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Local Ea Says: " I Wouldn't Buy...

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Here's my latest anectdotal...

In a bid to see how the market is fairing, I've just come back from a viewing on a terraced house in the South-East. After taking looking around the aforementioned "pile of tat", I duly informed the EA that the property was vastly overpriced. i.e. from an investment prospective; less than 3% rental yield - excluding fees, bills, agent fees, etc, etc.

Expecting a glip retort, the EA infact surpassed all expectations by providing a seemingly honest response on the local market. It included:

i) "Things have definitely slowed down."

iii) "I wouldn't buy a flat in this area unless it was at least 30% under market value." (I thought: surely you mean asking price?! :rolleyes: )

iii) "Why not just put in a low offer - you never know." (do I look crazy?! :wacko:)

Edited by studdymx

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iii) Why not just put in a low offer - you never know. (do I look crazy?! :wacko:)

Why not? make an offer of 30% less than asking price and tell them the cost of borrowing has gone up by 28% since last year. It is just fair to protect yourself from future rate rises & high risk of HPC.

Time to wake some muppets up to reality :lol:

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You're looking at a terrace so EA tells you what a terrible buy flats are so you want to buy the terrace. Pretty obvious sales pitch really.

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Here's my latest anectdotal...

In a bid to see how the market is fairing, I've just come back from a viewing on a terraced house in the South-East. After taking looking around the aforementioned "pile of tat", I duly informed the EA that the property was vastly overpriced. i.e. from an investment prospective; less than 3% rental yield - excluding fees, bills, agent fees, etc, etc.

Expecting a glip retort, the EA infact surpassed all expectations by providing a seemingly honest response on the local market. It included:

i) "Things have definitely slowed down."

iii) "I wouldn't buy a flat in this area unless it was at least 30% under market value." (I thought: surely you mean asking price?! :rolleyes: )

iii) "Why not just put in a low offer - you never know." (do I look crazy?! :wacko: )

I can understand why he said that.

The amount of newbuild flats unsold,unlet.

The amount of flats still being built.

The amount of flats trying to be offloaded by investers and BTLers.

The market is saturated.

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Why not? make an offer of 30% less than asking price and tell them the cost of borrowing has gone up by 28% since last year. It is just fair to protect yourself from future rate rises & high risk of HPC.

Time to wake some muppets up to reality :lol:

2 true - you make a good point.

A similar property on the same street went for £35k less back in December 2006 - so why on earth do they expect me to pay an extra £35k + 28% extra on borrowing - when my rent hasn't changed over the last 2 years. :lol:

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Guest d23
Here's my latest anectdotal...

In a bid to see how the market is fairing, I've just come back from a viewing on a terraced house in the South-East. After taking looking around the aforementioned "pile of tat", I duly informed the EA that the property was vastly overpriced. i.e. from an investment prospective; less than 3% rental yield - excluding fees, bills, agent fees, etc, etc.

Expecting a glip retort, the EA infact surpassed all expectations by providing a seemingly honest response on the local market. It included:

i) "Things have definitely slowed down."

iii) "I wouldn't buy a flat in this area unless it was at least 30% under market value." (I thought: surely you mean asking price?! :rolleyes: )

iii) "Why not just put in a low offer - you never know." (do I look crazy?! :wacko:)

Here's my latest anecdotal...

In a bid to see how the market is fairing, I've just come back from my crack dealer in Hackney. After taking looking at his enormous stash of crack cocaine I duly informed the dealer that his drugs were vastly overpriced. i.e. from an investment prospective; theres less than 3% markup when selling to the local school kids in a market already swamped with oversupply

Expecting a glib retort, the dealer in fact surpassed all expectations by providing a seemingly honest response on the local market. It included:

i) Demand has definitely slowed down; Affordability has gone down the toilet now what with 8% hoody inflation and Nike pushing up their prices on trainers. The US crack market is suffering and it's only a matter of time before that spreads across the Atlantic.

iii) "I wouldn't buy a rock of crack in this area unless it was at least 30% under market value."

iii) "Why not just offer me £20K a kilo - you never know"

These moments of sincerity from drug dealers and EA's seem all too common on this forum; i'm sure that’s a very accurate reflection of the integrity of both these professions :rolleyes:

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You're looking at a terrace so EA tells you what a terrible buy flats are so you want to buy the terrace. Pretty obvious sales pitch really.

Is that why he said: "Why not just put in a low offer - you never know"?

In short, the current housing market doesn't even stack up for the cash-rich investor, who could buy the property outright.

The housing market, like any other market, is still dependent on two things:

i) the fundamentals

ii) human behaviour never changes.

IMHO, a correction is in the air - to think otherwise is downright idiotic at best.

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You're looking at a terrace so EA tells you what a terrible buy flats are so you want to buy the terrace. Pretty obvious sales pitch really.

i fully agree with the above and i'm as bearish as you get.. you've misinterpreted events!

no estate agent would tell you that property is 30% overvalued. that's just not what they are there for!

Edited by nowthenagain

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Here's my latest anecdotal...

In a bid to see how the market is fairing, I've just come back from my crack dealer in Hackney. After taking looking at his enormous stash of crack cocaine I duly informed the dealer that his drugs were vastly overpriced. i.e. from an investment prospective; theres less than 3% markup when selling to the local school kids in a market already swamped with oversupply

Expecting a glib retort, the dealer in fact surpassed all expectations by providing a seemingly honest response on the local market. It included:

i) Demand has definitely slowed down; Affordability has gone down the toilet now what with 8% hoody inflation and Nike pushing up their prices on trainers. The US crack market is suffering and it's only a matter of time before that spreads across the Atlantic.

iii) "I wouldn't buy a rock of crack in this area unless it was at least 30% under market value."

iii) "Why not just offer me £20K a kilo - you never know"

These moments of sincerity from drug dealers and EA's seem all too common on this forum; i'm sure that’s a very accurate reflection of the integrity of both these professions :rolleyes:

£20k a kilo? bargain! :lol:

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i fully agree with the above and i'm as bearish as you get.. you've misinterpreted events!

no estate agent would tell you that property is 30% overvalued. that's just not what they are there for!

I agree (in part), but even to get an EA to concede House Prices are starting to crack would've been unthinkable 12 months back.

Edited by studdymx

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I agree (in part), but even to get an EA to concede House Prices are starting to crack would've been unthinkable 12 months back.

true. it is indicative of the swing in sentiment if only meant as a rather feeble effort at selling you the house.

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I agree (in part), but even to get an EA to concede House Prices are starting to crack would've been unthinkable 12 months back.

Is the EA not trying to protect his revenue stream by earning more than £0 this month by advising buyers to put in offers that they are very unlikely to pull out of if they got a bite?

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I agree (in part), but even to get an EA to concede House Prices are starting to crack would've been unthinkable 12 months back.

I agree fully on the point of EA having to concede that prices are starting to crack.

The estate agent only makes money on sales, when the market stagnates like it is doing now he is not making any money,Therefore he has to try and encourage sales whichever direction in HPI he can and at the moment i don,t think he will have many sales talking HPI up.The EA is not trying to help you so much ,but trying to help himself.

Edited by TIMSY

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I agree fully on the point of EA having to concede that prices are starting to crack.

The estate agent only makes money on sales, when the market stagnates like it is doing now he is not making any money,Therefore he has to try and encourage sales whichever direction in HPI he can and at the moment i don,t think he will have many sales talking HPI up.The EA is not trying to help you so much ,but trying to help himself.

Exactly.

EA's are salesmen and I have not met a salesman yet who wouldn't sell his own grandmother for vivisection if there was a bonus in it for him.

Like I've said a few times on here: when the market turns make no mistake:

All your EAs are belong to US!

(typo edit)

Edited by adren

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Exactly.

EA's are salesmen and I have not met a salesman yet who wouldn't sell his own grandmother for vivisection if there was a bonus in it for him.

Like I've said a few times on here: when the market turns make no mistake:

All your EAs are belong to US!

(typo edit)

At a fundamental level, EAs always have to pander to the minority; be that buyers or sellers.

This anecdote just goes to show, there aren't enough buyers - with good reason, prices are too high!

(edit: typos)

Edited by studdymx

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In a seller's market, the EA is the "friend" of the seller.

In a buyer's market he/she is the "friend" of the buyer.

It's the only way to maintain some income, keep the most important person happy.

We were shown round an overpriced house in a nearby area about a month ago, and the EA (who was Italian, so maybe that's the reason for the behaviour) was slagging off the decor something rotten. "In Italy, we would not have this" etc.

We didn't make an offer and it is still on the market a couple of months later for the same amount, no buyer.

Probably waiting for the market to catch up with the price, which of course will mean waiting about 18 years in this case. :)

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