Monday, April 12, 2010

Why estate agents need house prices to fall

Why estate agents need house prices to fall

Britain's estate agents need high sales volumes more than they need high prices. And the only way they're going to sell more houses is if prices fall

Posted by damien @ 05:52 PM (2377 views)
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14 thoughts on “Why estate agents need house prices to fall

  • Estate agents should probably have worked this out quite a while ago.

    However … they’re estate agents!

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  • The problem (highlighted here) is that the market is controlled by middle men, acting as Market Makers, who have no idea how to price a market to their advantage. They’re falling into the trap of governing the greed of the seller, and categorically FORGETTING THE BUYER. No more. Wake up Mr. & Mrs. Estate Agent – your Bread and Butter is in the hands of those who pay! The money is running out – and with it your livelihood.

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  • I forgot to add – It’s DOWN DOWN DOWN from here. For a very LONG LONG time.

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  • I have a friend, his house has been on the market for over 2 years, when it first went on it was priced at 325k the agent told him it would sell pretty quickly, then the price was reduced to 310K one of the bedrooms (under agents instructions) was split into two to make a box room , study, whatever you like to call it, the house was then reduced to 299k , still it went unsold, my friend told the agent to knock 25k off price, the agent fought this, however agreed, the house was reduced to 275k still unsold, recently the agent told my friend who is abroad now, to increase price to 299k as the market was booming in the UK, the house still remains unsold.

    the agent is karl tatler on wirral, I won’t disclose my friends name, however he is far from amused..

    this is the real state of the housing and what agents really do..

    if you were selling an item in a shop like this trading standards would have raided you by now.

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  • tenyearstogetmymoneyback says:

    The problem is that Estate Agents try to get people to sign up with them by promising high prices.

    Fro experience my advice would be to sign up with them for just four weeks. If they can’t sell it in that
    time try a different agent.

    A final thought. Down here we regularly have an advert which goes along the lines of
    “I can’t sell my car – Of course you can go to South Western Vehicle Auctions”

    Can you imagine the ridicule if someoen had been trying to sell their car for two years ?

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  • @5

    If a car had been on the market for two years, then it would have cost you two years MOT charges + End of days the whole Owner/Occupier facade that has been the farce of the British Economy for the past thirty years, IS OVER. Time to change. No choice. Tough luck if you’re lumbered with unrecoverable debt. Sorry

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  • The Schiller index in this story is very revealing, the long term house price does not change. Pricing booms and busts – we all know this, but it’s interesting to see it in a simple graph. The last three boom/bust cycles have gone from 8 to 13 to 18 years – if this repeats then we’re looking at the next peak being 2027.

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  • …and that’s a long way off for anyone looking to make money out of their property. That’s based on the US market and we’re currently lagging them by at least a couple of years.

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  • it_is_going_with_a_bang says:

    As much as I dislike estate agents when it suits – I have to admit when selling you always want the most you can get – it’s only natural – although that sounds somewhat wrong… 🙂

    More to the point estate agents have generally always acted in the same manner – so how can they be to blame for house prices?
    The blame is squarely at the feet of the government in this country – they have the power to change things if they want to.
    The fact is – they did not want to end the party of ever growing debt for the sake of popularity.

    They don’t really now either – listen to the carefully worded manifesto pledges of “more affordable housing”.
    What an insult – the complete avoidance of the issue so as not to be accused of talking house prices down – all parties are guilty of it.

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  • It’s taken them 3 years to realise this??? As someone pointed out though they are estate agents….

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  • “estate agents have generally always acted in the same manner ” and we’ve always had boom and bust. Although I agree that the government and banks are more to blame.

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  • Fingerbob69 says:

    It’s always too easy to blame estate agents. The fault lies, I am afraid, with the Great British Public. If three agents value a house, at £150k, £155k and £160K (assume £155K is the ‘correct’ value although all values are subjective) which valuation and therefore agent, would most people go for? The £160k valuation of course!

    So the other two agents will note this, will value next time a atleast £160k and so there is the mechanism by which the market rises, driven principally by sellers first, agents second and sometimes, buyers in a poor third.

    HPCers need to blame themselves before casting stones at others!

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  • take away commission based sales and have a fixed priced regardless of property value and you will have a very different market not pushed up by greedy estate agents

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