Estate Agent Just Sent Me This

[panholio]

I am registered as a potential buyer with a number of local agents. I have no property to sell. Just received this from one of them:

"Many estate agents will flatter you and promote themselves by claiming that they?ll get you the ?highest price in the shortest possible time?. This is easy to say, but not so easy for most agents to justify or indeed deliver! Effective property sales involve a combination of great presentation, attractive pricing and effective marketing along with a host of other techniques that facilitate a successful sale.

As innovative estate agents with our finger firmly on the pulse of the local property market, we do things a bit differently at XXXXX. One of the innovations that we have recently introduced is the ?secret agent? concept whereby a property is offered ?off-market? ? and it?s proving to be hugely effective.

In essence, instead of bringing your property to market in the expected way with the usual initial exposure across the property portals, local advertising, window display, website, etc, we make it quietly known to suitable pre-qualified buyers that the property is ?about to come onto the market?. This ?advance notice? really excites buyers as they feel they have exclusive access to a property that other buyers do not. During this pre-marketing phase we find that buyers are more likely to pay the full asking price rather than lose out.

This technique is especially effective for properties that could possibly command an excellent price from one of a small pool of buyers, or where the vendor wants to try an ambitious price for a short period of time without exposing the property to the risk of going stale on the market ? one of the worst things that can happen to a property!

Alternatively, if you have a property that has remained unsold for several months, it might just be worth ?withdrawing? it from the market and reoffering it in this way, with us as your ?secret agent?. You might be in for a pleasant surprise!"

Interesting they are advising me of their techniques to try to get me to pay over the odds....

Edited August 8, 2014 by panholio

[TheCountOfNowhere]

I am registered as a potential buyer with a number of local agents. I have no property to sell. Just received this from one of them:

"Many estate agents will flatter you and promote themselves by claiming that they?ll get you the ?highest price in the shortest possible time?. This is easy to say, but not so easy for most agents to justify or indeed deliver! Effective property sales involve a combination of great presentation, attractive pricing and effective marketing along with a host of other techniques that facilitate a successful sale.

As innovative estate agents with our finger firmly on the pulse of the local property market, we do things a bit differently at XXXXX. One of the innovations that we have recently introduced is the ?secret agent? concept whereby a property is offered ?off-market? ? and it?s proving to be hugely effective.

In essence, instead of bringing your property to market in the expected way with the usual initial exposure across the property portals, local advertising, window display, website, etc, we make it quietly known to suitable pre-qualified buyers that the property is ?about to come onto the market?. This ?advance notice? really excites buyers as they feel they have exclusive access to a property that other buyers do not. During this pre-marketing phase we find that buyers are more likely to pay the full asking price rather than lose out.

This technique is especially effective for properties that could possibly command an excellent price from one of a small pool of buyers, or where the vendor wants to try an ambitious price for a short period of time without exposing the property to the risk of going stale on the market ? one of the worst things that can happen to a property!

Alternatively, if you have a property that has remained unsold for several months, it might just be worth ?withdrawing? it from the market and reoffering it in this way, with us as your ?secret agent?. You might be in for a pleasant surprise!"

Interesting they are advising me of their techniques to try to get me to pay over the odds....

And thanks for sharing it will us. Sent it to your local rag and get them to warn others....

[Neil D Possitt]

Let me guess, they want a large fee up front?

[cybernoid]

Suggesting they don't even bother advertising it. A stroke of genius. That'll drop those rightmove/local rag listing fees, their business will surely soar with no overheads! I can picture the invoice ;

Taking your phone call and then calling that landlord who came in the other day - £300

Strategically doing naff all else - £200

Nope, not even getting off my fat **** to put a printout in the window - £100

[Jason]

That might work for multi million pound houses, but when your buying the average house, the EA can't even remember your requirements other than price range. When I was looking they would urge me view houses, but being the geek I am, I checked it out on street view to find it was totally unsuitable.

Funnily enough, I am suddenly getting emails from an EA who I registered with 5 years ago!

[SEW247]

Funny enough, this is exactly how I sold my flat though I think they called it a "pre market launch". It's actually a very good way of marketing a property, particularly where there is uncertainty over what to put it on at.

This then avoids the vendor putting it on at too high a price and then having to slash the price which the shows up on rightmove and we all then ask "wot's wrong with it".

[19 year mortgage 8itch]

Something I've been told of in my local area which is somewhat of a northern hotspot is agents putting property on at a very competitive price (for the local market) but then taking it to final bids within a week or two of it coming on the market due to interest. It encourages panic behaviour and higher bidding as I've been outbid 5 times over the past year. Rather than picking a comedy high asking price and waiting it out.

(Can provide links to sold prices if it helps)

[Venger]

Interesting they are advising me of their techniques to try to get me to pay over the odds....

Strange (desperate?) tactics, trying to lull buyers into thinking they've got a special deal (at high price). Exclusive! Aloof!

Meanwhile, I think this is in Derby, and he/she wants to move to St Albans (2nd post in the threadstarter's thread). http://forums.moneysavingexpert.com/showthread.php?t=5034532

Yesterday, 10:12 AM

Can't decide whether to accept offer

I've just spoken to the agent, and said we need the weekend to think about it. She says the potential buyer "is cool with waiting", and knows the market means she can buy elsewhere (Thinly veiled threat?).

When I asked the agent what her feelings were on the local market, it was that it's peaked and is now on the way down. There was a big buzz with the Help To Buy scheme a few months back, but now it's buyer's advantage, and the buyers know that. The agents say that they've not had an offer above asking price for a long time.

[Corruption]

Strange (desperate?) tactics, trying to lull buyers into thinking they've got a special deal (at high price). Exclusive! Aloof!

Meanwhile, I think this is in Derby, and he/she wants to move to St Albans (2nd post in the threadstarter's thread). http://forums.moneysavingexpert.com/showthread.php?t=5034532

She must have a great relationship with her husband if she prefers to go on anonymous websites asking whether they should sell the house.

I recommend she should wait another year and sell for 10-15% more.

[200p]

The bull is running out of steam and we'll see more "innovative" things to shift those houses.

When the bull is in full charge, the homes sell themselves like hot cakes.

[Downside]

This tactic doesn't always work. A friend at works mum sold her house a few months ago and before it was advertised had a few people look at it. One person offered full asking price. His mum then rejected this on the basis that if she got full asking price without it being advertised then surely its worth more on the open market. Needless to say she ended up selling for about 5k less than asking.

[winkie]

Desperate to sell.....know a man who can sort it, but it will cost you save them lots.

[Venger]

To give an example of the current unreality about the local market there is this one.

Sold at £311k as a new build, then at £269k in 2012, now on for... wait for it, OIEO £350k. A mere £80k profit in two years. It is hard to see how many living in Derby could afford a property like that even though People in Derby have the highest salaries in the East Midlands at £22667.

What it boils down to is that these properties that are backing onto fields are now going to be engulfed by a much, much larger housing estate full of £150k plus new executive homes.

Interesting stuff, with one major lender reducing HTB lending ceiling. It's not sold yet, just an asking price. Although I want supply to increase, it's no use if it's at whacky high asking prices. Need a trigger to also have some sellers accepting less, and fewer buyers positioned to outbid/pay crazy high prices.

Yes, sold as a newbuild for £311,000 in 2005 (three hundred and eleven thousand pounds).... looking at archived listings for it, the then owner put it on the market in 2009 for £320,000. They might have been thinking they'd be able to sell at a 'profit' too. By December 2011, asking price £279,950 and we know it sold for £269,000 a few months later in March 2012. Need the same to occur again, but more so.

There's this to rent in the very same postcode at £795pcm. http://www.rightmove.co.uk/property-to-rent/property-47322116.html?premiumA=true

Appears to have been bought for £193,750 in Feb 2012, and previously as a newbuild at £188,995 in June 2006.

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=29099731&sale=46619999&country=england

Zoopla doesn't have any archived listings for it to suggest it's been a rental property in the past. Could be a homeowner who needs to relocate, doesn't want to sell for less than it's worth, which may be a force that's been building up as a trigger for a few years; newbie landlords, voids, problem tenants, repairs/responsibilities/filing returns, eventually some willing/having to sell?

[Wurzel Of Highbridge]

Could be a homeowner who needs to relocate, doesn't want to sell for less than it's worth, which may be a force that's been building up as a trigger for a few years; newbie landlords, voids, problem tenants, repairs/responsibilities/filing returns, eventually some willing/having to sell?

Could be a homeowner who needs to relocate, and cannot sell for less that the value of the mortgage. I think if you delved deeply that would be most cases of vendors not dropping the price.

In many cases the vendor could afford to drop the price a little, but then they would have no deposit for tehir next house, therefore people just cannot affor to drop prices. This is why we need interest rates to rise and bankrupt many of them.

Higher interest rates would vastly increase the number of housing transactions because mortgaged under occupied and empty houses would be a huge financial strain.

Edited August 10, 2014 by Wurzel Of Highbridge

[panholio]

Just thought I'd update this thread with their latest mail shot. It really is a classic:

Should I make an offer?

As a buyer you are in a powerful position, both in terms of the effect your buying
decision will have on your own life, and on that of the person from whom you buy.

If buying a property was some form of commodity like petrol or milk, then you would
simply buy the cheapest stock available. However, buying a home is much less
mercenary, and emotions run high.

Over the years, homebuyers have become used to the idea of making a "starting
offer" below the asking price, but it might be worth considering a few aspects of the
implications of making a low offer.

Firstly what does a low offer say about you to the vendor? That you don't have the
money and that any subsequent increase might stretch you beyond your ability to
complete the purchase? Does it suggest you don't really like their home, risking
offence? A low offer can often start off the relationship with the vendor on the wrong
foot.

And what if your low offer is accepted? Will the vendors experience regret and
continue to market the property hoping to find a higher price with someone else? The
chances of such a buyer being found are high as people usually want a property that
someone else wants.

Ultimately it's about commitment. An offer at, close to, a realistic asking price tells the
vendor you are committed to the property. In return the vendor is likely to
demonstrate a level of commitment to you that will result in a successful purchase.

[pipllman]

can't blame the agent for trying I suppose

[Guest]

Firstly what does a low offer say about you to the vendor? That you don't have the

money and that any subsequent increase might stretch you beyond your ability to

complete the purchase? Does it suggest you don't really like their home, risking

offence? A low offer can often start off the relationship with the vendor on the wrong

foot.

And what if your low offer is accepted? Will the vendors experience regret and

continue to market the property hoping to find a higher price with someone else? The

chances of such a buyer being found are high as people usually want a property that

someone else wants.

I am speechless.

They're selling the property, so any 'offence' caused by me 'not liking it' will surely soon be over once the cash is in their account. A buyer is not in the business of babying 'vendors'. If they experience 'regret' then a) that's not my problem and they shouldn't have accepted the offer in the first place.

This is a business transaction, not a marriage.

Are people really so stupid as to take notice of this kind of 'advice'?!

[billybong]

If buying a property was some form of commodity like petrol or milk, then you would

simply buy the cheapest stock available. However, buying a home is much less

mercenary, and emotions run high.

"Buying a home is much less mercenary"

They wish.

Edited September 12, 2014 by billybong

[Exiled Canadian]

I was once told off by an agent (after a low ball first offer based on the price which the identical house next door had sold for 9 months earlier) that I wasn't placing any value on the vendors "emotional investment the property"!

I countered that the vendors needed to understand my emotional investment in my cash. Didn't go down very well.

My offer was rejected. House later sold to another buyer for around the value of my offer.

[Venger]

[..]And what if your low offer is accepted? Will the vendors experience regret and

continue to market the property hoping to find a higher price with someone else? The

chances of such a buyer being found are high as people usually want a property that

someone else wants.

Ultimately it's about commitment. An offer at, close to, a realistic asking price tells the

vendor you are committed to the property. In return the vendor is likely to

demonstrate a level of commitment to you that will result in a successful purchase.

It's the EAs who need to get hard-realistic with sellers.

Riddled with mystic thinking, that EA piece. Think of your own circumstances, affordability, possible future economic shocks - not just how you need to give a seller as much of your money as possible, usually to meet propped-up stimulus reflated values. And now against MMR and everyhing else.

Nothing can prepare you for the unbridled carnage you are about to witness. Pressure? Here it's kill or be killed. Make no friends and take no prisoners.

Edited September 12, 2014 by Venger

[billybong]

The chances of such a buyer being found are high as people usually want a property that

someone else wants.

From the Wacky Jacky Marketing Department.

[Venger]

Bump.

Love these EA gems, from panholio.

Telling sellers of dirty tricks to try and get max from gullible buyers...

This advance notice really excites buyers as they feel they have exclusive access to a property that other buyers do not. During this pre-marketing phase we find that buyers are more likely to pay the full asking price rather than lose out.

And then lecture to tell would-be buyers to offer what it is worth; owners have sensitive egos you know.

Never mind it's one of the most important decisions of your life and every £10K you pay more than you have too, is equivilent of 1 year longer you have to work before retirement. (Using the Lionel Ritchie formula, over the long term). We're at war in this market.

I stick to the Lionel Ritchie rule, the once, twice, three times a lady rule. Its a rule of thumb rather thn an article of faith so you'll have to excuse the broad generalisation.

Borrow £10,000 (once) results in a typical repayment of £20,000 (twice) which for a typical basic rate taxpayer means earning £30,000 (three times). Or, to put it in plainer terms, an additional £10,000 offered is equivalent to a years work at average salary and even better offer £10,000 less and you could retire a year earlier. Instead we fixate on lending multiples at gross earnings which neglects tax and interest.

[Fully Detached]

Just thought I'd update this thread with their latest mail shot. It really is a classic:

Should I make an offer?

As a buyer you are in a powerful position, both in terms of the effect your buying

decision will have on your own life, and on that of the person from whom you buy.

If buying a property was some form of commodity like petrol or milk, then you would

simply buy the cheapest stock available. However, buying a home is much less

mercenary, and emotions run high.

Over the years, homebuyers have become used to the idea of making a "starting

offer" below the asking price, but it might be worth considering a few aspects of the

implications of making a low offer.

Firstly what does a low offer say about you to the vendor? That you don't have the

money and that any subsequent increase might stretch you beyond your ability to

complete the purchase? Does it suggest you don't really like their home, risking

offence? A low offer can often start off the relationship with the vendor on the wrong

foot.

And what if your low offer is accepted? Will the vendors experience regret and

continue to market the property hoping to find a higher price with someone else? The

chances of such a buyer being found are high as people usually want a property that

someone else wants.

Ultimately it's about commitment. An offer at, close to, a realistic asking price tells the

vendor you are committed to the property. In return the vendor is likely to

demonstrate a level of commitment to you that will result in a successful purchase.

He could have saved all that hot air and just stuck with those few words. What constitutes "realistic" may of course be open to some amount of debate.

[wherebee]

Bump.

Love these EA gems, from panholio.

Telling sellers of dirty tricks to try and get max from gullible buyers...

This advance notice really excites buyers as they feel they have exclusive access to a property that other buyers do not. During this pre-marketing phase we find that buyers are more likely to pay the full asking price rather than lose out.

And then lecture to tell would-be buyers to offer what it is worth; owners have sensitive egos you know.

Never mind it's one of the most important decisions of your life and every £10K you pay more than you have too, is equivilent of 1 year longer you have to work before retirement. (Using the Lionel Ritchie formula, over the long term). We're at war in this market.

As I have got older and more willing to demonstrably NOT CARE about an individual property, I have got more and more successful with saving money, whether it be for renting or buying. I have not paid advertised rent price since 2007, always got it for less, and it's getting easier. Likewise, the house I bought in Oz I got for 60,000 less than the buyer 'wanted' (in Oz, no firm price is advertised and auction prices are always mentally underquoted).

Unless I was buying a castle with views of Narnia that was demonstrably unique, my approach now is always 'meh -another one along sooner or later'.