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George

I Blame Estate Agents

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Prics are -1% in the last quarter

http://news.bbc.co.uk/1/shared/spl/hi/in_d...s/html/30un.stm

Work out for yourselves what the real value is...

then offer 20% less!

http://www.houseprices.co.uk/e.php?q=+Cord...ourt%2C+Chorley

1 17/12/2005 £91,950 Flat L Yes Map 7, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

2 24/06/2005 £159,950 Flat L Yes Map 20, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

3 23/06/2005 £159,950 Flat L Yes Map 8, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

4 17/12/2004 £91,950 Flat L Yes Map 17, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

5 17/12/2004 £117,950 Flat L Yes Map 10, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

6 17/12/2004 £122,950 Flat L Yes Map 18, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

7 16/12/2004 £89,950 Flat L Yes Map 11, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

8 15/12/2004 £112,450 Ter. F Yes Map 3, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

9 14/12/2004 £118,950 Flat L Yes Map 23, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

10 10/12/2004 £89,950 Flat L Yes Map 12, Cordwainers Court, Buckshaw Village, Chorley, Lancashire, PR7 7AT

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Careful what you say about estate agents on here, mate.

One down my way valued and advertised at garage £20000 when an identical(In the same row in fact)one was sold for £8500 only a week before.(An estate agents decetion)

The agent will just sit back and wait for a mug, while the vendor lingers thinking himself richer than he might be.

My last post says that this flat had been sold, but I’ve noticed no movement on it lately.

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Estate agents make me sick. They have no qualification and aren't regulated. And yet can deteremine market prices.

There's me thinking it was the closing of a deal between buyer and seller after a competant marketing procedure that determined the market price, but no, I was wrong, it's the estate agent who fixes the price and everyone else has to go along with it.

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EA do not determine prices, only the market can do that!

Pablo Silver or Lead?

There are good and bad EA's. I avoid one EA (national chain) like the plague. They price very highly and have very pushy salesmen who do not know the meaning of the word truth. The will agressively spin BS in reply to any simple question. The bad EA's usually have kite flying sellers and agressive salesmen who hound naieve buyers. - best avoided.

On the other hand, I know a couple of good local independant agents who are honest and easy to deal with and will probably buy from one of them. They are also honest about the sellers position, price negotiation and generally price there properties to sell.

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No, they don't - they can only sell a house for what someone is prepared to pay.

This is the crux of the arguement. Mildura IS correct.

The problem is, you can PRICE TO SELL or PRICE TO SPECULATE.

I think with the internet nowadays, its easy to find sold prices where as years ago the EA was the 'BE ALL and END ALL'. They TOTALLY controlled the market. I dont feel they can do that nowadays because they get FOUND OUT as your example shows. The problem over the BOOM period, is there are far more EA's than ever before and a lot of them have just tried their luck. This has cause ALL EA's to do the same to compete.

The gamble with going for a high price is your house stagnates. Even when you drop it, people think nahhh... its overpriced. The reason is not so much the price mind. The asking price is irrelevant IF the house is HIGHLY DESIRABLE. There is a house right by me - on a busy road - have to wait 15 minutes to back onto this road to get your car out!!! Its up for £240K. The real price for the area is about £200-210K. If this house was up for £200K then I dont believe people will buy it anyway - there is a lot better for your money. If they made the house DESIRABLE then they might sell.

People know my views on the EA industry. It is full of crooks and con-men. The 'decent' EA's have no choice but to follow suit to compete for instructions. When housing is 'out of fashion' the market will change dramatically!

TB

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If prices are determined by the market, then this is governed by the old fashioned concept of supply and demand. If as I am told there is an adequate supply of homes. Ie estate agents are full of them Why aren’t they cheap? And why does this universal rule apply if nobody is influencing it?

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you really don't understand how the housing market operates do you?

Care to clarify? The law of demand states that when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises. How does this pricing methodology reflect this compared to the other price? In marketing this is called "prestige pricing", Smirnoff do it, because they believe their product is of premium quality. I see no distinction between the two idetikit flats. Don't tell me the EA uses demand curves...

I should have said "set" prices. But above all they do control prices, because consumer knowledge is low. Maybe if we had a perfect economy :rolleyes: we wouldn't get ripped off. Estate Agents, drink tea, put the house in their window and guestimate what someone would pay.

This is the crux of the arguement. Mildura IS correct.

The problem is, you can PRICE TO SELL or PRICE TO SPECULATE.

I think with the internet nowadays, its easy to find sold prices where as years ago the EA was the 'BE ALL and END ALL'. They TOTALLY controlled the market. I dont feel they can do that nowadays because they get FOUND OUT as your example shows.

This is a good point. The internet has reduced information asymmetry. Before the internet, information would be regarded as asymetrical; that is the seller, or "agent" in this case has more bargaining power, due to more knowledge about the product and rivals pricing; whereas the consumer wouldn't have this at hand. The internet has a role reversal effect, with the consumer know having more bargaining power. The ability to "shop around" is greater.

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If prices are determined by the market, then this is governed by the old fashioned concept of supply and demand. If as I am told there is an adequate supply of homes. Ie estate agents are full of them Why aren’t they cheap? And why does this universal rule apply if nobody is influencing it?

demand is falling and prices havent risen for 2 years, there are alot less morgages taken out to buy property today than 4 years ago

Loans accross the uk

http://www.housepricecrash.co.uk/forum/ind...showtopic=32071

Transaction quantities in birmingham :

http://www.home.co.uk/guides/house_prices_...ngham&all=1

Edited by moosetea

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Care to clarify? The law of demand states that when the price of a good rises, the amount demanded falls, and when the price falls, the amount demanded rises. How does this pricing methodology reflect this compared to the other price? In marketing this is called "prestige pricing", Smirnoff do it, because they believe their product is of premium quality. I see no distinction between the two idetikit flats. Don't tell me the EA uses demand curves...

EA's have a legal obligation to try and obtain the highest possible price for their clients (the seller)

This is used to extreme's by some EA's who go outside of realistic pricing.

But, as has already been mentioned, the market dictates sale prices, not EA's. EA's have a good deal of input into asking prices but, in my experience, if a price is too high no-one views which results in no offers therefore the market finds it's natural level.

AN EA cannot forcea buyer to offer a particular amount so it is difficult in my view to single them ot as being to blame for the current high prices!

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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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