Property Bee - Overpriced Homes

Nenen

besonders1 wrote: »

Estate agents only keep the overpriced homes to fill a gap in their window for the time being. Once vendors begin to discover the "biting point" they will either ask the overpriced sellers to reduce or take it off the market. Is it true that they bill, sellers for doing this, as I though it was no sale no fee?

I think your point about the EA wating to 'fill a gap in the window' is a good one... and gives the illusion of them having a thriving business, but I don't quite understand your logic of why they would ask overpriced sellers to reduce or go if it isn't costing them much to keep the property on. It's no skin off their nose if it isn't costing them much. I've always thought EAs were optomistic... hoping (even in the current economic climate) that some mug will come along and buy the overpriced property.

chucky

pandamonia wrote: »

how about the cost of showing people around a property every day?

probably very little - EA's are usually on low basic salaries and then earn commission.

cranezoe

besonders1 wrote: »

Estate agents only keep the overpriced homes to fill a gap in their window for the time being. Once vendors begin to discover the "biting point" they will either ask the overpriced sellers to reduce or take it off the market. Is it true that they bill, sellers for doing this, as I though it was no sale no fee?

the small print in our contract suggests that an admin fee could be imposed if we didnt sell and they had been marketing.
It also says its up to their discretion to advertise it and they reserve the right to charge if they ask in advance.

we definitely found that agents only pushed the houses that were realistically priced and that they called "motivated sellers". when they suggested dropping the price and we ignored it one time they didnt make contact for about 3 weeks! we kept on ringing them every few days, asking for progress reports etc and agreeing to come in and discuss marketing/price drops and eventually got the offer. so no admin fee for us lol!

moggylover

Bothered! wrote: »

Same thing is occuring in my area, I came on market at right price 250k when like properties were still showing 07 prices of 280k, I still havent sold though! and one EA has been playing sellers against one another stating " well we just reduced that one and this one so you should come on market at lower!" playing with our money.....

Alot of houses i notice in this area with other agents are still like 07 prices and not dropping nor selling... only ones selling are those priced below 180k.

I have dropped 8% in 3 months not dropping anymore though just so EA can get a sale.

Just as a matter of interest, doesn't that mean that YOU won't get a sale either?

besonders1

You'd never sell if you chased a market downwards, as your house would always be above the market value in that area. During a boom a seller could price it above the market rate and face a longer time to sell hoping that the value would have gone up in the long run but now you would lose more money by doing this as the offers will be getting lower and lower. I know some sellers (from their deceased parent's home) who priced them above 2007, early 2008 prices, expecting to make a bigger profit, but now they're crying as they are still on the market and look rundown now , probably full of damp with being empty.

"Its just like a magic penny, hold it tight and you don't have any"

housesitter

ess0two wrote: »

Suppose the same can be said for people attempting unrealistic reductions on properties.
Works both ways.

Usually because the asking is unrealistic.
Swings and roundabouts really isn't it.

The market takes a while to react to change and some people just can't stomach the fact that they are over priced. I'd make an offer the market supports and if houses aren't selling it's obviously below their price point.

domcastro

The people in Bournemouth are hanging on to high prices (and no sales). The houses I looked at in October / November are still 240/250 - no price reductions. They're only 200k houses. I thought back then they were overpriced - and nothings changed. Sellers are holding up the market.

One house was bought in October 2005 for 205k but is for sale for OIEO 220. People don't realise we are back at early 2005 prices (or late 2004)

The house I have bought was the same as the 240/250 houses but went on market at 215k. Didn't make silly offer as it was worth 200, got it for 205. They paid 200,450 in Jan 2004 and have built a single story extension with new kitchen in 2005 - it was on the market 2 days.

The people who are selling the 240/250k houses won't get more than 200ish - so they might as well reduce to 215 - get more interest and will probably be offered the same - approx 200 as if they hadn't changed the price.

I was annoyed with the sellers - real denial going on which is prolonging the HPC. If I had waited another 6 months, like everyone said (well, years!) - the same houses with the same prices would still be there. Couple more years in rented to save 15k - not worth it.

ess0two

housesitter wrote: »

Usually because the asking is unrealistic.
Swings and roundabouts really isn't it.

The market takes a while to react to change and some people just can't stomach the fact that they are over priced. I'd make an offer the market supports and if houses aren't selling it's obviously below their price point.

My BIL is currently offering 150k on properties in the region of 230k,the EA spoke to the SIL and told her he aint gonna forward these offers or 'scattergun approach' as he put it.
Locally we are down 14%,its doubtful they'll get what they want as they even complain about the decor in some viewings.
I certainly would'nt buy because i liked the decor they are missing the bigger picture.

domcastro

ess0two wrote: »

My BIL is currently offering 150k on properties in the region of 230k,the EA spoke to the SIL and told her he aint gonna forward these offers or 'scattergun approach' as he put it.
Locally we are down 14%,its doubtful they'll get what they want as they even complain about the decor in some viewings.
I certainly would'nt buy because i liked the decor they are missing the bigger picture.

Blame the house programmes for that one! I was watching an old house programme from 2002 - the house's decor was horrible - it wasn't even mentioned. My first house was horrible but totally livable - I didn't really notice it was horrible - lick of paint needed was all I thought.

But now, you watch the house programmes and perfection is expected. Decor has become a problem. People now expect this.

housesitter

ess0two wrote: »

My BIL is currently offering 150k on properties in the region of 230k,the EA spoke to the SIL and told her he aint gonna forward these offers or 'scattergun approach' as he put it.

BIL ? SIL ? (tho I can understand waht you're saying, it's nice to learn what they mean for future )

Some of the properties I'm viewing have had similar approaches eg. 160 with offers of 100 on it :rolleyes:
The EA is still obliged to pass them on however unless instructed by their clients regardless of the offer, and I'd highly doubt that every client had set a floor.

Perhaps some EA's are also being a sticking point??
Aint got the balls to tell the client the price is too high in case they lose them from the books. After all, someone might make a high offer and take it. The EA has nothing to lose.

Locally we are down 14%,its doubtful they'll get what they want as they even complain about the decor in some viewings.
I certainly would'nt buy because i liked the decor they are missing the bigger picture.

I'm looking at a place which has had internal flood damage and suggesting to the EA that the vendor decorating it on the cheap is not in either of our interests.
The pictures on rightmove are about 18months old!! Not really fair representation.

I'll be looking at 20% off asking and someone will bite at that or the market is still FUBAR and waiting will adjust it correctly.