Jump to content
House Price Crash Forum
Sign in to follow this  
Father Fred

Serious Question About Estate Agents

Recommended Posts

A typical EAs will

(1) Come round to your house at a time of your convenience and give you free advice as to marketing your house.

They will then (should you chooose to use them) give you a contract which basically says -

(2) We will market your house for you free of charge.

(3) In fact we will do everything free of charge, unless the property is sold - which it may well not be.

(4) In which case you will pay us 1 or 2%.

Can anyone please give me a list of businesses that operate on similar generous terms?

I am thinking specifically

Which market leading advertisers are free (ie you can sell you car for free but the better places to advertise cost money)?

Which businesses will do as much work as an EA might trying to sell a house for 6 months for nothing - allowing you to walk away at the end of the contract and use someone else with no penalty?

What businesses charge 1 or 2 % (fund managers maybe but that is 1 or 2% per annum)?

Share this post


Link to post
Share on other sites

What businesses charge 1 or 2 % (fund managers maybe but that is 1 or 2% per annum)?

What other businesses have a comission of 5-10k for sticking a picture in the window? My local newsagent will let you have a space for a week for 50 pence ;):P;)

Share this post


Link to post
Share on other sites
(1) Come round to your house at a time of your convenience and give you free advice as to marketing your house.

a taxi does this every day for a couple of quid.

They will then (should you chooose to use them) give you a contract which basically says -

(2) We will market your house for you free of charge.

= £8 per day in local rags.

(3) In fact we will do everything free of charge, unless the property is sold - which it may well not be.

provided its coming round your house and placing ads.

(4) In which case you will pay us 1 or 2%.

which on a 300k property is £3,000 for a couple of adds and a house call.

not bad work. but i think EAs should be cheaper. say a fixed fee...?

this would stop them ramping up prices and bullshitting us..

they have no qualifications. hardly any training. they simply walk around an empty house and charge 3k

we must be mad...

Edited by right_freds_dead

Share this post


Link to post
Share on other sites

Serious answers only... had it occurred to you that the average fee is half that straight away as half of properties are never sold cos the owner is holding out for above market value.

So 50% of the fee subsidises the wasters. Rent, PCs, insurance, cars, wages, phones might just come out of all that.

If your agent just sticks the house in the window and does nothing else then presumably you get no viewings because there is no-one in the shop to book appointement? Get another EA

Share this post


Link to post
Share on other sites
Guest X-QUORK

What about all those 'No Win No Fee' ambulance chasers who advertise to the daytime sickie-pullers inbetween Trisha shows?

Share this post


Link to post
Share on other sites

i was being seroius.

i could be an EA tomorrow. i have the exact required qualifications = NONE.

id go look at houses, GUESS the market value based on OTHER houses.

stick an ad in the paper. stick an ad in the window. go show people house if they ask.

charge 3k a time if its sold.

easy.

If your agent just sticks the house in the window and does nothing else then presumably you get no viewings because there is no-one in the shop to book appointement? Get another EA

all you do when you want to buy a house is look at the ads.

there is nothing else. unless your door knocking people and asking them if they want to buy from a suitcase of property pictures you carry with you ?

i guess not. i guess you stick an ad in the paper and sit back.

Edited by right_freds_dead

Share this post


Link to post
Share on other sites

a taxi does this every day for a couple of quid.

= £8 per day in local rags.

provided its coming round your house and placing ads.

which on a 300k property is £3,000 for a couple of adds and a house call.

not bad work. but i think EAs should be cheaper. say a fixed fee...?

this would stop them ramping up prices and bullshitting us..

they have no qualifications. hardly any training. they simply walk around an empty house and charge 3k

we must be mad...

you may wish to check your maths.

the point of a percentage is that owners like that as it then gives the EA an incentive to "ramp up the price" which is what every vendor wants! If every vendor said to me "tell you what I'll pay you a flat £500 but I don't care what price you get" then i'd be happier!

What about all those 'No Win No Fee' ambulance chasers who advertise to the daytime sickie-pullers inbetween Trisha shows?

What percentage do they charge of the "winnings"? More than 2%? 30%? I don't know.

Share this post


Link to post
Share on other sites

What percentage do they charge of the "winnings"? More than 2%? 30%? I don't know.

Nothing at all. They add an additional claim against the defendant for their costs. The plaintiff gets every penny they're awarded.

Share this post


Link to post
Share on other sites

Personally I did a degree in economics. I started working as an EA and then studied for the NAEA technical awards in sales and lettings (20 hours study each). I also spend a fair bit of time on various websites increasing my knowledge.

Currenty I only work part-time (self-employed) and am studying to become a surveyor.

I am an advocate of much stricter regulation, the forcing of cowboys out of business and the doubling of fees as a result (and to ensure quality is maintained at a higher level than before).

Share this post


Link to post
Share on other sites

Nothing at all. They add an additional claim against the defendant for their costs. The plaintiff gets every penny they're awarded.

Any more examples?

We have one example so far, not really applicable to the EA business because there would be a massive conflict of interest if the agent was trying to get the best price out of the buyer, then charged the buyer for the privilege.

Share this post


Link to post
Share on other sites
Personally I did a degree in economics. I started working as an EA and then studied for the NAEA technical awards in sales and lettings (20 hours study each). I also spend a fair bit of time on various websites increasing my knowledge.

Currenty I only work part-time (self-employed) and am studying to become a surveyor.

I am an advocate of much stricter regulation, the forcing of cowboys out of business and the doubling of fees as a result (and to ensure quality is maintained at a higher level than before).

why do you need a degree in economics for providing 6x pictures on rightmoves website saying how 'pleased' you are to offer this property, and a card in the window and one 0.5cm black and white scan in the free local rags.??

seems like overkill.

Share this post


Link to post
Share on other sites
Guest X-QUORK

you may wish to check your maths.

the point of a percentage is that owners like that as it then gives the EA an incentive to "ramp up the price" which is what every vendor wants! If every vendor said to me "tell you what I'll pay you a flat £500 but I don't care what price you get" then i'd be happier!

What percentage do they charge of the "winnings"? More than 2%? 30%? I don't know.

EAs would have more credibility if they were providing vendors with realistic market valuations, rather than just looking at the last sale on the street and adding 20% to fluff the vendor's ego and get the property on the books.

Share this post


Link to post
Share on other sites

why do you need a degree in economics for providing 6x pictures on rightmoves website saying how 'pleased' you are to offer this property, and a card in the window and one 0.5cm black and white scan in the free local rags.??

seems like overkill.

My problem with the public is they want to pay next to nothing for a top notch service relating to their most valuable asset, and when someone "overqualified" is stupidly earning a pitance doing the job they have a go at him too!!!!

That and buyers who just do not get that the agent is being polite to them due to the fact they are trying to get a sale, but actually works for the vendor (the fact that the vendor pays, not you should be a clue!)

FF

(ps I have got an A level in English Lit and did a evening class in photography as well so the rightmove stuff is covered nicely)

EAs would have more credibility if they were providing vendors with realistic market valuations, rather than just looking at the last sale on the street and adding 20% to fluff the vendor's ego and get the property on the books.

EAs shouldn't do that. And some don't. Unfortunately you have two things

(1) stupidity... half the vendors out there think a valuation is an offer and react accordingly... i'll take the highest offer!

(2) blindness to the fact that avocado bathrooms and rising damp are no longer in vogue, most vendors clearly beleive that there's is the best house in the street... literally they can stand outside a hovel with rotting window frames and a blatantly shagged roof and insist it is worth the same than the immaculate one over the road.

Anyway, back to the original point...

Share this post


Link to post
Share on other sites
My problem with the public is they want to pay next to nothing for a top notch service relating to their most valuable asset, and when someone "overqualified" is stupidly earning a pitance doing the job they have a go at him too!!!!

agreed - but still. what else do you do other than

'provide 6x pictures on rightmoves website saying how 'pleased' you are to offer this property, and a card in the window and one 0.5cm black and white scan in the free local rags.??'

i mean. you may be nice and everything, but there is little else you can do to sell a house other than the above. its just the way it is. your just a tour guide of other people houses. not an economic rocket scientist. you say things like 'here is the patio' - which we can see also. and "here is the built in cuboard". i can also see them. i can also see the kitchen and toilet and will also know whats big and whats small.

i cant see why the HUGE the fee myself.

Share this post


Link to post
Share on other sites

Serious answers only... had it occurred to you that the average fee is half that straight away as half of properties are never sold cos the owner is holding out for above market value.

So 50% of the fee subsidises the wasters. Rent, PCs, insurance, cars, wages, phones might just come out of all that.

If your agent just sticks the house in the window and does nothing else then presumably you get no viewings because there is no-one in the shop to book appointement? Get another EA

What does the agent have to have the top of the range BMW, or Audi

Share this post


Link to post
Share on other sites

My problem with the public is they want to pay next to nothing for a top notch service relating to their most valuable asset, and when someone "overqualified" is stupidly earning a pitance doing the job they have a go at him too!!!!

That and buyers who just do not get that the agent is being polite to them due to the fact they are trying to get a sale, but actually works for the vendor (the fact that the vendor pays, not you should be a clue!)

FF

(ps I have got an A level in English Lit and did a evening class in photography as well so the rightmove stuff is covered nicely)

EAs shouldn't do that. And some don't. Unfortunately you have two things

(1) stupidity... half the vendors out there think a valuation is an offer and react accordingly... i'll take the highest offer!

(2) blindness to the fact that avocado bathrooms and rising damp are no longer in vogue, most vendors clearly beleive that there's is the best house in the street... literally they can stand outside a hovel with rotting window frames and a blatantly shagged roof and insist it is worth the same than the immaculate one over the road.

Anyway, back to the original point...

Father Fred, this really isn't the place for an EA to come for a spot of ego massage. Try one of those saunas of which Stratford seems to have plenty. They'll say anything you like for £20 I'm sure.

You are a salesman. Many salesmen work on commission - i.e. a percentage of the sales you achieve. The idea is to motivate you. You are not unique, you are not a "professional" and you are not doing anyone any favours. Get over yourself.

Edited by Smell the Fear

Share this post


Link to post
Share on other sites

What does the agent have to have the top of the range BMW, or Audi

Look at half the entries on Rightmove, they cant even be bothered to put full details of the house on there

Edited by Nick T

Share this post


Link to post
Share on other sites

q. What does the agent have to have the top of the range BMW, or Audi

a. to get to the jobcentre faster.

i bet most posters by the time they get to [regular] level know more than the average EA about the housing market.

Edited by right_freds_dead

Share this post


Link to post
Share on other sites

q. What does the agent have to have the top of the range BMW, or Audi

a. to get to the jobcentre faster.

i bet most posters by the time they get to [regular] level know more than the average EA about the housing market.

How is this supposed to sell with a fantastic description.

http://www.rightmove.co.uk/viewdetails-118...pa_n=1&tr_t=buy

Four bedroom modern terrace property

Lounge, dining room, study/bedroom four, kitchen

Three first floor bedrooms, family bathroom

Off road parking for several vehicles, garden to rear

Edited by Nick T

Share this post


Link to post
Share on other sites

no. i do know the road. its quite respectable. this house looks good from outside. i think they have mullions and that.

just makes me laugh at just how dumb the person had to be to go view it and not take exterior pics.

Edited by right_freds_dead

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 337 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.