Encumbered buyer's agent - odd sales strategy?

victoriavictorious

I recently had a very good offer from a viewer who isn't under offer yet, so until then, I'm keeping my property on the market.
I haven't been given the address at this stage because the offer can't be made formal yet, but I managed to find it on RM and sneaked a peek. It's a smallish nicely presented conversion in a London suburb, no outside space, marketed at first time buyers but I was amazed to see that it was oddly priced at offers around 405K which means it won't appear in any searches of up to 400K - so imo that's likely to exclude a large chunk of the very group of buyers they are aiming for.
It's on with one of the major chains, and looking up surrounding and sold similar properties, it seems massively overpriced for what it is, and is in fact is the highest price that would ever have been achieved for a similar flat in the immediate area, should they even manage to get it.
In the meantime I am of course accepting other viewings but it's frustrating to see what seems to me a bizarre strategy which I would not expect from a big name.
Or am I completely wrong and this pricing strategy works?
Please can anyone think of any way round this so we can all get moving?
Would it be appropriate to ask my agent to somehow have a discreet word with her agent to reduce that price a bit so it falls into that lower search bracket?

hazyjo

I'd keep quiet. She may have chosen to test the market, and may have gone against EA's advice.


Anyone looking to spend £400k would be mad not to look at £410k upwards. Basically what it implies is that she wants £400k. If less, she'd prob have marketed around £400k to take offers.


Some people are deluded. A seller telling them that isn't going to make a jot of difference. The only way they find out/believe it is when they don't get any interest.


Try not to focus too much on her. She may accept a low offer, or may reduce, or more than likely you'll sell to someone else.

Fed

There's one big name that I would certainly expect this of

ReadingTim

victoriavictorious wrote: »

Would it be appropriate to ask my agent to somehow have a discreet word with her agent to reduce that price a bit so it falls into that lower search bracket?

Well, you could always reduce the price you'll accept on yours so she won't have to market hers quite so high.....

pimento

Fed wrote: »

There's one big name that I would certainly expect this of

.. and you wouldn't want them in your hen house!

JoJo1978

I don't think it's that strange, perhaps they need £400k and won't accept offers under that, which they'd get if they marketed at £400k. It's also quite frankly none of your business, so another reason not to mention is that you don't want to put their backs up - what if you continue to market but don't get another offer but they sell. You'll need them onside then!

stator

Don't bother. IF a house is overpriced it's because the seller is ignoring their estate agents advice. EAs like to sell properties quickly so wouldn't have recommended over pricing it.

victoriavictorious

Sorry, can't seem to get the multi quote thing to work.

Thank you everyone for your comments.
Yes I will keep quiet, little choice!
I wonder who this unnamed agent is and whether it is actually the same one?
Although of course they might well be acting under the seller's instructions. All I know is that every agent l've ever sold through in the past has advised avoiding an asking price that goes *just over* a nice rounded sum, as it can cut out a chunk of your market in the RM search. I do understand that £400K may well be the price she is after, but to me at least it does seem a strange way of going about it - maybe in excess of say £395 might have been better but time will tell.
I'd be quite happy to reduce my price if it meant that she reduced hers accordingly and got an offer, but where would that leave me if neither of those things happened? I'd then be stuck with an unecessarily reduced price (at the moment anyway) that I couldn't very well increase again. She could have made a lower offer, but chose to come in at asking price.
I do feel it is my business insofar as an offer has been made on my home and I am keen to see it through if possible. If the buyer's property is on at (imo) a price less likely to attract a buyer, then I'd be lying if I said it doesn't affect me. We all know we shouldn't get emotionally involved, and I take my hat off to anyone who can truthfully say they never have.

hazyjo

victoriavictorious wrote: »

...maybe in excess of say £395 might have been better but time will tell.
I'd be quite happy to reduce my price if it meant that she reduced hers accordingly and got an offer, but where would that leave me if neither of those things happened? I'd then be stuck with an unecessarily reduced price (at the moment anyway) that I couldn't very well increase again. She could have made a lower offer, but chose to come in at asking price.
I do feel it is my business insofar as an offer has been made on my home and I am keen to see it through if possible. If the buyer's property is on at (imo) a price less likely to attract a buyer, then I'd be lying if I said it doesn't affect me. We all know we shouldn't get emotionally involved, and I take my hat off to anyone who can truthfully say they never have.

Offers are meaningless when not proceedable - some people just fling them at several properties to see if anyone bites, so don't take it too personally. I'd agree it's not really for you to get involved in. If she can't sell at the price she wants, she probably can't offer whatever she's offered you so, really, please just take it with a pinch of salt! You may find that you take it off the market, only for her to get a low offer and have to reduce the offer on yours.


I took a low offer once due to my vendor accepting a low offer from me, but I'd not market low as it's virtually impossible to put the price back up - not without causing suspicion! You/she can always take a low offer without dropping the price.

arielsmelody

We were trying to sell our house a few years ago, and priced it at just over £300k and then after a while reduced it to just under £300k. We actually found that there was more interest at the higher price, which we guessed was because it was turning up in searches as the cheapest house in the £300k plus bracket, but when it was reduced it was the most expensive house in the up to £300k bracket.

victoriavictorious

Thanks hazyjo - yes if need be, I would take a lower offer but only from someone ready to go; no way would I dream of taking it off the market otherwise. There's no need for me to reduce my own price, at least not at the moment, as my property is getting interest and doesn't seem to be overpriced. If I feel it is at some point, I will reduce it without hesitation.

arielsmelody - that's an interesting comment. I guess the difference may be that your house must have been perceived as good value for money, but I feel that in the case of my proposed buyer's flat (and its location) it would be unlikely to fit the possibly more discerning requirements of those searching in that higher price bracket, which after all brings the price into the realms of half a million; a sum not everyone can, or is inclined to pay for a conversion in a very ordinary house with a shared entrance. It is overpriced in terms of size, type, layout and location. Similar or better flats in the same street / surrounding area have never sold for more than the top 300Ks even recently, so that's the why I think that bringing it into the next price bracket was take it off the radar of their target FT buyer.
Anyone who can afford to pay that, could do better than this flat. I guess that every scenario is different. This kind of what I call odd pricing strategy may work better for some properties than others.
It obviously did in your case.