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Lawrence Higgins Associate Editor
Pricing policies, structures and responsibilities
T
here are 36 houses for sale in the village in Cornwall where I currently spend half my life; nine of these have been on the market
for two years or more. Hometrack’s figures tell me that property in the South West sells in just fewer than 10 weeks, so why is this 25 per cent of the stock not shifting to such a spectacular degree? It’s quite simple – price. There may many other contributing factors but it will always come back ultimately to that same reason; and to a greater or lesser extent this is happening all over the country. The adage that,
“a house is worth what someone is prepared to pay for it”, gives way with many sellers to, “my house is worth whatever I want to get for it”. In the first instance unrealistic asking prices are usually the fault of the estate agent eager to win an instruction or a colluded punt between agent and vendor – but after a certain point the buck stops with the vendor who, for whatever reason, has decided to stick resolutely to their desired asking price. It may be that the vendor needs to realise that price to move on or clear obligations, it may be that that is what they paid for it and it may be just that this is what they want.
www.thenegotiator.co.uk
As a buyer I have viewed many such houses which I know are at least 25 per cent overpriced and it is a frustrating knowing that I have effectively wasted my time because the vendor will not consider realistic offers. Meanwhile, as a seller I find it galling that as someone who works very hard to ensure the house is best presented and has worked with the agent at reaching a sensible asking price, I still pay the same commission rate as someone who effectively does nothing other than allow
“As a buyer I have viewed many houses that are at least 25% overpriced and it is frustrating!”
the agent to market their house. This is why Martin & Co’s new subscription pricing structure makes such sense (see news on Page 7). If the vendor is serious about selling their property then they pay for it to be marketed and serviced to a full extent. If an opportunistic vendor wants to market their house just in case someone will pay their over the top asking price then fine they can pay for that as well but their whim will no longer be subsidised by the serious seller. You never know, it might just catch on. l
The Negotiator Magazine PO Box 624, Epsom, Surrey KT17 9JX tel: 0844 745 3001 email:
mail@thenegotiator.co.uk
Editorial Director Sheila Manchester email:
sheila@thenegotiator.co.uk tel: 0844 745 3101
Associate Editor Lawrence Higgins email:
lawrence@thenegotiator.co.uk tel: 0844 745 3103
Publisher Grant Leonard email:
grant@thenegotiator.co.uk tel: 0844 745 3100
Art Director Karen Bates
Advertising Manager Rich Storrs email:
rich@thenegotiator.co.uk tel: 0844 745 3102
Information Subscription rates UK – £55; Europe – £75; Rest of world – £95
Independent of any association or trade body.
© Propertydrum Ltd 2012
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TheNegotiator l September 2012 l 3
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