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Estate Agents - Reality

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We've just started to 'look' at property - simply at the requesting details stage. No plans to buy unless we are certain we're getting good value and will continue to rent until at least Q3 2006.

Spoke to a couple of 'friendly' EAs recently:

I commented to one that I thought some of their asking prices were 'unrealistic' and suggested that perhaps the vendors needed to recognise the market had shifted. Exasperated response was "some are in for a long and dark winter indeed if they don't make some adjustments".

I note this week that they have finally reduced the prices on some of their long-term properties. I know the owner of one of these who told me back in the summer "we'll wait for the market to catch up - not desperate to sell" now, after its been on the market for well over 12 months its finally coming down (although £25k off a £650k property won't make a shred of difference)...

Another agent to whom I made the same comment responded with "well, just make an offer we have told our vendors to be more flexible" - To which my stock response is: "when I see a realistic asking price I'll make a realistic offer".

I wonder if agents like this are now putting significant pressure on vendors to adjust prices?

Also spoke to a very 'unfriendly' agent to whom I also complained about unrealistic pricing. He hit me with the standard 'prices are rising - RICS say so..' line to which I responded by mentioning the recent reductions (above) from one of his competitors and naturally enough he came back with "of course many agents overprice just to win the business..." to which I then responded by asking why he had just taken £25k off one of his own £650k properties... (this is a fantastic house which remains unsold since going on market in Easter 05).

I also got talking to another agent and discover we are 'related' through friends. When I discussed our decision to rent his response was "very astute - prices wont rise at all and will probably ease off. You certainly wont lose money over the next year".

And one final observation to balance this anecdotal posting. I have noticed a lot of properties coming on to the market in the last month and an increase in properties listed as 'under offer'. Agents are claiming that activity has increased in the last few weeks. I have no idea if there is any truth behind this. But there are certainly lots of properties listed and most have been listed for 6 months+.

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I am in the West Midlands also and the only "SOLD" signs I see have STC in small print. This means, of course, that they are not sold as the deal is not done until after exchnage of contracts. EAs are very touchy when you talk about price reductions because they are trained to talk the market up. I believe they will start talking it down when their commissions finally dry up altogether--they make money when houses sell and cheap house sales are better for them than no house sales. This market is on the precipe of a fall and the EAs know that loose talk costs lives.

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I am in the West Midlands also and the only "SOLD" signs I see have STC in small print. This means, of course, that they are not sold as the deal is not done until after exchnage of contracts. EAs are very touchy when you talk about price reductions because they are trained to talk the market up. I believe they will start talking it down when their commissions finally dry up altogether--they make money when houses sell and cheap house sales are better for them than no house sales. This market is on the precipe of a fall and the EAs know that loose talk costs lives.

Yes - also see plenty of SSTC signs - about 40% of which revert to 'for sale' around here. Have also spotted an interesting trend to advertise a property at one price and then re-list it as SSTC at a lower price the next week. I assume the lower price might reflect something close to the 'agreed' price and the agent is relisting in the hope they might draw out a better offer from someone else.

This property was for sale at £485,000 last week. Is SSTC at £449,950 this week...

http://www.rightmove.co.uk/viewdetails-803...pa_n=1&tr_t=buy

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  • 301 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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