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Why Does Everbody Knock Estate Agents?

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It seems that most Estate Agents are actually full time economists

Flogging houses is just a sideline

Until recently every Estate Agent would venture an opinion on interest rates and confidently explain to the their customers the trends in interest rates (invariably going down)

The recent quarter point may do little in monetary terms, but it will undermine the ‘economic’ advice given out by Estate Agents, especially with another publicised rate increase, in the pipeline

When you consider the vast majority of house sales eminent from EA’s, this removes a major piece of VI spin, that has been influencing millions of people over the last few years

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Much like the interview I heard on the radio the other day when the head of the EA association was wheeled out to discuss the state of the housing market in the light of rate rises and huge 7 times earnings mortgages. Naturally all was fine and the boat was leaving the dock so hurry on down and buy now before.......

Very much like inviting the Turkey on to talk about Christmas dinner.

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well given the choice of listentng to:

1)warren buffet,george soros,the IMF

or

2)Gordon clown,kirsty allslop,some spotty 18 year old who's only just started shaving.

which option would you take for probably the bigges purchase of your life???

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well given the choice of listentng to:

1)warren buffet,george soros,the IMF

or

2)Gordon clown,kirsty allslop,some spotty 18 year old who's only just started shaving.

which option would you take for probably the bigges purchase of your life???

I totally agree but by underestimating the number of people who follow point (2) there is the potential to miss out on more HPI as they outbid each other... and if / when it does finally end with a mini crash you may not be any better of than following the advice of (1).

You just want to aviod being the greatest fool.

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I agree. I posted on the singing piggy last year about the upside inflation risk and was batted down by Mr Mortgage (who is a real life mortgage broker). Turned out he was wrong. At present he still hasn't replied to my post mentioning this fact. Nevermind, I guess we all make mistakes.

Have some fun. Read the thread.

http://www.singingpig.co.uk/forums/thread/110955.aspx

Quote: Mr Mortgage (Tim@MortgagesSimplified.co.uk)

04 Mar 2006, 7:28 PM

'I still have NO IDEA how you're making the assumption that interest rates will rise.

If inflation continues to fall, you may find the next quarterly report argues more in favour of a cut than not.'

I wonder if he still has NO IDEA as to why the rate actually went up.

One thing I've learnt is that mortgage brokers do not appear to be impartial sources of advice, strangely enough...

:o

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My estate agent is a diamond. Sold both of my last 2 properties in the summer to the first viewer, got the full asking price for the 2nd, without putting even putting it on the market! Knew someone who was looking. A total diamond - worth every penny of his fee!

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My estate agent is a diamond. Sold both of my last 2 properties in the summer to the first viewer, got the full asking price for the 2nd, without putting even putting it on the market! Knew someone who was looking. A total diamond - worth every penny of his fee!

How interesting...

Now why do I have a problem with what you have said??

<_<

My guess is that if your properties sold so quickly, particularly without the second house going on the market then they were underpriced. In which case I wouldn't be so quick in calling the estate agent a diamond.

Something fishy about this. What does everybody else think?

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Nothing fishy, and I am a lawyer, not an estate agent.

Do you not think that if your properties sold so quickly then they may have been underpriced? Especially if the second home wasn't even tested for a response in open market?

<_<

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No they both accorded with my valuations

That doesn't quite make the fishy smell go away.

Even if the sold prices did equate with your valuations, it is still a concern that if two properties sell exceptionally rapidly that they may have been underpriced. In addition your valuations may have been suboptimal. Most people selling houses test the market first. I do know a number of estate agents initially tack on additional 10-20k to their valuations just to see who gets dragged in during the first month or two.

Well who knows? You may well have had luck on your side. Maybe my nose is just being overly sensitive to fishyness today...

Anybody else have any thoughts?

:)

Edited by werewolves

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I agree. Without exposing your property to the open market, you have no idea if the price is fair. How can you know if your valuation reflects what some crazed buyer might pay?

Selling before marketing only benefits the estate agent: he doesn't have the effort and expense of going to the open market. And he can kill two birds with one stone, closing the buyer's chain, netting multiples of commission.

You've been had, mate.

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I agree. I posted on the singing piggy last year about the upside inflation risk and was batted down by Mr Mortgage (who is a real life mortgage broker). Turned out he was wrong.

To my way of thinking an EA or mortgage broker claiming to have any idea of where rates are going is like a fishmonger speculating on the price of the diesel that powers the trawlers.

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My estate agent is a diamond. Sold both of my last 2 properties in the summer to the first viewer, got the full asking price for the 2nd, without putting even putting it on the market! Knew someone who was looking. A total diamond - worth every penny of his fee!

My property sold in a similar fashion - I also bought it from the same agent, and it didn't appear in any of their marketing so I think its common practice to sell property by the back door as to an EA, 1.5% of 10,000 isn't that much and they would rather do volume than highest value sales all the time. For example, if your EA has you registered and has valued your property but hasn't marketed your property for one reason or another, and they have it down as selling quickling (in their own minds) at £99950 - their commission is £1500 or thereabouts. If you see other similar property up for £115,000 then their loss is £200 or thereabouts. Looking at it this way, you can see why they consistently let property go to somebody they "know is looking" for less than the open market rate. To you or me, £15,000 is a big deal, but to an EA, it's small change.

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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% +
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      • Even
      • up 2.5%
      • up 5%



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