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MrMarket

Ea Bashing Is Over - They're On Our Side Now

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I've been watching this housing slowdown unfold for a while on this site now, but thought I'd make my first post as things are finally starting to get interesting.

Has anyone else noticed the interesting change in sentiment in the last week?

EAs are now starting to TALK THE MARKET DOWN. For example, from the Times this week: "Savills, the property agency, has given warning of sharp price falls for multi-million-pound Central London flats and houses this year and next, reversing a forecast made last autumn. "

EAs make their money on volume more than absolute price levels, it's a brokerage business. For the past 6 years they've irresponsibly built volume by talking the market up and whipping the public into a buying frenzy. Suddenly that doesn't work anymore. Now the only way they can save their BMWs and Mini Coopers is to talk it down - and quickly - in a vain hope this encourages sales. Expect more EAs to follow suit across the board with headlines about "sellers being unrealistic, etc" (the irony).

I really think we've reached the tipping point now. Expect the EAs to become the biggest bears out there! - and not just the ones that lose their jobs.

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you could be right , MrMarket .

Another sign is the way that I keep reading , in the papers , about the housing market slowdown , not just on the financial pages either .

It seems to me that the slowdown(crash ?) is becoming firmly implanted in the collective phyche

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I've been watching this housing slowdown unfold for a while on this site now, but thought I'd make my first post as things are finally starting to get interesting.

Has anyone else noticed the interesting change in sentiment in the last week?

EAs are now starting to TALK THE MARKET DOWN. For example, from the Times this week: "Savills, the property agency, has given warning of sharp price falls for multi-million-pound Central London flats and houses this year and next, reversing a forecast made last autumn. "

EAs make their money on volume more than absolute price levels, it's a brokerage business. For the past 6 years they've irresponsibly built volume by talking the market up and whipping the public into a buying frenzy. Suddenly that doesn't work anymore. Now the only way they can save their BMWs and Mini Coopers is to talk it down - and quickly - in a vain hope this encourages sales. Expect more EAs to follow suit across the board with headlines about "sellers being unrealistic, etc" (the irony).

I really think we've reached the tipping point now. Expect the EAs to become the biggest bears out there! - and not just the ones that lose their jobs.

This has always been the case.

They didnt talk the market up at all, they had 10 buyers for each property and it went to the highest bidder.

Estate Agents are salesmen, it really does beat me how people think being an estate agent is some sort of profession that is to be admired. When the Estate Agents lose their jobs you will see them on the road selling shower curtain hooks.

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No - just heard the head of the NAEA ramping like he's sieging Massada on radio 4.

"10% drops? No, no, nothing like that"

Wenker.

If the organisation you worked for was having difficulty, would you go on radio and tell your customers ?

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EAs must be desparate by now.

Theyve had 9 months of falling volumes.

They are relying for their very survival on a spring bounce.

They MUST encourage sales. So the stats will show a drop and EAs will encourage and advise accordingly.

The mouthpiece (NAEA) will tell potential BUYERS that drops are not so bad, so they HAVE fallen 10%, you will make an offer under that expecting a FURTHER 5%, and hey, the buyer is a winner.

So they are already admitting a 20% drop from the peak.

Half price houses- coming to a street near you.

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If the organisation you worked for was having difficulty, would you go on radio and tell your customers ?

True laurejon. He sounded so smug though it was galling - like listening to a Nulabour politician saying "It is right and proper" or "Let's have a discussion" etc.

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True laurejon. He sounded so smug though it was galling - like listening to a Nulabour politician saying "It is right and proper" or "Let's have a discussion" etc.

The problem is that we all have to earn a living, I know in my own job there are many things that probably need saying but to say it would be employment suicide, for life.

Banks are the same, they too have things that are internal and it would be a very foolish person that disclosed such information.

In most profession jobs we are tied to non disclosure agreements, and anything we say externally has to go through many people to be sanitised before it is released.

Annoying as it is, we have to make our judgements taken from the rumour mill coupled with our own feelings.

To be frank, I think the price of property will show a marked correction, maybe up to 40% however Joe Public will not be offered finance to purchase what would appear to be bargains.

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No - just heard the head of the NAEA ramping like he's sieging Massada on radio 4.

"10% drops? No, no, nothing like that"

Wenker.

Perhaps the agent's ploy is not to let sellers know the bad news, give them a bit of confidence that they can sell the house at a good price, before coming in with a lower valuation. This may work if the seller hasn't been looking at the Road data on the Land Registry website or if there are no recent sales to compare with. But the plain fact is, asking prices now need to be 15% off August to have even half a chance of selling.

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...Miles Shipside, commercial director of Rightmove, said: "Most sellers seem to be ignoring the increased competition from unsold properties and the challenge buyers now face in obtaining a mortgage. Sellers should price below their competition to achieve more interest now and avoid a larger price drop later in the year."

Rightmove are a VI... in the bears direction.

Spreading Fear, Uncertainty and Doubt.

Edited by 2MeterBear

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This has always been the case.

They didnt talk the market up at all, they had 10 buyers for each property and it went to the highest bidder.

Estate Agents are salesmen, it really does beat me how people think being an estate agent is some sort of profession that is to be admired. When the Estate Agents lose their jobs you will see them on the road selling shower curtain hooks.

Estate Agents are salesmen, yes that's correct, but don't deride the salesman, every other organisation and community has salesmen, to help it survive. Shower curtain hook companies have reps, schools have governers, governments have politicians, normal people selling houses have estate agents.

I would argue that the salesman is the most honest of professions in our society. Whether is be houses or curtain hooks, to deride them is hippocrisy as everyone who isn't a salesman needs one to help them survive.

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To be frank, I think the price of property will show a marked correction, maybe up to 40% however Joe Public will not be offered finance to purchase what would appear to be bargains.

Absolutely righ laurejon. When prices fall to bargain basement levels people will be too frightened to put in thir equity for fear of losing it all and the bansl will be too frightened to pend the rest of the purchase price for fer of losing it all. Fear will feed on fear and only the brave will make serious money.

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Estate Agents are salesmen, yes that's correct, but don't deride the salesman, every other organisation and community has salesmen, to help it survive. Shower curtain hook companies have reps, schools have governers, governments have politicians, normal people selling houses have estate agents.

I would argue that the salesman is the most honest of professions in our society. Whether is be houses or curtain hooks, to deride them is hippocrisy as everyone who isn't a salesman needs one to help them survive.

I would not say they are the most honest, an honest salesman would not get past the first interview.

A salesmans job is to get the best price he can for his product, its as simple as that and I dont see anything wrong with that its business.

If anyone here has worked in a sales environment they will know you are only as good as your last sale, you have few friends, and your weekly sales meetings would have most people in tears with aggressive tactics by management pushing the goalposts ever further forward for you to hit your targets.

Sales is a tough and thankless job, but the rewards are very high for those who have the nack.

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No - just heard the head of the NAEA ramping like he's sieging Massada on radio 4.

"10% drops? No, no, nothing like that"

It was worse, he was denying that there were 10% drops from asking prices (it may have been average 10% off asking prices, I can't remember). That was a gross disservice to his members who seem to be stuck with unrealistic buyers who need every bit of prompting that they can get. If I were a member of his organisation I would be asking for some of my subscription back for that counter-productive comment.

By the way I like the classical allusion, HPC needs more of those.

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Yep, agreed, sales is tough. Everyone needs to thank their paycheque that the world has salesmen. I think the problem we've had with the EA variety is lack of regulation. If a salesmen has to conform to certain principles then there will be less room for abuse in their quest for profit.

Edited by bobby9983

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No - just heard the head of the NAEA ramping like he's sieging Massada on radio 4.

haha :lol:

Wonder if thats out on DvD yet... ;)

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Estate Agents are salesmen, yes that's correct, but don't deride the salesman, every other organisation and community has salesmen, to help it survive. Shower curtain hook companies have reps, schools have governers, governments have politicians, normal people selling houses have estate agents.

I would argue that the salesman is the most honest of professions in our society. Whether is be houses or curtain hooks, to deride them is hippocrisy as everyone who isn't a salesman needs one to help them survive.

Yes, but don't forget salesmen do lie to sell shoddy and even dangerous goods to anyone they can. They have one allegiance to themselves to make as much money as they can by selling whatever product they have got. Even if its drugs that kill people, cars that fall apart or houses that are ramped up in price and may be falling down/flooded in weeks. Certainly not the 'most honest of professions', although a very important cog in the wheels of capitalism.

Edited by shouter

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I reckon estate agents are moving to plan B.....Pile 'em high and sell 'em cheap. The high pile is already there waiting to be sold cheap.

Pity they aren't doing a bit more! I've been trying to set up some house viewings for tomorrow and none of the ones in Wilts / Somerset seem to be open!

Why buy now, you may ask - well I'm about to turn 60; and as I don't come from a long-lived family, I'm not disposed to spend the next 5 years in rather unsatisfactory accommodation waiting for the bottom. Wherever we next move to, that's it for 20 years!

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Yes, but don't forget salesmen do lie to sell shoddy and even dangerous goods to anyone they can. They have one allegiance to themselves to make as much money as they can by selling whatever product they have got. Even if its drugs that kill people, cars that fall apart or houses that are ramped up in price and may be falling down/flooded in weeks. Certainly not the 'most honest of professions', although a very important cog in the wheels of capitalism.

I think you should re-phrase that as 'some salesmen'. Just like some;

Accountants lie on their clients behalf so they pay avoid tax.

Barristers lie on their clients behalf so they avoid sentencing.

Doctors manipulate treatment statistics to meet hospital targets.

Teachers just teach kids how to pass exams rather than educate to meet school targets.

Politicians lie and spin their way into government.

There are always some people who lie, it's a trait of weak human beings. I am a salesman and I have never once sold anything that I do not deem is appropriate for my client or, that I either do not own or would not consider owning myself.

I's be interested to hear what everyone else does on this forum. I doubt anyone can say they would be in a job if it weren't for someone selling at some point down the supply chain. Even housepricecrash.co.uk is sold through the media, I mean how did I end up here wasting my valuable time positing this if I hadn't been sold that it was a good idea?

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I think you should re-phrase that as 'some salesmen'. Just like some;

Accountants lie on their clients behalf so they pay avoid tax.

Barristers lie on their clients behalf so they avoid sentencing.

Doctors manipulate treatment statistics to meet hospital targets.

Teachers just teach kids how to pass exams rather than educate to meet school targets.

Politicians lie and spin their way into government.

There are always some people who lie, it's a trait of weak human beings. I am a salesman and I have never once sold anything that I do not deem is appropriate for my client or, that I either do not own or would not consider owning myself.

I's be interested to hear what everyone else does on this forum. I doubt anyone can say they would be in a job if it weren't for someone selling at some point down the supply chain. Even housepricecrash.co.uk is sold through the media, I mean how did I end up here wasting my valuable time positing this if I hadn't been sold that it was a good idea?

What do you sell...............and please please dont tell me its cars.

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Pity they aren't doing a bit more! I've been trying to set up some house viewings for tomorrow and none of the ones in Wilts / Somerset seem to be open!

From my observations in the above area, when they are open (like Easter Saturday) they were empty.

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In the "salesman I wouldn't ever like to be" stakes, I can't decide on which is worse:

  • Being an EA in 2008, and unable to sell anything because vendors won't budge from unrealistic asking prices, or
  • Being a Rover dealer in 2005, and getting told that I've got to convince people to buy... a CityRover :lol:
Edited by Sir Talbot Avenger

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  • 297 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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