Wednesday, July 11, 2012

Shock horror!

Agents under fire for 'over-valuing' properties

While this is scarcely noteworthy; bear in mind that Rant'n'Rave and I are constantly rebuked on EAT for suggesting EAs overvalue (or market appraisal to use their wishy-washy terminology). The comments by EAs all agreeing with article are interesting in themselves.

Posted by sibley's b'stard child @ 03:55 PM (3223 views)
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19 thoughts on “Shock horror!

  • mark wadsworth says:

    Sib’s an EA’s estimate can never be high enough because house prices only go up!

    So although a place might only sell for £100,000 today, when the EA says it’s worth £180,000, what he means is “… in a few years’ time.”

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  • sibley's b'stard child says:

    Ha ha MW, you’ve just reminded me of a legendary slice of f*ckwittery from one of their resident EAs, Fun Boy Agent.

    It’s essentially that; an asking price can never be too high, only the timing. Using your example, sure a vendor may not achieve 180k today but in 10 years time…et voila.

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  • mark wadsworth says:

    Yup, if only they could work out how to “unblock the mortgage market” which is so cruelly allowing hard pressed hard working homeowners to accumulate some capital etc cont page 94.

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  • The experiences of myself and several friends are that in my area they are undervaluing property so that they get sales and commission. A bird in the hand is worth two in the bush!

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  • We must now be entering the silly stage of proceedings where the property-finding arm of Knight Frank criticises EA’s for over-valuing (Knight Frank themselves have of course never been guilty of this).

    I also wonder if Knight Frank market properties for their property-finding arm to then “find the property” – that would be a good closed loop business !

    It’s great when when Rant’n’Rave gives them hell on EA today

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  • Is that THE Phil Spencer I see at Wednesday, July 11, 2012 05:01PM ?

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  • ” they are undervaluing property so that they get sales and commission”

    You mean valuing more accurately.

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  • rumble – please get with the game, they are “down pricing” to generate turnover and stay in business (LOL)

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  • Thank goodness for stubborn sellers.

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  • “they are undervaluing property so that they get sales and commission”
    You mean valuing more accurately.

    Pedantics. What I am saying is that some agents can’t be bothered trying to get a higher price when it’s much easier to still get decent commission on a lower price. Why, for example would an agent bust a gut trying to sell a house for £225k instead of £200k when he only gets another £250 in commission (assuming 1%), whereas the vendor gets a massive £24750 more??

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  • phils – how about a fixed fee arrangement for the work actually undertaken rather than percantages and commission. I dont see Solicitors charging clients more for the legal work on a £200k purchase than a £250k purchase.

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  • sibley's b'stard child says:

    That’s the sensible answer Phils; EAs will be the first to admit it’s not worth the hassle chasing an over-inflated price for the sake of a hundred quid extra commission. Where this falls down is the no-sale/no-fee model. The industry – for want of a more accurate word – have successfully managed to race to the bottom; unless the vendor is realistic and the EA can argue their USP over their rivals they’re scuppered as there’s nothing to differentiate one EA from another.

    Their motto is ‘if it ain’t on your books; you can’t sell it’. Thus it’s now practice to pander to vendors’ avarice, tie them in to a 12-week sole agency contract and pray to *insert diety here* that you can manage the vendor’s expectations downwards or a greater fool comes along. If by the end of the contract it still remains unsold the vendor will apparoach another EA – rinse and repeat.

    Of course, this is of zero cost to the vendor and a few hundred/thou to the EA in man-hours and marketing (not to mention wasting the time of would-be-buyers).

    So on behalf of HPC, well done EAs, you’re the architects of your own demise.

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  • Sib’s – who was it that conjured up that famous line EA today Dole tomorrow?

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  • sibley's b'stard child says:

    Not sure Jack, but they should be given a medal. Or a 12-week sole agency contract.

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  • Sib’s – I’ll keep you posted on the wreck of a property that my Daughter and a few of her friends missed out on a few months back when a developer bought it up for a Six figure plus sum – the guy’s chucked enermous amounts of manpower, materials and money at it to bring it up to modern standards – be interesting to see what it sells for in the current market.

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  • sibley's b'stard child says:

    Hi Jack, yes please do. I take it they’re going to flip it rather than live in it?

    Still, let’s hope hindsight shows your daughter was done a favour by being out-bid.

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  • Sib’s – yep the 2 guys in partnership plan to flip it. I still think my 2 aged 24 and 22 are best served by sitting tight for now.

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  • mark wadsworth says:

    Jack C 13, a quick Google tells us it was PinHead who coined the phrase on 30 March 2011 at 09:57.

    http://www.estateagenttoday.co.uk/news_features/Estate-agents-earnings-cut-by-big-squeeze

    If anybody finds one with an earlier time stamp, then PinHead loses the 12-week sole agency.

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  • MW – it’s a class one-liner surely worthy of the 12-week sole agency

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