eye which ticks most of the boxes so we thought we'd arrange a viewing (last time I did that was 1996).

The property has been on the market for over a year and in that time the price has gone from £500,000 down to £400,000 (bounced everywhere in between) and a few days ago the price moved up again to £419,000.

Conversation with EA goes as follows...

Me - "Hi i'm interested in viewing property blah blah blah"

EA - "Can you make it this afternoon as we have someone else viewing today too?"

Me - "Sorry can't make this afternoon but any other weekend is currently good for me"

EA - "Are you able to complete immeadiately or do you have to sell your house?"

Me - "No, our house isn't even for sale yet we've only just started looking but this is the only house we've seen that looks interesting"

EA - "Sorry the vendor is only allowing viewings for people who can complete immeadiately"

Me - "Sounds strange considering his house has been on the market over a year. Call me back if he changes his mind".

Do you reckon this is the EA playing some odd game (as they were happy to let me view if I could've made today) or could the seller really have given the EA this instruction?

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HOLA442

The basic fact is that it's impossible to tell whether the ea is playing games or the vendor really does want those things.

For example if the vendor has previously agreed a sale that had dragged on for a long time and didn't go though because they didn't find a vendor for their place then you could understand why they might be a bit reluctant to go through that process again, especially if in their mind they have "priced to sell".

Could you try to communicate direct ?

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HOLA443

Possibly, or the vendor could be deluded. Or both.

If you're in that situation again consider asking the question "how long has it been on the market?". You already know the answer but it gives the EA an opportunity to lie to you and you can draw your conclusions from their answer.

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HOLA444

Do you reckon this is the EA playing some odd game (as they were happy to let me view if I could've made today) or could the seller really have given the EA this instruction?

Price discovery is mainly a function of buying and selling pressure.

Treating a potential buyer like dirt and setting unreasonable conditions is a very effective method to change that balance in favour of sellers and higher prices. It sends a message that there is no selling pressure thus provoking the opposite reaction in the mind of the buyer.

It's no wonder all EAs do that, like most merchants they discovered this a long time ago.

What is amusing now is that this is a buyers' market but the EAs still try to maintain the illusion against the odds.

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HOLA445

Sounds to me like they've had offers before from those who have assumed they could sell their own property for what they want. Theirs doesn't sell at the price they need, can't buy the other house, vendor gets annoyed eventually and stipulates ready cash only. Symptom of a falling market, with sellers not accepting reality. Too soon to bother with viewings.

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HOLA446

Good points.

The house is local so no harm dropping a friendly note through the door on the offchance the EA is being daft.

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HOLA447

Hi All,

Currently looking at options of whether we should extend or move.

Having spent about 6 weeks looking at what's on sale i'm disappointed by the nasty overpriced slave boxes around where I live.

Finding anywhere significantly better than where we currently are launches us into really silly money.

However, one place caught my eye which ticks most of the boxes so we thought we'd arrange a viewing (last time I did that was 1996).

The property has been on the market for over a year and in that time the price has gone from £500,000 down to £400,000 (bounced everywhere in between) and a few days ago the price moved up again to £419,000.

Conversation with EA goes as follows...

Me - "Hi i'm interested in viewing property blah blah blah"

EA - "Can you make it this afternoon as we have someone else viewing today too?"

Me - "Sorry can't make this afternoon but any other weekend is currently good for me"

EA - "Are you able to complete immeadiately or do you have to sell your house?"

Me - "No, our house isn't even for sale yet we've only just started looking but this is the only house we've seen that looks interesting"

EA - "Sorry the vendor is only allowing viewings for people who can complete immeadiately"

Me - "Sounds strange considering his house has been on the market over a year. Call me back if he changes his mind".

Do you reckon this is the EA playing some odd game (as they were happy to let me view if I could've made today) or could the seller really have given the EA this instruction?

It is for this reason why I welcome the inevitable demise of, say, 20-30% of EA branches over the next couple of years.

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HOLA448

Price discovery is mainly a function of buying and selling pressure.

Treating a potential buyer like dirt and setting unreasonable conditions is a very effective method to change that balance in favour of sellers and higher prices. It sends a message that there is no selling pressure thus provoking the opposite reaction in the mind of the buyer.

It's no wonder all EAs do that, like most merchants they discovered this a long time ago.

What is amusing now is that this is a buyers' market but the EAs still try to maintain the illusion against the odds.

Yes...and who is to tell if the same question about your ability to proceed would not have been asked if you had said you could have made that afternoon.....love the way they mentioned they had another viewing that day...makes it look like there is a high demand, you are in competition....bet that viewer, if there was one was not in a position to buy either. ;)

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HOLA449
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HOLA4410

It is for this reason why I welcome the inevitable demise of, say, 20-30% of EA branches over the next couple of years.

I will welcome the demise of 100% of EA branches.

I don't think they are needed anymore, the web has seen to that. All that is sustaining their business model now is the systematic promising of unrealistic prices to sellers. I don't think that will last for much longer.

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HOLA4411

And unlimited credit.

Unlimited credit is one of the sources of buying pressure. :)

Fear of missing out is another.

</pedant>

<Edit to add: I'd bet a fair amount there was no visit arranged for that house that afternoon.>

Edited by _w_
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HOLA4412

Unlimited credit is one of the sources of buying pressure. :)

Fear of missing out is another.

</pedant>

<Edit to add: I'd bet a fair amount there was no visit arranged for that house that afternoon.>

Actually unlimited credit also has an impact on selling pressure. When sellers know that potential buyers have access to lots of money, they will hold out for higher prices.

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HOLA4413

I will welcome the demise of 100% of EA branches.

I don't think they are needed anymore, the web has seen to that. All that is sustaining their business model now is the systematic promising of unrealistic prices to sellers. I don't think that will last for much longer.

i was recently looking at some stats provided by the IPCC that showed a 95% correlation within 2 SD's between the number of EA branches and the number of UK homeowner twigs over a statistically relevant period of time although the number of hockey sticks used in girls schools had an inverse correlation with both over the same period.

Edited by Tamara De Lempicka
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HOLA4414

i was recently looking at some stats provided by the IPCC that showed a 95% correlation within 2 SD's between the number of EA branches and the number of UK homeowner twigs over a statistically relevant period of time although the number of hockey sticks used in girls schools had an inverse correlation with both over the same period.

Ah ah! A chartist approach confirms it.

I knew it!

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HOLA4415

I will welcome the demise of 100% of EA branches.

I don't think they are needed anymore, the web has seen to that. All that is sustaining their business model now is the systematic promising of unrealistic prices to sellers. I don't think that will last for much longer.

That the prop in question has been unsold for a year indicates it's overvalued. Equally, EAs recognise that if they don't overvalue to gain the instruction a rival will. F*ck em, they're the architects of their own demise. This is the business model they created.

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HOLA4416

i was recently looking at some stats provided by the IPCC that showed a 95% correlation within 2 SD's between the number of EA branches and the number of UK homeowner twigs over a statistically relevant period of time although the number of hockey sticks used in girls schools had an inverse correlation with both over the same period.

I think you may have mistaken causation for correlation.

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HOLA4417

Do you reckon this is the EA playing some odd game (as they were happy to let me view if I could've made today) or could the seller really have given the EA this instruction?

I think it is possible that they've given this instruction. If the house has been on so long I imagine there have been lots of timewasters going for a look for something cheap to do over the weekend. A more direct version of property pron if you will.

You should be able to make your decision of extending vs moving without going for a viewing. Then if you do decide to move, sell yours before making any viewings. Then, when you do make a realistic offer on an overpriced house the person will have to think more seriously about your offer rather than instantly dismissing it.

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HOLA4418
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HOLA4419

They won't allow you to view without having an offer on your home because estate agents know full well that it will take a very long time if at all to come to fruition. First you put it on the Market at the EAs unrealistic valuation. Then you have several months of the EA trying to convince you to reduce. Finally you give in making several reductions over the next few months to a still unrealistically high price. Then after about a year you take or off the Market because "you're not giving it away".

Hence, an offer from someone who's home is not yet on the Market isn't worth the time day. (unless you've got wads of cash in your back pocket.) EAs know the score. They won't tell you this obviously because they have to keep up the facade of a "bouyant" Market.

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HOLA4420

That the prop in question has been unsold for a year indicates it's overvalued. Equally, EAs recognise that if they don't overvalue to gain the instruction a rival will. F*ck em, they're the architects of their own demise. This is the business model they created.

theres a thought...tell em its on with another agent and maybe they can book a more convenient time...use the fear card on them...you neednt tell them you are BSing them.

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HOLA4421

I will welcome the demise of 100% of EA branches.

I don't think they are needed anymore, the web has seen to that. All that is sustaining their business model now is the systematic promising of unrealistic prices to sellers. I don't think that will last for much longer.

This is Rightmove's blurb on their site...

http://www.rightmove.co.uk/resources/property-guides/selling-guide/selling-through-an-estate-agent.html

The advantages of using an estate agent

Estate agents spend all day, every day selling property and as a result have built up a vast knowledge and expertise in the whole buying and selling process. They will conduct a valuation on your property, handle viewings and negotiations on your behalf and make sure your property is marketed property. They will strive to achieve the best possible price for your property and the best buyer, thereby avoiding disappointment and stress from less serious potential buyers.

On top of this a good estate agent will also be able to offer you plenty of advice along the way. This includes guidance on conveyancing and financial services.

....

Once you have chosen your three agents, they will visit your property and recommend an asking price. Ask them how they plan on marketing your property. A good estate agent will invest in marketing on behalf of the seller, take photos of your property and compile the description; so be very wary of those that ask you to do this yourself.

Wow, take photos and write a description for a few grand...where do I sign...

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HOLA4422

This is Rightmove's blurb on their site...

http://www.rightmove...tate-agent.html

Wow, take photos and write a description for a few grand...where do I sign...

:)

You will be responsible for:
  • Setting the price (easy unless you don't want to sell the property in which case you need the overpricing skills of an EA)
  • Marketing (post on rightmove)
  • Arranging viewings (if priced correctly a mobile phone and time reading skills are required)
  • Negotiating the offers (as 1., easy if you want to sell the property)
  • Progressing the sale through solicitors and conveyancers.

The last one is the mildly tricky one for an individual. It's a commodity service though, I would expect companies to appear in this new sector and thrive.

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HOLA4423

:)

The last one is the mildly tricky one for an individual. It's a commodity service though, I would expect companies to appear in this new sector and thrive.

http://www.onlineconveyancing.co.uk/guides/buying/

Conveyancing Guides: Buying

Buying your property can be a confusing time which is why we have devised this step by step guide to explain the stages of your transaction.

If at any stage you do not understand any of the underlined terms, please click on the word to see a full explanation.

Purchase Agreed

1. Once you have instructed us we must wait to receive the pre-contract package from the seller's solicitor. Following receipt of this, we can apply for the local authority search, and any other necessary searches. (This can take up to four weeks).

2. We will raise any additional enquiries and await the replies. We will also await the search results and your mortgage offer, and follow any special instructions from the lender.

Exchange of Contracts

3. Once we are satisfied that everything is OK we will prepare a property report and send it to you.

4. You will then be asked to sign the contract and mortgage deed and provide a deposit. (Completion dates will be agreed at this stage). We can then exchange contracts with the seller's solicitor. The sale is now legally binding.

5. Once contracts have exchanged we can prepare the final accounts.

6. Final searches are then made against the property and you.

Completion

7. On the completion date we will hand over the balance of the funds and receive in return the title deeds from the seller's solicitors.

8. If applicable, stamp duty is paid, and we will arrange to register the transfer at the Land Registry. Once the title is registered we will supply a copy to you and send the original document to your lender.

Edited by Dave Beans
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HOLA4424

You should either lie or deal direct with the vendor, Estate Agents add nothing whatsoever to the transaction, and often make it painful for one, or both, parties. My last sale, I had the phone number of the buyer, and he had mine. The only power EA's have is being the conduit, remove it and you effectively castrate them (I wish with a rusty bottle top).

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HOLA4425

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