Saturday, Dec 12, 2009

Mathematical deficiency or careless mistake? LMAO!

Rightmove: Quick sale reductions!

Oh dear, I think this sums up the mathematical deficiency of our estate agents and, perhaps, wider population!

Posted by brickormortis @ 07:53 AM (2493 views)
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1. will said...

Perhaps it really was worth the full £232K. Many similar homes in the South of England are worth much more than that.

Saturday, December 12, 2009 10:16AM Report Comment

2. Fly By Night said...

Looks like it was given the Beeny treatment. End of terrace is not semi, imo. It's the location which might be a problem. It might be a right-to-buy on a council estate with high crime rate.

Saturday, December 12, 2009 10:40AM Report Comment

3. markj69 str05 said...

One thing i do not quite understand about estate agents, is why they have not done more to help drop prices.

Ok they will reduce their return per property, but it is likely they would sell more properties within a given period and increase their overall income.

I guess price falls may also affect the number of available properties entering the market. But at least we would reach the natural bottom sooner.

Saturday, December 12, 2009 10:58AM Report Comment

4. brickormortis said...

Let's imagine a house is up for sale for £200,000 and the filthy dirty estate agent takes a 1.5% cut of the sale price then they make £3000.

If the house is dropped to £180,000 then they still make £2700. Now only £300 less but almost certain, right now, in most places, a 10% reduction would attract a lot of attention, and, quite likely, as much as it pains me, a certain sale!

Maybe if they had more than a C grade GCSE they might, mark, as you say, lower prices!

..or maybe, just maybe, they have all bought into property themselves, BTL and a nice massive house to live in for themselves based on the massive commission of the past. Maybe, just maybe, they believed too, that property prices would never fall!

Saturday, December 12, 2009 11:24AM Report Comment

5. mark said...

an ex council house isnt even worth 99k

Saturday, December 12, 2009 11:24AM Report Comment

6. Mikthe20 said...

Most estate agents are also into BTL so they can't bring themselves to reduce prices.

Saturday, December 12, 2009 11:38AM Report Comment

7. cynicalsoothsayer said...

It's dirt cheap compared to up here in Edinburgh.

Saturday, December 12, 2009 11:40AM Report Comment

8. will said...

@3 brickormortis

Estate agents adjust their valuations in line with what the banks tell them is affordable. The banks clearly have a majority interest in home ownership in the UK and cannot afford a fall in asking prices. By containing house prices at peak levels may save the banks business but that policy will stall the housing market for many more years leaving vendors frustrated and I beleive estate agents on the brink.

Saturday, December 12, 2009 12:14PM Report Comment

9. markj69 str05 said...

If i owned a business and could see a better strategy to increase turn-over, i sure as hell would do it. So why are these muppets so reluctant?

Saturday, December 12, 2009 12:32PM Report Comment

10. mrflibble said...

It's the same pork pies wherever you go these days and will remain so until the fools stop falling for it.

Take Pringles, they are on offer everywhere at half price right now, but since when were they ever £1.99 a tube?

The Sheeple seem to fall for this old cherry time and time again.

Saturday, December 12, 2009 12:39PM Report Comment

11. markj69 str05 said...

@brickormortis 3...

You might have put your finger on it. The only people with VI to keep prices high are lenders, and anyone with large borrowing against multiple properties. EA's aren'y lenders, so maybe they're the latter.

Let's face it when you're making lots of money selling someones product, and people come to you first when they want to sell their product, you really do get first bit of the cherry!

Saturday, December 12, 2009 12:39PM Report Comment

12. enuii said...

The answer is the Vendors not the Estate Agents, a good majority of the property selling masses either a) cannot afford to drop their asking price because of the size of their mortgage or b) genuinely believe that their house is worth the price they say it's worth and not what the EA tells them in order to get a sale!

The EA's in general do not care what a house is worth as long as it gets them a quick sale because turnover equals cashflow and a viable business.

Saturday, December 12, 2009 12:43PM Report Comment

13. will said...

@7 markj69str05

Estate agents make their money in a rising market and go bust when the music stops. It happened slowly in the 89-96 crash with many agents going into partnership with other agents or disappeared completely, even the big names like Knight Frank, Jackson Stops & Saff, etc closed dozens of branches in the regional towns keeping only the most prestigous offices open.

We have not reached this stage yet, as we are only 18 months into a correction that has previously taken many years. QE has played it's part in keeping things going little longer, but only just in economic terms. When QE is withdrawn things will get a lot nastier - the UK cannot keep adding to the national debt indefinately.

Saturday, December 12, 2009 12:56PM Report Comment

14. markj69 str05 said...

@enuii 10...

Ok, if 'b)' then a general house price drop is pretty much relative across the board (Give or take a bit).

However, if 'a)' it would suggest that a vast proportion of homeowners have very large borrowing against their properties. I accept that between say early 2000 adn 2007 borrowing ratios were high, and re-mortgaging to release equity quite attractive. But surely that does not account for the vast majority?

Saturday, December 12, 2009 12:56PM Report Comment

15. vindicated said...

@ Will, it may have been priced at £232k but it was never 'worth' that (IMO)! Neither are the many similar homes in the South of England.

Saturday, December 12, 2009 12:59PM Report Comment

16. Willing said...

It seems obvious to me - it's the sellers (not the EAs or the banks)

If you're trying to sell your property and estate agent 1 values at £210K and estate agent 2 at £230K who do you go for? Most people will go for agent 2.

For estate agents in a stock limited market it's the volume on fresh properties on their books that count - so it's in their interest to value the highest and then try to bargin down. That way they get first bite at the cherry and the greatest chance of selling something, as all the fresh proprties are coming their way.

Of course they then have a large stock of overvalued tat on their books - but hey, they can just tell the seller to drop the price and if he decides to go to another agent instead then who cares. If he won't drop the price and doesn't move agent then who cares as it's not going to cost them anything further.

Saturday, December 12, 2009 01:12PM Report Comment

17. This comment has been removed as it was found to be in breach of our Blog Policies.


18. markj69 str05 said...


Like everything in life, it's worth is equal to what someone is willing to pay. If someone is stupid enough, or wealthy enough to pay the over valued price, then that's it worth at that time.

Saturday, December 12, 2009 01:27PM Report Comment

19. Southerner said...

Long time reader ... first post!

Just wondered what you guys think will happen if the GDP is not positive Q4 2009? Surely QE cannot be extended beyond the recent £25bn and if inflation starts to kick upwards in 2010 interest rates must go with them?

How close are we to UK financial ruin?

Saturday, December 12, 2009 01:56PM Report Comment

20. Burt said...

The vast majority of homeowners would still be making a hansdsome profit on, say, a 40% fall in prices from peak, given that only a small percentage of them took on substantial new loans to buy during the boom. There's no reason for the vast majority not to drop prices other than greed, with the expectation that prices will be higher in the future. Why is it in the banks' interest for prices to be so high with few houses (and hence mortgages) selling as a result? They'd make more money from the new loans if prices dropped further (and money supply would increase - so it would actually be inflationary), but the fear of further defaults and write-downs is more of a motivation to them, because let's face it, they could all bring prices down tomorrow by offering loans based on income rather than LTV. Welcome to zombieland.

Saturday, December 12, 2009 02:03PM Report Comment

21. will said...

@13 vindicated

Absolutely agree that it wasn't worth it - including the overpriced terreced rabbit hutches that people pay millions for in parts of London.

I wonder though if the agent meant, 'reduced from £133K'.

Saturday, December 12, 2009 02:31PM Report Comment

22. brickormortis said...


Who knows? Are they sh*t at maths or English?

Saturday, December 12, 2009 02:59PM Report Comment

23. vindicated said...

@ Will... yup, I reckon you're right..... I think reduced from £133k sounds more like it.

Saturday, December 12, 2009 03:40PM Report Comment

24. Pdp said...

Looking at the historic prices on Rightmove, I see the highest price a 3 bed semi has ever sold on that road is £99k. So HTF is this house reduced by £133k, £33k or even 33 pence.....

God, give me strength!

Saturday, December 12, 2009 03:42PM Report Comment

25. jack c said...

Guy's it's pretty easy to check this one out - from the address you can pick up the post code (TF1 2AS) and then input this into The most recent transaction was 16/10/2008

38 Steventon Road,


I'll let you check the balance of the transactions for yourselves - but the asking price seems way over the odds to me

Saturday, December 12, 2009 03:52PM Report Comment

26. brickormortis said...

Guys, I thought I was making it obvious that this is clearly an error! I know this neighbourhood well. I did an extra paper round for my boss when I was a lad on this patch. I was lucky to get away with my bike and my paper bag!

I can tell you for sure that this house, in the current market, in that area, would be lucky to fetch £90,000 and if the world were full of sane people then £70,000 seems about right.

I love all this for a quick sale stuff when clearly it ain't gonna happen and most buyers will of course, surely, avail themselves of the last recorded house value and realise that they are being stiched up!

Saturday, December 12, 2009 05:04PM Report Comment

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