Question about Estate Agents

bobbiw

Given that there is an almost universal belief that house prices will continue to drop for the forseeable future.

Why do estate agents continue to call buying a house, getting on the property ladder.

Its pretty certain that if you buy a house today that you will loose money.
So why do they do that, I know they have a "sort of" job to do (albeit something that a trained cat could do)

I personaly think that EA could resolve the whole housing crisis that people are in, if they just got everyone to accept a 50% reduction on their asking price they could stimulate demand.

Then when the banks are more able to lend things would level off.

Buy again most of these people are not as educated as a trained cat, right???

EKRIUQ

bobbiw wrote: »

I personaly think that EA could resolve the whole housing crisis that people are in, if they just got everyone to accept a 50% reduction on their asking price they could stimulate demand

:D:pac:

Freddie59

EKRIUQ wrote: »

:D:pac:

Laugh as you may, my EA friend. But weren't people sniggering in the same manner two years ago - and look at what's happened since then? Everyone - and I mean EVERYONE - knows the only way for things in the property market to return to some normality and sanity is for precisely this to happen.

As it stands:

1. Many people still cannot afford the asking prices.

2. Banks will not approve mortgages in many instances.

3. Many people who are in a position to buy (myself included) will not commit because of the uncertainty. And can see prices going far lower.

4. New house sales are also affected by the above factors.

NAMA is an attempt by a dying Government (which I voted for) to artificially keep prices high - thus sustaining the current status quo.

Mabye it should be called the Property snakes and Ladder? Easy to spot the snakes.;)

DTrotter

Freddie59 wrote: »

Laugh as you may, my EA friend. But weren't people sniggering in the same manner two years ago - and look at what's happened since then? Everyone - and I mean EVERYONE - knows the only way for things in the property market to return to some normality and sanity is for precisely this to happen.

As it stands:

1. Many people still cannot afford the asking prices.

2. Banks will not approve mortgages in many instances.

3. Many people who are in a position to buy (myself included) will not commit because of the uncertainty. And can see prices going far lower.

4. New house sales are also affected by the above factors.

NAMA is an attempt by a dying Government (which I voted for) to artificially keep prices high - thus sustaining the current status quo.

Mabye it should be called the Property snakes and Ladder? Easy to spot the snakes.;)

Obviously an estate Agent if he/she disagreed with you. Why get EA's to ask for 50% off, go to people selling houses personally tell them not ot go to an EA and drop 50% off their prices, see the reaction you get.

Freddie59

DTrotter wrote: »

Obviously an estate Agent if he/she disagreed with you. Why get EA's to ask for 50% off, go to people selling houses personally tell them not ot go to an EA and drop 50% off their prices, see the reaction you get.

Not the point. It is accepted that we have to return to:

1. A mortgage that equates to 3.5 times annual salary (the average price of a second-hand 3-bed semi-d - Dublin weighting exluded - should be that times the average industrial wage, or somewhere between €120k and €140k. Only when we approach something like that will you get stability.

2. Certain sellers need a reality check. Whatever a house was valued at 3 years ago is history. End of story.

We're currently renting and the value of the house we're renting has fallen from €265k to somewhere between €200k and €210k....in six months.

And they still can't sell them.

johndaman66

bobbiw wrote: »

Why do estate agents continue to call buying a house, getting on the property ladder.

I hear you bobbiw but think the use of this expression is quickly dying out at the moment. The expression which I've grown to detest and which has become very popular among our estate agent friends of late is "this property represents fantastic value for money at"... x euro. You can't pick up a property supplement but you are bound to see it. Just because it was 380k 18 months ago and is 300k today doesn't mean its fantastic value for money.

Freddie59 wrote: »

a dying Government (which I voted for)

Why Freddie59? From reading the rest from the posts you contributed to the thread you seem an intellegent sort of chap;)

Agent J

Two words.

"Vested Interest"


Remember they work on commission. If the house sells for 50% less they get 50% less commisson

bangersandmash

bobbiw wrote: »

Given that there is an almost universal belief that house prices will continue to drop for the forseeable future.

Why do estate agents continue to call buying a house, getting on the property ladder.

As was pointed out last time, it's a sales job. Quite simply they say it because they're trying to sell you the house. Do you expect a car salesman to tell you the car they're trying to sell you is a pile of junk?

Senna

Agent J wrote: »

Two words.

"Vested Interest"


Remember they work on commission. If the house sells for 50% less they get 50% less commisson

I'm afraid those days are gone, they could be making 100% commission, but if the house does not sell they get nothing. I think all EA's would be delighted to take commission on 50/60/70% drops in prices if it mean houses were selling. But houses aren't selling (very few) as sellers wont drop their prices far enough. Its not in EA's interest to keep price high anymore, it is in their interest to get houses selling and have a stable market at any cost.

I've never had any time for EA's but they are stuck with sellers that think dropping the price by 20k is a HUGE amount and buyers than wont even consider an offer unless the drop is 100/200k. I've seen countless house on the market at prices much higher than a neighbouring properties, but the seller set the price, not the EA. Believe it or not i'm starting to feel sorry for EA's,* most are making very little money and have zero job security.






* till i remember phantom bidders, lies in marking materials and how many gullible FTB's got sucked in by EA spin during the bubble

the_syco

EA Agent: I'd like to half the price of your house, so that I can sell it quickly.

Owner of the house: F**k off, you're fired. I'll get someone else to sell it for what I want. X down the road got their house for that price last year...

=-=

Sure, last year was 12 months ago, and prices have since fallen, but no-one in their right mind would sell for less than what they think their house is worth. Unfortunately, what they think, what the market thinks, and what the buyer can afford are totally separate...

blah

bobbiw wrote: »

Why do estate agents continue to call buying a house, getting on the property ladder.

Funnily enough, I noticed that the Channel 4 property programme "Property Ladder" is now called "Property Snakes and Ladders"

TwoShedsJackson

You can go down a ladder as well as up it

JoeyJJ

TwoShedsJackson wrote: »

You can go down a ladder as well as up it

When you get on at/near the top there is nowhere else to go, unless you jump off (keys in letterbox and run).:D

gar_29

Freddie59 wrote: »

It is accepted that we have to return to:

1. A mortgage that equates to 3.5 times annual salary (the average price of a second-hand 3-bed semi-d - Dublin weighting exluded - should be that times the average industrial wage, or somewhere between €120k and €140k. Only when we approach something like that will you get stability.

2. Certain sellers need a reality check. Whatever a house was valued at 3 years ago is history. End of story.

totally agree with point 2, but just on your first point;

3.5 times salary was the norm in the past, when households were mostly one-income, and 15 to 20 year mortgages were the longest you would get. also, interest rates were in the mid-teens.

nowadays i reckon that most households are dual income, and people get 25-30 year mortgages. while interest rates are very low at the moment, and can only go up, i don't think even the pessimists see them heading into double digits, even in the long term.

this will increase the minimum figures a bit, surely?

Freddie59

gar_29 wrote: »

nowadays i reckon that most households are dual income, and people get 25-30 year mortgages. while interest rates are very low at the moment, and can only go up, i don't think even the pessimists see them heading into double digits, even in the long term.

this will increase the minimum figures a bit, surely?

Possibly. But the reason for both partners working was the savage increase in prices anyway. So if they fall.......

gar_29

Freddie59 wrote: »

the reason for both partners working was the savage increase in prices anyway.

yes, but also because of social changes, wimmens lib and all that! so the cycle fed into itself. would many women nowadays rather not work and rely on their other half to support them. not mine, anyway!

jmayo

TwoShedsJackson wrote: »

You can go down a ladder as well as up it

Beat me to it :mad:

Yep the Channel 4 program Property Ladder has indeed changed nameand it also makes for salutory viewing.
The two on the last night had bought at the top of the boom in 2007 and they were still living in an Egyptian river when they tried to sell.
At least the EAs on the program were realistic unlike some of ours and set them straight about how the market had crashed and they could expect losses.

oceanclub

jmayo wrote: »

Beat me to it :mad:

Yep the Channel 4 program Property Ladder has indeed changed nameand it also makes for salutory viewing.
The two on the last night had bought at the top of the boom in 2007 and they were still living in an Egyptian river when they tried to sell.
At least the EAs on the program were realistic unlike some of ours and set them straight about how the market had crashed and they could expect losses.

By contrast, More 4 are still showing old episodes of "Location x 3" with Kirsty "Daddy, I want a Pony" and Phil "Eating from Dustbins", with no disclaimer that any figures or advice mentioned in the shows are now fantasy.

P.