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Written by rosalind renshaw

A man who pioneered a concept called ‘extreme house selling’ and who founded a website called Property Selling Strategy, offering consultancy to help individuals and estate agents (at £1,000 per day plus expenses), has had to concede defeat on the sale of his own property.

Jonathan Blain, of Berkshire, had renovated a house in Devon at a cost of £850,000, and in 2008 put it up for sale with a £3m price tag.

The house was repossessed last year and has now sold for just £651,000.

Blain described himself on his website as a ‘property selling strategist’, a thought leader and an international best-selling author.

He said: “I might not have a great deal of experience in property sales, but that is my strength. I am not constrained by industry thinking and historic practices.”

His attempts to sell his property were high profile and garnered enormous publicity. In one of many interviews, he told the Telegraph: “Estate agents have a formula: written particulars, local press ads, popping a photo on a website. That’s worked until now but suddenly it’s not enough. A lot of other skills can be put into selling, but agents don’t possess them.”

The aggressive marketing campaign included contacting business people, handing out brochures to City workers, and making a YouTube video.

When he was forced to reduce the price of the property to £1.35m, he even chucked in a free speedboat and a Range Rover to try to tempt buyers of The Old Bakehouse, near Totnes.

Whilst Blain defended the high price of the property, critics pointed out that the house was over-renovated and that it was not even detached but part of a terrace.

Other possible drawbacks were that it had its garden on the other side of the street, had only one car parking space and with only 2,400 sq ft of living area was probably not the size most millionaire buyers envisaged.

Blain told Duncan Farmer in the Mail on Sunday that he still felt the house was worth far more than £651,000 and that the banks probably “didn’t know what they were selling”.

Estate agents also defended their original valuations. Savills put it at just over £2m, saying the house at that point included five acres of land. The agents also advised him to sell the property unrenovated for £1m.

Knight Frank in Exeter valued the property at £2.55m but,said Sandy Davenport: “Those were different times. The waterfront market was very hot then.”

The property was eventually sold by Fulfords in Totnes on behalf of the banks. Jason Wells, of Fulfords, had valued it at less than £1m last year and told the Mail on Sunday that the original valuations were ‘ridiculous’.

Blain’s website can still be viewed but it does not appear to have been updated since November 2008.

Blain is now working as a careers coach and executive CV guru, according to a profile on a social networking site.

Comments

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    I was also quoting Reuters' interpretation of the report by the way!

    • 11 October 2011 15:50 PM
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    That RICS report does contain the odd questionable detail.

    New vendor instructions declined... while the amount of stock on surveyors books increased from 66.9 to 68.9.

    Still, nice to see the weather / sports tournaments etc are no longer being blamed for the slow market. No doubt that will change in next month's report.

    Speaking of Japan:
    House prices: 'We're set for a crash so slow that many will not even see it'

    http://www.dailymail.co.uk/money/mortgageshome/article-2047375/David-Kauders-house-price-prediction-Were-set-crash-slow-it.html

    • 11 October 2011 15:47 PM
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    'The Realist' ....whoever he/she is.... along with the top richest 1,200 in the UK or those on benefits are the only people in the country who are no affected in some way shape or form by the banking debacle of recent years.

    I guess he/she is not in the rich list.

    • 11 October 2011 15:40 PM
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    rant: "House prices in England and Wales continued to fall in September and the number of sales declined for the first time since January..."

    I need your help on this one, matey. First, let's look at these declining sales. Here's the thing: our ancient friends at the RICS bash out a report that says "...newly agreed sales fell slightly, with the net balance decreasing from +2 to -4, the first negative reading since January. The average number of sales per surveyor (branch) increased by 3.3% to 14.5..."

    So... how do numbers of sales DECLINE if the average number of sales per surveyor INCREASES?

    Then - the falling house prices cherry. The one that your buddies get so excited about and their chins get all chapped and sore due to uncontrolled slaveration... ;o) Again - I'll quote from the report: "The headline net price balance remained unchanged at -23 i.e. 23% more
    surveyors recorded prices falling rather than rising over the last three months. That said, three quarters of the respondents that did report a fall in prices did so in the 0-2% range." First the 'net price balance'. What that means is that, of the 240 duffers who could be chuffed to fill in the paperwork, and who are responsible for reporting the activities of only 318 offices nationwide, 35% of them (82 or 113 dependent on whether they are counting respondents or offices...) said that prices had fallen over the last three months. That means that SIXTY FIVE PERCENT (158 or 205 using the above methodology...) report that prices have, at worst, NOT CHANGED, and at best risen slightly.

    As is seen, of the negatives, the majority said that the drop over a three month period was somewhere around the cost of a tank of diesel! Okay - maybe not - but YOU have a shot at quantifying 0%-2% as a figure... (actually, don't bother - we can ALL work out what 1.9999999999999999% of the average LR sale price is for ourselves... ;o) ).

    Look. The garden is FAR from rosy, we all admit. But the Japanese only sent knotweed here to choke our native foliage - not their insane housing market bubble to throttle the life out of ours!

    Can you imagine what the Japanese RICS Report would have looked like??

    More zeros than seen heading towards Pearl Harbor in 1940, I reckon... ;o)

    • 11 October 2011 15:26 PM
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    Latest RICS report out today:

    (Reuters) - House prices in England and Wales continued to fall in September and the number of sales declined for the first time since January, a survey showed on Tuesday, providing further evidence of a weak housing market.

    http://www.rics.org/site/download_feed.aspx?fileID=10592&fileExtension=PDF

    • 11 October 2011 14:07 PM
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    The Life of Brian film pokes fun at life and religion, its fiction, too many on here post as if they can make it up and if they persist with rubbish, its going to make a difference.

    Follow the sandal, it makes as much sense, what are you going to gain guys? You know, nothing.

    • 11 October 2011 13:23 PM
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    "The crash aint going to happen..."

    It already is! Nationwide and Halifax indices are down 20% and 30% respectively in real terms since 2007. That pace matches the last crash in the early 90s.

    Northern Ireland is down 50% from peak prices. Large parts of north England are down 10% this year alone (more if you add in inflation). Even the South East is now registering falling prices.

    Sure, prices are dying a death of a thousand cuts, but given all that's been thrown at the property market by the govt and Bank of England, that's the way it's going to be.

    If UK banks have to take a haircut re their exposure to Greek debt, then they may well try to recoup that lost income through higher mortgage rates. Pent-up supply is also building up across much of the country. Combined, these factors may see price falls gather momentum in the coming months.

    • 10 October 2011 21:55 PM
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    Rob I couldn't agree more, a property is only worth what some one is willing to pay for it.

    -------------
    That's wrong. A property is only worth what someone is willing AND ABLE to pay for. Without sufficient money, it is of no importance what you are willing to pay.

    And that means, values are almost exclusively (apart from millionaires) down to haow much you can borrow from the bank. Banks can no longer lend as they did in the bubble years, and that ability is not coming back.

    So there are only two possibilities for house prices. Fall, or do not sell. A mixture of these two is what has been happening for the best part of four years, and it'll continue possibly for aonther four.

    • 10 October 2011 19:55 PM
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    When will the hpc lot realise that the crash ain't gonna happen. They've been bleating on about it now for 7 years now. This house in devon was never worth 2m. Anyone who has seen the photo of this gaffe could tell that it might have been worth 750k at peak and has been left empty with the odd rat or two finding it's way in over the past couple of years. This is the story across the uk. House price down slightly but no crash due to the bank of England policy of letting the bubble deflate slowly so the banks don't go down the pan again. This is a controlled rather dull and protracted story and I'm so pleased I didn't sell up in 2007 and join the chancers in rented trying to profit from so-called impending doom.

    • 10 October 2011 19:08 PM
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    The penny has just dropped.

    That's why estate agents valuations are free !

    Because they are not valuations, they are bo110x.

    • 10 October 2011 18:40 PM
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    Here's a couple more then:

    How High House Prices Are Destroying Family Life:

    http://money.aol.co.uk/2011/10/05/how-house-prices-are-destroying-family-life/


    Negative equity is back: House price falls leave thousands unable to move and stuck on high mortgage rates:

    http://www.dailymail.co.uk/money/mortgageshome/article-2045281/House-prices-What-home-fallen-negative-equity.html


    Northwood Letting Agents Cardiff
    23 Whitchurch Road, Cardiff CF14 3JN
    029 2030 1141
    http://www.northwooduk.com/letting-agents/cardiff-and-newport

    • 10 October 2011 18:24 PM
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    Always look on the bright side of life

    • 10 October 2011 18:19 PM
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    I know an ex EA who works on a production line, and another one who's currently unemployed. Life skills.

    • 10 October 2011 17:37 PM
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    @ Life of Brain - lots of ambiguity there... define "life" and "those in the private sector"?

    Is it the aforementioned "life" skills that allow many EA’s that lose their jobs to get jobs in IT, recruitment and car sales?

    ... Some admirable vocations there that have no sleaze associated with them what so ever! I can see why ex-agents are held in such high regard when it comes to "life".

    • 10 October 2011 17:03 PM
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    Please note the current estimated value thanks to our jolly friends at Zipperdy-Doopla -

    £361,697.

    D'OH!!

    Sounds like the valuer who let it slip though at £651k 'cos it looked a safe bet should be checking his/her PII cover... ;o)

    • 10 October 2011 16:45 PM
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    Rob I couldn't agree more, a property is only worth what some one is willing to pay for it.

    “I might not have a great deal of experience in property sales.” Hmm....

    To develop and ask top dollar in a property slump seems naive so I have to question the self styled title ‘property selling strategist’. Anyone can sell in a rising market but only in a declining one do we get to see who really knows what they're doing and doing it well.

    'A lot of other skills can be put into selling, but agents don’t possess them.” Hmm....

    Its easy to make bold statements when you don't have to justify them. If you don't understand the industry how can you innovative it?

    Blain could have learned from our mistakes but instead all he did was make his own. Hmm...

    • 10 October 2011 16:43 PM
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    The banks are NOT the problem. The banks are very sensibly not funding mortgages because they know the only way house prices are heading is DOWN.

    Their accounts are already stuffed with overpriced property based "assets" . If they dared value them at their true market value they would be bust.

    The last thing they want is more property on their books. And who can blame them.

    • 10 October 2011 16:19 PM
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    Ex agents are seldom without work as they are far more skilled at “life” than many, especially those in the private sector, who bring nothing to the real world, save their perceived right to be given a living

    • 10 October 2011 16:15 PM
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    BANKS ARE OUR PROBLEM
    THIS IS ALL OF US

    The blockages in SME business growth, manufacturing, property and much more besides are all being caused by the banking sector. Government seem either powerless or clueless in effecting change in this respect other than spouting non-productive rhetoric.

    Small business cannot grow causing employment issues, manufacturing cannot be financed long term causing GDP issues. firms are unable to fill orders as banks will not finance the raw materials. Property market remains stagnant as mortgages remain expensive and difficult to get.

    Money has stopped flowing.

    The 'mega rich' along with our bankers are cocking a snook at the rest of us and finding it very entertaining.

    End of ***NEWS FLASH***

    • 10 October 2011 15:15 PM
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    Here's a couple more then:

    How High House Prices Are Destroying Family Life:

    http://money.aol.co.uk/2011/10/05/how-house-prices-are-destroying-family-life/


    Negative equity is back: House price falls leave thousands unable to move and stuck on high mortgage rates:

    http://www.dailymail.co.uk/money/mortgageshome/article-2045281/House-prices-What-home-fallen-negative-equity.html

    • 10 October 2011 15:03 PM
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    @rant

    Okay – im pretty sure your numbers are right – or at least right enough for the basis of a conversation……………….

    The number of EA’s has halfed (im assuming this is offices) as has the number of transactions, Yes?

    So can you see why those of us that are still here are………….what’s the word? Erm……happy, I know of many businesses that are actually MORE profitable now than in pre crunch days, including me and by that I mean in ££’s not % of turn over

    The crunch did the industry some good, it shook out a load of chaff – yes, I agree there is some EA’s that still cannot value a house, a point many HPC’ers acknowledge / get cross about.

    ……….and, I know I keep on about this but there is the hidden property boom that no one talks about and is being fuelled by those that do not want / cannot buy and that’s the lettings market – yes its labour intensive etc but it makes EA’s a lot of money on top of the sales they have from a market half the size with half the competitors.

    Now, can we get back to a fight please?

    Jonnie

    P.s – I know plenty of EA’s that lost their jobs, many of them seem to have gone into IT, recruitment and car sales, I do not know of one that is unemployed or was for very long after being made redundant.

    • 10 October 2011 14:58 PM
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    In the interests of another ding dong, here is a post I found on the HPC forum today. I like this guy. Ironically only one other poster replied to him.

    'I have been waiting for an HPC for about 10 years. Some of that time I was just getting on with my life whilst it was ripping away.

    The house I rent was £170k in 2003 now the last sale for the similar thing was 2010 £234,950. Even if it returned to £170k - so what - I haven't exactly beaten my landlord by not buying as we still pay £925 per month.

    Now I am 40 - last chance saloon for getting a 25 year mortgage( I suppose retirement ages are going up).As it turns out - now I have no work and no deposit either - so I am less able to buy a house than I was at the peak(still the peak as far as I can see).

    Even if I had paid over the odds, the low interest would have been better for us as a family now.

    It feels very odd to still be bearish and feel like I might as well buy a house. It would take longer to get chucked out instead of getting chucked out by the landlord.

    The point is there seem to be two parts to buying a house 1) The price 2) The ability to actually do it.

    I think a lot of FTBs come in to category 2 so when they see a 100% mortgage/borrow deposit from X they will take it if they can as you might not get a chance later on.

    The price matters more to the STRs and the retirees. I am starting to wonder whether I pay £175k or £200k makes a blind bit of difference if I am dead waiting.

    PS - I am not encouraging getting in to NE on some sh1tty flat that people will want to move out of. I am talking about a bog standard house.'

    • 10 October 2011 14:53 PM
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    Let's discuss this over a drink or two Jonnie. Let me get you a Molotov Cocktail:

    From the Guardian: ...the number of estate agents in Britain has almost halved from 16,000 at the peak of the market in 2007 to less than 9,000 now, says Hometrack's research director Richard Donnell.

    http://www.guardian.co.uk/business/2011/oct/09/housing-market-prices-mortgages-recession

    (note to add - these are the facts quoted by an industry insider - for the record, I don't rejoice at the news of anyone getting laid off)

    • 10 October 2011 14:30 PM
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    I suggest all HPC'ers get in touch with Henry Pryor.

    Surely Savills couldn't get it wrong? From Henry's web page !! See below. He can be your champion.

    HE SAYS'

    On leaving school in 1983 I worked for Savills for 10 years and then ran the country house department in London for Strutt & Parker. I then set up the first of what became known as the “affiliate groups”, The London Office for provincial estate agents. After 12 years I sold my interest and started an ill-fated multi-listing business called Charles Lister (my middle names). In 2006 this business was bought by Lonres.com.


    Day-to-day, I advise a select number of private clients on residential property acquisitions acting as a buying agent. I usually work for people who either want someone in their corner to represent their interests to match the estate agent who represents the seller or for people who don’t want who they are to be used against them.

    • 10 October 2011 14:28 PM
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    @Jonnie.
    Seems someone touched a nerve. When one lowers the debate to insults, and not even on topic ones, then it cearly shouts out personal inadequacies and a bit of reality hitting home.

    The article highlights the farce that has become selling a house. If a fool believes that marketing alone will allow them to over inflate the value of a house then they are an idiot. For one, the bank would require a serious valuation before advancing stupid money. The frivolous times are gone, and so has the free, unchecked credit.

    EA's that can actually do their job and value a property at a realistic value will continue to trade. Those that don't are short on time for this world. The party is over.

    • 10 October 2011 14:17 PM
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    Whats something worth?
    What some one actually pays for it.

    A fool and his money are soon parted.

    If no one buys then the price is too high and its effectively worthless, you have to find the bottom and if your lucky its not to low.....

    The real worry is that when theres a property sale chain where all buyers are mortaged...then really only one person gets paid, all the others owe it to someone, who owes it to someone else.
    Only an issue when the music stops and you have to pay up. Or the bank wants it money or the investors...

    • 10 October 2011 13:33 PM
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    Oh dear, I look as though im having a pop at Billy & Brum Agent, im not, I meant to say our anonymous friend BETTWEEN Billy & Brum Agent

    Pleased to set the record straight

    Jonnie

    • 10 October 2011 12:48 PM
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    This is more like it!

    We haven’t had a story like this on here for a while, something for everyone as well – let’s kick off with the berk that is Jonathan ‘I put the berk into Berkshire’ Blain………………..what can we say, an all round pillock / celebrity house market guru that might have just been caught out as a boom market clown that actually knew very little but had a bit of fun and made few quid on the way – I am assuming that the repo of this last gaff he did hasn’t caused him any real loss and was just one of those win some loose some things.

    But, the best bit is as always not the article but the responses below and as much as I know I should follow the very sound advice Fun Boy Agent has given I cant do it, ive tried but I cant help myself.

    …………..I hope this turns into an old school HPC / EA punch up, we are well overdue one and have set the right tone for one already with some great lines including our anonymous friend below Billy and Brum Agent;

    ‘’let these overvaluing EA's go bust, and greedy vendors languish or get repossessed before they finally start pricing at a realistic level. So that ordinary hard working people can have a home and start a family’’.

    You go fella, that’s the spirit although having a family does not require homeownership, it will require a willing female, the ability to relax long enough to actually manage the ‘money shot’ (uptight chap you are) and a salary that means one of you can jack your job in to look after your spawn, three things that many HPC lads don’t seem to have and three things that house prices / your ability to buy wont change.

    Jonnie

    • 10 October 2011 12:35 PM
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    Business consultants are so called as they can’t run their own businesses, serves him right, arrogant fool.

    Oh by the way, wine away HPC nutters, Ceebies on soon.

    • 10 October 2011 12:35 PM
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    So there's a rarity, a seller who 'knows' his value better than the local agents!!

    I'd wager that the banks knew what they were selling far more than the Berk from Berkshire knew what he was buying!

    There are a whole host of adages that could apply but for now I'd settle for the 'fool and his money' one but feel free to contribute your own . . . . . .

    • 10 October 2011 11:59 AM
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    Made me snigger this one did.

    I think I understand the term "schadenfreude" now.

    Why any agent could get the price this wrong is beyond me.

    £1250 per square foot is a MASSIVE price, but if local prices were going up then he might have seen this price by now.

    But prices started to come down.

    I have sold a flat quite recently that is about the same size as this (different area though).

    It got £550k.

    A smaller house in the same development got £675k.

    Context is all important.

    • 10 October 2011 11:03 AM
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    Billy, If your so unhappy with your FREE valuations then why dont you pay for a RICS Surveyor to value your property.....

    • 10 October 2011 10:04 AM
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    ****** NEWS FLASH ******

    This is the HPC'ers story all agents are supposed to ignore.

    This is the story designed for them to congregate around and provide their platform to make stupid comments to each other.

    I strongly suggest you don't get involved.

    It is stupidity.

    • 10 October 2011 09:54 AM
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    @Brum agent
    Good advice for buyers ? wait 12 months, save a potential £50k ?

    • 10 October 2011 09:49 AM
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    Billy, here is an insight for you. The EA that valued your house at £600k only did so because that individual member of staff is targeted to bring houses into their books, if you actually went with them I guarantee you have a 1 in 100 chance at best of actually getting that price. More likely you sit unsold for 18 months. After a few months they will be tapping you up for price reductions, because they never actually expected to sell it at the initial price anyway.

    I suggest you go with guy who priced it at £350k, while you can still actually get £350k. If you go chasing fantasy prices in a year’s time your will be lucky to get £300k tops.

    • 10 October 2011 09:39 AM
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    The Vendor bought it expecting a greater fool to come along and take it off him at an inflated value, then discovered that he was the greatest fool.

    An awful lot of people who bought after 2005 when the property bubble was seen by all and sundry as a get rich quick scheme are going to discover that they too are the greatest fool, and it will be a decade at least before they see those values again.

    I urge all first time buyers to stay out of this market and let these overvaluing EA's go bust, and greedy vendors languish or get repossessed before they finally start pricing at a realistic level. So that ordinary hard working people can have a home and start a family.

    • 10 October 2011 09:31 AM
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    SRB....Your trying to point out that vendors do not listed to their estate agents....but .was the original value not based on estate agents valuations.......how can people learn wjhen the ones who are valueing the properties have not got a clue? When I had my house valued it ranged from £350k to almost double at £600...Its not the people that need to learn, but the estate agents on how to do their job properly

    Typical estate agent answer......its not selling, then drop the price.....

    How about instead of sitting on your computer, posting ridiculas post that contracdict themselves, whilst complaining that vendors want to high a price for their property, and get off your bum and try and sell some

    Novel Idea.........

    • 10 October 2011 09:27 AM
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    Ray, Maybe you should read the article, the price is exactly the issue here. That is precisely what the vendor is complaining about.

    • 10 October 2011 09:24 AM
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    Savills said over £2m
    Knight Frank said £2.55m
    Fulfords said less than £1m

    Then despite a marketing guru going to town on marketing, probably giving this property more marketing than any other UK home it actually for £651k.

    We could learn from this that less than a third of EA's are living in the real world.

    • 10 October 2011 09:22 AM
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    This chap was pushing a whole range of marketing gimmicks to find a buyer for his "£2 million house". Therein lies part of the problem - it's only worth £2 million when you've actually sold it at that price and not beforehand.

    Watch Jonathan Blain's self-promotional video here:

    http://www.youtube.com/watch?v=i0kPFA1UPYE

    Putting the 'berk' in Berkshire???

    • 10 October 2011 09:19 AM
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    @SRB

    When will you learn to read the complete article - there is more there than just price.

    • 10 October 2011 09:18 AM
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    Classic this isn't it? Vendor in cloud cuckoo land and ridiculous valuations from the original Agents. When will people learn?

    • 10 October 2011 08:45 AM
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