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Pablo-silver or lead?

High Street Property Sale!

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I've just returned from a trip down the high street. Most shops had big red sale signs up with plenty of bargains. Then I came to Connell's estate agent (one of the biggest national chains) and there it was - Property Sale! 5 to 10% reductions. All the properties in the window had big sale stickers on them. One bed flats right through to 5 bed detached. To be fair some of the reduction (and they were real reductions to previous asking prices) were over 15%. Only the vendors with the lack of viewing/offers and the front desk negotiators with the lack of footfall/phone in, know how bad it is. Getting price reductions out of unrealistic vendors will be a company wide policy for Connell's negotiators over the comming months. Also I have no doubt that vendoors who need to sell will take offers on these prices of between a further 5 - 10%.

Dont rush in, hold your nerve, it will get better or worse depending on your individual position. Also remember EA are 'legally' obligated to put all offers received to the vendor.

Pablo Silver or Lead!

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I've just returned from a trip down the high street. Most shops had big red sale signs up with plenty of bargains. Then I came to Connell's estate agent (one of the biggest national chains) and there it was - Property Sale! 5 to 10% reductions. All the properties in the window had big sale stickers on them. One bed flats right through to 5 bed detached. To be fair some of the reduction (and they were real reductions to previous asking prices) were over 15%. Only the vendors with the lack of viewing/offers and the front desk negotiators with the lack of footfall/phone in, know how bad it is. Getting price reductions out of unrealistic vendors will be a company wide policy for Connell's negotiators over the comming months. Also I have no doubt that vendoors who need to sell will take offers on these prices of between a further 5 - 10%.

Dont rush in, hold your nerve, it will get better or worse depending on your individual position. Also remember EA are 'legally' obligated to put all offers received to the vendor.

Pablo Silver or Lead!

Connell's did the same thing last year in Slough, Berkshire. It must be the January sales.

From memory, most, but not all properties were being sold at a discount.

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Hold on a minute! 5-10% off???? Doesn't that mean that the forecast of the VIs that prices will rise anywhere from 3% to 5% is already incorrect?

Not if the house has been overpriced by 10-15% in the first place, in order that they can then knock of 5-10% later.

It's the oldest sales trick in the book, and is practised particularly well at Tesco's in the wine aisle. Cheating, robbing b@stards the lot of them.

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Not if the house has been overpriced by 10-15% in the first place, in order that they can then knock of 5-10% later.

It's the oldest sales trick in the book, and is practised particularly well at Tesco's in the wine aisle. Cheating, robbing b@stards the lot of them.

From what I can see the prices have actually dropped, the properties were sitting around on the market at the old price for quite some time and the new price is clear to see, so they haven't loaded then cut, whether they were too optimistic in their original appraisals is another question, maybe there was a clear 20% loading?

Some agents stopped over pricing in anticipation of the market catching up, others continue to pander to the vendors vanity. Connells now have properties that undercut other houses from other agents on the same estate, there was a price parity before, but no more.

It's getting interesting, and increasingly ugly.

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I wonder how long it took the EA's to get the vendors to cut the price?

Yes, they've had to give up money that never existed! Just goes to show their power of BS over the vendors even if the magic is no longer working its mojo on buyers.

Maybe they did a Christmas ultimatum? It probably helps that each office is reducing en masse with a double page spread of reduced houses, so the vendors property isn't singled out as a basket case and they get the warm feeling by conforming.

A cynic might suggest they would chase the price back up again by fooling buyers to bid against the wall, but that's a little high risk at a time when volumes are falling and the EA's have to concentrate on turn over and not margins.

It gives out an air of panic and shows the desperation of the vendors.

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A cynic might suggest they would chase the price back up again by fooling buyers to bid against the wall,

A cynic? Nah, none of those on here. :P:lol:

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A cynic? Nah, none of those on here. :P:lol:

If we have a "soft landing" and the market is on its way to recovery then why are they cutting prices? Maybe the fun has just begun, surely not :P

Getting vendors to overtly cut asking prices and then explicity advertising the fact in the paper gets us past a psychological barrier, people can no longer believe prices only ever go up or sideways, it also sets the scene for more of the same.

Edited by BuyingBear

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Geranium, this was in Bournemouth, but will be going out nationwide. To stay in business EA have to sell houses. It's margional to them wether they get £350k or £310k, If a property dosent sell due to price, 2% of zero is sill zero.

Realistbear, the recent forecast of circa 3% increase in prices for 2006, was VI wishfull thinking, its history.

My forecast of circa 40% decreases from peak asking prices to trough exchange of contract prices is on track.

Pablo silver or Lead!

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Redrow admitted an 8% drop in new build prices,

Wimpet 4%.

I think enough buyers would have realised this that EAs

need to be seen to match in the resale market.

Persuading the vendors would be easy, who would want their

house to be left on the shelf without a reduction marked on it?

- particularly if it has been on the market for a while.

there also could be a post no-Sipps glut of stuff on their books...

ABB

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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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