ScaredEitherWay Posted August 20, 2007 Share Posted August 20, 2007 (edited) At the supermarket there is a free property magazine. 104 pages of property for sale. So I picked one up. One of the advertisers has booked a single page, but has used the whole centre of their A4 page to say: "Competing in a Today's Buyers Market"The number of properties available, in relation to the number of buyers, is at a high level. This greater selection of properties to choose from is prompting buyers to be increasingly selective and cautious before settling on the "right" property. If you are selling, this puts a huge onus on you to ensure that your property outshines the others that are competing for your buyers' affections. This is not the time to listen to the fawning estate agent who tells you what you want to hear, particularly in relation to your asking price, in order to secure your "valued instruction". If your property is going to look good next to the others that are available, then pricing not only has to be correct - it has to be attractive. Likewise, if your property is slightly better than others on the market, don't offset this by quoting a slightly higher price! In order words, make your property the best ion the market when compared to others at the same price, and the best-priced property when compared to others of the same size/location/condition. Finally, listen to your agent's advice. Only they have a good handle on buyers' immediate requirements and, importantly, vital buyer information as to what else they have seen and how it compares with yours. Edited August 20, 2007 by ScaredEitherWay Quote Link to comment Share on other sites More sharing options...
Cogs Posted August 20, 2007 Share Posted August 20, 2007 Are you sure it was really an estate agent and not someone attempting to spook the market? I don't really see how it would be in an estate agent's interest to advertise to the public that it's a buyer's market at the moment - surely that could help to drive down prices and therefore commision? Its an advert for "Estate Agency" itself I think. Falling prices might mean lower commission, but Tecsos and various internet services mean no commission. I think this is how they are going to play any fall in prices - "In a falling market you need an expert" sort of idea. Quote Link to comment Share on other sites More sharing options...
ScaredEitherWay Posted August 20, 2007 Author Share Posted August 20, 2007 Are you sure it was really an estate agent and not someone attempting to spook the market? I don't really see how it would be in an estate agent's interest to advertise to the public that it's a buyer's market at the moment - surely that could help to drive down prices and therefore commision? Yes, definitely. It is an A4 glossy property magazine, free at supermarkets. This is an estate agent. Round this they had the usual houses for sale adverts. This is the agent: http://www.meadowvaleestateagents.co.uk/ Quote Link to comment Share on other sites More sharing options...
the end is a bit nigher Posted August 20, 2007 Share Posted August 20, 2007 Are you sure it was really an estate agent and not someone attempting to spook the market? I don't really see how it would be in an estate agent's interest to advertise to the public that it's a buyer's market at the moment - surely that could help to drive down prices and therefore commision? high prices in a falling market = no sale = no commission at all set expectations early - they are going to get less than they dreamt their precious little pad was worth Quote Link to comment Share on other sites More sharing options...
huw Posted August 20, 2007 Share Posted August 20, 2007 Are you sure it was really an estate agent and not someone attempting to spook the market? I don't really see how it would be in an estate agent's interest to advertise to the public that it's a buyer's market at the moment - surely that could help to drive down prices and therefore commision? An EA makes his living from completed transactions, more than from inflated prices. In recent years they've been encouraging high valuations primarily in order to persuade vendors to sign with them -- it's a competitive market in which the EA who refuses to list at an over-optimistic valuation will simply not get the business. So they list at whatever the vendor wants, hoping either to find a mug who will pay, or that the vendor will be prepared to drop the price after a few months. I expect them to become increasingly realistic as the crash unfolds; I got a hint of this when selling a house in 2005 when things seemed to be slowing down, one EA was clearly hungry and wanted me to list at well below par (considering what else he had on his books). Quote Link to comment Share on other sites More sharing options...
eightiesgirly Posted August 20, 2007 Share Posted August 20, 2007 It's all about volume, pile 'em high, sell 'em cheap. Quote Link to comment Share on other sites More sharing options...
house.mc Posted August 20, 2007 Share Posted August 20, 2007 An EA makes his living from completed transactions, more than from inflated prices. In recent years they've been encouraging high valuations primarily in order to persuade vendors to sign with them -- it's a competitive market in which the EA who refuses to list at an over-optimistic valuation will simply not get the business. So they list at whatever the vendor wants, hoping either to find a mug who will pay, or that the vendor will be prepared to drop the price after a few months.I expect them to become increasingly realistic as the crash unfolds; I got a hint of this when selling a house in 2005 when things seemed to be slowing down, one EA was clearly hungry and wanted me to list at well below par (considering what else he had on his books). The estate agents have been one of the prime instigators of the HPI, its only fair they suffer a little on the way down. Anyway they would just have to sell their BMW X5 and company mini's to keep going through the hard times. More seriously, backing in 2003/4 estate agents were routinely charging 1% (northwest) now in my area on mass they are all charging identical figures just at 1.5%. Quote Link to comment Share on other sites More sharing options...
headmelter Posted August 20, 2007 Share Posted August 20, 2007 The estate agents have been one of the prime instigators of the HPI, its only fair they suffer a little on the way down. Anyway they would just have to sell their BMW X5 and company mini's to keep going through the hard times. More seriously, backing in 2003/4 estate agents were routinely charging 1% (northwest) now in my area on mass they are all charging identical figures just at 1.5%. You'll soon be able to sell at Tesco for £199. Let's see if it's 1.5% then . Quote Link to comment Share on other sites More sharing options...
huw Posted August 20, 2007 Share Posted August 20, 2007 The estate agents have been one of the prime instigators of the HPI, its only fair they suffer a little on the way down. Anyway they would just have to sell their BMW X5 and company mini's to keep going through the hard times. Well, I've sold several properties in my life and while some EAs have tried to dazzle me with inflated promises, most have been straight with me (and those are the ones I've used). Think about it: 10k or 20k more or less makes very little difference to them @ 1.5%. The crucial thing for them is to close the sale, the next thing is to get the best deal for their client (the vendor). That's their job. One reason I'm less negative on EAs may be that I've always dealt with experienced local agents, and avoided the places full of brash youths in dodgy suits. Also, I understand that easy credit is at the root of the HPI problem, not any particular group of market participants. Quote Link to comment Share on other sites More sharing options...
HPC Convert Posted August 20, 2007 Share Posted August 20, 2007 Well, I've sold several properties in my life and while some EAs have tried to dazzle me with inflated promises, most have been straight with me (and those are the ones I've used). Think about it: 10k or 20k more or less makes very little difference to them @ 1.5%. The crucial thing for them is to close the sale, the next thing is to get the best deal for their client (the vendor). That's their job.One reason I'm less negative on EAs may be that I've always dealt with experienced local agents, and avoided the places full of brash youths in dodgy suits. Also, I understand that easy credit is at the root of the HPI problem, not any particular group of market participants. Agreed. Prices mean nothing to EA - its all volume. Even in central london they dont care about prices. A house selling for £800k gets them £12k. If it sells for £1 million they get £15k. However if the market falls to £600k they still pick up £9k. Its the same number of calls and photos and such like - as long as they have volume they are happy. Its the drop in sales while markets re-adjust that they hate. Turn off the gas and they are screwed. Quote Link to comment Share on other sites More sharing options...
OverInflated Posted August 21, 2007 Share Posted August 21, 2007 Many of the people working at the estate agents havent experienced a crash or recession, they only remember prices going up. I was speaking to one a while back and he said he isnt too worried, they have had slow periods before, its only a matter of time before things pick up again. He cant see things dropping for more than a couple of months, six months tops. I asked how he would cope if prices dropped for a year, 2 years, 3 years with hardly any house sales. He laughed and said that is just wishful thinking on the buyers part and its not going to happen. I asked why it wont happen, he said 'There are too many people who have too much to lose if it did, they won't let it happen.' He couldnt tell me who they are though Quote Link to comment Share on other sites More sharing options...
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