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Psychological Battle Between The Punters And Eas

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I think we all know that we are at the top of one hell of a speculative property bubble and the next few years could be interesting......

but why oh why do EAs put on a property, which does not sale, reduce price, does not sale then wait for a few months and then slap £36K on top??

Do they think people are stupid??

Have a look at this, (I was semi interested in putting in an offer last year)

http://www.rightmove.co.uk/viewdetails-861...=1&tr_t=buy

2006 £265K

2006 £259K

2007 £295K!!

This UK market is insane.

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I think we all know that we are at the top of one hell of a speculative property bubble and the next few years could be interesting......

but why oh why do EAs put on a property, which does not sale, reduce price, does not sale then wait for a few months and then slap £36K on top??

Do they think people are stupid??

Have a look at this, (I was semi interested in putting in an offer last year)

http://www.rightmove.co.uk/viewdetails-861...=1&tr_t=buy

2006 £265K

2006 £259K

2007 £295K!!

This UK market is insane.

I wonder what their response would be if you offered 70K less?

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Incidentally on the NI thread we have discovered the fact that you can put "Estate Agents Act" into a property search engine and it shows up which houses are being sold by staff members personally. I don't know if this would work on all property website search engines but it would be a good way to track if the estate agents suddenly start exiting the market on a personal basis.

The estate agents act means they have to declare their personal interest in the sale of the property.

I've seen some properties at auction already that state that.....It might be a sign of things to come?

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Am not an EA, but what I've observed happens in some other cases is -

1. Property offered at price

2. Vendor gets no interest, drops price

3. Property then gets an offer which vendor accepts but changes their mind as they see the property they wish to buy has risen

4. Vendor tells buyer they now need more, buyer refuses to pay more

5. Vendor postpones move until following quarter or year when they return property to market at increased price

either due to real inflation of prices or because the EA who appraised to the highest amount gets the agency contract

6. Property returns to market until sold or withdrawn or cycle above repeats

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Incidentally on the NI thread we have discovered the fact that you can put "Estate Agents Act" into a property search engine and it shows up which houses are being sold by staff members personally. I don't know if this would work on all property website search engines but it would be a good way to track if the estate agents suddenly start exiting the market on a personal basis.

The estate agents act means they have to declare their personal interest in the sale of the property.

And anyone who has read Freakonomics will know better than to try and buy an estate agent's house (prices tend to be higher on average because the ea puts more effort in).

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Guest Shedfish

i think they just apply the headline HPI number from the most bullish report (e.g. rightmove) to their area, regardless of the local market.

this little beauty has been on for years now, and it's been from 130k to 175k and now back down to 159k. it doesn't have a garden.

it's also on for rent at various prices, currently at 550 pm, which implies a more realistic valuation IMO. if it had a garden, and a rental of less than 500 i might consider it, but at those prices it can sit and rot for me, along with all the other overpriced tat...

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Am not an EA, but what I've observed happens in some other cases is -

1. Property offered at price

2. Vendor gets no interest, drops price

3. Property then gets an offer which vendor accepts but changes their mind as they see the property they wish to buy has risen

4. Vendor tells buyer they now need more, buyer refuses to pay more

5. Vendor postpones move until following quarter or year when they return property to market at increased price

either due to real inflation of prices or because the EA who appraised to the highest amount gets the agency contract

6. Property returns to market until sold or withdrawn or cycle above repeats

Another thing I have seen is offer the property at auction. Find the best bid you can get. Refuse to sell and then remarket asking for "Offers in Excess of X" where X is the best bid you got at auction + 10%.

Its an alternative very quick way of 'testing the market'.

Edited by Wad

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EAs aren't intelligent enough to spot a turning point in the market - they just react to what happened 2 weeks / 1 month ago and add a few percent.

I saw Test Britian about 6 months ago - the TV show where they tested the nations IQ and they had a large group of EAs in the studio as one team and Footballers Wives as another - the EAs lost! They have below average intelligence which is of no surprise to most on this web site!

If they knew what they were doing, when to invest and when to sell, they wouldn't be working as EAs now!

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Guest Charlie The Tramp
this little beauty has been on for years now, and it's been from 130k to 175k and now back down to 159k. it doesn't have a garden.

Maybe they should chop the Ivy down, very off putting to a buyer, could be holding the side wall up if those old cast iron cavity ties have corroded, been there, seen it, and cost me £3k. ;)

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Another thing I have seen is offer the property at auction. Find the best bid you can get. Refuse to sell and then remarket asking for "Offers in Excess of X" where X is the best bid you got at auction + 10%.

Its an alternative very quick way of 'testing the market'.

isn't that illegal - I mean when selling at auction, uinless it doesn't meet the reserve, the seller is contractually obliged to go through with the sale?

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I was with some old friends a couple of months back. One's an EA, head of region in London for a large well-known firm. On the topic of house prices he casually told me "look, it's a massive asset bubble that will crash eventually. I wouldn't buy".

I awoke from my coma three weeks later.

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I was with some old friends a couple of months back. One's an EA, head of region in London for a large well-known firm. On the topic of house prices he casually told me "look, it's a massive asset bubble that will crash eventually. I wouldn't buy".

I awoke from my coma three weeks later.

*cough*

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sorry, I only just picked myself up off the floor... you are friends with an... Estate Agent? :o

:lol:

In a few years time it will be the ultimate in "I'm a right-on liberal, I am kind to the oppressed and down-trodden" bragging.

"Actually some of my best friends are EAs. Not all EAs are parasitic scum who helped bring down our economy"

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sorry, I only just picked myself up off the floor... you are friends with an... Estate Agent? :o

I konw one too what I find really amusing is if they do not have price in a given area for a recent valuation/sale they just ring up another branch of another EA and ask what the last one went for...........they are an amazing breed.Seems like they learned all their conveyancing skills (as I have ;)) from this great book me and my friends have used it a lot of times and saved a fortune in Ea and Solicitor fees.Worth its weight in Gold if you are thinking of buying or selling or just interested in how easy property conveyancing is :P and how we are all bieng ripped off.

http://www.amazon.co.uk/Buying-Selling-Con...0621&sr=8-5

Edited by hollogramme

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I think we all know that we are at the top of one hell of a speculative property bubble and the next few years could be interesting......

but why oh why do EAs put on a property, which does not sale, reduce price, does not sale then wait for a few months and then slap £36K on top??

Do they think people are stupid??

NO they KNOW people are stupid! :lol:

I was also told in march that the new tax levy thing House Seller's Report or whatever was going to be shelved, the EA branch had made no preparation for it at all..they were proved to be correct.

Edited by hollogramme

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I think we all know that we are at the top of one hell of a speculative property bubble and the next few years could be interesting......

but why oh why do EAs put on a property, which does not sale, reduce price, does not sale then wait for a few months and then slap £36K on top??

Do they think people are stupid??

Have a look at this, (I was semi interested in putting in an offer last year)

http://www.rightmove.co.uk/viewdetails-861...=1&tr_t=buy

2006 £265K

2006 £259K

2007 £295K!!

This UK market is insane.

In this case I'd blame the sellers telling the EA to mess about with the price, I mean if they think that that conifer is necessary and placed well then I'd believe that they think this tactic will work.

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