Estate Agents Still Bullish To Get An Instruction

[Hip to be bear]

Putting our house on the market. Wanted 3 valuations from different agents in our town. We explained to all three that we were very realistic about the price given the state of the market etc. Two of the three came in at 15 to 20% off 2007 peak. One (part of Countrywide) came back with a suggested asking price within 2.5% of peak. I spent the next 10 minutes in a surreal conversation with him about how I thought that he was overvaluing the property, and him telling me that he had never had a conversation like that with a vendor.

My first thought was that he was just going high to win the instruction, but I then looked at what else he had on his books, and all of it was overpriced. If he had listed our property at a realistic price, then the pricing structure of all the other properties would have seemed bizarre.

This is now academic as we went with one of the 'realistic' agents, but I decided to post this here as I can't see what the EA has to gain from listing overpriced properties that have no chance of selling. Any thoughts......surely EAs need to focus on moving realistically priced properties in volume if they want to survive?

[Reraise]

The only logical explanation is that he doesn't understand the situation and thinks this is a blip which will turnaround in the new year. Interesting stuff...

[str mofo]

Although I know a good one, most eastate agents are no more qualified to value your home than you are. They are still stuck in the mindset of being able to value a house high and let the market rise untill it looks like a bargain. They are in the worst possible position to put an accurate value on a property. All this crap is going round and round in their rather limited heads and I doubt they can think clearly at this point in time.

To sell a house now you have to aim low to try and snatch a quick sale- very low. Once you start reducing prices no one is going to bite as they will reduce further for sure.

My estate agent was delighted when I told him what I thought my house was worth. stuck it on the market and 14 days later SOLD.

The other d1ck heads who had come round were patronising me for wanting to drop the price. Fools. Thats was in early november 07 when the writing was on the wall in CAPITALS.

Edited December 5, 2008 by str mofo

[Telometer]

The writing was on the wall in invisible ink!

[pablopatito]

The only logical explanation is that he doesn't understand the situation and thinks this is a blip which will turnaround in the new year. Interesting stuff...

The more logical explanation is that he is paid commission based on the number of instructions he wins rather than the number of houses he sells.

[The Realistic EA]

The more logical explanation is that he is paid commission based on the number of instructions he wins rather than the number of houses he sells.

You are spot on there!. I am a agent who go's up against other agents whom are paid commission on the number of instructions they get and is common place and has been for over the decades within the countrywide group i.e fulfords etc, the agent will receive points for each instruction. It is so frustrating as a agent who is realistic and find myself justifing lower prices showing evidence to prove I am correct only to be hit by peoples greed. I only get paid when the property sells and dont believe in getting properties on high and then gradually getting the vendors to reduce the price over time, as I find it embarassing as a professional. I recently attended a valuation and a countrywide agent had previously valued a two bedroom bungalow 80k more than I had, thankfully the vendor did not take the bait. He decided to instruct us and we still have yet to achieve a sale, but has several interested parties whom cant sell theirs who probably are on the market with a countrywide agent and so my frustration goes on, obviously it is in the best interests of most agents to price for the market but others it is not. So the lesson to be learnt by vendors is to choose wisely and ask for evidence of how he or she has come to their valuation.

[Hip to be bear]

You are spot on there!. I am a agent who go's up against other agents whom are paid commission on the number of instructions they get and is common place and has been for over the decades within the countrywide group i.e fulfords etc, the agent will receive points for each instruction. It is so frustrating as a agent who is realistic and find myself justifing lower prices showing evidence to prove I am correct only to be hit by peoples greed. I only get paid when the property sells and dont believe in getting properties on high and then gradually getting the vendors to reduce the price over time, as I find it embarassing as a professional. I recently attended a valuation and a countrywide agent had previously valued a two bedroom bungalow 80k more than I had, thankfully the vendor did not take the bait. He decided to instruct us and we still have yet to achieve a sale, but has several interested parties whom cant sell theirs who probably are on the market with a countrywide agent and so my frustration goes on, obviously it is in the best interests of most agents to price for the market but others it is not. So the lesson to be learnt by vendors is to choose wisely and ask for evidence of how he or she has come to their valuation.

Interesting post REA.

Any advice to someone who wants / needs to sell quickly? Is it time to drop the trousers on the price from a figure 15% off the peak? If so, to what level? The property is a Victorian terrace in a great location that we have improved to an extent that it should be very desirable......(to anyone mad enough to be buying at the moment)

Our plan is to give it a month at that price, and then drop it down by a big slice if nothing happens.

[The Realistic EA]

Interesting post REA.

Any advice to someone who wants / needs to sell quickly? Is it time to drop the trousers on the price from a figure 15% off the peak? If so, to what level? The property is a Victorian terrace in a great location that we have improved to an extent that it should be very desirable......(to anyone mad enough to be buying at the moment)

Our plan is to give it a month at that price, and then drop it down by a big slice if nothing happens.

Hi Hip to be bear, my only advice would be to get in touch with your local agent/agents except a countrywide one and ask them for advice as each area is different and I am only a expert in my local area, it is not as easy to value a property by simply knocking off x percent, it all depends on the area, for example i feel our area has only dropped by say 10% whereby other areas in say birmingham may have dropped 15-20%. Good luck selling and try and pick a agent you feel is realistic.

[Hip to be bear]

Hi Hip to be bear, my only advice would be to get in touch with your local agent/agents except a countrywide one and ask them for advice as each area is different and I am only a expert in my local area, it is not as easy to value a property by simply knocking off x percent, it all depends on the area, for example i feel our area has only dropped by say 10% whereby other areas in say birmingham may have dropped 15-20%. Good luck selling and try and pick a agent you feel is realistic.

Much appreciated. That is what we have done. Given the scary pace that things are moving, I just don't want to be chasing the market down.

[m4rk]

Hi Hip to be bear, my only advice would be to get in touch with your local agent/agents except a countrywide one and ask them for advice as each area is different and I am only a expert in my local area, it is not as easy to value a property by simply knocking off x percent, it all depends on the area, for example i feel our area has only dropped by say 10% whereby other areas in say birmingham may have dropped 15-20%. Good luck selling and try and pick a agent you feel is realistic.

great to have the other side of the debate with your knowledge realistic EA but if i were to ask an EA in birmingham would he/she say in my expert opinion prices in birmingham have only dropped 10% but in your area its 15-20% in effect finally admitting to house price falls but telling the customer yes theyve fallen ... but too bad not in the area's you are looking at...

[erranta]

Over the years we often had this type of thread.

OK. Do you really know your competition?

How many E.A. chains are covertly still owned by various banks?

They are the ones who can bide their time giving out stupidly high valuations whilst independents go bust.

Countrywide USA are as bent as they come from what i've read - insist on using companies they own to do 'independent' appraisals for the yanks!

[The Realistic EA]

great to have the other side of the debate with your knowledge realistic EA but if i were to ask an EA in birmingham would he/she say in my expert opinion prices in birmingham have only dropped 10% but in your area its 15-20% in effect finally admitting to house price falls but telling the customer yes theyve fallen ... but too bad not in the area's you are looking at...

I was merely saying currently property in my area! , is selling at 10 percent under peak 07, it may fall further I am not denying it.

[mr slump]

Much appreciated. That is what we have done. Given the scary pace that things are moving, I just don't want to be chasing the market down.

wow

I wish I could import your attitude to vendors in northern ireland

cloud cookoo land is overcrowded

[iguana]

My estate agent was delighted when I told him what I thought my house was worth. stuck it on the market and 14 days later SOLD.

Mine was like that too. Back in February when there was still a huge amount of denial we put our place on the market. The EA gave me the valuation and then said that if I really wanted I could put it on a little higher for 2 weeks, but he'd rather start out lower. His relief when I said his valuation sounded right was palpable. In fact he was really surprised I'd agreed so easily. Then we had a laugh about all the over-priced houses on the market. He said they had actually turned away a lot of vendors as they were only interested in taking on properties they thought would sell.

We had 15 viewings and 4 offers in two and a half weeks and sold within 2% of the asking price. I occasionally keep an eye on the old area and that agency is certainly leading the prices down.