EAs Squeal like that guy on deliverance

davilown

mbga9pgf wrote: »

I actually feel for these guys. Imagine how difficult must be to tell someone they have lost 40% of their equity in 2 years...

quote]
Why feel for them? They were the ones who told them their house were worth the price the first place.

housesitter

housesitter wrote: »

Are they money grabbing chancers who over inflated the list prices of property for their own gains.

Or are they just providing a service for advertising and have nothing at all to do with setting the price in the adverts?

It's a simple enough question.
I'm not interested in their providing a service.
If that's what they were for then they would charge purely a flat rate for advertising the house and vetting potential buyers.
Other than that they seem to be a go between to be a buffer to stop tensions during a sale because some people get too emotional about money.

However, they choose to make their charges relate to the actual price of the house.
In reality, selling a house for 100K or 900K is much the same job. You advertise, get clients and sell.
But no, their business model includes taking a percentage of the profit from the sale.
Ergo, it's in their own financial interest to make sure the house sells for as much as possible.
So, faced with the simple calculation that higher sale price = more comission, what do you think the EA's will do ?

That's the question.
Not about the validity of having EA's but their general profit motivated "advice" when it comes to setting price.
If they are all doing it, which direction are prices going to go ?


As for recruitment "consultants" I've always been forced to use them.
In my experience, HR dept specify them so whether looking for a job or advertising you get little in the way of choice. I agree. I'd rather advertise directly but my hands are tied.
When I've applied for a job which is direct I'm always had an interview and gernally got it. When going via a RC with the same CV I seem to stand less chance. Coincidence? perhaps it's becasue the RC has zero knowledge of the position appiled for. Vetting CV's should be done by someone who understands the job.

I'd advertise in the paper too.

Really2

housesitter wrote: »

It's a simple enough question.
I'm not interested in their providing a service.
If that's what they were for then they would charge purely a flat rate for advertising the house and vetting potential buyers.
Other than that they seem to be a go between to be a buffer to stop tensions during a sale because some people get too emotional about money.

However, they choose to make their charges relate to the actual price of the house.
In reality, selling a house for 100K or 900K is much the same job. You advertise, get clients and sell.
But no, their business model includes taking a percentage of the profit from the sale.
Ergo, it's in their own financial interest to make sure the house sells for as much as possible.
So, faced with the simple calculation that higher sale price = more comission, what do you think the EA's will do ?

That's the question.
Not about the validity of having EA's but their general profit motivated "advice" when it comes to setting price.
If they are all doing it, which direction are prices going to go ?


As for recruitment "consultants" I've always been forced to use them.
In my experience, HR dept specify them so whether looking for a job or advertising you get little in the way of choice. I agree. I'd rather advertise directly but my hands are tied.
When I've applied for a job which is direct I'm always had an interview and gernally got it. When going via a RC with the same CV I seem to stand less chance. Coincidence? perhaps it's becasue the RC has zero knowledge of the position appiled for. Vetting CV's should be done by someone who understands the job.

I'd advertise in the paper too.

But the problem with up front fee where is the insentive to sell.
You have paid your money and not sold your house.
They currently market a property untill sale without a fee. (better for the owner)

I think an up front fee is most probably the worst way to sell as the sales incentive is not there.
Personaly HPI is set out by demand by sellers, and purchasers.
Any purchase should always be researched (so if you pay to much it's your own fault the same as anything else in life)
Lets remember it is the seller you pay for the house not the EA.

Arthurian

I am sure EAs are currently driving down the market by undervaluing in their desperation to sell anything and keep their offices open. If a seller gets three EAs opinions and they are all undervaluations, he might not be resolute enough to actually try to sell at a higher figure.

Really2

Arthurian wrote: »

I am sure EAs are currently driving down the market by undervaluing in their desperation to sell anything and keep their offices open. If a seller gets three EAs opinions and they are all undervaluations, he might not be resolute enough to actually try to sell at a higher figure.

Correct mate they are there to get a sale thats is all.

Lets face it the comission on £20k is what arround £250 so does it matter to them that much to achive the £20K more and risk losing a sale?
What is the actual insentive to drive property up or down for them?
They just react to the market.
The only big gainers in HPI are owners not EA's

housesitter

Really2 wrote: »

I think an up front fee is most probably the worst way to sell as the sales incentive is not there.

So do I which is why I never suggested it.
I usually pay for a service once I've received it.
The incentive to sell would be getting paid by the client.

If a EA opened up that worked on a flat fee basis they would be swamped.

Any purchase should always be researched (so if you pay to much it's your own fault the same as anything else in life)

Herd mentality.
As a seller you may pay the buyer, but the buyer pays the EA and it'll be on their mind.


As for EA's under valuing, I can point you to quite a few properties which have recently been put up in my area. My guess is that the EA is giving a buffer zone for people to knock them down from.
Yes I also see big price drops too. But it's certainly not universal.