Estate Agents - why are they such LAZY BASTARDS?

[eastlondonseagull]

Right, a rant, if I may...

I'm desperately trying to work out what their game is. Our two-bed terrace (in London) went on the market about a month ago, priced at £199,995 – a joint sale with two agents who'd proposed the move in order to get a 'quick' sale. We pay the ‘winning’ agency 1.5%.

We've spent a lot of time, emotion and money getting the place in really good nick, but we stressed to both agents when we put it on the market that we WILL take offers. The lowest we'll accept is £190K, but that's still £10,000 under the asking price.

We took our own photos because we thought we'd be better able to showcase our home's best bits - one less job for them to do.

Anyway, it’s been a quiet month, with only one viewing from the first agent and about five from the other.

Last weekend, both EAs advised us to reduce the price to £195K in order to ‘get people through the door’. I said no, as there’s no way you can whack the price up again later. Besides, we’ve only been on sale one month and we WILL accept offers, so it's up to them to try 'push' the house.

So this morning, I got one of my mates to do the 'mystery shopper' thing and call both agents up. She said she wanted a two-bed house in our location (near one of the local parks - a big selling point), but that she had £190 - £195K to spend.

NEITHER of the agents mentioned our house. Both said there was "NOTHING" (quote) on the market in that location at £195K and that she’d need £200K to get anything! Eventually, when pushed, they said there was another house, further away from the park, that was on for £185K.

Why the f*** aren’t these estate agents actively trying to sell my house? Are they simply lazy? Surely, the basic laws of salesmanship is that you tell people that there's a lovely place in the perfect location that's on for a little more than you can afford, but that the vendors will take offers! But no.

Estate agents don’t make any money unless they sell houses, so why aren't they trying to sell mine? What’s their game?

Any estate agents on NSC able to shed some light on this? It's doing my head in

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[Simster]

NEVER do the joint agency thing.

The net result - as you are seeing - is that both agencies will decide it is better to take the 35% of the total commission for doing f*** all, rather than 65% of the total commission for making the sale having put all the work in.

 

[Couldn't Be Hyypia]

They are mainly thick lazy bastards who have had it easy for years. They have no change of gear and they expect to get a huge fee for doing f*** all.

Sell it yourself.

 

[Seagull73]

I can't remember what the governing agency is called, but you should look it up and inform them of this information. They would find Estate Agency malpractice on this scale quite informative!! (provided both of these estate agencies belong to the governing code that is!)

 

[Digweeds Trousers]

HK has it spot on. The average sales capability of estate agents is somewhere between a wine gum and a peanut.

I am looking to buy in Kent / Sussex borders at the moment - this morning this is the phone conversation that took place.

Them - good morning sir - I understand you viewed a couple of places on Saturday and just wanted to get some feedback.

Me - actually I;m just about to go into a meeting can you call me back later?

certainly sir. no problem.

15 minutes later -

hey there sir - you asked me to call back later now about the viewings.......;.

me - erm - I'm still in the meeting I told you about 15 minutes ago.

10 minutes later -

hello sir I understand that you viewed a couple of properties over the weekend......

me - f*** off and never call me again.

It was an internal meeting.

Absolute twats.

 

[eastlondonseagull]

NEVER do the joint agency thing.

The net result - as you are seeing - is that both agencies will decide it is better to take the 35% of the total commission for doing f*** all, rather than 65% of the total commission for making the sale having put all the work in.

I don't think that's true, though. The one that sells the house gets all the 1.5% - if they were sole agents, they'd still get 1.5%, so surely the should be battling to get the sale. Or am I being very naive?

 

[Nibble]

Well, now you have proof that they are deliberatly not providing a service that you are paying for go to the governing body, or better yet go to the EA and get a better deal with the threat of pursuing it through the official channels. Stick it to the lying, robbing bastards!

 

[csider]

I have worked in property for 15yrs, if you are prepared to take £190k why have you got it on for £195k. Should you reduce make it clear you wil not reduce the price any more. If people get the needle cos you are not taking offers, show them the door. Also do a sole agency, or a joint sole agency.

As for thick lazy bastards who have had it easy........bit of a sweeping comment is it not??

PS. I work in commercial/business transfer property, so I am NOT an estate agent. Nor do I have hair gel and drive a mini!!

 

[Simster]

I don't think that's true, though. The one that sells the house gets all the 1.5% - if they were sole agents, they'd still get 1.5%, so surely the should be battling to get the sale. Or am I being very naive?

I think you're being naiive. In my scenario, they'll do f*** all in the knowledge that they're getting money for nothing. In your scenario, they'll do f*** all in the knowledge that if they were to do any work, they might get nothing to show for their troubles. Especially as we're not talking about a multi million dollar piece of business.

Either way, steer well clear of joint agency. You end up paying a higher percentage too!

 

[Uncle Spielberg]

I think estate agents will have to work a hell of a lot harder this year to earn a decent living.

 

[eastlondonseagull]

I have worked in property for 15yrs, if you are prepared to take £190k why have you got it on for £195k. Should you reduce make it clear you wil not reduce the price any more. If people get the needle cos you are not taking offers, show them the door. Also do a sole agency, or a joint sole agency.

As for thick lazy bastards who have had it easy........bit of a sweeping comment is it not??

PS. I work in commercial/business transfer property, so I am NOT an estate agent. Nor do I have hair gel and drive a mini!!

I know it's a sweeping statement, and for that I apologise. But it's just given me the needle.

But whether the house is on for £199K or £195K, they should still be trying to sell it! I'd rather get £199K for it, obviously, especially as it goes towards the deposit for my new place.

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[sully]

You have to market it at the right price, though I understand your frustration that neither agency have promoted your property.

I've just sold a flat - 2 days after reducing the price. I got an offer at the revised asking price having made it clear that I wasn't in a hurry to take lower offers. If the price is right, it will sell - but only if the agency is marketing it!

Do they have your property on the internet? I made sure what the marketing strategy was prior to placing my business and getting it on the bigger property websites was a priority, as even if the agent does little to promote it, people will see it.

 

[eastlondonseagull]

You have to market it at the right price, though I understand your frustration that neither agency have promoted your property.

I've just sold a flat - 2 days after reducing the price. I got an offer at the revised asking price having made it clear that I wasn't in a hurry to take lower offers. If the price is right, it will sell - but only if the agency is marketing it!

Do they have your property on the internet? I made sure what the marketing strategy was prior to placing my business and getting it on the bigger property websites was a priority, as even if the agent does little to promote it, people will see it.

Yes, it's on the internet, and it looks lovely. Another one, three doors down, went on the market for the same price the other day, with one reception room as opposed to the two we've got. Another reason I'm inclined to stick with the initial price. But yes, you're right, the price has to be right. If only the estate agents could be bothered to push it!

Our offer on the other property has been accepted (£10K under the asking price) - and that house is on with one of the agents we're using, so you'd think they'd be pushing ours hard. Because if they don't sell ours, they'll potentially lose TWO sales. It's ridiculous.

Some friends of ours sold theirs the other day, literally the day after they'd threatened to switch agents. Maybe our agents need a 'friendly' threat, too.

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[Peppermint Tea]

Mate
You've kind of answered your own questions:
1. Reduce the asking price as they suggest. It's probably only pride that gets in the way in these matters (I've been guilty of that in the past - see below). Agents (the bad ones) are lazy and if they know they don't have to do much for a sale (i.e. price means it'll walk out of the door) they'll be more motivated. Paradoxically a lower asking might lead to a bidding war which is exactly what happened on my house which I've just exchanged on. My agent (very good) suggested going £15k under what I thought the price should have been based on other sales in my street (London). End result 3 offers at the price I wanted because the initial price was mass attractive.
2. One agent always better than 2 because they always think the other one will do the work/get the deal. Your mystery shopper experience suggests you should bin that agent immediately.
3. Market generally is pretty bad at levels up to 300k so take any advantage given/offered.
My business is consulting to property companies and I do a fair amount of work with estate agents. My clients are all pretty good professionals and household names so their brand is immensely valuable to them. If they had negotiators who acted like yours have done they'd be binned.
Good luck mate, it'll go at the price you want - hold your nerve!

 

[eastlondonseagull]

Mate
You've kind of answered your own questions:
1. Reduce the asking price as they suggest. It's probably only pride that gets in the way in these matters (I've been guilty of that in the past - see below). Agents (the bad ones) are lazy and if they know they don't have to do much for a sale (i.e. price means it'll walk out of the door) they'll be more motivated. Paradoxically a lower asking might lead to a bidding war which is exactly what happened on my house which I've just exchanged on. My agent (very good) suggested going £15k under what I thought the price should have been based on other sales in my street (London). End result 3 offers at the price I wanted because the initial price was mass attractive.
2. One agent always better than 2 because they always think the other one will do the work/get the deal. Your mystery shopper experience suggests you should bin that agent immediately.
3. Market generally is pretty bad at levels up to 300k so take any advantage given/offered.
My business is consulting to property companies and I do a fair amount of work with estate agents. My clients are all pretty good professionals and household names so their brand is immensely valuable to them. If they had negotiators who acted like yours have done they'd be binned.
Good luck mate, it'll go at the price you want - hold your nerve!

Pride may be part of it, true, PT. But I'm worried (maybe naively) that I won't be able to get the minimum figure required (ie £190K) if I drop the asking price.

The current trend in my area of south east London seems to be to offer £20K under the asking price and get it for £10K under - that's how we 'got' our new 3-bed place, and how our friends recently sold theirs. Hence, if my place is on for £199,995, It'll sell for £190K. I worry that if it's on for £195K or lower, I won't get £190K. Again, am I being naive here?!

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[The Large One]

If selling quickly wasn't a priority, I'd do two things.

1. Go to a third estate agent having dropped the other two.
2. INCREASE the asking price to £210,000. Nothing like a bit of snobbery to make the buyer think that 'getting it at £195,000 was SUCH a bargain - the silly little man didn't know what hit him' etc.

But selling quickly does appear to be on the agenda - so I'll shut up.

 

[eastlondonseagull]

If selling quickly wasn't a priority, I'd do two things.

1. Go to a third estate agent having dropped the other two.
2. INCREASE the asking price to £210,000. Nothing like a bit of snobbery to make the buyer think that 'getting it at £195,000 was SUCH a bargain - the silly little man didn't know what hit him' etc.

But selling quickly does appear to be on the agenda - so I'll shut up.

 

[Tom Hark Preston Park]

Maybe our agents need a 'friendly' threat, too. .

Nope, sack them both, and tell them why you're doing it. Then start again with a sole agent.

 

[The Large One]

Nope, sack them both, and tell them why you're doing it. Then start again with a sole agent.

The man might present himself to the world looking like a raspberry coulee, but he speaks sense.

 

[The Grub]

Having just sold 2 properties recently in a difficult market my advice is this. Advertise it at the best price you can accept and be realistic about it's value. Choose your agents carefully, go to independents not the corporates. They are much more likely to work hard for you if it's their own business and use 2 or 3 agents at the same time but no more.

Good luck.