Jump to content
House Price Crash Forum
Sign in to follow this  
rantnrave

"take The Bl**dy Money" Ea Tells Hesitant Vendors

Recommended Posts

Vendors, this is your two week warning! Take the blo*dy offer.

Posted on October 23, 2011 I wrote the post below back in February 2011 when frankly I could see the writing on the wall. I could see the emergence of over-inflated asking prices and Vendors who’s price expectations were way and beyond what they should have been. This was partly the fault of Estate Agents, with available listings at the lowest levels for decades the easiest and quickest way to be successful in a pitch to prospective Vendors was to price high. But Vendors are not blameless, inherent greed allowed them to ignore common sense and allow their properties to sit on the market getting no offers, dismiss low offers and ignore suggestions of price reductions. This year both Vendor’s and Estate Agent’s have come un-stuck as a result. Transaction levels are through the floor. Estate Agent’s have not been able to sell their over-priced stock (and each one of these costs them money) and Vendors have often ended up taking a much lower offer 6 months down the line as their property sat around becoming stale and thus unattractive to the market. Vendor’s and Estate Agents, today is the 23rd October 2011- here is your 2 week warning;

If you don’t do something very fast, a price reduction or taking that offer you think is too low, you will be whistling until February at the earliest and I guarantee now that you will be getting a lower price than any offer on the table today….

Dear Vendors,

Working on the premise that you are a Vendor who really needs to sell, as opposed to a ‘let’s see what can I get’ tyre-kicker, here is my blunt advice:

You have put your property on the market and one of two things has happened.

Nothing.

or

An offer straightaway.

Why is nothing happening?

As there is a lack of good quality stock at the moment, chances are your property is over-priced or there is something wrong with it. Either way, it is over-priced.

An offer straightaway? Great, but I bet if it’s not the asking price you don’t take it. And if it is, I bet you’re screaming that the Estate Agent under-valued it.

Firstly for the lucky Vendors with a quick offer. You may think this is the beginning of a huge influx of ever increasing offers and therefore think you will sit back and await more pennies from heaven. Well don’t. From long experience the very first offers you get will almost always be the highest and the best. Buyers, when they are first to view on a good property will very often make excellent offers to stave off other bidders. Fresh to the market properties are sexy. If that property has been hanging around they don’t feel the need to and worry why no one else has bought it. The longer it is on the market, the worse buyers concerns about it being a turkey, will get and so will the offers. Don’t mess around with that offer, squeeze as much as you can quickly but remember it will probably be the best you get.

So your house has been sitting around for 6 weeks now, dribs and drabs of buyers no offers until one day up pops what you call a ‘derisory’ offer. Ask yourself how derisory it really is. Is it only derisory in relation to the over-inflated asking price? If it really is bad then rent the place out for three years. If you can’t do that then you are going to have to consider it, because the fact is, unless your house is in prime London or worthy of RIBA house of the year, your chances of getting more will only get worse as the weeks go by.

I am being so blunt on the basis that the market is surprisingly buoyant at the moment for Vendors but only due to lack of supply and low interest rates. It won’t last. This lack of supply is very likely to change as the year progresses due to un-employment, rising interest rates and general economic woes. When more properties come onto the market and the demand doesn’t rise, the chances of you getting the price you are offered today will decrease faster than a spider down a plughole.

If my house was going on the market tomorrow and I needed to sell this year, I would be pricing it very realistically, perhaps even under-pricing to create interest. (buyers love what they perceive as an under-priced property). If I had no offers after 3 weeks full marketing with a good Agent I would be dropping the price and I would be looking lovingly at any offer from a buyer with cash or a low LTV mortgage.

To heck with price indices and ‘what it’s worth’. A property’s ‘value’ is only ever what someone is willing to pay for it. And shortly, there will be fewer people who want to pay anything and more for them to choose from. So don’t puff out your chest and allow your ego to run negotiations.

Grasp the nettle and take that decent or even half decent offer… indecently fast.

Sourced via EA Today

Share this post


Link to post
Share on other sites

Already running here

But worth poitning out it is written by a buying agent, not an estate agent. So someone who has a vested interest in vendors "taking the bl**dy money!"

Not that there is anything particularly wrong with what they are saying, basically if you haven't found a buyer in 4 weeks your price is too high, but a VI nonetheless.

Share this post


Link to post
Share on other sites

Taking the money also means the EA gets paid. If hardly anything is selling clearly they need the income.

It's not written by an EA though, it's written by a buying agent, who acts for buyers, not sellers.

Share this post


Link to post
Share on other sites

How is the one man war going? I am in peace negotiations with Mumsnet due to their active fifth column on here.

Makes you miss RB reposting something from several days ago. Almost brings a tear to the eye...

At the start of the year, the HPC point of view was dismissed as insignificant over there because the Spring Bounce would show a return to price increases.

When that didn't happen, by summer the unseasonably cold / warm weather got blamed. The HPCers would only be right if banks didn't start lending again, but the banks were about to lend anyway.

Next, even if the HPCers were right, inflation was going to solve everyone's problems. The difference between price vs wage inflation is starting to hit home though (literally, on an EA's income).

The grim financial news has now made it clear that lending is not about to pick up again (the idea that the pick-up was in the years to '07 is not widely accepted). Cue attacks on 'corporates' for over-valuing.

That's about where things are now. Definitely more bearish over there than a year ago.

Share this post


Link to post
Share on other sites

Are they active? How cute!

Any links to threads?

Nah, they just lurk here watching. It is spooky. Go over to their Propertytalk forum and post something negative about house prices and watch the reaction... hang on, you could be one!

TMT in paranoid mode.

Share this post


Link to post
Share on other sites

Makes you miss RB reposting something from several days ago. Almost brings a tear to the eye...

At the start of the year, the HPC point of view was dismissed as insignificant over there because the Spring Bounce would show a return to price increases.

When that didn't happen, by summer the unseasonably cold / warm weather got blamed. The HPCers would only be right if banks didn't start lending again, but the banks were about to lend anyway.

Next, even if the HPCers were right, inflation was going to solve everyone's problems. The difference between price vs wage inflation is starting to hit home though (literally, on an EA's income).

The grim financial news has now made it clear that lending is not about to pick up again (the idea that the pick-up was in the years to '07 is not widely accepted). Cue attacks on 'corporates' for over-valuing.

That's about where things are now. Definitely more bearish over there than a year ago.

You are getting under their skin by their often abusive replies to you. IMPO you would have to be a pretty dopey EA to not now realise a collapse is coming.

My worry is that come the end of Feb they just stick 50K on all the asking prices of houses on their books.

Share this post


Link to post
Share on other sites

Makes you miss RB reposting something from several days ago. Almost brings a tear to the eye...

At the start of the year, the HPC point of view was dismissed as insignificant over there because the Spring Bounce would show a return to price increases.

When that didn't happen, by summer the unseasonably cold / warm weather got blamed. The HPCers would only be right if banks didn't start lending again, but the banks were about to lend anyway.

Next, even if the HPCers were right, inflation was going to solve everyone's problems. The difference between price vs wage inflation is starting to hit home though (literally, on an EA's income).

The grim financial news has now made it clear that lending is not about to pick up again (the idea that the pick-up was in the years to '07 is not widely accepted). Cue attacks on 'corporates' for over-valuing.

That's about where things are now. Definitely more bearish over there than a year ago.

Sounds like they've reached the negotiation part of the Kublar Ross stages of grief !

Share this post


Link to post
Share on other sites

Nah, they just lurk here watching. It is spooky. Go over to their Propertytalk forum and post something negative about house prices and watch the reaction... hang on, you could be one!

TMT in paranoid mode.

What evidence do you have for this allegation TMT? I cant imagine mumsnetters would find much of the guff written here of any interest.

Then you talk about them going to Propertytalk?

If what you say is true, we have a group of stalkers wandering aimlessly from site to site, reading stuff on here they dont understand and misconstrueing that wisdom elsewhere in a vain effort to get some, well what, sympathy, hugz?

Your theory makes little sense to me. Then again, that doesnt mean you arent right, so man up and show us your evidence.

Share this post


Link to post
Share on other sites

What evidence do you have for this allegation TMT? I cant imagine mumsnetters would find much of the guff written here of any interest.

Then you talk about them going to Propertytalk?

If what you say is true, we have a group of stalkers wandering aimlessly from site to site, reading stuff on here they dont understand and misconstrueing that wisdom elsewhere in a vain effort to get some, well what, sympathy, hugz?

Your theory makes little sense to me. Then again, that doesnt mean you arent right, so man up and show us your evidence.

Amazing as it may seem, some Mumsnetters are also HPCers.

Given that Mumsnet has a few hundred thousand members it's hardly surprising if some of them are property bears, is it?

Tulip's paranoia is because he came over to Mumsnet and started a thread and he was spotted as an HPCer almost immediately, it was the references to MEWing and twigs in vases that gave it away I think.

He shouldn't have minded though, I think the people there who recognised him were glad to see him rather than intending to tear him limb from limb like King Pentheus at the Bacchic rites.

And Mumsnetters on HPC are not really a fifth column, given that they come over here because they like it and agree with the sentiments, not in order to subvert HPC from within and fill it with threads about breastfeeding and 'Am I being unreasonable to swear at the woman who gave my precious firstborn a funny look at the supermarket?'

Share this post


Link to post
Share on other sites

Sounds like they've reached the negotiation part of the Kublar Ross stages of grief !

Just today I was thinking of posting over there about certain regulars who have seemingly moved from denial to anger in their comments - couldn't remember the title of the process though so didn't. Handy timing on your behalf and thanks for saving me ransacking Google for that!

Share this post


Link to post
Share on other sites

Tulip's paranoia is because he came over to Mumsnet and started a thread and he was spotted as an HPCer almost immediately, it was the references to MEWing and twigs in vases that gave it away I think.

:lol: Rumbled

Share this post


Link to post
Share on other sites

:lol: Rumbled

Redhat Sly read a HPC thread that linked to a Mumsnet discussion. He donned his drag kit to post over there in disguise. I spotted his comment on MN, copied it back to HPC and asked if it was from one of us!

Share this post


Link to post
Share on other sites

There was a post on HPC recently about Mumsnetters becoming more bearish and wondering how they would continue to pay the school fees for 'Tarquin and Olivia'.

:lol:

The people who post regularly on the property topic on Mumsnet are way more bearish than they used to be. Thank goodness. However you still get lots of excruciating 'why isn't my house selling?' threads in which OP posts a link to a beautifully presented, clutterless, neutrally decorated residence and 100s of people pop up telling them to remove the guitar in picture 5 because they've seen on Phil and Kirsty that you have to make it as anonymous as possible. Then one or two people will delicately mention the price and get totally ignored.

Share this post


Link to post
Share on other sites

The people who post regularly on the property topic on Mumsnet are way more bearish than they used to be. Thank goodness. However you still get lots of excruciating 'why isn't my house selling?' threads in which OP posts a link to a beautifully presented, clutterless, neutrally decorated residence and 100s of people pop up telling them to remove the guitar in picture 5 because they've seen on Phil and Kirsty that you have to make it as anonymous as possible. Then one or two people will delicately mention the price and get totally ignored.

Sounds like the Rightmove sellers' forum. Some of the denial that you can read there is astounding.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.