Estate Agents - are they depressed?

This isn’t ‘glee’ - not a cheap shot at folks who must be feeling gloomy and feeling the pinch - well, not really.

I just wondered if EA’s are getting depression?
We happen to live in a very desirable location, small but incredible view and facilities, and up to this year we would regularly, at least 2 or 3 times a year , get a friendly call from a local, very professional EA asking if we would consider selling, offering free valuation, etc. It used to amuse us to hear how much the house was worth - we didn’t and don’t care if it bombs back to the original purchase price - it’s our home. This year - no calls, no fliers in the door, nothing.

Along our road are 2 well finished houses, one large one bijou, with fine views - overpriced but in better times very desirable houses. I have been working from home for over a year so am around the place all the time - and I have not seen ONE viewing in the 6 months to 1 year that they have been for sale. Once I saw someone peering in through the windows - that’s it - never saw an EA meeting a couple and waving a clipboard about - actually haven’t seen anyone wearing a suit anywhere near them.

And the signs - oh dear - one outfit tend to tie their wooden signs to gateposts with string - well in the high winds last week I think I noticed 3 or 4 blown down around the village. A week later they are still flat on the ground. The EA’s office is 10 minutes from here.

Sales people, of which I am not one ( I’m an engineer and cant keep my mouth shut when someone asks me a direct question - I tell the truth, in boring detail) are brilliant at adopting a positive attitude. As long as they are making sales and have good odds at new prospects they will be energetic, creative, attend to detail, make sure signs are in place, etc. However when things go sour they take it to heart and get sloppy, lose interest, find other diversions so they won’t be seen to fail, and so on. If it really gets bad they will curl up into a ball and go catatonic. 2 year ago they strode along like in that ReMax ad with Masters of the Universe swaggers - now - where are they they hiding? Working on their handicaps?

Right now these are NOT the people you want to sell your house - they really seem to have lost interest. You might expect them to be ‘hungry for business’ but paradoxically sales people sell best when they are in a groove of selling lots, not a rut of being constantly rebuffed.

my 2 Euro-cents worth.
db.

I bet these people know exactly what is going on and most have the very same views at those on this site.

Whats depressing them? - Not the fact that there is no buyers but that their silly clients (vendors) cannot get real and allow them to make a living.

It would be like a starvation race (which would suck I imagine!)

Who will give up first form hunger - me through lack of sales but there is nothing I can do about it - or my Client, who eventually will lower his price enough…but I could be dam hungary by then!!!

Fair enough B.I. - I agree that it’s not the individual EA’s fault that the owners are refusing to face reality in setting their prices. There are some on this forum, of course, who would believe that Its Their Own Fault For Pushing Prices Up And They Deserve To Rot In Hell! ‘:twisted:’

My point is, I suppose, that while you might expect EA’s to be trying every sales trick in the book and to be working day and night tarting up property and rattling every sales lead, they seem to have just folded up their tents and stolen off into the night.

Hitchhikers Guide to the Galaxy fans may recall Arthur’s discussion with Slartibartfarst, one of the planet manufacturers of Magrathea. When the Galaxy hit a serious economic crash and nobody could afford to have new planets built, the entire planet of Magrathea went into hibernation waiting for the recovery of the economy to the point where their services could once again be afforded. Arthur thought this was a bit unethical. Slartibartfarst seemed a bit puzzled at the idea of ethics. :unamused:

So maybe the EA’s have gone into hibernation or suspended animation and have just left one or two dotted about to maintain the illusion that they are all still here! That would be YOU then? :smiley:

In all seriousness though I wish you well over the next while - hope you did stash enough cash away in the crazy days to last you through the drought.
db.

There are no tricks or stops to pull out.
Its very simple.
Just price the property at c20% below what it was getting in the summer of 2006.

If the owner accepts this guide price then you take it on and it sells (not immediately, but eventually).
If they dont, then you let another estate agent take it on and watch how it remains on the market.

As Ive mentioned before numerous times, all it comes down to is the price. A well priced home will sell, an over-priced one never will.

In all honesty Ive been looking forward to this type of market as there were too many competing agents and agencies. Both are dropping off in number to the extent that my commission has increased from 1% to about 1.75%. Had a few 2% fees recently. Always relatively easy to obtain 2% after you have sold in an area where all the other agents failed.

Cant reiterate enough though, when priced correctly it will sell.
You just have to pick the right owners who understand this and enable you to do your job.

Those apartments that dropped by 100k are selling well, maybe that will help some people see the light.

nwfdailynews.com/article/6725

This serves to remind me that the Enlightenment was a loooong time ago. :unamused:

A case in point.
Although always beware, these are not sold - only sale agreed.
There is a wide gulf between sale agreed and sold.
Numerous booking deposits are returned before any dotted lines are signed.

I completely agree about the price, where I am looking (South Dublin 600k-750k) is extremely price sensitive, where a house does drop to 80% of it’s 2006 equivalent it will sell. But it must be at least in good condition, bad condition means people will be looking for a real bargain.

Nah, I reckon they’re all still in the ‘waking up in a strange place with the furry tongue, manky taste in their mouth and a pounding headache thinking - what the fuck did i do last night?’ phase.

For the EA’s…

youtube.com/watch?v=UUALTv8Kw_w

(NSFW language at start)

Interesting - yes I’m sure the EA’s who are professional and in it for the long-haul would like to see some of the cowboys weeded out.

For all the stick EA have and will take for picking up easy commissions, and often showing little regard or respect to buyers (or sellers, if you believe the book “Freakonomics”) - I’d have no problems paying hefty commission to someone who does the donkeywork, uses his/her expertise, does the sales job and gets me the best price on the day.

Now don’t get me started on paying similar amounts to a solicitor who gets his dim nephew in as a junior and sends him off to the Land Registry etc to do the trivial amounts of work needed for conveyancing!
Don’t suppose there are any solicitors lurking here anyway - will be too busy covering shortfalls in client accounts, moving funds, telling their wives what the cryptic numbers written in the back of the Yacht Club yearbook are really about, and who to ask for when they get to Cayman, and so on. Or am I just being grumpy this morning?

db.

Is there anyone who disbelieves it?

For example if I was an EA on 1.5% commission and it would be relatively easy to sell a prop at 300k, but it starts to get tough to sell it at 320k.

Vendor wants to sell for 320k.
EA has an offer of 300k from fearless FTB.

  • Difference to EA (1.5% comm) on sale between 300k and 320k = 300
  • Difference to owner on sale between 300k and 320k = 20,000

Because of the way the EA’s remuneration is structured, at some point it becomes attractive for the EA to become a ‘buyer’s advocate’ and convince the seller to accept 20k less rather than working their arse off just to extract that extra 20k out of the buyer to earn a measly 300 extra.

It’s better for the EA to sell 10 props a week at 300k = 45k commission wheras 9 props at 320k = 43.2k commission.

Nah, you just hate people who operate in a monopoly and charge a fee which has absolutley no relation to the work involved.
In the UK you can do the conveyancing yourself or hire a non solicitor conveyencer (F***ing English, you can say it but can you spell it. In Spainish every word is written exactly as you say it.).

That is an obvious problem, but if an agent gets the 320 in the first moddel and another only gets the 300k then the guy who got the 320k is likely to get the next property for sale. its all about kudos.

If you have sold property for the best price ever, you probably will get the next place in, in a market as we are in at the moment, if you sell and get a good price and good terms for your client they will sing your praises and you will get more business. Likewise if you are profesional and clear to all potential purchasers they will sing your praises and you will get more business.

Taking the easy sale gives only short term rewards.

It is? So you can tell when to use a j vs g, b vs v, and ll vs y without any guesswork?

Hmm, started another tangent here, didn’t i?..

If pronounced properly. Yes. Although b vs v might be hard. :smiley:

It’s not a problem. You’re assuming perfect information exists between vendors and potential vendors in the property market… In Ireland there is no such transparency. Maybe when prices were rising people would’ve been crowing about prices achieved, but in a declining market a veil of secrecy will descend over the whole thing.

At your level yes. However in the distressed FTB/BTL market, it’s going to become more about survival than kudos when interest rates keep rising.

I’m selling my house in the UK and my EA is getting a flat fee of £400. :stuck_out_tongue:

£200 for the advertising and sale board and £200 when I exchange.

**iguana wrote:
**

Decided the game is up in London town?

Wouldn’t you be better off financially to assure your EA was acting in your interest rather than their own, or the purchaser’s?
If I was getting paid a £400 flat rate to sell a house I’d accept the first offer I got.