eMoov? Stars in Their Eyes.

eMoov? Stars in Their Eyes.

eMoov? Stars in their eyes.

Today Matthew, I’m going to be……

totally unrealistic about the value of my home.

Of course you love your home.

So many memories.  Quirky bric-a-brac (not you Russell 🙂

Any buyer would be privileged to follow in your footsteps.  You’ve loved every minute here.  But, it’s time to move on.

The estate agents have been to do their market valuation.  Nice people.  They loved your home.

But you, apparently, were seduced by those online estate agency folks.  emoov to be precise.

They persuaded you to offer it to the lucky, lucky people at £1,995,000 in January 2016.

And now?

Now. It’s the subject of a Sunday Times Home feature article by Alexandra Goss.

Alexandra surmises that this ‘unremarkable house’ in Griffins Close, Enfield exemplifies the malaise gripping the capital’s housing market.

It has now been on sale for 22 months, and the price has been cut seven times but it still hasn’t found a buyer or even received an offer.

The asking price has plummeted from £1,995,000 to just £999,975 – a fall of almost 50%.  Nearly £1million in real terms.

In 20 months.

Let’s start with the obvious schoolboy error.

The current asking price of £999,975.

Remember.  This home is being marketed by an online estate agency.  One that is supposed to be au faít with the world-wide web and all its subtleties.

Let’s assume that the potential buyer is looking for a property in Enfield.  At £1million, or more.

They enter the search terms on Rightmove.

Minimum asking price?

£1million.

Maximum price?

£1.100,000

Plenty of choice.

Just not the neat Tudor-style house on Griffiths Close.  It doesn’t come up on the search.

Because for some idiotic reason it was marketed twenty-five pounds, below the minimum threshold.

Why?

Why exclude all those potential buyers that can afford the house. For the sake of tricking someone into thinking it might be a bargain at under £1million.

Nothing to do with SDLT (Stamp Duty).  That saves the princely sum of £3.

It’s the old price-con used for many years.  £9.99 instead of £10.00 seems better.

Except where a number of serious buyers are entering a minimum price for the property search.  And by not pricing the home at a round figure, it effectively excludes those poential buyers.

That schoolboy error is still being made by any number of high-street agencies.

Agencies where their expertise is evidently not online.

But from an a online agency, it’s dire.

online/hybrid

My real concern is the statement from the author, Alexandra Goss, that this scenario “exemplifies the malaise gripping the capital’s housing market.”

It doesn’t.

It exemplifies a greedy homeowner,duped by eMoov into false hope.

Very, very few homes lose 50% of their value within a period less than two years.

Far less, the number of homes that drop 40% of their value within 2 weeks.

It matters little that SDLT has set the market back. Good estate agents adapt and offer good advice.  From the outset.

It matters less that Brexit has raised fears for stability in the housing market.  Good estate agents adapt

It matters more that the vendor choses the right estate agent. Agents that adapt to market conditions.  As and when they happen.

Rather than one that uses an algorithm to determine the asking price.  Then adds X.  Then subtracts Y.

Without ever really knowing what it is they are selling.  Other than a house.

It dupes an admittedly greedy vendor into thinking they have even the slightest chance.

You might not be surprised to learn that eMoov founder and CEO, Russell Quirk believes the vendor “has taken a pragmatic approach”.

If the vendor has agreed SEVEN times to reduce the asking price and seven times the house has failed to achieve even one offer, one might ask whether Russell Quirk is doing anything for the vendor.  Other than cutting the asking price.

The vendor, of course, incurs sunk costs.  By paying for this shambles in advance,

“As demand has fallen, the vendor has continued to adjust expectations in line with market conditions.  Unfortunately, despite receiving a constant stream of viewings over the past year or so, the property is yet to receive an offer”.  Said Mr. Quirk.

The vendor, “gamely admits that it hasn’t had a lot of viewings”  Somewhat at odds with the “constant stream ” recollected by Russell Quirk.

The house has, since 28th February, also been listed with local agency Ellis & Co.

At an asking price of £975,000.

Whilst eMoov continue to advertise at their ridiculous asking price of £999.975.

It might make sense for any potential vendor to first approach Ellis & Co.

Or, for eMoov to reduce the asking price for the eighth time.

Either way, it will shock few to learn that eMoov has been paid.  It’s the big, big disadvantage of using an online agency that can neither accurately value the property.  Nor, manage to sell within a reasonable timeframe.

Regular readers will know of my love for the back-story.

How did eMoov manage to persuade the vendor to reduce the original asking price by 40% within 2 weeks of the house going on the market? Did the vendor not suspect incompetence? At the seventh time of asking for a price reduction, did the vendor not smell a rat?

The answer to these and other questions would make fascinating reading.

The malaise gripping the capital’s housing market is the vendors inability to ask the right questions.  And to know the right answers.

This sad story exemplifies the importance of choosing a great estate agency.  Never mind the fee.

There is little point in paying an online agency, money up-front, for incompetence.

The traditional high-street agency will take on all the risk.  And if the house hasn’t sold, the vendor is better off than if they paid up-front.

We’re happy to help with any questions you might have.  Get in touch on 0800 0112678 or email: [email protected]

Thanks for reading.

 

 

 

 

 

 

 

 

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