A number of recent threads have focused on people becoming disillusioned with EAs and their unwillingness to see the market as it, especially when it comes to dealing with low ball offers of 15, 20, or more per cent offers below asking prices. Now that the EAs have stopped reporting private treaty sales results to the irish times, things have become even less trasparent. Noboby seems to have much of a clue as to whats going on except for the fact that prices are falling and expected to fall further
Are there any estate agents or anyone closely involved in the industry on this forum that can answer (honestly please) some of the following with regard to Dublin.
What has the volume of second hand sales been like over the past few months in comparison to last year.
What Dublin areas have been most affected by the slump and which areas, if any are holding up better.
As a general rule, what % below asking price is being considered by vendors, but more importantly what % below asking price are deals actually being closed at.
We know the views of all pinsters with regard to the above, now let the other side speak.
There was an EA on Matt Cooper this evening, I think his name was Paul Murgatroyd. He said that volumes right now are down 40% on last year, and last year was down 40% on the year before. So he claims that the rate of closing deals is roughly one third what it was in 2006. I think he was a Dublin EA.
The EA’s will remain absolutely silent on this. The fact they do not contribute to the debate speaks volumes. Lets face it, most people hate dealing with EA’s because of the manner in which they contributed to driving up the property market. These massive swings in from once reasonably modest house prices to absolute ripping off to now sliding prices do nothing but damage the market. It is far more beneficial to sustain modest price hikes and modest price drops. Therefore you avoid any major shocks to the system. The EA’s have left the pot roast in the stove at full heat and gone off to enjoy a party. They are now entering the beginning of a free fall. It is not good for them, the seller or the buyer.
Oh and forgot to mention, mortgage brokers are laying off employees at the moment, another direct result of the problem. The EA’s can’t sustain long protracted bear markets. You will begin to see maverick EA’s cutting the ass from asking prices and actually gaining some traction but not without raised eyebrows from their fellow EA’s.
Here is a real life situation for you . . . a couple I know need to off load an investment holiday home down the country somewhere. They need it sold quickly. They know the asking prices in the area for their property type because there are a handful for sale. They approached the EA told him they want him to sell their place but to price it at €65k less than the cheapest he currently has listed. The EA went ballistic! He refused to act as requested and argued that if he were to do this, it would have a dramatic impact on the asking prices of the existing properties he is trying to sell.
Now I ask the question . . . I thought the EA is supposed to work for YOU the seller? I see this as the EA looking after himself before his client. Greed or fear or both?
The couple have reported the EA to the IAVI and it is being investigated. I’m trying to persuade them to register to ‘th pin’ and post their story, it is a real eye opener!