Ever-hopeful sellers new to the market raised asking prices by 0.7% in the last month, Rightmove reported this morning.
Why? That appears to be anyone’s guess, with Rightmove warning that market recovery is as far away as ever, three years after the collapse of Lehman Brothers sparked the credit crunch.
Since then, asking prices have gone up by 2.5% – compared with 16.4% in the previous three-year period – yet unsold stock per estate agency branch is stuck in the high 70s. It is taking an average of 94 days for a property to go under offer. Less than 23,500 homes are selling per month – very little more than in September 2008.
The average asking price is now £231,543 – a distant remove from selling prices reported by the Land Registry, Nationwide and Halifax, all quoting in the region of £164,000.
Regional variations mean that London asking prices once again obscure the national picture to some extent: in London, asking prices surged 2.4% in the last month and by 7.2% annually. Elsewhere there were some falls, led by the North, where asking prices fell 2.6% in the last month and 4.2% over the year. But in the East Midlands asking prices bounced up even more in the last month than in London – by 2.7%.
With just 98 days to go until Christmas, Rightmove said that people serious about selling by then need to take action now “to undercut and out-promote their competition” – ie, cut their prices and advertise furiously.
Miles Shipside, director of Rightmove, said: “Many buyers hope to move in before the Christmas break and enjoy their turkey in their new abode. With less than 100 days left before Christmas there’s an opportunity for some deadline-focused movers to do their bit to get some action into a market that is still pretty moribund three years after the financial fiascos that precipitated the downturn.”
Rightmove said that one reason why the market lacks momentum is that prospective buyers do not feel any urgency to make an offer and conclude a purchase.
However, it warned that even if Christmas does not focus minds, then the ending of first-time buyer Stamp Duty relief on March 25 next year should.
The nil-rate threshold will fall from £250,000 to £125,000, so first-time buyers should be aware that they must have completed their purchase by that date to avoid paying Stamp Duty of 1% of their purchase price.
Shipside said: “It’s a tight but feasible deadline to find and be in a new home for Christmas.
“The Stamp Duty relief deadline has more teeth to bite you in the pocket if you miss it, but that is a tasty incentive.
“There are a couple of opportunities here to get a sense of urgency into buyers – something that’s been sadly lacking since the collapse of Lehman put a seemingly indelible blot in the financial landscape.”
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Comments
@PeeBee - you're half right. Where we live currently there is one particular agent who seems best able to adapt to market conditions, he's an independent and has been at this place for many years. Not sure if he owns it but he certainly behaves as though he does (responsibly, in the best interests of the company as far as I can see).
In one of our other target areas there's a local chain, they're not huge/national but have probably 8-10 offices in the region. I've been very pleasantly surprised by their pro-activeness, no doubt they've found us quite frustrating as we are taking our time but they still work hard, maintain contact, etc. We've dealt with several people at this specific branch, the manager mostly but also various members of staff (some have moved on to other branches), and all have been very good so in this case I guess it's probably the manager that's making the difference, however this reflects very well on the branch/company as a whole.
@Jonnie - thanks, very informative. So at what point do I become a hot buyer and how do you identify this point? Obviously there will be many factors, but it must come down to me walking into the office and saying I want to offer? Or of course my circumstances change and I tell you I have to buy somewhere in the next X weeks.
Nigel Archer: weren't you Simon Quinn yesterday when you posted this exact comment on the storyline below this?
Yes or no - you still need to take more water with whatever it is you are drinking...
Vendors dont owe EA's a living obviously but that doesnt make them experts. what ever you think of EA's it doesnt matter they know what your house is worth they have seen and experienced similar sales over and over again. its not rocket science. ifits over priced poeple wont buy!
Most properties are over priced.. fact! the home owners have to be realistic or just continue to hold up the the housing ladder. simples
IB,
Sorry mate, only just got onto this.
Right, I'll explain, (although Peebee has sort of covered it) if you were dealing with Jonnie & Co and were a bit of a 'waster' (let's not go into what puts someone in this category) then the nice thing is that you would never know, you would be warmly greeted when you came in / phoned, you would receive attentive service at all times and we would be very polite and probably like you personally so the way the boys and girls of Jonnie & Co treated you will, in all probability be genuine.
.................however, if you plopped into the 'waster' category then you won't have much time spent on you compared to people that want to buy quickly / are genuine but you won't notice as you aren't in a hurry etc.
Of course you will probably become a 'hot' buyer at some
point and without feeling it have a lot more time spent on you but you won't notice as you will be in a hurry / be genuine
Has this helped? I hope so and over 25 (ish) years I have had the pleasure of being appointed by thousands of ex buyers so I think I'm doing something right?
Jonnie
IB: glad to hear that you have found at least one outstanding Agent during your search ;o)
I would be interested in learning more (no names - just the WHYs...) - but maybe not everyone would be interested even though it may benefit their businesses... Aww - what the Hell - tell us anyway!!
The only thing I would add as a proviso would be that I would hazard a guess that it is the individuals working in the Agency that you rate highly, rather than the company they represent. They have succeeded in putting themselves on a pedestal as far as you are concerned - and probably rightly so - but make sure when it is your turn to rely on them to sell for you that they are still that head and shoulders above the rest!
New stars are born daily; old ones can - and sometimes do - burn out.
Thanks PeeBee. About this:
"But their influence will stick when you come to sell - and you may well instruct them on the basis of their handling of your property search!"
I couldn't agree more, depending which area we eventually buy in we've already identified the agent we'll use when (if) we come to sell.
IB: Jonnie will give you HIS view on the matter. There is no 'rule' that Agents work to.
That being said, many will discard you if you don't view in a certain timescale; if you don't make any offers after a few viewings; or any number of other reasons including - I am truly sorry to say - whether they like you as a person or not!
Theoretically, in a good market then they can get away with it. In today's market, things are obviously different and every stone needs to be regularly overturned.
It is simply down, as far as the Agent is concerned, to knowing your buyers and your stock, and working with them.
A brilliant Agent may not have THE property for you, and may be unsuccessful in that respect. But their influence will stick when you come to sell - and you may well instruct them on the basis of their handling of your property search! So there is every reason for an Agent to be 'nice' to people - whether they think they are wallpaper touchers or not!! ;o)
@Jonnie
Serious question for you or any other agent here - in one of your responses to cc you said that an agent "may consider you a time waster based on the period you have been looking" - is this something that EAs think?
I ask as we've been looking all this year but have yet to find something suitable. We are in rented so are not in any rush and would rather wait until the right place comes up. I accept that some agents may think us timewasters for other reasons that we needn't go into (that's hopefully not the case but is their choice and privilege) but it never occurred to me that this would be one.
Surely the fact that we are not rushing to keep a potential buyer happy wouldn't be held against us? Considering our particular bracket of the market in our area is less than buoyant I'd be surprised but would appreciate any opinions.
Ta
AceofSpades: Just played a quick game on RM that typifies exactly what you, I, and many, many more have been saying for yonks.
Typed in 'London'. Clicked 'Added in last 14 days'. Search came up with 'over 1000' results. Page 1, 'Highest Price' order, shows 10 properties - total value £14870000!! Take the same parameters, this time 'Lowest Price' order - 10 units - the total value of these is... £87157!!! (only two are residential properties, both part-shares).
So - twenty properties. Combined 'value' £148787157. That is an average per unit of SEVEN MILLION, FOUR HUNDRED AND THIRTY NINE THOUSAND THREE HUNDRED AND FIFTY-EIGHT POUNDS!
And they will 'sell' for £164k each on average, apparently...
Whooppee doo! I'll have them all. Might as well become a BTL landlord - I'm being accused of it enough! ;o)
I missed this on Monday...
Yes 'asking' prices are UP. But there is no information provided on the foundation of this statement.
How do we know we've not had an increase in 4 bed properties being listed on Rightmove and a reduction in studio apts...
That's one example of several that would logically and rightfully lead to a justified increase of the AVERAGE asking price.
I do like Rightmove, but Miles is an annoying 'know it all'. Fees are high and most people can swallow that, but it does leave a bitter taste agent's money will benefit him.
bob - I've followed both of them for a while on here and I think you'll find that both jonny and wardy are the boss and own their own business????
These Jonnie and Wardy blokes who posts all of these comments must be a lazy good for nothing employees??? Spends all of their time reading EAT when he should be leathering off the bosses car.
Thats not what I call connecting with buyers.
Nissan droped the "Skyline" on the new GT-R [R35] ,last time it was used was on the old R34.
Just confirms EA are out of touch
Too many EA's in Florida ,were going to New York
to take in a few shows on broadway.
Oh dear @CC
Dreams of holidays in America and a Nissan GTR (when did they stop being Skylines?) you sound delightful –are you covered from top to toe in JJB Sports finest man made fibres as well?
CC – look mate, I think a call to BA and a visit to the Nissan dealer is the way for you my old son, you are getting all in a fizz with this, PeeBee has been good enough to give you some guidance, ive sort of had a go at helping, admittedly half arsed but you are not having any of it.
Do not buy a house! – you are doing a good job of not buying one anyway as far as we all know you are all sixes and sevens and contradict yourself a fair bit and combine this peculiar quality with being a font of knowledge on the EA business yet by your own admission have never stepped inside one. And you haven’t defended one of your ‘slip ups’
…………….so Florida awaits mate, and get the GTR with Launch Control, that’ll impress the ladies
I know ive done this but once more for fun – if you are a potless, living at home odd ball that doesn’t really have enough cash in the bank to buy a house outright then that is okay……………we think you are anyway so don’t be afraid to own up, nothing wrong with fantasies, you’ll know that as I think that constitutes a fair bit of your ‘private life’ if you know what I mean
Be lucky mate
Jonnie
cc:
I am NOT an Estate Agent - but as I WAS for sixteen years I will offer comment accordingly.
Stretched photos. Do you see these on Agents' details, or on portals/in newspapers? Many of these problems are caused by agents trying to load 'portrait' photos into 'landscape' frames provided by the portals. The Agent doesn't deliberately stretch them - but they SHOULD check them once they are loaded up. It's not impossible to put it right afterwards. With regard to press adverts, sometimes the newspapers change column sizes and don't warn the Agent - resulting in the photos they provide being stretched, compressed - or chopped to Hell! Trouble is, until it happens, no-one knows. In the case of press ads, it is too late to do anything about it.
Local press will print what they are provided with - simple as. They will rely on the information from National sources, as this is spoon-fed to them. In some cases, local editors will ask for local input from those on the coalface - but not always.
K&P - don't even get me started on those two pwoperty pwats! That being said - if an Agent doesn't ring you for feedback then they are not doing their vendor a proper service. IF, however, you simply decide that because no-one asks you for an offer then you won't make one - you never wanted the property in the first place - FACT!
Agents overinflating the marketing price simply to gain the instruction come under my list of 'hang 'em high' candidates as well. However, don't put the blame squarely at the feet of ALL Agents. I would argue from past experience that in at least 50% of cases, it is the VENDOR who demands a higher initial price be sought than the Agent's marketing advice. Okay - some of these could well be due to XYZ telling them that figure but wanting to market with ABC - but nevertheless the truth is out there...
As far as me being an ex-Agent, your cheap shot went wide of the intended target by more than you will ever be able to comprehend - but it was noted. I am an ex-Agent by CHOICE. I am, however, ust as involved in the industry as I was in 2007 when I sidetracked - and as much as I ever have been since 1978. Nice try - but didn't hit any raw nerve with me.
Kinda shows you for what you are, though...
Enjoy your Nissan. Does it accommodate a double bed?
CC
We have seen your type of buyer a million times before, You have cash, you think your a more attractive buyer than others, you think you deserve a bargain.
Boring
EA's stop having a go at me and start telling the truth!
None of you have comented on the streched pictures
None of you had said any thing about a local papers telling the truth and repoting local price falls but instead quoting London price increases!
I am not called Kirstie or Phil who will ring you and say, i really really really like your house [advantage seller] ,you have to earn your crust in the current market.
The longer i wait the more I will be saving plus any house price reductions will be a bonus,that Nissan GT-R in the garage is getting closer.
Competing for the instruction by inflating prices will end in more ex-agents in todays market,I get no pleasure in seing people out of work.
How many buyers are there out there that you are not connecting with, a lot more than you think !!!!
cc: "...we were never asked to make an offer..."
As an ex-Agent, I'll let you into a wickle twade secwet that this lot might not want you to know.
YOU DON'T HAVE TO WAIT TO BE ASKED!
cc:
I also wouldn't be viewing and subsequently putting in an offer on a house where the asking price is massively over market value. Some asking prices are totally delusional at the moment and if that is what the seller expects then it is a total waste of both parties and the estate agent's time. It's about time some people got real - if they want offers then they need to start pricing realistically, as it is just as infuriating having your time wasted as a potential buyer. I'll start looking when asking prices start dropping - like 25-30% in some cases. I suspect in 2012 vendors and EAs will realise they need to drop prices to encourage buyers back into the market...
'…………………….you infuriating sod! Are you my wife in disguise??'
I very nearly spat tea all over my laptop then Jonnie! Best comment ever.
@CC
…………………so, you haven’t registered with anyone or made offers but did view one last year, but you didn’t actually register or try an offer – Yes?
You see to me you sound like a bloke that won’t / doesn’t talk to EA’s, won’t get in to anything and have a look and won’t make an offer despite having very strong and precise views on the value of property in your area and wont talk to the EA’s about what they have got for you but expect everyone that you are not talking to to know what you want?
…………………….you infuriating sod! Are you my wife in disguise?? She bloody does this, says nothing, won’t ask me directly, and just expects me to read her mind and hoover or bath the kids or put the shopping away, loads of things but NEVER TELLS ME WHAT SHE WANTS!!!!!!!!!!!! JUST EXPECTS ME TO KNOW
AAAAAAAAAAAAARRRRRRRRRRRRRGGGGGGGGGGGGGGGGGGGG!!!!!!
Jonnie
With responses like that I think EA are in denial.
I havn't registered with any EA's or made any offers.
With the internet you can do a lot of leg work before I waste my time and anybody elses, including viewing a house over priced.
Its Its been nearly two years and I have taken the time to save as much as possible which will now make us morgage free at 2007 prices.Hence why we are consdering viewing a few houses before xmas,but it looks like the EA havn't got it yet,so back to hibernating and booking a holiday in America to kill the time.
We viewed a house last year because it ticked a lot of boxes,we were never asked to make an offer when we said the price was a tad high,the EA had no idea if I wanted a 2% or a 20% reduction ,the house was reduced by 6% six months later and is still not sold,it is still 5% overvalued by some internet sites.
I am not going to beg to buy a house,especially in a buyers market.
Our local paper will print asking house prices have gone up quoting the Rightmoves data for the UK,what they won't report is prices went down 1.2% in my area 200 miles from London which is what a loacal paper needs to be reporting,the truth, for the papers area.
If a cash buyer willing to pay market value and believes if you agree to buy you go through with it is a EA nightmare then I can understand why six estate agents sold only three houses between them in my postcode last month.
Time to get a bit more realistic,stop streching photo's,its so dissapointing when you have a drive past,and put some effort in.
Anonymous Coward, just thinking about the next 12 months.....
....your going to need a bigger bin.
cc - you sound like an agent's worst nightmare.
There is a good reason that you did not get a call back and I would suggest that it has something to do with the fact that they know exactly how to sell...
The first thing that you do when you meet a buyer who always wants a price below asking, regardless of how good value the price is, is to rip up their details and pop them in the bin.
I would further suggest that you actually met a very good agent who worked out quite quickly what type of buyer you are.
Go, go Gadget Agent!
Round of applause!
@CC
Couple of bits but im going to try and help you here;
First off, im unsure of your position as you state you are ‘just about to start looking’ but also say you ‘viewed one house last year’ – for the sake of the conversation ill assume you viewed that late December so you appear to have been looking for at least 9 months or so? Please clarify
On the 15% thing, you don’t have to do this at all, but the agent may have had one of those conversations with the vendor that take place a fair bit where they (the vendor) didn’t want to drop the ASKING PRICE at that point but would entertain offers so it might be they were trying to guide you, im not sure
The matter is confused a bit by your comment on the property last year where you say an 8% discount would have ‘sold it’ – I assume you were un happy that you were not encouraged to make and offer, the very tactic that you criticise ‘The last EA I spoke to’ for? – the lack of follow up might indicate that they sold the property around the time you viewed it – again I don’t know.
You are inconsistent to say the least and if you have been focussing all of your search in a particular area the agents have possibly got to know you and may consider you a time waster based on the period you have been looking, and the fact that you want to be encouraged to make an offer some days but on others you don’t see why you have to.
Of course if you are just a bit of a nutter that doesn’t have cash to buy a house and didn’t think about what you’ve posted then that’s fine to, we get a fair bit of that here.
Jonnie
Wardy - perhaps he should have said about to start looking again after one year lay off while i hoped prices would reduce by 8%?
@cc
'As a cash buyer just about to start looking'
followed by
'I viewed one house last year'
Yeah you dont sound like a messer at all.
As a cash buyer just about to start looking I find the current asking prices a big turn off and will go back into hibernation untill EA start to value houses at market value.The last EA i spoke to told me to offer 15% less than the asking prices in the current market,why should I have to? It makes the EA's look like a bunch off ?
I'll let you fill in the ?
I viewed one house last year,was ok,needed a bit of work so said the price was a bit high,8% discount would have sold it to us,that was it ,no follow up,no offer of other houses in the the same price range,have EA's forgotton how to sell ?
Dont blame yourself - What exactly are you saying the public blame EA's for?
The general public really believe agents are to blame and not public. Amazingly stupid/naive attitude. How can on average, in every city, we all be wrong. You cant change a countries culture so dont give yourself a hard time,,
I listened to mary portis, she said to make all my details really pretty and I sold all my houses....not!!
It is interesting that no agents here admit to overvaluing yet i see it from most agents in my area (indy and corportate)
I admit i also know many deluded vendors who are hoping and holding out for the one in million offer at the asking price....because they dont need to sell with interest rates so low.
Q. If all agents changed to a monthly listing system would vendors be more likely to move on price?
The bog standard house ( no offence) is fairly easy to price and there are no surprises there.
However the charming, quirky one-offs are fetching a surprising amount here in the South West. There isn't much competition for these properties at the moment and the purchasers tend to be cash rich. It's the only examples of rising prices that we've come across.
Wardy, yes indeed, you’re quite correct; I have pretty much all the same round this way. I suppose I asked the wrong question: Why do businesses think it makes good business sense to overvalue.
I suppose as was helpful in the way you laid it out is because the corporate with their bean counter mentality are still using a boom time business model, and the odd over valuing independent is just #### and does not know how else to win business, unsold stock indeed.
However, it is frustrating seeing stock sat on a competitors window, when you know that it won’t sell, but that you could sell it for a sensible valuation, but the vendor does not want to know because they have been sold on the idea of an extra £100K. These idiots are harming all of us, including themselves.
I actually quite liked the Frog story, I’m tempted to use it next time I see a certain competitor I could think of.
@House
"....They are very negative at the moment and some may say are even part of the reason why the market is not improving....".
You may have hit on something here!
The 'surveyors' you refer to are the moneylenders 'surveyors' and the moneylenders now want not reasonable risk for their percentage, but zero risk!
Funny one,
Everyone has assumed their default positions on this;
The HPC boys are getting cross, BRIT1234 and his mates are now banging on about waiting a month or two and are probably only moments from telling us they are investing their cash on more gold…………………………… the agents that are constantly fighting against the over pricing lot are getting cross, the over pricers are sort of not here but there are some undertones of support here and there in the posts.
Realising Reality has gobbed off something predictable and we are all heading for a barney and the only bloke on here that’s said anything constructive is Miles bloody Shipside!
He seems to be telling the market / vendors to stop being daft and price correctly, and who likes the result that brings?
1. HPC – Yup they like it so TICK
2. EA’s – To right we like that, managing vendors expectations is easier TICK
3. Realising Reality – Its still early in the day so he’s presumably sober still but I think he’ll like it so TICK
I dunno, that bloke below Froggy or something talking about the scorpion and the frog story – EA’s and HPC, it’s in our nature to have a fight even when we don’t need one.
Oh, one last point – Wardy is right, for the love of god will you all get over this EA’s BTL portfolios thing, yes some of us have them but the rents are rolling in (and increasing) but its their EA business and income that is the thing they / we feed the kids on and those that got nervy have flogged them a while ago, we have had 3 ½ years of this now, a tough market isn’t a new thing anymore.
Jonnie
Ray you are right – “the value/worth of something is an agreement between seller & buyer” this is the case in most (non bricks and mortar) transactions however most Property/House purchases have an additional “opinion” the surveyor. You can often achieve a good price for a property for it then to be down valued by a surveyor/ mortgage valuer. They are very negative at the moment and some may say are even part of the reason why the market is not improving.
We recently sold a property £5k more than a competitor (and the vendor) thought it was worth (and it passed survey) so often vendors don’t always know the true value of their home.
You need to know the local market in which you operate and have recent comparable sales/activity evidence to back up any listing/valuation.
If Estate Agents don't sell properties no one is happy.
@House
Thank you, Your correct. Its not a new thing. Its
always gone on.
Agents are supposed to know how to overcome objections no?
Gloria,
Please do not try and label me as an over valuing agent, as I said before I’m happy to walk away from grossly overpriced properties.
From my own experience I’m up against many types of agents. I have a independent competitor who has right move as his only tool. That and over valuing. This poor sod has recently sent a flyer out stating he has more stock than every other agent in the area. He will even take generic pictures of flats and list them, I was quick to point out he means 'unsold stock'. We also have a franchise corporate wanna be, you know the type, fly boards everywhere, more offices blar blar... They are not too bad with valuing but will often take them on regardless.
We also have a true corporate in the area who pay a listing neg for listings alone. This particular person doesn’t give two s**ts what she takes on because she gets paid whatever. Then we have out off area corporates who are willing to over value for the same reason.
Over valuing is a tool used be either independents who are unsure in their own ability or corporates negs who need instructions to satisfy a bean counter. It’s that simple.
As far as I know none of my competitors have BTL portfolios.
Most people in run-of-the-mill estate houses know what the score is for an average well maintained and equipped house - nowadays an EA is only really required to assess the asking price of a unique property.
Also, the value/worth of something is an agreement between seller & buyer and maybe the sellers are getting fed up with people saying that a buyers opinion, together with some EAs who want reduced prices to boost turnover, is the only one that counts and they should get 'something for nothing' (an exaggeration I know) and that the sellers opinion of value/worth should carry some weight!
I await alternative polite suggestions.......;>)
“As long as vendors+EAs work with 'ridiculously high' asking prices, they can expect buyers putting in those even more 'ridiculously low' offers, now as low as 15-25% below asking price.”
But that is the problem, by overvaluing the EA creates an expectation in the mind of the Vendor that their property really is worth that. And because everyone wants to believe, really really hard, that they have lots of lovely money heading their way, that expectation is extremely stubborn to shift once it has taken hold.
It is killing volumes, it is killing EA's businesses!
Wardy
Perfect – exactly what I mean – you have a way of dealing with it “second time round” others will take them on and explain they feel it is too high and work with the vendor and re-educate them.
I just get bored of people moaning about it – overvaluing is not going to stop – just deal with it in the way that works for you.
There's nothing wrong with over-valuing and over-pricing.
As long as vendors+EAs work with 'ridiculously high' asking prices, they can expect buyers putting in those even more 'ridiculously low' offers, now as low as 15-25% below asking price.
No wardy, I am in a pleasant area not too far from the capital. But if you visit lar lar land I hope the weather is good.
Perhaps you could educate us all on what you feel are the reasons why so many agents so routinely overvalue?
I for one cannot fathom why a sensible agent would overvalue something just to get a useless property on the books, as I recall some wise chap mentioning recently, I need to sell houses, not houses to sell.
House,
me for a start. Its getting on for about 1/2 every month now.
I'll have em the second time round.
How many of you would walk away from an overpriced listing, especially in a good area or a particularly nice property – not many I guess?
Overvaluing happens; just build it onto your business plan. If you haven’t got it on your books you will never sell it, there are also knock on effects of board presence/rightmove presence, potential customer perception etc etc.
We all want correctly priced listings OBVIOUSLY but you can’t always educate people for various reasons.
Overvaluing by “Other Agents“ will always be here so just decide how you’re going to deal with it and get on with it.
Gloria, are you in lar lar land?
My point is simply this. There are many reasons why agents are over valuing. Protecting their own portfolios is not one of them. This a complete red herring.
If as an agent you are happy for the profession to be slandered on a incorrect assumption then thats up to you.
What baffles me is actually Rightmove wanting to put there prices up !! Hello ?
Wardy, in my experience people are very precious about their own values and opinions. If you spent years pushing valuations up it takes a lot of humility to admit you got it wrong. That goes triple if you bought a BTL property, to actually admit you made a mistake is a step too far for most people’s humility to bear. Far easier to convince yourself that property prices really are rising. And find other reasons as to why your turnover of instructions is almost nonexistent.
I don’t think people are quite deluded enough to think that they can protect their BTL portfolio by over valuing, but I do think many simply choose to perceive the world around them to fit their prejudices rather than stepping back and asking what the hell is going on in their market and why are buyers so lethargic.
The reason is quite simply that buyers know prices are going down, and they are right.
So FFS, you think agents are over valuing to protect their own portfolios?
It is evident in our town that 2 agents are over valuing, just to get new instructions...one is an experienced agent, but is over valuing by 10%. Recent comparable sales proves this 100%! & the second agent is new to the town and is stating that they can get over what vendors are currently asking. This tactic, impresses some vendors & tries to undermine the existing agent!
THEN AFTER TYING CLIENTS INTO LONG TERM CONTRACTS - GUESS WHAT -THEY PUSH FOR A PRICE DROP!
BUT HAS THEY SAY ..."YOU CAN ONLY FOOL SOME OF THE PEOPLE SOME OF THE TIME"! & NOT ALL THE PEOPLE ALL THE TIME! ..
Wardy, don't talk nonsense, the 'BTL thing' as you put it is right at the heart of the overvaluing problem (and, increasingly, it is a big part of the 'stuck market' problem).
I'd argue that those of us who were skeptical about the long-term viability of BTL as an investment proposition might even be outnumbered in places by colleagues who piled into it with gusto!
As for Rightmove, Shipside's analysis is spot-on - even if his own prices are drifting into the same fantasy territory as some of the deluded would-be sellers out there ....
Now thats a big surprise never thought of overvaluing to get the instruction then hope I can then get it down to the price that the professional agent said.
You guys have got to get over the BTL portfolio thing. An untrue assumption on the part of HPC.
So has it occurred to anyone that statistics excluding London might be useful...?
The Scorpion and the Frog is a fable about a scorpion asking a frog to carry him across a river. The frog is afraid of being stung during the trip, but the scorpion argues that if it stung the frog, the frog would sink and the scorpion would drown. The frog agrees and begins carrying the scorpion, but midway across the river the scorpion does indeed sting the frog, dooming them both. When asked why, the scorpion points out that this is its nature. The fable is used to illustrate the position that the behaviour of some creatures is irrepressible, no matter how they are treated and no matter what the consequences.
The EA and the FTB is a fable about an Estate Agent and a First time buyer. The EA asks the FTB if he can find him a house to live in. The FTB is apprehensive as he knows EA’s only know how to value in a bull market and is obsessed by his own BTL portfolio. But the EA argues that if he does not make a sale to the FTB and others like him then he will go bust and lose everything. So the FTB agrees, but a year later and every property on the EA’s book has been brought on at a delusion prices. So the FTB has still got all his money, but the EA goes bust and looses everything. Why did you do that asks the FTB, the EA points out that it is in his nature. The fable is used to illustrate the position that the ramping behaviour of some creatures is irrepressible, no matter how they are treated and no matter what the consequences.
It's not that surprising - not only do many sellers still believe their home is in a bubble - the nicest in the street, the biggest garden, the most modern etct etc, coupled with corporate estate agents STILL overvaluing to get the business & worry about about getting the negs to reduce it later. Most agents in my area are carrying a stock of around 175 properties per branch yet the greedy corporates still tout for more simply because they are so heavily targeted to put more & more on the market every month at any cost, in some strange bid for total world dominance! Idiots of the highest order!
Not that it bothers me really...........!
A rise in asking prices will just put off first time buyers off looking. I may delay a month or two now. I think this rise will hurt estate agents as well.
10 bob scraper website and egotistical owner gets 'air time' on EAT, baffles everybody.
Yes that was aimed at you Realising Reality, not rightmove.
Just goes to show that all property surveys (and comment!) are next to useless.
Asking price increases where agents are taking on new instructions, baffles agents?
New rise in RM fees, baffles agents.
High end property prices in London, South East, and East Midlands skew those figures.
The price of the average property for average Joe is falling.
Stupid
Naive
Greedy
Idiotic