Why have prices remained almost static whilst sales have dropped to a trickle?
The answer has to be price, price, price. Quoting the correct price when marketing a house is the key. This cannot be happening – but why?
Possibly the worst position estate agents could ever find themselves in, is having to do accurate house valuations instantly – on the hoof, having just viewed the house themselves (for a quarter of an hour or so) and without getting paid anything until the house might be sold by them!
Well, guess what? That’s exactly the position that estate agents have got themselves into, simply by trying to out-compete with other agents to win the sales instructions needed for their individual businesses to keep on growing.
Due to this problem, the present method of doing market appraisals by estate agents has resulted in the majority of houses not being ‘valued’ accurately enough.
This has resulted in there being no clear ‘tone’ of value across current asking prices these days. In other words, asking prices are all over the place. The effect of this is that both buyers and sellers have become confused and apprehensive.
It has long been known that asking the wrong price can actually put viewers off a house, from the very start.
Testing the market with a hefty price at the beginning of a marketing campaign is therefore the worst possible thing that anyone could be advised to do, but unfortunately, too many people are being advised (or think it might be OK) to do exactly this.
Even mortgage valuers, who are required to corroborate the resulting prices, agreed subject to mortgage, are generally able to reflect a little, and do some specific research in the office, before deciding whether the figure agreed upon is within ‘the range’ – or not.
It is ‘range’ rather than price because there is no ‘exact’ figure which can be applied to any particular house.
Instead there is only a range of prices within which a house should attract buyers in the current market, without the need for grossly excessive borrowing in order for buyers to be able to do so.
To sell efficiently, a house needs to be priced within the range-of-prices that currently apply to it.
My view is that this isn’t happening in far too many cases. It is this that is largely responsible for the decline in the volume of completed sales, and not the downturn in the economy per se.
People still want to move house, even in a downturn. It’s just the confusing and varied levels of asking prices that are hampering them from achieving this.
It’s generally accepted that the most important aspects that affect the market price of a house are location, type, size of property and condition or quality of build.
Well, I don’t know of any surveyor who could reliably assess all four of these criteria within a quarter of an hour’s visit – and do this correctly every time. There is therefore little or no chance that an estate agent could do this either.
Don’t forget, they also have to take into account all the arguments being put forward by the owner as to how much the house should be sold for, and they must appease the owner to get the instruction to begin with.
It’s now obvious that we’re asking too much of our agents these days.
To try and argue that there’s nothing going wrong in the housing market would clearly be to shoot oneself in the proverbial foot.
No. The problem is purely agent-created as explained above, and what’s worse, there’s no one doing anything to help them resolve the matter either.
Comments
"The Squeezed Britain study, by the Resolution Foundation (an independent think-tank)..."
Ermm... I think not, Mr RR.
From their "Our Work" webpage:
"We work to highlight the experiences of low-to-middle earners (LMEs) through our research and improve outcomes for them through our policy proposals."
About as independent and impartial as you are, methinks...
Gnaw... gnaw... gnaw...
"One should question the wisdom of governments that allow this to happen, in modern society, on their watch."
Come along then, Mr Hendry/Realising Reality/whoever takes your fancy at the time... what is - what CAN - the Government do in order to get my 28-year old son into a position of being able to buy a home from him and his family in his preferred location?
Nothing ostentatious - he wants and needs a three bed semi in a reasonable location.
Talk to me - I'm ALL ears! I will listen and learn.
The Squeezed Britain study, by the Resolution Foundation (an independent think-tank), has concluded that many under-35s face being stuck in rented accommodation well into middle-age, if not for their whole lives.
A widening gap is opening between those who can afford houses and those who can't. Has this coalition Gov. got a sufficient mandate to sanction or even to inflict this degree of pain on the populace?
One should question the wisdom of governments that allow this to happen, in modern society, on their watch. Surely there can be NO excuses, when the root cause for this to happen is, in fact, well known.
Peter Hendry, Consultant in Housing Valuation, Property Match (UK)
Mr May
I am sorry that it seems Mr Hendry now has you on his block list as well. Obviously, in order to be considered worthy of his attentions, you need to be an expert which you are clearly not - expert at agreeing with his rantings, that is!
He can't claim to be too busy to respond - he has posted this morning under another of his nom-de-claviers.
Funny fella - he wants to START an argument he simply can't win - but then doesn't want to participate further!
Still - takes all sorts, doesn't it...?
Thank you Peebee
If you track Peter's blogs and Posts way back using variations of the advanced Google Search you will see that he seems to want publicity either for himself or his site. There seems a desperation going back a couple of years to have a televised/ podcast debate about this subject.
That debate is never going to happen because to most people even those in the industry this issue is simply nonexistent.
If Peter looks a little deeper he will understand what is going on and realise that what he is describing is not a flaw with all agents but it is a flawed strategy of some agencies.
I have had the privilege of insight into all manner of agencies over the years, the good, the bad and the others. The most profitable thing any agent can do is related to Peter's topic (hence my interest) but he has put the pieces together in the wrong order and reached a wrong conclusion. His conclusion doesn't win him any friends, it won't change a thing and it is probably time to let it go.
Mr May. I could not agree with you more, Sir.
Unfortunately, as you have experienced in the past, Mr Hendry is all up for debate UNTIL the debator turns out to NOT wish to dance to his tune!
Take his most recent rantings on Tw@tter & facebook:
"All the chaos in the housing market is being caused by estate agents not doing enough to advise their clients on appropriate asking prices.
The result is general uncertainty amongst the sellers, many of whom decide to instruct their agents to quote unrealistic asking prices owing to this.
Many others simply decide to sit tight, as buying in such a price chaotic market would be far too risky. The result is what we see now - stagnation in sales activity."
But... vendors of the UK need not fear - Mr Hendry claims, as I have said below, to have "a plan". (But only apparently for people with houses to sell at a price of OVER a hundred thousand quid, or they can't advertise with him...)
Now - here's the thing. If I had "a plan" that would get the whole property market moving again, I'd share it with you all.
After all - it would do me no good whatsoever to sit on it; the minute I told one person it would spread like wildfire anyway; and I'd kinda like to give something back to the industry which has looked after my pretty well over the years.
I'm still waiting for him to share his "plan" with us all - or ANYONE, for that matter, however...
What does THAT tell you about the man?
Peebee I just noticed you seem to be looking for the last Blog on this subject and say it isn't in the archive.
Copy the next line and paste into the google search box
"peter hendry blog" site:estateagenttoday.co.uk
that should get you what you want.
Hello Brian, I was in London and on the M3 last week, my wife had a Head Teacher's conference in Marble Arch so the TT became a Taxi. If I were up to anything you would probably know about it from Twitter, Linkedin or Facebook before me.
Hello Peebee, it is because Peter keeps banging out this same old tune that I feel compelled to discuss it with him. Valuation, Appraisal, Opinion of value is one of my pet subjects too and it is because Peter is so wide of the mark in his opinion about how agents value property I cannot let it go. I have obviously trained a whole heap of people the wrong stuff, slightly strange as it inspired by Millington.
Brian. Long time no see! You have been absent for a while - I for one don't subscribe to common theories (or at least have a degree of faith that some of us say what they want to say using ONE name only - even if it is an alias...).
As you state, Mr May has once again entered into debate with Mr Hendry. Rather surprising considering the last attempt fell upon stony ground - which, I also note, has seemingly disappeared from the archives...
Of course, Mr Hendry will ignore this expert - as he does EVERY 'expert' on the matter who does not share his view. Oh - that would be EVERY EXPERT full stop - wouldn't it?
And me? I'm just the annoying puppy that keeps chewing at his ankles.
Chew... chew... chew.
Nibble... nibble... nibble.
Try as you may - I'm impossible to iGNAW, Mr Hendry! ;o)
Its not often you make a public appearance Robert, Peter Hendry ought to be honoured.
He probably wants to discuss this with a different kind of expert, not one who knows what he is talking about.
What are you up to? Since you left Jupix no-one has clapped eyes on you other than a sighting at the PD conference in September and your gleeming white TT was spied by one of the sales guys headed out of London on the M3 last week. Whatever it is( there is bound to be something) I hope it goes well.
Brian
Despite Rosalind's latest update of my profile I am not an expert, unless you can get “Henry off the telly” you are going to struggle to get an expert to discuss this with you, so how can I re-assure you that in a flat or dipping market it is not in an Agent's best business interests to take instructions on an overpriced property. The market dropping away from asking price simply reduces their opportunity to secure a buyer and subsequent mortgage offer. Sensible agents don’t do this. Any agent that has weathered the last 3 years must be business savvy.
Why do agents over value properties in a rising market? They have to! Their duty of care to the vendor means that they should be aware of the rate of rise and value according to the lead time of marketing and finding a buyer.
I freely admit that at one time in my career I was adding 5 and sometimes 10% to my valuations on a weekly and sometimes daily basis simply to keep up with the applicant demand push on prices. For 3 months the world went mad and my boss would chastise me for overvaluing only to eat humble pie when I secured and completed sales at my widiculous valuations.
Estate Agents market properties to sell at the best price possible, until you have a detailed knowledge of every applicant and every applicant’s requirement on their register of applicants, you nor anyone else can say they are over valuing anything. If applicant X wants to buy a particular property for a particular reason it is up to the vendor’s agent to understand the motivation and winkle every possible penny out of them.
wardy: Mr Hendry has done nothing but DISASSOCIATE himself with Estate Agents with every post on this site; with every tw@tter; and with his own woeful 'blog' and website.
Take today's offering: "Estate agents are only as good as the number of houses they are able to actually sell. Not a lot these days... I blame the agents. They should have seen this coming and put far better evaluation methods into practice in order to advise their selling clients more appropriately... At least we... have a plan to help get people who want to, moving house once again."
"A PLAN??" I hear you all say. "WHAT plan??" I hear you all say.
He'd tell you - but he'd have to kill you afterwards... ;o)
Mr Hendry.
Now then, Sir. I see you've been doing some updating on your website. Changed your defaults on High/Low prices, I see. Just as well - having the 'High' default seting at a hundred grand was a bit silly, really, wasn't it...
But here's the thing. Lifting that figure was a smart move - even if it is now only £300k. Better than leaving it where it was. But you had to... as you've lifted the 'Low' default setting as well, from fifty large (which I would have thought was perfectly reasonable ESPECIALLY as you are the one banging on about 'realistic' pricing and getting the market moving...) to the previous 'High' default of ONE HUNDRED THOUSAND POUNDS!
Tell me - does this mean that you are setting yourself up as an elitist site catering only for high-value homes (you know - the ones you say are bunging up the market 'cos noboby can afford them...)? If that IS the case, then those poor folks with sub-£100k properties simply won't get a look in, will they? They are effectively unable to advertise their AFFORDABLE (and therefore eminently more saleable...) home on a website allegedly dedicated to getting the market moving?
Lucky them, I say...
Of course - I suppose someone really DESPERATE to get their £80k property listed on your site (there's bound to be SOMEONE, somewhere...) could stick it on at a hundred large just to be there - couldn't they...?
Or would that not happen, given your "plan" that you refer to?
Last time I looked Peter, I couldn’t see that you were a member of a redress scheme. Therefore I refute the claim that we are associates.
Mr Hendry
I am quite sure that the people you believe you are 'associated' with do not find that in the least bit comforting or, for that matter, pleasant.
Your craving for fame; notoriety or whatever it is that fuels you constant rantings against the very profession that has kept you and your family fed and clothed for over three decades goes no further than the confines of your own mind. Therefore I am sure that within those somewhat limited confines, you are indeed a God of men.
Savour that thought, Sir. In the real world, you are a nothing - just like all the rest of us.
Dear associates,
Can't you see that through your lack of expertise in valuation knowledge, you are ruining your own chances of survival as estate agents, working in a competitive marketplace?
I'm open to either to a radio podcast discussion, to be broadcast online, or simply a face to face meeting to discuss the reasons for this and the ways to overcome the problem for everyone's benefit. It's time to cut the cr'p and get things working properly!
I'm still waiting for appropriate experts to come forward to discuss this in the public domain as previously suggested, but objectively.
LOL!
Makes you wonder, doesn't it...?
I think I would have bought it myself if he was MY vendor - just to shut him up!
Wonder what 'range' of prices the valuer would have placed upon it when I had to offer him an independent val as per the Estate Agents Act?
And WHERE in that 'range' Mr Hendry would have required the acceptable figure to be! ;o)
Oh, the irony!
Do keep up, the Agent bought the house after it failed to sell in 3 months.
Peter is happy, his original, much bleated and opinioned system works.
Mr Hendry. I am not presently, as you know, an Estate Agent - so you may elect to ignore this post. You seem to have done a pretty good job recently of doing just that, so i will expect nothing more; nothing less.
You say you want "to debate the pros and cons of its actual content". Okay - here goes.
You state "My view is that this (referring to pricing a property within an 'applicable' range...) isn’t happening in far too many cases. It is this that is largely responsible for the decline in the volume of completed sales, and not the downturn in the economy per se.".
Please, then, tell us whether this was the case with YOUR OWN property and its recent failure to sell? What happened?
Did your AGENT get the price wrong?
Did they spend only fifteen minutes deciding what price to market your property at as you suggest is the norm?
Did they take into account the vendor's arguments?
Did they appease the owner to get the instruction?
Did you ask too much of the Agent as you state is obvious?
Well? What was it?
Still - hopefully the new Agent can rent it out for you - or maybe even PropertyPlace, eh?
You may have noticed that they're not flavour of the month with Agents with their foot-in-mouth comments.
You and they are a Match made in heaven... maybe you should become their PR Manager.
Actually, judging by the stink that's been kicked up, It's quite possible that you already have! ;o)
MIke. Yeah - sort of. He ain't up to serving up his own pain though - so he gets us to do it for him! ;o)
@PeeBee
"Tell you what, though. His powers of recovery following relentless beatings are tantamount to superhuman."
We call it masochism
A willingness or tendency to subject oneself to unpleasant or trying experiences.
MIke: "Or maybe he is slightly embarrassed now he has had time to actually read what he has written, can you blame him?"
I only wish that were true, Sir.
Two 'blog' entries on this site; his OWN blog going back to 2005 (albeit not starting his rants thereon until January 2009...); four hundred and fiffy-eight Tw@tterings, and more of the same on Facebook - NOT TO MENTION his woeful website and its multitude of swipes and swings at the Estate Agency world...
...this man is only getting in the swing methinks!
Tell you what, though. His powers of recovery following relentless beatings are tantamount to superhuman.
@PeeBee
There is a reason I haven't responded to this
It is because there is nothing of any import or interest in this 'article'.
He isn't actually saying anything, it's more of a ramble concluding in blaming the EAs for the slowdown in the market.
[ Look asteroid broken loose from the Kepler belt heading towards Earth, those damned EAs are at it again]
This is the type of nonsensical blathering I would expect a colleague to spout at the end of a long nights drinking session, and then profoundly apologise for the next day.
[its all my fault, no one loves me cause i,ve got moobs sob, sob]
Despite Mr. Hendrys insistence on 'the only trying to fire up a debate defence', he obviously has not been following, or doesn't understand, the ongoing threads concerning,
Fixed prices vs sliding rates.
EAs rates & effects on purchases.
Future pricing in our industry.
We have a pretty informative debate already, and dont need this piece of idiocy to stimulate it.
Or maybe he is slightly embarrassed now he has had time to actually read what he has written, can you blame him?
One more thing, if I found that one of my EAs was only spending 15 mins in properties we were invited to take instruction on, I would sack him.
Why?
Because he is not doing his job properly, losing instructions and costing us money, and obviously doesn't need the commission.
Country Lass...
Now look - you should know by now that MY opinion; YOUR opinion - and EVERYONE ELSE whose opinion does not involve going all moist and hailing Mr Hendry as the Knight in Shining Armour is NOT WELCOME.
But know what - I'm fine with that.
If the way forward was 'Hendry's Law' - I'd rather sweep streets.
Ahem-hem *raises hand*
I did question the content. I wanted to know;
"Country Lass on 2012-01-11 09:56:12
Where did you get this 'quarter of an hour' thing from? Pretty much every valuer I have worked with, and myself when I have valued, spends nearly an hour at a property, depending on the clients wishes.
I do know of a surveyor who once spent 10 minutes at a 3 bedroom penthouse flat though...... "
Mr Hendry.
So nice of you to join us. I take it that the stress-valve finally popped like a cork?
You say "The Twitter invitation is to anyone wishing to add worthwhile comments to the Property Match Blog." Rot. IF that were the case, then WHY does the inviotation hyperlink to THIS SITE and not YOURS?
Things a bit quiet over there? Working on your SEO again?
Of course, not ONE comment has been posted upon your own site. (or you have simpy 'moderated' them out...)
This 'article' has now attracted some 760 views. It has now dropped onto Page 3 of the Archives - so I am afraid that the comments you are going to receive are already here. Unless of course you wish to continue in your normal fashion with the die-hards...
You say you want opinon. Views for and against. Well - you ain't gonna get ANY 'for' the MDT you have thrust upon us - and you immediately dismiss the multitude of 'againsts' you receive... so it is patently clear that you simply like to commit to print any cockamamie notion you conceive whilst either asleep or under the influence of substances to be decided - and suffer the disastrous consequences afterward.
I wonder if there is a medical term for this condition of yours? Or - FAR more likely, instead of becoming known for 'Hendry's Law of Estate Agency', you might instead get your immortality by having every internet crackpot known as 'a Hendry'!
I reckon that's got a certain ring to it - what do my fellow readers think??
Dear estate agents,
I haven't gone to ground.
The fact of the matter is, my current article has been posted in order for you guys and dolls to debate the pros and cons of its actual content; not to try and rubbish the writer if you should have nothing useful to add to the ideas put forward.
The content of the article is a serious proposition for debate on a way to get the private housing market functioning better. I'm hoping to see arguments in favour and against what's being proposed in it.
The Twitter invitation is to anyone wishing to add worthwhile comments to the Property Match Blog. As some of you may know however, it is moderated and will show relevant responses only.
HD - WELCOME TO THE PARTY!!
Yup - Rosalind obviously decided that Mr Hendry needed ANOTHER fifteen minutes of fame.
Didn't get him very far though, obviously...
I'm proper upset that he doesn't want to play this time, mind you. Last time we had the Red Arrows; Orchestras and audiences... and some idle chat about houses I seem to remember.
This time I was expecting dinosaurs and Apollo space missions to be the subject of the day!
But he has quietly crawled into his hidey-hole to lick what are, in reality, very insignificant wounds compared to the multitude of gashes he suffered last time.
Still - there's time yet. Give him a chance... and keep watching this space! ;o)
How the heck did I miss this article thats been up for two and a half weeks.
So much to say, but think I wore myself out after contributions to the 500+comment thread from last year.
I will sum my thoughts up in one word:
Laughable
Whassamatter, Mr Hendry - cat got yer tongue?
Are you, as you usually claim, "too busy" to respond?
Or is it that you have simply, FINALLY, Realised Reality - that you are ALONE in your thinking, and that NOT EVEN HPCers can now be bothered to gleefully embrace your rantings?
If that be the case, it's a shame it's taken so long - and been such a painful process for you...
Well, Mr Hendry - your most recent Tw@tter states "Please give your views on my recent article about changing the way prices are negotiated on house sales and purchases: (...tinyurl link to THIS article...)"
Here you have them. 27 in total so far including this one; 9 seperate posters. Yet, despite craving the attention and begging for opinions, you sit there keeping schtumm.
Most rude - your audience patiently awaits the next act in your comedy of errors.
Mind you - keeping schtumm is probably the most sensible and appropriate thing you have done in years...
Sorry PeeBee our posts mixed.
You are of course right. An admission by him that he is a little confused about the right time to cease marketing.
Completely bonkers isn’t it PeeBee.
He won’t be the first or last to launch something that (in his mind) competes with agents and then slams the industry to justify its own existence. I’m just surprised he continues down this path considering he is quite happy to list all of our properties with out of date data and then have the cheek to complain about the prices. It has to be a wind up. Baring in mind that listings are generally reduced in price rather than increased, the use of out of date data on such websites must mean that the stock HE is listing must be overpriced by a massive margin because the scrape does not take into account any recent reductions. So really he is part of the problem.
Peter.FYI,
I have worked with and witnessed everyone from corporate regional managers to independent trainee negotiators carry out valuations and NOT ONCE did I see someone do it in 15 minutes.
Sorry - but I'm harping back to his own blogsite, and the MDT I have chucked at the fan previously. 'Hendry's Law, I am calling it.
"A problem frequently seen in these conditions is that buyers may put in offers on multiple properties whilst intending to proceed with only one of them. This, together with the time bought by getting each house taken off the market, is what usually drives the gazundering strategy of some buyers. This needs to be eliminated from the sales transaction process, and these new proposals would help to accomplish this."
Ermmm... now I know I'm not practicing these days - but can someone tell me whether I am right or wrong here.
When a prospective buyer OFFERS on a property (or, in the supposed frequently seen case studies Mr Hendry offers as justification for his Law, MULTIPLE properties...), does an Agent take the property off the market at this stage; BEFORE sale terms are agreed; BEFORE solicitors are instructed; and BEFORE the buyer has demonstrated their intention to proceed?
You see, I have a problem with this "justification". As the old phrase goes - "Not on MY watch...".
Okay - several years have passed - but the housing market is still the housing market as I understand, and whilst SOME buyers might offer on a couple of homes at the same time, I would not expect an Agent to remove a property from the market until the above steps were completed in the process.
Please help me out on this one. Is 'Hendry's Law' more needed - closer to coming to fruition - than I believe to be the case?
wardy (or not, as may be the case...) - nail on head, my lad!
Interesting that, on January 15th, following my comment regarding "value ranges" - HIS words, not mine... - the man Tw@ttered "If agents always put asking prices at the very top of the range of values within which a house should sell they will always be out of range!"
EHHH??? No - if they are OUTSIDE the range, THEN AND ONLY THEN will they be out of range. IN the range is IN. (the word 'in' kinda gives it away...)
EVEN YOU can't change that, Mr Hendry!
Well I hope he is paying you for this air time Roz because the ramblings of a know nothing discredits the site and all of us that read it. Sorry to be so negative but this guy makes my skin itch. He is so fundmentally wrong about every aspect of an industry that he knows nothing about. I dont get it?
Peter, your ideas of how to 'sell effectivly' shows how little you understand. I put it to you that your private sellers website has still not sold a single property, has it?
This long winded blog entry basically say's 'price em cheap, sell em quickly' Sorry Peter everybody that reads this site already knows that so please do not be so patronising. Thankfully the majority of us realise what are jobs are and how it should be done and thats what seperates us (the professionals) from you (the chancers).
Any monkey can sell a cheap house Peter. Thats where you come in.
Country Lass - I believe that Mr Hendry has so far proved that he is completely IMMUNE to pain and humiliation - so I would suggest tarring and feathering may be welcomed!
I just imagine he is sitting waiting for all the dust to settle and the thread to move down the ratings list somewhat before trying to have the last word as usual.
And as long as the last word is 'goodbye' - then I ain't complaining!
I did think it was a bit strange to be honest PeeBee!
I almost (only almost, mind) miss the fact he can't be bothered to respond to anyone. Means I can add rude to the other list of things I suspect about him though.
If he gets the Hendry Law, can we have the CL/PB Accord, which means we can tar and feather people pretending to be experts when they clearly aren't?
Country Lass. Again, we agree 100% (but of course we do - we KNOW how it works unlike someone else apparently...). I'm sorry - my question was not actually a question more of a statement of disagreement with Mr Hendry's entire position - which is one of self-interest and NOT as he would have people believe for the good of the market.
Back to his 'other' blog - and his plan to change the way offers are accepted. Forget The Estate Agents Act 1979 - let's introduce the Hendry Act 2012!
"Whilst accepting the offer, the vendor agrees to arrange for their solicitor to send the contract for sale to the prospective purchaser but on the understanding that the purchaser undertakes to return this to them, should they at any time up until exchange decide to request this.
The effect of this new method would be that the acceptance of an offer means the prospective buyers are being accepted by the vendor as the preferred buyers and that they are only ones the vendor’s solicitors will deal with at the present time. In effect, the prospective purchaser would have the option to exchange contracts to purchase the property, right up until the point when the vendor decides to discontinue and requests the return of the contract.
Firstly, this would not be gazanging, because it would not be withdrawing as a result of a change of heart about selling. The vendor would normally only do this if a higher offer was made and preferred, subsequently."
Oh, well - that 's okay then. In Mr Hendry's 'Law' it would be perfectly acceptable - EXPECTED, actually - to drop a buyer in what is now seen (usually incorrectly...) as a GAZUMP in favour of a higher offer.
Yet, Hendry goes on to say: "Thirdly, the new strategy works to reduce the likelihood of gazumping as the onus would be with the prospective buyer to get on and purchase."
Beggars belief.
Of course - Mr Hendry will amend that 'Law' the second it happens to him...
As you said in an earlier post, CL - no buyer with all their marbles intact would accept such a ridiculous proposition.
What a pity a man with 30-odd years of professional qualification behind him embarrasses himself with such merde de taureau.
Despite my pleading with him on many occasions to pack in embarrasssing himself and the industry he purports to represent and claims he aims to 'improve', he keeps coming back with more of the same. I would argue that it is getting worse.
Having submitted the above, the normally quick-to-respond to his accusors Mr Hendry has remained silent.
I only hope that this be due to his FINALLY Realising Reality...
Price is important, it always has been and always will be. We had a place recently, absolute dump, you wiped your feet on the way out, and even the most deperate hobo would rather sleep in the snow that in there. We marketed it at a low price we knew would get interest, and then watched people flock to the block viewings. Understandably it got significantly more than the asking price.
We also have a property where the vendor has dtupidly decided to ignore all the advice and work we have done over the past several months (and tht Agent before us) and INCREASE her price, so from getting a few viewings, we are considering having a paramedic in the office for the amoutnt of people asphyxiating from laughter!
So I would say that the 'correct' price for any property is one that generates interest and viewings and leads to an acceptable offer. Everyone expects offers to be made on a property, so the asking price is more of a 'first offer' from the vendor for the buyer to counter.
Further to my previous comment, I wish to offer for your attention a comment from the latest RICS monthly report, from a surveyor who should - and DOES - 'know' the Cornwall market:
"Jeff Cole MRICS, Cole Rayment & White, Wadebridge, Cornwall - Although the office has been generally quiet. December has been somewhat unusual with more instructions than November & subsequently more agreed sales despite all the doom & gloom merchants. We have never had such a busy December."
So - unrealistic pricing? Properties stagnating on market?
Not according to a Cornwall EXPERT... ;o)
(apologies to Mr Cole if unhappy with my quoting him. EAT will remove should he so wish...)
Country Lass: "In an effort to be fair, I will say that I agree with two points, that the correct price when marketing is important, and that the 'wrong' price can put viewers off."
I could not agree with you more. And more so now than ever before.
But look carefully at Mr Hendry's words: "It is ‘range’ rather than price because there is no ‘exact’ figure which can be applied to any particular house.".
Where does THIS fit in with your "correct price" strategy? Surely, in the vendor's interests, a property should be marketed at the TOP of "the range" he refers to, in order to attain best price? And WHO sets "the range"?
From Mr Hendry's blog: " We’ve had personal experience of this currently when we found it impossible to move from Nottingham to Cornwall in a chain, owing to unrealistically high asking prices in Cornwall"
"Unrealistically high" - in WHOSE opinion? His, maybe??
Funny that - a prospective buyer wanting prices to be lower. Nowt like an (...unbelievably badly...) hidden agenda to get us all talking! ;o)
But, of course, as a surveyor, he can claim to 'know' what a property two hundred and seventy five miles from his office door is "worth" - can't he...
And yet not a word from the man himself. Unusual.
In an effort to be fair, I will say that I agree with two points, that the correct price when marketing is important, and that the 'wrong' price can put viewers off.
Oh, no! Looks like it's me, Country Lass and AoS picking on Mr Hendry again!
wardy, HD and Jonnie will be welcome additions in due course... ;o)
I had a vendor who instructed me to go back to his buyers with a spiel like that. They very politely told him where the bus-stop to He!! was and bought somewhere else!
Genius, Mr Hendry, that's a fab idea!
This is sort of a PS to the end of my comment below - but it is directed to Mr Hendry and not Puzzled so I cut it and pasted here instead...
Sorry to hear you've had a personal experience of a fall-through, Mr Hendry. No - really - I am. For two reasons:
Firstly, the stresses of such an event are immense and I wouldn't wish it on anyone.
Secondly - all it has done is to clearly add further fuel to your twisted bitterness of the industry.
But in cases like this you always need to take something positive from the situation. In this instance - the positive is that things could have been worse, couldn't they?
Had you marketed the property on YOUR OWN property website and lost the buyer it would have been an embarrassment. At least by enlisting the services of an ESTATE AGENT to market the property for you (how did you possibly bring yourself to speak to these disgusting creatures...?), you can - and, I am sure, ARE - blaming the Agent for everything! ;o)
(By the way - what IS the conversion rate of paying customers to SALES EMANATING DIRECTLY FROM THE SITE?)
You've been quiet since this thread opened. Or just too bust writing the merde de taureau above and on your personal/company blog.
No doubt you will grace us with your presence and the benefit of your wisdom in due course... ;o)
Puzzled... - you also said "I am amazed that a property 'expert' has so little grasp of the fundamentals."
Erm... have a read of THIS - an excerpt from his own blogsite dated 11 January:
"Having experienced a failed outcome when trying to sell a house recently, I’ve come up with a better way for agents to deal with all offers from prospective purchasers. Some agents already do something similar but maybe this new idea should be adopted by all agents (or at least offered as a possible way to go).
Instead of taking instructions from their client to accept an offer which includes withdrawing the property from the market, agents should do the following.
The vendor should be advised to say “We accept your offer, but instead of taking the property off the market,” say “but until you are ready to actually exchange a contract to purchase, we need to carry on advertising the house as being still available; though we are happy to mark it ‘currently under offer‘.”
The estate agent should also say:
“You should aim to exchange contracts as soon as you are able to complete your legal work, including getting a survey right away, if at all possible (and if required), in order to satisfy yourself that you are happy with the condition of the house.”
“Once you have exchanged contracts the house will be removed from the market or alternatively marked as ‘Sold (subject to contract)’.
On completion of the sale, the house will be described as having been sold.”
???????????????????????
OR - is it ME who has also been treading the boards for three and a bit decades who has no understanding?
Puzzled...: "Is the author 'for real'?"
No - absolutely not.
But not for the reasons YOU put forward... ;o)
Suggest you read his other 'blog' entry on EAT - and anything else you can find under the many pseudonyms he has previously utilised...
You will also find his copious 'offerings' on his own blogsite and tw@tter.
Makes... erm... 'interesting' reading.
(you will note that Mr Hendry and I don't particularly see eye-to-eye on much of anything!)
From the article: 'Instead there is only a range of prices within which a house should attract buyers in the current market, without the need for grossly excessive borrowing in order for buyers to be able to do so.'
Is the author 'for real'? In most of the country first time buyers need to take on 'grossly excessive borrowing' at very low interest rates to be able to buy. This is the simple fact - property prices are too high. Full stop. And it is going to take 20 years of stagnant prices and a chunk of inflation before house prices become affordable enough for the market to be able to support higher levels of transactions.
I am amazed that a property 'expert' has so little grasp of the fundamentals. Current prices have been sustained by quantitative easing, the parking of 'troubled' assets, bank bail outs, a deliberately lenient approach to mortgage arrears and the lowest bank base rate for 300 years - and still the lifeblood of the market - new entrants - cannot afford to buy. And would-be FTBs who are priced out of the market have kept prices up by clubbing together and paying high rents.
His comments that a house will sell within a range of prices that apply to it is, surely, rather stating the obvious.
To the anonymous poster below whose stance is:
"EA's will never take ownership as they will have to address the problem. "
Pray tell - HOW can Estate Agents "take ownership"? HOW can they "address the problem"?
I look forward to your response.
EA's will never take ownership as they will have to address the problem.
No, it is far easier to blame the banks for not lending enough money, tightening up their lending criteria or not doing enough help the FTB's.
Or blame the unrealistic vendors, the government, credit crunch 2 and they can always fall back on the eurozone crisis.
EEK Peebee and Peter? Who would have thought it hey?
I want to say so much - but I will summarise in only three words:
merde.
de.
taureau.
'Nuff said, I would suggest.
Feel free to sue or 'out' me if you like, Mr Hendry.
there's a troll fol-de-rol!
Yay another property match blog to ignore!
Where is Peebee these days?
Country Lass - The 'assumption', 'generalisation' or 'made up fact' of 15 minutes is essential to his 'argument'.
That is a sweeping statement though. I personally know of a home for sale where 4 agents valued and they were all there between 1 hour - 1 hour 30 mins.
Another blog for this fellow. EAT have sold out: Hendry = clicks/comments....but not for the right reasons.
Where did you get this 'quarter of an hour' thing from? Pretty much every valuer I have worked with, and myself when I have valued, spends nearly an hour at a property, depending on the clients wishes.
I do know of a surveyor who once spent 10 minutes at a 3 bedroom penthouse flat though......
Maybe some agents take vendor (over) valuation to prop up their listings on some of the expensive portals. The downfall being too expensive isnt likely to sell. If few valuations are coming in and an agent is paying out £1000-1500 on portals I guess its difficult to turn new listings down. But if an agent only has 15-20 units thats some unit cost to carry each month