Why do EAs take on overpriced houses?

domcastro

There is still so many overpriced houses in my area. For example, 10% more than houses in the same road went for in 2007. The EA must know this is unrealistic. If it costs them money to advertise and they only get a commission on the sale, surely it's in their best interest to say "no" to the seller's who seem to not realise the global situation we are in?

IT_nerd

The estate agent handling my dads house didn't even flinch when my dad wanted 295K for a small 3 bedroom house.
Crazily overpriced even for 2007 prices, and he put it on the market mid 2008.. but the EA didn't say a word.
It's now at 265K and still wildly overpriced for the area. If he accepted the knock of 20K on the asking price it would sell within the next few months at £235-225K.
It's had almost no viewings in the past few months and he's desperate to sell.

It's amazing what greed does to people.

All the EA would have to do is give my dad the advice I'm giving him. He wont listen to me, but he would an EA.

Davesnave

My agent is deliberately valuing 'realistically' and losing some business as a result, but he figures that this is now the right business model, bearing in mind that people coming on the market in this financial climate are serious and want to shift a property.

As for the ones like those you describe.....beats me!

mishmash

My agent was very clear about the market when I put mine up, he told me what it would have fetched last year but to take 10 to 20 k off that, which I did.

I had a chat with him the other day, a couple have offered on my house but still have to sell thiers (they are with the same agent) they have priced theirs the same as they paid for it 18 months ago-he said he advised them against this and explained that I had put mine up up to 20k less than it may have got last year- He said there are lots of people like this, who are annoyed thier house has not shot up in value and feel they should be making money. They must not watch the news.

Mine is still the cheapest 3 bed and I would be prepared to take a further 10% drop. I suppose I am lucky to have so much equity in the property to be able to do it, still not sold though!

Mish

dander

I've noticed that there's one particular agent that seems to get all the instructions in my road. And the asking prices are always...well, optimistic, shall we say? The kind of prices you look at and go, "You've got to be kidding!"

My theory is that they overvalue, to impress the vendor and win the business. Once they've got the vendors to sign an exclusive contract they then tell them to lower the price if they want to sell, or pressurize them into accepting low offers.

moneysaver

dander wrote: »

My theory is that they overvalue, to impress the vendor and win the business. Once they've got the vendors to sign an exclusive contract they then tell them to lower the price if they want to sell, or pressurize them into accepting low offers.

I totally agree, If people get values from 3 estate agents, most would go with the highest value thinking this is the likely amount they would get.(happy their house is worth that much) Once they are on the EA books they are hooked & signed into a contract. They will then have to reduce to a more realistic price but it is too late by then & they are maybe with an EA who may not have their best interest at heart.

Moneysaver

PropertyPro

A lot of agents, especially the household names issue their staff with monthly targets. A typical example is one member of staff will have to personally get 16 properties onto the market within a month to avoid getting a dressing down from the area manager.

As a result, some agents will overprice property in order to get the client to sign up. Im my view, agents should always tell the seller the truth regarding price. If the seller decides that they want to market the property at a higher price, the agent will accept their wishes and make an agreement that if the property doesn't sell in a month, then the vendor will reduce the price in accordance with the EA's original valuation.

Davesnave

PropertyPro wrote: »

A lot of agents, especially the household names issue their staff with monthly targets. A typical example is one member of staff will have to personally get 16 properties onto the market within a month to avoid getting a dressing down from the area manager.

Mmm that figures. My agent is the boss though, so he sets his own targets, which in this climate must, at the least, mean shifting something every week.

scousethife

Why do EAs take on overpriced houses?

Because they are thick as pig shlt!



and twice as smelly