A personal view by David Cantell
What’s in store for the housing market after today’s referendum?
I suspect we will see more transactions whether we remain in or leave the EU.
Over the last four months we have seen a stand-off between purchasers and sellers; we are in neither a buyers’ nor a sellers’ market – property has simply been trading at fair prices.
My belief is that we have seen a pent-up demand in buyers building over the course of 2016 whilst sellers have been adopting a ‘wait and see’ approach. Uncertainty breeds caution. A definitive result, regardless of in or out, will lead to more sellers and more buyers and ultimately to more transactions after today’s vote.
This is a trend I have witnessed with all the general elections I’ve worked through.
A notable observation during the last few weeks has been that the majority of estate agents have been scaremongering their clients into price reductions or accepting low offers, having over-valued at the outset.
This has been happening not just with estate agents who might be considered “the usual suspects” but also those so-called “high end” estate agents, normally held in regard.
I’m constantly advising clients based on their individual needs and unique circumstances – very rarely is that to sell as quickly as possible and take a below market offer.
When instructing an estate agent, perhaps sellers should consider whether it’s actually better to instruct a large brand company where their sale forms part of the numbers, to meet their targets.
Alternatively, perhaps sellers should consider a privately owned company that is not target driven and where the sale of your property is about the seller’s needs and goals.
If they are in business they are surviving commercially for a reason: rarely are they impatient and prepared to offer poor advice, despite the fact it might delay them receiving any fee.
Moreover, privately owned estate agents without the marketing budgets of the multi-branches must rely much more heavily on their reputation in the local area and therefore are acutely aware that they must always give their best advice and that a long-term relationship is more mutually advantageous than a quick fee.
I hear the cries of target-driven companies saying they will be more motivated to sell a home and their staff will be competing with each other to get the best price. However, those in the property business all know that simply isn’t true.
A negotiator will often side with the buyer once they have an offer, simply to get a sale agreed and have it attributed to their personal figures as quickly as possible. The general multi-branch estate agent’s mantra is get it on (overprice), get it down (in line with the correct market price) and get it sold (side with a buyer’s offer no matter how low), all to make their lives as easy as possible to achieve a quick sale.
My own area is still heavily in demand from buyers and we have being agreeing sales in May and June with no reductions in price, proving that there are still deals to be made if you price fairly from the outset.
* David Cantell is director of Cantell & Co in Richmond, Surrey
Comments (3)
I think the funny thing about elections and referendums is that that people wait to see the outcome but then put their best foot forward first before anything changes anyway. We see it every time: they wait until the election is over then suddenly there is a rush to buy and list. It doesn’t make the blind bit of difference as nothing from the new govt has been announced or put in place. It just baffles me how it seems to matter but ultimately the best time is always NOW!
Whilst as an independent estate agent I want to agree with David’s article, I do feel perhaps that his view is a little simplistic.
I dont believe for instance that it can be deemed acting in the clients best interests to “wait’ until after the referendum when suddenly things will be back to normal and they will sell. I actually think that the outcome may well have a bearing on that, besides its foolish to try and guess and what might happen when you should be dealing with what is happening. If a property hasn’t sold, then its likely to be price and that price should be adjusted. No estate agent should be arrogant enough to pretend they get it right every single time.
There are also other influencing factors: often the deemed “correct” price can one of the lowest a seller gets, given the fall back of the desperate agent, value it high and offer themselves cheap, which means sometimes there is a compromise required.
We even had a situation this week where a property we are marketing is now in to its 4 month on the market, we are the second agent in and are pushing for a price reduction. Despite this the owner still had another agent knock at his door and suggest he could get MORE!
Probably the biggest statement I take issue with is the last one. I’m delighted for David that he has continued great sales in May and June without price reductions, but I find the suggestion that its easy if you get the price right, just a little patronising.
Sorry, my opinion.
Nice piece, refreshing read.