Review of Prime Time programme on auctioneers

cik

Registered User
Messages
13
Interseting how nobody here answered the question I put forward earlier regarding ; would they feel so harsh about it all if they were a vendor - on the receiving end? (as im sure some of you are/were....) Markjbloggs?? what say you !?
I agree completely, any vendor would be happy...but...that is a vendor in a sellers market...what happens to vendors ifthe market turns into a buyers market when the EA industry is discredited in the mind of the buyer?

You can fool some of the people, some of the time...

this is why you need standards and regulation, because if you dont people will eventually loose confidence in the market and when that happens...all the kings horses and all the kings men...
 

Markjbloggs

Frequent Poster
Messages
380
Interseting how nobody here answered the question I put forward earlier regarding ; would they feel so harsh about it all if they were a vendor - on the receiving end? (as im sure some of you are/were....) Markjbloggs?? what say you !?
Never having been in the position, I can't say for definite but there would certainly be a large measure of guilt on my part that somebody had been cheated by a representative of mine. I certainly would report the EA (or whoever had decieved my buyer), even if it meant a loss of some of my ill-gotten gains.
 

murray

Frequent Poster
Messages
67
Never having been in the position, I can't say for definite but there would certainly be a large measure of guilt on my part that somebody had been cheated by a representative of mine. I certainly would report the EA (or whoever had decieved my buyer), even if it meant a loss of some of my ill-gotten gains.

Fair play to you then, you are in the minority.

However , the answer implies you would go along with it - as you would have no reason to feel guilty otherwise - and loose some of your ill gotten gains ??- :)
 

cik

Registered User
Messages
13
Fair play to you then, you are in the minority.

However , the answer implies you would go along with it - as you would have no reason to feel guilty otherwise - and loose some of your ill gotten gains ??- :)
Murray, what happens in a buyers market?
 

murray

Frequent Poster
Messages
67
What does the agent do?
Marketing , get discounted advertising rates , organise and attend the veiwings , selling the property , sift the 'real' buyers from the 'tyre kickers' , negotiate the often sticky path to exchange and completion , often without the vendor (client) being aware of the pressured situation.

If we are talking about auctions - that is an art form ! very difficult to do well, only a handful of fantastic property auctioneers in the country.
 

mad m

Frequent Poster
Messages
66
Weird I didnt even start this thread,but I am first in line.There was a good few people before me at start....Hmmm
 

Stiofan

Registered User
Messages
18
[/i]

But their higher bid is based only on deceptive practices by the EA/Auctioneer and has nothing to do with supply and demand, which should be setting the prices. That is distortion.
Couldn't agree more it is a distorted market and the application of a simplistic supply and demand model is incorrect.

The fact that a EA acting on behave of a vendor knows what you can pay rather than what you want to pay distorts the true market equilibrium. Its human nature to aim higher even if its unaffordable but as Duplex pointed out the public do need to cop on to themselves. Its also a government's duty to protect the interests of its citizens in such circumstances by way of law, which unfortunately they have failed to do for whatever reason.
 

Sunny

Frequent Poster
Messages
3,438
Fair play to you then, you are in the minority.

However , the answer implies you would go along with it - as you would have no reason to feel guilty otherwise - and loose some of your ill gotten gains ??- :)
I am sure you are a very honest estate agent but do you not see the difference between someone paying 500,000 euro for a 450,000 house in an open competetive bidding process and someone payig 500,000 for the same house because the estate agent made up bids which is what the programme showed last night. You mention in earlier post that it is an infrequent occurance but point out that it is not illegal but you don't comdemn it or deny it happens in your industry. Just interested, from an ethical point of view would you condemn these activities or have you used ghost bids yourself?

As mentioned elsewhere people have probably been very naive in by taking estate agents at their word in the past so maybe we do deserve to be fleeced.
 

cik

Registered User
Messages
13
in what way CIK ?
You seem to be suggesting that there is no adverse effects, its all market determined, the vendor is happy, the buyer isnt forced to do anything - generally a functioning market

I disagree, you are cashing in on the fact that it is a sellers market and this comes back to bite you in the *ss if/when it becomes a buyers market. What happens then?

To achieve and maintain confidence in the proper functioning of the market you need proper regulation and not just 'let the buyer beware'. If that is willfully foregone well then when the wheels can come off very easily...
 

murray

Frequent Poster
Messages
67
Couldn't agree more it is a distorted market and the application of a simplistic supply and demand model is incorrect.

The fact that a EA acting on behave of a vendor knows what you can pay rather than what you want to pay distorts the true market equilibrium. Its human nature to aim higher even if its unaffordable but as Duplex pointed out the public do need to cop on to themselves. Its also a government's duty to protect the interests of its citizens in such circumstances by way of law, which unfortunately they have failed to do for whatever reason.
So the government should legislate against purchasers ego/human nature to loose the run of themselves?
 

murray

Frequent Poster
Messages
67
You seem to be suggesting that there is no adverse effects, its all market determined, the vendor is happy, the buyer isnt forced to do anything - generally a functioning market

I disagree, you are cashing in on the fact that it is a sellers market and this comes back to bite you in the *ss if/when it becomes a buyers market. What happens then?

To achieve and maintain confidence in the proper functioning of the market you need proper regulation and not just 'let the buyer beware'
Larger established agents wont be bitten on the *ss , exactly the opposite, vendors will pay higher fees because they are more anxious to sell , EA's spend more time with purchasers, many small EA's will go to the wall - basically less houses sold, higher fees.

BTW - it is a buyers market.:D
 

cik

Registered User
Messages
13
Larger established agents wont be bitten on the *ss , exactly the opposite, vendors will pay higher fees because they are more anxious to sell , EA's spend more time with purchasers, many small EA's will go to the wall - basically less houses sold, higher fees.

BTW - it is a buyers market.:D
that is one scenario, another scenario is buyers (who have the power) wont trust EAs and will prefer to deal directly with vendors...
another scenario is vendors will have much less money to pay EA fees as there paper profits might not be what they used to be...

one thing you can take to bank in any future scenario is markets will evolve to remove those that dont add value and EAs only power is the value they add
 

Stiofan

Registered User
Messages
18
So the government should legislate against purchasers ego/human nature to loose the run of themselves?
The government should put legislation in place to make such transactions more transparent which is currently not the case, ie ghost bidders. Until in place there will always be question marks over EA's practices in this country and righfully so.
 

murray

Frequent Poster
Messages
67
that is one scenario, another scenario is buyers (who have the power) wont trust EAs and will prefer to deal directly with vendors...
another scenario is vendors will have much less money to pay EA fees as there paper profits might not be what they used to be...

one thing you can take to bank in any future scenario is markets will evolve to remove those that dont add value and EAs only power is the value they add
1.There has , and always will be EA's.

2.The has , and always will be private sales.

The number of deals that actually make it over the line (and highest prices acheived IMHO) will always be much higher in scenario 1.

The skills of calming situations, negotiation etc are learned over years and moving hundreds of people , not trying to do it once every 5yrs with 3 kids in the background !! You generally find that private sales are done where vendors either know the buyer , or find out they know the buyer and cut the agent out. It often ends in tears.....
 

liteweight

Frequent Poster
Messages
1,678
After seeing that program if I was buying a house or apartment and it was advertised with an EA I would just go up and bang on the door and tell them I will only deal with them directly, I'm sure they wouldn't mind as they too would be saving on the commission.
Unfortunately the EA could still claim his/her fee as presumably, it was their sign that alerted you the property was for sale.
 

murray

Frequent Poster
Messages
67
The government should put legislation in place to make such transactions more transparent which is currently not the case, ie ghost bidders. Until in place there will always be question marks over EA's practices in this country and righfully so.
In Oz you have to register as an auction bidder (correct me if im wrong!)- more transparent , so good that way , though the EA's friend could register etc etc etc
 
Top