Asking price changes - tactics?

Hello folks,
I have been searching for the right property now for about 6 weeks. On a couple of ocassions the EA has made me suspicious by handing me the brochure, scribbling out the asking price, replacing it with a new lower one. As an example to explain - I went to view a property asking at 365k. This price was advertised on the web..... then within a minute of meeting the EA, I was handed the brochure and the price was changed to 345K..... but 365 is still on the web...
Similarly a while back I went to view a property priced at 375 and again, the EA handed me the brochure, telling me to ignore that price and scribbled 360 on it!! but I can still see that the property is on their website weeks later, listed at 375.
I am perplexed. Perhaps this is completely innocent and that the EA wants to keep the vendor happy by displaying the asking price, while trying to drum up some interest by quoting a more realistic price on viewing?
Incidentally, both properties would require a generous dose of TLC and DIY to get them to turn-key standard.
Anyone any ideas or similar experiences?

I don't know if the EA is playing games or not, but I do know lots of companies may not be able to update their website on a daily basis, e.g. if the webmaster is on holidays.

I don't think that there is any need to attribute this to a conspiracy.

The simplest explanation is that the asking prices have fallen and that they have not updated their brochures or websites.

Unless, they are trying to stay off the various lists of house price reductions?

brendan

Brendan said:

Unless, they are trying to stay off the various lists of house price reductions?

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Would this be a good or bad thing in the current market?
Looking at it from a retail sales perspective... doesn't the sign up saying 20% off actually drum up business? Even though say new stock isn't in the sale.

So with property would it be better to be seen to be discounting by say 20% for example and still be only willing to sell at 5% it, than stick to your current price but be willing to sell for 5% less?

That way you may even get free publicity from some property price drop sites and generate more interest in your property. But for you... the price is still the same.

Could also be where the vendor says to the EAto advertise at €X guide price but says to him, "but I'll take €x - 20K" - so the EA is trying to get this across to you by scribbling out the printed price.

Brendan said:

I don't think that there is any need to attribute this to a conspiracy.

The simplest explanation is that the asking prices have fallen and that they have not updated their brochures or websites.

Unless, they are trying to stay off the various lists of house price reductions?

brendan

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What? House price reductions? On this website? Surely not!
Say it ain't so Brendan!

hi all,

I'm in a bit of a dilemma. My self and my boyfriend have found the house of our dreams but with the current market situation we are not sure what to do.. we are suppose to be signing contracts today (but with the slowdown of the banks, this is not happening until next week, if even then).

Now the price has been reduced since the scheme was released in 2006 by approx 90k. The builder is at his lowest so to speak by the EA - but there again they cannot start phase 2 until all of phase 1 is sold out - and it's not.

I'm afraid if we call the builders bluff that he'll just hangon for someone else, there again, its been on the market for 2 years....ahhhh its so hard to decide what to do!!!

We are not buying it for an investment so don't mind a bit of negative equity but by the advice and comments of so many people on different threads and radio shows, the could reduce by anything between 10 - 30%.

I'd appreciate any advice!!!!

cheers L

L,

is the current price reasonable, in your opinion? Do you think the house price will be 10-30% cheaper on the year that you want to resell? For example, in 5 years.

delimma said:

We are not buying it for an investment so don't mind a bit of negative equity

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You don't really mean that do you? If you take that approach you don't need to be here asking advice just go out and pay whatever the developer is asking. You need to think of negative equity in bigger terms – do a Google search for “Big Town is a place where everyone knows everyone” note you need to use the inverted commas.

If the property is ready now, decide whether it's good value based on the price, location, suitability etc. If the property is not ready hold off, leave the deposit with the auctioneer and tell them to get back to you when the house is ready and you'll do a deal then. If they are not interested take the deposit back.