tag:blogger.com,1999:blog-22726546.post4218618902242911306..comments2023-12-05T20:19:45.284+00:00Comments on 'Agents Diary': Human Nature - Wednesdaysecret agenthttp://www.blogger.com/profile/09349969960942971932noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-22726546.post-90813958522617320992011-01-15T19:37:51.668+00:002011-01-15T19:37:51.668+00:00Ah yes, the EA already knows the market value!
Of...Ah yes, the EA already knows the market value!<br /><br />Of course, what the prospective buyer doesn't know is whether the price being asked is the one the EA recommended. Or whether the EA who got the job was the one who recommended the highest price, regardless of their commercial judgement. Or even whether some EAs get it badly wrong.<br /><br />Case in point. One year, when we thinking of moving (didn't take the plunge for another 12 months, but we were seriously thinking about it), we invited 3 local EAs with established offices within a mile of our house, to come and give us their "free valuation". We did not tell the EAs what our opinion was, not least because we thought we could be wrong.<br /><br />The first EA said "£400K" - we were thrilled - it was more than our optimistic guess. The second EA (one day later) said "£300K" - this was worse than our pessimistic guess. Two days after that another one said "£350K". We had hoped to hear "£375", but would have accepted the "£350K" figure from any of them (including the first) as a sensible price.<br /><br />Still, I have looked at claims, "the EA knows best" rather more sceptically since then.<br /><br />Even so, that is a valuation for the market in general. SA has made the point that a "proceedable" offer at £xxxK may be a better offer than at £5K more from someone who has a house to sell. So, what does the EA do? Advertise it as £285K if you've got a house to sell, but £260 if you're cash buyers wanting to move in immediately? <br /><br />I imagine that the EA judges these things differently in different sets of market conditions - when mortgage money is easy, you may say that the vendor can hold out for the best price.<br /><br />In the market as it is at the moment, you may say to the vendor, "Look ask so much, but be prepared to drop the price substantially for a good buyer." And a sensible buyer knows this. If they're in a strong position they will bargain - just as a vendor in a strong position will hold out for the full asking price. <br /><br />Oh yes, and the prospective purchaser also knows that house pricing is usually based on psychological calculations as well as simple decisions about value. Otherwise there would be many fewer houses marketed at £299,995.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22726546.post-79242697898612469682010-11-25T12:42:20.384+00:002010-11-25T12:42:20.384+00:00What no purchaser seems to accept is that, just pe...What no purchaser seems to accept is that, just per chance, as professionals in our field, we, the estate agent, are ahead of the game and that the price the property is marketed at has already taken into account market conditions!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22726546.post-51221498048397405892010-11-12T20:51:39.568+00:002010-11-12T20:51:39.568+00:00I believe secret agents loathes buyers and sellers...I believe secret agents loathes buyers and sellers in equal measure. But the sellers pay him, and are marginally less likely to waste his time...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22726546.post-90935790636426989642010-11-12T13:39:14.511+00:002010-11-12T13:39:14.511+00:00I accept that the man in this case was probably a ...I accept that the man in this case was probably a complete arsehole, as you put it. However it always amazes me how agents seem to regard proceedable buyers exploiting their natural advantage in a dead market as (terms I have heard) "arrogant", "vultures", and "parasites". However in bouyant conditions they think it quite reasonable for sellers with the good fortune to have a roof over their heads to expect others to engage in a competition of indebtedness and pay 5x what they paid for said roof in the previous decade "because that is what it is worth", without being seen as exploiting the next generation.<br />No-one has the moral highground. There is no "right" price. It is simply a transaction between two (more-or-less) willing and able parties. If someone is paying less than the market price at that time then - by definition - the seller could sell it for more to someone else.<br />But I strongly suspect you know this.Anonymousnoreply@blogger.com