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Mr Joe

Survival Of Ea's

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How long can EAs survive pedalling unaffordable property in the current market? I keep seeing the same old properties at the same old prices. Some have been on the market 18 months + ? Im not sure how long the lack of volume sales can be sustained. Surely it would make sense to encourage sellers to reduce their asking prices. Better to sell more for less?

Mr Joe.

Edited by Mr Joe

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Yeah, but as soon as prices start dropping - who's gonna buy?

even in a falling market people will be buying.

in the last crash the volumes dropped by abut 30% but there was still turnover.

eas have to sell houses to earn fees and will do whatever is needed.

dont underestimate their powers of survival.

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I was surprised to see that a West Yorkshire EA has opened a new office in our area (Halifax) Does this mean they think business is going to be good? Is this as a sign that the crash is going to be delayed 'up North'?..hope not :angry:

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This is always a big issue with me. Agents are sales people surely? Yet they appear to be watching their industry go down the pan wtihout any fight whatsoever. Perhaps I`m crediting them with far to much intelligence. In their position I`d be re-educating the punter very quickly...

http://firstrung.co.uk/articles.asp?pageid...&articlekey=686

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within the last 2 weeks ive noticed estate agents have opened up letting departments within there existings shops is this a sign of desperation or greed ?

Desperation :lol:

If it was greed they would of opened up letting departments 3-4 years ago as BTL's started to rise and got their 10% cut for managing them.

Locally I suspect some EA's make around most of their income from lettings.. 4.5k per house sale (say an average of 1.5% on an average sale of £300k, about average price for SW London), or £90 a month a let (10% of £900.. a 1 bed flat is around £700-750ish)... only takes 50 lets to equal one sale, and you get the income each month for not really doing that much (*), so long as the BTL's sign up for the management service :lol:

Managing 50 lets may sound a lot, but last time I went into renew my contract, the EA had a box of cards 4 or 5 inches deep of places to let.. whether all were available, or whether that was all the managed flats, and the available ones were at the front, I couldn't tell you (I suspect the latter)

(*) Maybe its a good reason for everyone to hassle their agent, to make them work for their income, and past on the additional costs B)

-- Edit --

Of course the EA's also gain income from fees, whether it be from the tenant.. in my case £88 to renew for a year, but also from the landlord.. each time I renew it costs him £280 :o at least he has the sense (and experience) to manage the property himself.

Edited by beerhunter

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This is always a big issue with me. Agents are sales people surely? Yet they appear to be watching their industry go down the pan wtihout any fight whatsoever. Perhaps I`m crediting them with far to much intelligence. In their position I`d be re-educating the punter very quickly...

http://firstrung.co.uk/articles.asp?pageid...&articlekey=686

Lurker!

In this pyramid illustration you suggest that at 15% above market value will attract 10%.

Im sorry mate but some of the prices SOME people have paid for house in Liverpool suggest to me that there are FAR more than 10% KNOBS!!! The other flaw is that it shows common sense!!

This is a major flaw! They are greedy and will not show common sense. Let them continue as they are and all starve!!

TB

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Maybe its a good reason for everyone to hassle their agent, to make them work for their income, and past on the additional costs. [beerhunter]

Better still rent direct from a landlord. Why pay a 10% 'tax' on your rent?

Of course the EA's also gain income from fees, whether it be from the tenant.. in my case £88 to renew for a year, but also from the landlord.. each time I renew it costs him £280 at least he has the sense (and experience) to manage the property himself. [beerhunter]

Absolute scam for both tenant and landlord.

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IRs Risin' up, inflation back on the street

Saved my cash, took no chances

Rented the distance, now I'm back on my feet

Just a man and his cat to provide

So many times, prices rising too fast

You change your financial sense for glory

Don't lose your grip on the dreams of that flat

You must not buy just to keep them alive

Chorus:

Just have a pie and a Lager, and then dream of the fight

Risin' up to the challenge of our rival

And the last EA survivor dreams of sales in the night

And he's watchin' us all in the pub with a pie and a lager.

Leathers in, says this weeks heat

Brad pits' tough, africans' hungry

They stack the odds 'til we live in the street

Poll tax bill avoid with skill to survive

Just have a pie and a Lager, and then dream of the fight

Risin' up to the challenge of our rival

And the last EA survivor dreams of sales in the night

And he's watchin' us all in the pub with a pie and a lager.

IRs Risin' up, straight to the top

We had the guts, now the glory

Went the distance, now I'm now gonna buy

But a flat or bedsit wont surfice

Just have a pie and a Lager, and then dream of the fight

Risin' up to the challenge of our rival

And the last EA survivor dreams of sales in the night

And he's watchin' us all in the pub with a pie and a lager.

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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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