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jimmy

Estate Agents Criticise Buyers' Tactics

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Just seen this on the guardian website, should be up in the news blog...

Estate agents criticise buyers' tactics

Gazundering looks set to become a bigger problem than gazumping, as homebuyers look to beat down the price they pay for properties, the organisation representing estate agents warned today.

The practice, where a buyer agrees a price for the property then lowers it at the last minute, has been on the increase in recent months, according to the National Association of Estate Agents (NAEA).

The body said increased access to information on property prices, together with a glut of properties on the market, meant buyers were now prepared to take a risk on making a lower offer.

"Buyers can take the attitude 'I don't believe the vendor is going to tell me to get lost' and if they do, there are lots more properties available," said Peter Bolton King, the NAEA's chief excutive.

Anthony Kerrigan, a regional chairman of the NAEA who works as an agent in Yorkshire, said he had seen examples of ruthlessly professional gazundering.

"I've seen professional buyers make offers on two properties with the intention of buying the one that achieves the most significant reduction," he said.

"This isn't fair, it isn't moral and it shouldn't be legal."

So it's ok for the seller to take the highest price they can?

Do they know how a market works?

Edited by jimmy

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"This isn't fair, it isn't moral and it shouldn't be legal." ROFL :lol::lol::lol:

That's a bit like a prostitute complaining that the clients are unfaithful to them. What a bunch of *****ers!

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"ruthlessly professional gazundering"

Those poor souls, how will they cope, it's just not cricket!

But according to news reports over the weekend more of us are willing to pay over the asking price???

Indeed, if the market was really as strong as they make out then they wouldn't have to worry about these people as there would be many a fool to take his place. When you dig down it seems their problem isn't so much "gazundering" but simply people putting in low offers as a punt, that's completely different and the way markets work when things turn grizzly (bear).

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The body said increased access to information on property prices, together with a glut of properties on the market, meant buyers were now prepared to take a risk on making a lower offer.

transparency in a market - now there's an evil idea.

take a risk ? - they just don't get it.

Edited by Sisyphus

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Maybe another reason the EA's are getting upset.

Who spent all of last year pumping up SIPP's suggesting that there would be bumper pricing this spring.

Who, last year, bought all that property to flip to investors in the Spring?

Who now is having to dump that stock on the market?

Who now are getting upset that it is THEIR OWN speculative property purchases that are being gazundered?

Also explains the inordinate amount of spin from certain quarters.

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"This isn't fair, it isn't moral and it shouldn't be legal." PMSL @ the crying parasites :lol:

That's a bit like a prostitute complaining that the clients are unfaithful to them. What a bunch of *****ers!

Agreed 100%.

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It's outrageous.

All those people in the market for new things, which are expensive to buy and where the price matters, who shop around.

The people who go into Currys and find out the price of something, then have the cheek to go into Comet next door and compare prices. Sometimes they even have the nerve to see if they can get it cheaper on the Internet.

Shocking how tight some people can be.

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People aren't saying that they think this is a good way to proceed are they?

Peter.

no, people are saying that it's the most blatant example of pots and kettles in the history of the World.

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"Sellers operating in a slow market are unlikely to have people queuing up to buy their property. Therefore they may feel pressured into agreeing to buyer demands."

The market has truly turned. This is substantial evidence that the market is not taking off as the VIs have been claiming. Sentiment is changing and that is the key.

:D:D:D

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Maybe another reason the EA's are getting upset.

Who spent all of last year pumping up SIPP's suggesting that there would be bumper pricing this spring.

That's interesting, it seems there was a quid-pro-quo of sorts, they were prepared to accept the pain of HIP's in exchange for the honey in the form of SIPP's. That deals seems to have turned sour, check out that ODPM quote! Ouch.

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no, people are saying that it's the most blatant example of pots and kettles in the history of the World.

If you look at it from the EAs point of view, perhaps. But there is a vendor rather more involved in the transaction, and they may not be as immoral as you consider the EA.

Peter.

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An uncle of mine bought a couple of apartments in Brighton from a developer early last year. On the way down in the car to sign the contract, he called the developer and knocked off another 10%!!! They went ballistic, but they accepted it.

He didn't feel bad about it, because as he said "the very same crowd did the opposite to me a couple of years before."

:lol:

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If you look at it from the EAs point of view, perhaps. But there is a vendor rather more involved in the transaction, and they may not be as immoral as you consider the EA.

Peter.

Look at the behavior of agents over the last few years, they're hardly paragons of virtue, they shouldn't be surprised when people aren't exactly filled with sympathy now the market has inevitably turned out of their favour.

Agents have actively encouraged gazumping, Foxtons entire business model is based gazumping, they leave property advertised and sitting on their website (without STC) and agents poach sales off each other.

That quote about morals just shows the sheer arrogance and selective amnesia of these people, it's that brazen it could have only come from an agent.

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All those who predicted a house price crash in 2003, 2004 and 2005 remain shocked and confused why the great house price crash which they so confidently predicted never happened.

Let me explain the reasons to them why it will not happen in 2006 either.

1)The economy is still growing (albeit it slower than before).

2) Interest rates are at low levels and stable.

3) Employment is at historically high levels. (any growth in unemployment is down to native chavs being displaced by skilled / motivated overseas workers ).

4) Immigration e.g each year the UK population rise by 250,000 they all need a roof over their heads whether it is the polish labourer who take a room in BTL in London or the returning Brit who has lived in South Africa for 20 years and sells up and buys a house with cash or the doctor who comes to the UK on a HSMP visa and commands a 50K salary in the NHS and gets a mortgage for a 3 bed semi..................they all live some where.

5) Affordability is at historically low / comfortable levels. If you look at the levels of take home pay spent on mortgage repayments, affordability remains at good levels and historically low levels.

6)Pent up demand. There is a huge back log of FTB, people who have "waited and seen" for a couple of years to see how the market will go. STR who called the market wrong and after a few years as renters now need to get back on the ladder ASAP or the wife will leave them.

7)Market sentiment is positive.Mortgage approvals for new house purchase are up to 2004 levels. YOY and 10 months of M on M rising mortgage approvals is not a sign of a HPC. 6 out 0f 7 major price surveys all show house price growth. As we go into 2006 the market has positive momentum.

8)Current Prices are sustainable by definition they have been sustained for 18 months. If there was going to be a HPC it would have happened by now.

I have noticed the change in the mood of the house price crash crowd from jubilant expectation of a price crash end of 2004 early 2005 to bitter acceptance now that the HPC has been cancelled.

In fact 12 months ago they regularly used to flood this and other forums in great numbers telling us how prices would "definitely fall" that the HPC was "inevitable". Funny we don't see them here no more (remember sine, crashisunderway,crash crash 2005 and all the rest)

In the last 6 months you have seen their confidence slip away as prices have remained rock solid and edged up gently. Interest rates / the economy have remained steady and all the famous HPC doom and gloom predictions have been proved wrong - remember Capital Economics wrong predictions.

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If you look at it from the EAs point of view, perhaps. But there is a vendor rather more involved in the transaction, and they may not be as immoral as you consider the EA.

Peter.

Inevitable consequence of housing tripling in price for no good reason. Not nice for anyone, perhaps, but what do you expect now that we have a falling market?

Edited by Casual Observer

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8)Current Prices are sustainable by definition they have been sustained for 18 months. If there was going to be a HPC it would have happened by now.

They're not being sustained, look at the Q4 figures, there are widespread falls across many areas and different types of property.

A bored agent can sit there and think of every reason to be cheerful but that still doesn't change the actual market. The market makes you, did you didn't make the market, that's the same on the downside too, except in the latter case you realise you're not actually in control of matters at all.

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All those who predicted a house price crash in 2003, 2004 and 2005 remain shocked and confused why the great house price crash which they so confidently predicted never happened.

Let me explain the reasons to them why it will not happen in 2006 either.

1)The economy is still growing (albeit it slower than before).

2) Interest rates are at low levels and stable.

3) Employment is at historically high levels. (any growth in unemployment is down to native chavs being displaced by skilled / motivated overseas workers ).

4) Immigration e.g each year the UK population rise by 250,000 they all need a roof over their heads whether it is the polish labourer who take a room in BTL in London or the returning Brit who has lived in South Africa for 20 years and sells up and buys a house with cash or the doctor who comes to the UK on a HSMP visa and commands a 50K salary in the NHS and gets a mortgage for a 3 bed semi..................they all live some where.

5) Affordability is at historically low / comfortable levels. If you look at the levels of take home pay spent on mortgage repayments, affordability remains at good levels and historically low levels.

6)Pent up demand. There is a huge back log of FTB, people who have "waited and seen" for a couple of years to see how the market will go. STR who called the market wrong and after a few years as renters now need to get back on the ladder ASAP or the wife will leave them.

7)Market sentiment is positive.Mortgage approvals for new house purchase are up to 2004 levels. YOY and 10 months of M on M rising mortgage approvals is not a sign of a HPC. 6 out 0f 7 major price surveys all show house price growth. As we go into 2006 the market has positive momentum.

8)Current Prices are sustainable by definition they have been sustained for 18 months. If there was going to be a HPC it would have happened by now.

I have noticed the change in the mood of the house price crash crowd from jubilant expectation of a price crash end of 2004 early 2005 to bitter acceptance now that the HPC has been cancelled.

In fact 12 months ago they regularly used to flood this and other forums in great numbers telling us how prices would "definitely fall" that the HPC was "inevitable". Funny we don't see them here no more (remember sine, crashisunderway,crash crash 2005 and all the rest)

In the last 6 months you have seen their confidence slip away as prices have remained rock solid and edged up gently. Interest rates / the economy have remained steady and all the famous HPC doom and gloom predictions have been proved wrong - remember Capital Economics wrong predictions.

Here's a good counter argument, mate. My 25 year old son is on 45k a year and can't afford a grotty flat where I live. How's that for pent-up demand?

Edited by Casual Observer

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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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