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20 | 05 | 09

Why pile 'em high?

Posted by: katalysis

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According to Rightmove in April Agents persisted in bringing over-priced property to the struggling housing market. Various explanations were suggested including stubbornness on the part of would-be sellers who won’t accept that they’re affected by falls in the market. But if an Agent is already listing 500-600 properties that they can’t sell why would they take on more? Why not say “sorry Mr and Mrs Seller I don’t think we can achieve what you’re looking for perhaps you should try someone else?” After all, that would allow the Agent to concentrate on those clients who are realistic on price and help bring in those sales fees. It’s also an honest and open approach! Hmm perhaps there’s more to this than meets the eye. Coincidentally, in May Channel 4 News ran a piece on kickbacks paid by HIP companies to Estate Agents. A hundred pounds or so isn’t uncommon. On top of this some agents charge for advertising (where they can make a margin), some get kick-backs on conveyancing referrals and others even get away with charging Sellers a “registration fee” of a couple of hundred quid before they will condescend to market their house (reverse psychology at its best!). So you see some Agents make money out of not selling houses! Now that is clever.
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