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