What do EAs mean - Vendors have to be more 'Realistic'

Why do EA’s mouth off (over the last 4-6 months) that vendors have to be more realistic about their price expectations? Sure aren’t these the same guy who professionally “value” your house in the first place.

Are they afraid to call a spade a spade?

Hi redo,

It does’nt always work like that.

1)Vendors who put their properties on the market in Summer 06 onwards have still got the Spring 06 price in mind , and when the situation is explained to them, they go into denial. Classic stage of the ‘bubble’

2)You will no doubt say “well you are the EA that valued it” etc etc etc. True. As an EA, you can spend all day driving around talking to people telling them that their house is worth less than they think. They will then thank you for your very short visit and give it to the next EA who is more ‘agreeable’ with them.Therefore , if its not on your listing , you cant sell it or make any money, but you can drive around all day…nice.

The best way , (and I have done this many times) is to say “Ok , we will try at 1.3 million (to appease the vendor and get the listing) but I still think 1.1 million is more realistic, we will keep a close eye on it and review the feedback in a week” (EA’s generally are right because we do this every day for a living and are not blinded by the new wonderful decking they have put in that obviously adds 200k! :unamused: ) Then you can get the price down to a realistic level & sell it once the vendor realizes he was incorrect - some listen , some go into denial because they are (for example) a computer whizz/doctor but know more about property than you!!! :wink:

3)Vendors have to be more realistic if they want to sell their property because; they do not understand the effect that 6 x 0.25% has on affordability , nor do they understand oversupply (because their road/house/area is ‘different’!) :unamused:

4)Saying that - some EA’s really are crap - and really are not knowledgable enough to be in this game - but that goes for all industries I think.

That reminds me, something that has stuck with me since I was a kid as my father said sumit’ along the lines of “all the extras you put in the house adds absolutley no value to your property…” its along the lines of one mans drink is another mans poison, there is no accounting for taste!

I think that got lost in the last 10 years, but I feel less is more will be back in vogue very soon!

murrayo, I’m not a big fan of EAs but I have to say that all sounds very reasonable!

I guess all the news about “5% increases this year” is trying to “reset expectations” to prevent vendors holding out too long for silly prices. The question is, will it work?

There is ‘news’ about 5% increases (from VI’s to be fair), (in reality - 5% is stagnant ***at best ***, due to inflation) - reality on the ground is serious price drops & very few sales.

The latest one im hearing from Vendors is “I’ll wait it out” !!! F*%k me ! How long?waiting for what !!! :open_mouth: :open_mouth: :open_mouth:

More & more denial…

Enda Kenny talking about reforming Stamp duty is just another spanner in the works… Many joe soap’s will interpret that as ‘stamp duty is going to change for sure now…’ :unamused:

Ah, fe*k it anyway! Its only money !!!

Do they realise that means they’ll have to vote Fine Gael?

I did a survey a while back and people were like, “Yes, I’m dissatisfied with the current government. I think transport and planning are a disgrace.”

But when it came to mark their Xs, lo and behold did they not put down feckin’ Fianna Fail! It beggars belief…

process of elimination is a killer…isn’t it?

https://www.idorfman.com/Charts/sentiment_cycles.jpg

Exhibit A.

Its a long time since the Irish property market was driven by fundamentals. The vast majority of sellers are probably undergoing a degree of cognitive dissonance as they struggle to absorb the fact that the market has peaked; this clashes with their expectation that the market would continue to rise. Resolving the conflict between expectation and reality is usually drawn-out and painful by all accounts.

So we’re probably in between “Denial” and “Fear” right about now, despite what Lisney are saying…

The manifestos the main belligerents for the election come out with will make interesting reading…

I’d say we are probably just north of the anxiety stage myself, the Spring selling season would have to flop before we get to denial then fear.

I feel we haven’t gotten past ‘Anxiety’ yet either.

If the spring season flops, true Denial will start to settle in.

I was pondering this the other night myself.

I actually reckon we may as far along as somewhere between fear and desperation!

I’m noticing a lot of fearful posts starting to crop up in more “mainstream” websites (well, what I mean is, websites which aren’t property market related), as well as in general discussion with work colleagues and friends trying to sell at present.

I see a few people starting to border on desperation - “my house has been on sale X months - why isn’t it selling/is it overpriced/is the market slowing?” and some are just downright worried/desperate - for example, this one from WeddingsOnline.ie (of all places!):

weddingsonline.ie/discussion/viewtopic.php?t=61785

I actually believe that some people with property on the market are starting to get desperate - why would else would they start to drop prices? There are many still stuck way back in the denial stage, but as other prices are falling, they will soon move swiftly along from there… :frowning:

Bleak…not a good scene at all… :frowning:

Mad to think people are thinking of releasing equity at this point and getting lumbered with two properties! :open_mouth:

Great find. I must say there were quite a few sensible comments on that thread (plus a couple of scary bunny boilers :unamused: ). The Spring selling season is being cast as the cavalry in a cliff hanger! No performance anxiety there then :smiley:

That weddingsonline.ie chat makes me want to go out and kill bunny rabbits.

I’ve just looked at it again…and apart from the scary, scary time ticker things for weddings, anniversaries and pregnancies in the footer of some posts. what really scared me was:

“we’ll just rent it out for six months”. It is a big, big pity that Part VI tenancies can be ended on grounds of property sale because this sort of nonsense wouldn’t then happen. If a lot of people go down that road there is going to be some serious messing in both the rental market and sales market and while I really don’t care so much about the sales market, it will get on my nerves the next time I move if I wind up having to deal with this class of a tenant.

I think that thread still points to “Anxiety”. I think the major theme there is worry, but with quiet optimism.

I don’t think we’ll reach “Fear” until people start selling properties for less than they paid/less than what’s outstanding on the mortgage (not always the same thing thanks to euity release).

A nice big 0.50bps rate rise in March (as suggested elsewhere) could be the catalyst for next few stages.

Are people seriously expecting this? Would they not just increase in Feb and April instead to avoid scaring people?

Maybe scaring people into borrowing less money on a European wide level is exactly what they are looking to do.

true, but I thought the ECB were going for transparency and openness rather than shock tactics? I got the impression that they didn’t want to cause major waves for anyone.