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Patience is a virtue isn't it!

After A Conversation With An Ea Yesterday

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I spoke to an Estate Agent yesterday (actually a friends father, whos been doing it for 30 years).

He said that they expect prices to dip at the end of this year / early next as a raft of houses come onto the market before HIPS come into affect next summer.

He also said that they expect house prices to go up again once HIPS are here as they'll be a lot less on the market as people decide to stay put rather than go through the HIPS process.

I'm looking forward to seeing what happens if all these properties do come on the market at the end of the year, along wth potentially another 250'000 houses that at present could be siezed under this new EDMO policy.

Surely these owners would rather sell now than let the Gov sieze their property for Social Housing?

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Guest muttley

The good thing about HIPs from a buyers point, is that they stop "kite flyers" ie people who put their house on the market for a overly high price in the hope of making a killing. It means that those properties on the market are willing to listen to offers. I like the term "motivated sellers". So I think the market could fall further with HIPs.

If the number of "motivated sellers" increases for any reason, higher IRs, unemployment, then the falls could be significant.

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I think HIPS will kill the market, for the simple reason that many people as you say will not bother to put their house on the market.

As you say, people do put them on to test the water, however when they are impressed with what they can get often they do sell. That will not happen now.

I can see that for the few properties that are on the market, the prices will rise due to simple supply and demand.

However that will be very irrelevent when the interest rates rise, that will be the day that we see the prices drop.

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He also said that they expect house prices to go up again once HIPS are here as they'll be a lot less on the market as people decide to stay put rather than go through the HIPS process.

What a load of ********, if you want to move you want to move, it won't stop people from moving. Most people move because:

- they need to move to a different area for work

- they get a pay rise and want to trade up to a larger/nicer place

The process is still the same, you find out from your friendly EA roughly how much your house is worth, you find out how much your current income can borrow you on a mortgage, put this together with the profit/loss from selling your current house and look at a few houses in the paper of the type/location you want to move to to see if you can afford what you thought you could. Then you put your current house up for sale and get a HIP done. The extra £1000 isn't going to put people off who want to move, once they come to the point of paying out for it they've already decided they want to move and if they have half a brain cell they've factored the £1000 into the moving costs, together with the EA's sale fees, solicitors fees, survey on new house, etc etc etc.

All it means is that EA's will probably have to become a bit more realistic with their valuations, because when they give an over-valuation and then the results of the HIP come back and reveal all the problems with the house, they are going to look pretty stupid.

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Guest grumpy-old-man

What a load of ********, if you want to move you want to move, it won't stop people from moving. Most people move because:

- they need to move to a different area for work

- they get a pay rise and want to trade up to a larger/nicer place

The process is still the same, you find out from your friendly EA roughly how much your house is worth, you find out how much your current income can borrow you on a mortgage, put this together with the profit/loss from selling your current house and look at a few houses in the paper of the type/location you want to move to to see if you can afford what you thought you could. Then you put your current house up for sale and get a HIP done. The extra £1000 isn't going to put people off who want to move, once they come to the point of paying out for it they've already decided they want to move and if they have half a brain cell they've factored the £1000 into the moving costs, together with the EA's sale fees, solicitors fees, survey on new house, etc etc etc.

All it means is that EA's will probably have to become a bit more realistic with their valuations, because when they give an over-valuation and then the results of the HIP come back and reveal all the problems with the house, they are going to look pretty stupid.

I agree with the above.

as for EA looking stupid, it should read more stupid than they already are ;)

god, I hate most EA's with a vengence. Having said that I was speaking to one 2 days ago that was very realistic & proffessional (a rare breed I hear you say, mind you she was in her 50's, loads of experience), she told me there was hardly any FTB's & the top end of the market was also dead. She also expects prices to drop & told me that lots of her sellers had been accepting lower offers (she quoted 10%).

edited to add - we also live in an area within Wakefield that seems to do very well in the property market, not quite the top end for the area, but above average. The reason I mention this, is that if the more affluent areas are struggling what does that tell you :blink:

ps - I know to you southerners it appears difficult to imagine athere are any good areas tup'north ;), so what I mean is that we have above average chavs :lol:

Edited by grumpy-old-man

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I agree with the above.

as for EA looking stupid, it should read more stupid than they already are ;)

god, I hate most EA's with a vengence. Having said that I was speaking to one 2 days ago that was very realistic & proffessional (a rare breed I hear you say, mind you she was in her 50's, loads of experience), she told me there was hardly any FTB's & the top end of the market was also dead. She also expects prices to drop & told me that lots of her sellers had been accepting lower offers (she quoted 10%).

Yeah, I met a reasonably intelligent EA once. Only once though.

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Amid all the speculation, here's my version of the truth:

The immediate prelude/aftermath of HIPS is unpredictable.

The likelihood is that it will start off in a pretty chaotic state, leading to much gleeful "I told you so" posting on this board.

A few months later it will all have bedded in and settled down, and buyers/sellers and EAs will have just got used to the idea.

We don't like change much in this country, and we like to think that it will lead to slaughter in the streets, but when change happens, we realise that we're pretty adaptable really.

Within 6 months of introduction, it won't even be discussed.

Edited by brassfarthing

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HIPS + getting a proper survey/searches anyway + stamp duty + legals + high prices = long term stalemate, people simply won't have the money to move nearly as much as they have in the past.

Much less reason to have an agent at all once a reasonable amount of material is made available directly.

I can see why agents don;t liek HIPS.

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Most EA's will be paying for HIP's anyway and then adding it to their bill at the end.

It's just going to mean people will not be able to negotiate on the EA's fees as much as before.

Surely that's pretty dodgy? If the EA handles getting the HIP done and pays for it, surely that opens up massive scope for backhanders with friendly surveyors etc?

Wait a minute ... that's already the case. Silly me.

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Hang on a minute, slapping £1k on the average asking price each and every week is a good thing and entirely sustainable, but adding a one off £600 surcharge will tank the market?

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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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