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Estate Agents Will Starve To Death After House Price Crash, Says Upbeat Report


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Do you genuinely think that is the case?

There was a time 2 years ago when we got a lot of, what I would guess was EA a**-holes with nothing better to do but to come on here and talk absolutely un-educated and biased fly sh*te.

They stopped for a while...but I have certainly noticed a return of the odious scum in the last month or two.

To any E.A.s reading this, I can't actually put into words how much you repulse me, but i've tried my best :lol::lol::lol:

Edited by TheCountOfNowhere
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There was a time 2 years ago when we got a lot of, what I would guess was EA a**-holes with nothing better to do but to come on here and talk absolutely un-educated and biased fly sh*te.

I dont think theere was that many ACTUAL EA's, yes one or 2, but the rest was VI's and Bulls of another form. mainly BTLers. and people who were desperatly trying to sell their house as they couldnt get the 100% LTV remortgage, as they MEW'd their equity on the new BMW and 2 holidays to Barbados a year

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I dont think theere was that many ACTUAL EA's, yes one or 2, but the rest was VI's and Bulls of another form. mainly BTLers. and people who were desperatly trying to sell their house as they couldnt get the 100% LTV remortgage, as they MEW'd their equity on the new BMW and 2 holidays to Barbados a year

Yes, those too.

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Yes, but there are one or two welcome exceptions :).

That's good to hear! :)

I think they should be welcomed to give us their views and explain why high prices are good, why their charges are so high, how they see a recovery actually happening and where they buy their cheap suits from.

Here goes, just because I am bored this afternoon you understand.

High prices aren't in general terms good for EAs, I'm pretty sure I've said on here before, and most HPC'ers already know, that 3 sales at £200k is better for my business than 2 at £250k. However, you have to include a couple of other factors. Namely there are two many EAs chasing too few instructions, and often the only way to differentiate themselves is to appeal to the greed of the seller, forcing a price ever higher. And a sellers greed should never be underestimated as without fail they are sure to own the best house in the road, regardless of evidence to the contrary.

Charges being high, a matter of opinion surely?! ;) Seriously I think part of the problem is the way EAs are paid, on a 'no sale, no fee' basis. Believe it or not a fair amount of money is spent without any guarantee of seeing a return, and as sellers are well aware they only pay if completion is reached there are far too many who 'test the market' with very little intention of moving. These costs have to be covered somehow.

How a recovery is to happen, well depends what you mean by a recovery. I think this is the market for a good while to come. But as they say "There are those who don't know, and those who don't know they don't know."

As for my tailor, I couldn't possibly reveal such information. ;)

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That's good to hear! :)Charges being high, a matter of opinion surely?! ;) Seriously I think part of the problem is the way EAs are paid, on a 'no sale, no fee' basis. Believe it or not a fair amount of money is spent without any guarantee of seeing a return, and as sellers are well aware they only pay if completion is reached there are far too many who 'test the market' with very little intention of moving. These costs have to be covered somehow.

TBH i am not fully aware of the charges ie how much is charged, i beleive its a percentage of the final sale price, but could be wrong.

but i find it odd, i would imagine a better model being: Vendor pays an upfront nominal fee (ie £500 for >6 months worth of advertising) then a commission = percentage of final sale price.

this works in a boom, as houses are generally sold quite quickly, and at a higher percentage of asking price, but when Banks are "restricting" lending, its harder to convince the Vendors to realise their house is not actually worth what they think in todays market.

i do think that they way that EA's get nothing before the sale is part of the reason alot of houses have come onto the market, and then stay there for all of time at an unrealistic price. as you say "testing the water"

personally i think the whole house buying market is wrong, the model is massivly flawed. but its been done this way for so long it would be nigh on impossible to change it.

with the internet, its becomming easier for a vendor to sell privatly, there is no real need for an EA, as alot of people instruct their own solicitors, surveys, mortgage etc, all the EA is doing is the advertising. but i am surprised and the so few private house selling websites etc.

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That's good to hear! :)

Here goes, just because I am bored this afternoon you understand.

High prices aren't in general terms good for EAs, I'm pretty sure I've said on here before, and most HPC'ers already know, that 3 sales at £200k is better for my business than 2 at £250k. However, you have to include a couple of other factors. Namely there are two many EAs chasing too few instructions, and often the only way to differentiate themselves is to appeal to the greed of the seller, forcing a price ever higher. And a sellers greed should never be underestimated as without fail they are sure to own the best house in the road, regardless of evidence to the contrary.

Charges being high, a matter of opinion surely?! ;) Seriously I think part of the problem is the way EAs are paid, on a 'no sale, no fee' basis. Believe it or not a fair amount of money is spent without any guarantee of seeing a return, and as sellers are well aware they only pay if completion is reached there are far too many who 'test the market' with very little intention of moving. These costs have to be covered somehow.

Just a little anecdotal for you.. my sister is in the process of selling her house.

Got in the local EA who suggested a price higher than any other on the street. She had to negotiate him down to a sensible price (£5k less than the nearest property on the street), and even then it was a battle (you would think they'd be thinking "great.. easy sell!")

She went from listed to SSTC within two weeks. Still finalising.

I know EAs get it tough.. but some don't even seem to recognise a gift horse when they see it. :blink:

One detail that interested me and I'm not sure how common this is, is that the commission was based on the original asking price, not the selling price so it is actually financially advantageous for that particular EA to go in high and then talk the seller down.

Anyway.. not tarring all EAs with the same brush.. but there seems to be some weird world you walk into when you start dealing with some EAs. :ph34r:

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Just a little anecdotal for you.. my sister is in the process of selling her house.

One detail that interested me.....is that the commission was based on the original asking price, not the selling price so it is actually financially advantageous for that particular EA to go in high and then talk the seller down.

Anyway.. not tarring all EAs with the same brush.. but there seems to be some weird world you walk into when you start dealing with some EAs. :ph34r:

Is the claim in bold true? How widespread is this? Because if true it would be a major factor in the absurd EA over-valuations of so many houses.

Edited by juvenal
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Is the claim in bold true? How widespread is this? Because if true it would be a major factor in the absurd EA over-valuations of so many houses.

I have heard of this practice before, but as far as I'm aware it is incredibly rare. Any vendor would be mad to sign a contract under those terms.

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Is the claim in bold true? How widespread is this? Because if true it would be a major factor in the absurd EA over-valuations of so many houses.

I've not been directly involved in the process but this is what I was told. No reason for my sister to make it up..

I have heard of this practice before, but as far as I'm aware it is incredibly rare. Any vendor would be mad to sign a contract under those terms.

True enough, she's as mad as a box of frogs all right (runs in the family).

Sold her house (fingers crossed) in next to no time which was what she wanted though. Maybe there really is a fine line between genius and insanity :D

Edited by libspero
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There's a massive pile of ironing that you can get started on tonight if you like. And the dishwasher needs emptying. ;)

on a seriuos note are you able to use what you read on hpc forum to your advantage to make more sales ,because it must be useful being able to tap into the thoughts of hundreds of buyers and sellers alike.

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on a seriuos note are you able to use what you read on hpc forum to your advantage to make more sales ,because it must be useful being able to tap into the thoughts of hundreds of buyers and sellers alike.

To a point, although we are a fairly niche business and wouldn't fall into the category of mainstream estate agency.

I have certainly found plenty of useful information through this site, hence I'm still hanging around after all this time, but I'm not sure whether it has translated into extra sales.

However, I do feel that it has played a contributory role in turning me into the cynic I am today! ;)

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