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:) Hi everyone i thought that EA's arranged the price of your property,but they are saying that the homeowners are being greedy well that means they will never come down.Sorry to sound so negative but it seems to be taken age's to see some good drops in price's :(

You're mistaken. Estate agents advise, but the asking price is always up to the vendor -- although, of course, the estate agent can refuse to take on a property if they feel that the asking price is unrealistic.

Edited by zorn
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You're mistaken. Estate agents advise, but the asking price is always up to the vendor -- although, of course, the estate agent can refuse to take on a property if they feel that the asking price is unrealistic.

is it possible wrt asking prices that sellers know prices are falling so

they know they will have to knock off at least 10 % ?

so assume they think its worth 150,000 k they will put it on at 170,000 to take account of the discount they know they will have to give,.

that is one explanation for the silly asking prices we are seeing im sure there are others.

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Well, the EA gives a guide as to its value, but the vendor is the one who chooses what it goes on at. The EA may say a place is only worth 200K, but if they vendor saw next door go for what he thought was 240K, he may think that his is worth at least that and demand it go on for 250K (even though 240K would have been the asking price, plus it had a new fitted bathroom and kitchen plus conservatory, brand new double glazing, immaculate decoration bla, bla bla, and his place is dilapidated with years old home made extra glazing, wallpaper put up in 1977 and never changed since, carpets which are threadbear and full of fagholes, stinking of dogs etc.)

Although vendors holding out for unrealistic prices is a real pain, when it comes to the indices, what counts is the places which actually sell (well agreed in principle pre-survey etc.!). And the ones which actually sell are the ones at realistic prices and desperate enough to accept lower offers, so prices will creep down, and the more they creep down, then the more current vendors will realise that they will HAVE to lower their expectations, and there will come a point when they are so desperate to sell that they will HAVE to drop like a stone for a quick sale.

Also remember the chain. A chain gets set up and grows each time someone accepts a pre-survey offer, but nothing will move until the chain is completed by the person at the bottom. If it is a FTB with a limited budget and expecting buyer power, offers low, and then when the vendor HAS to accept, that discount is then send charging up the chain right the way to the top (under advice from EA). These last transactions don't show up in the likes of Hlaifax and Nationwide, but the certainly do in the Land Registry figures. This sort of thing I have heard a lot of happening, Mrs T-B saw it while she worked in the local EA, and friends trying to buy currently also took part in this price cutting up the chain (sale finally fell through when the person they tried to buy from asked for a greater discount from the person she was trying to buy from that what our friends were asking for, faced with the kind of greed, they finally had enough of her and pulled out!)

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is it possible wrt asking prices that sellers know prices are falling so

they know they will have to knock off at least 10 % ?

so assume they think its worth 150,000 k they will put it on at 170,000 to take account of the discount they know they will have to give,.

Ive seen an example of this ,a neighbour of mine is marketing at 283,000 , when an identical house sold over the road for 260,000 end of Jan 05 (according to nethouseprices). :rolleyes:

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zzz I`ll give your your find and raise it....House near us, modernised sympathetically, nicely renovated, been up for sale for 12 months at 285K, no takers, no offers. Amateur developer buys a run place 3 doors away 12 months ago. Pays 230K. Trying to now sell for 385K!! a full 100K more for, to all intents, the same property. Hes probably spent approx. 45-50K renovating. The staggering revelation for me is that both properties are with the same agent! Would have thought the agent would have had a word? The 385K house is the usual: cheap kitchen, laminate flooring everywhere, B&Q bathroom that might have made a small profit a couple of years back. Perhaps agents just need to have anything on their books. The sad part for me is that this agent, in particular a contact I have there, sold me my place 9 years ago and they were completely professional. I could cite many more examples of this strange pricing/valuing all over our region, it`s in a bit of a mess........

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House near us, modernised sympathetically, nicely renovated, been up for sale for 12 months at 285K, no takers, no offers. Amateur developer buys a run place 3 doors away 12 months ago. Pays 230K. Trying to now sell for 385K!!

I hope it sits on the market until the end of time, s/he runs out of money to pay whatever loan they've got on the property, the lender repo's it and only gets £200k for it and they chase those ar5eholes for the difference. The EA must really be desperate: that kind of offensive over-pricing should be illegal.

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Amateur developer buys a run place 3 doors away 12 months ago. Pays 230K. Trying to now sell for 385K!! a full 100K more for, to all intents, the same property.

Im noticing a sudden large increase in the number of amateur developers round here.

One has 2 boards up screaming "detatched luxury 4 bed £449995", been on about 5 months.

All thats there is a v. small rough plot of land. Obviously he doesnt want to spend any money until he gets a buyer to place a large non - refunadable deposit.

A Barrister (B2L) freind of mine has just teamed up with a builder and 'getting into development'. Everyones doing it.

My take on this is that lots of B2Ls are becomming overnight 'developers'.

Ive worked the figures through and as far as I can tell, to make a reasonable profit on a new build or refurb you have to be very quick and have an experienced team / seasoned self experience to make it worthwhile. In this market most will vastly over - estimate project profit.

Ive heard new build amateurs bragging they made £100000 profit, but they probably didnt allow for loan interest (main resi remo) and if u explore deeper you usually find the whole thing took 24 - 36 months and thier real profit (ie wages) is about £30000 - £50000 pa.

As usual the amateurs who have done it for years know how to make a profit and everyone else wants a piece of the action. :rolleyes:

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A Barrister (B2L) freind of mine has just teamed up with a builder and 'getting into development'. Everyones doing it.

Hmm, what other recent investment trend had every man and his wife/dog (sometimes one and the same) giving up their day job to do it? Dot coms? What happened to them again......?

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:) Hi everyone i thought that EA's arranged the price of your property,but they are saying that the homeowners are being greedy well that means they will never come down.Sorry to sound so negative but it seems to be taken age's to see some good drops in price's :(

In the end it does not matter who sets the price (whenever I have had property valued the EA has always advised me what price to sell at) cos if it doesn't sell the EA will go out of business so will eventually lower the price as any kind of sale is money in his pocket ! Even EA's cannot be that stupid. :D

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Im noticing a sudden large increase in the number of amateur developers round here.

.....

My take on this is that lots of B2Ls are becomming overnight 'developers'.

Further to zzg's take on what you say doggy, I'd like to draw another parallel:

2004/05 : "lots of B2Ls are becomming overnight 'developers'"

1999/00 : "lots of buy-and-hold dividend takers are becoming overnight 'day traders'.

As you say doggy, only experience will stand them in good stead in that game.

Edited by Sledgehead
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House in our village registered on Nethouseprices as having sold for £245K in January. Back on the market with magnolia paint and a new central heating system for (ie developed)...£315K (offers over). That's one hell of a set of radiators... ;)

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don't worry. house prices are always sticky on the way down, at the beginning. greedy owners don't want to sell for less than last year's peaks. they think they can still get the same price as then.

therefore the house goes on the market, and they wait and wait and wait. maybe they get an offer, it falls through, they start again. it is taking much longer to sell a house and that's slowing everything down.

in housing market, like all markets, it's volume that counts. just wait a bit longer and i'm certain it will come. volume has been pretty thin for a while now, and it's getting thinner. the more people delay and wait, the more certain the crash is, so don't worry, all this flat market talk is good. each day of it brings the crash closer. :D

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In the end it does not matter who sets the price (whenever I have had property valued the EA has always advised me what price to sell at) cos if it doesn't sell the EA will go out of business so will eventually lower the price as any kind of sale is money in his pocket !  Even EA's cannot be that stupid.  :D

But estate agents can't lower prices. They can advise the vendor to lower their price, but they can't make them do it. Once again, estate agents do not set asking prices, vendors do.

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But estate agents can't lower prices. They can advise the vendor to lower their price, but they can't make them do it. Once again, estate agents do not set asking prices, vendors do.

They can, however, refuse to accept a property onto their books for whatever reason (ie hideously overpriced, for example).

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The great thing about all of this though is that when you give money to people (average joe's) they do what every other average joe does. Spend it.

In a whole street of sellers probably 2 out of 100 houseowners will actually keep hold of the money for future investments or the rainy, sorry Beaufort scale 12 day that will be the Housepricecrash and recession.

The other 98? They'll be trying to weather the storm in their convertible Audi TT's or in front of their £3000 plasma TVs while watching Neighbours, saying "Remember in 2005 when we went on holiday there? Let's look at our photos again and bore our friends.." They'll have no money left. It's human nature.

After all, where are all the millionaires from the last house price boom? Where are the all the BTLs who swept in with their new found wealth and bought the houses when prices floored in 1994-5 before the FTBs had a chance?

Patience is a virtue!

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They can, however, refuse to accept a property onto their books for whatever reason (ie hideously overpriced, for example).

They can, but why would they? If the vendor is dead set on his asking price, he'll just take it down the road to a different agent, which guarantees that this agent will make no money on it. At least if it's with them, there's a chance that the agent will be able to sell it, or persuade the vendor to drop the price. Remember, the marginal cost to an agent of having an extra property on their books is pretty close to zero.

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They can, however, refuse to accept a property onto their books for whatever reason (ie hideously overpriced, for example).

Yeah but there is always some other w@nker who will accept it onto their books and the vendor will go round the town slagging off the agent that wanted to put it on at a realistic price saying they are out of touch with the market - 'the b@stards wanted me to give the house away, I thought they were supposed to be experts - I expect them to SELL my house, not give it to the first person who sees it because it is so cheap.

Of course 6 months later and they have progressively dropped the price to what the realistic agent said - but they still think he's no good.

Estate Agents can't win whatever they do. But they make plenty of money in a good market - and suffer in a bad one.

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  • 439 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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