East Dulwich (Mobile) Forum

Foxtons..how do they justify it?

For the most part, we all know that foxtons are typically unpleasant to deal with and pricey to do any business with; I dont think anyone I know thinks well of them as an organisation.

But I do have to ask, practically, how do they continue to be so brazen? In my street all the houses are much of a muchness, and recent sales are all within +/-10% of a central point (depending on loft conversion, side returns, garden size, bathrooms, finishing etc). But foxtons have recently put on a house in our street (seemingly not materially different from any others) at a price around 40% above the 'going rate'.

Now unless there's gold under the floorboards, why do this? Especially when there is another 2 houses for sale in the street already (at levels around the 'going rate'). Surely anyone spending hard earned cash on a home would do the most basic comparison research and baulk at the foxtons listing?
I've always suspected their MO is to over value in order to get a seller to sign up with them, give it a few weeks and then drop the price to the going rate. But in this case 40% over the going rate is quite a mark-up...
I refer you to this most excellent post by MrBen entitled "Want to be an Estate Agent? [www.eastdulwichforum.co.uk]

(And substitute the 10% to 20%-40% in Foxton's case)
From looking at rightmove you'll see that generally estate agents have been over valuing house prices which is now resulting in sellers having to reduce their asking price by £50K+ so agents can hopefully get viewings, offers and sales. This over valuation has potentially slowed the market in comparison to probably 12 months ago.

Some agents say that the imminent election will impact and further slow the market down, whilst others seem to think the election and its outcome will have little or no impact on house sales.

If you're selling make sure you go with an agent who can actively market your property at a price that is going to attract offers and conversely if you'r a buyer and you see a property you like, don't be afraid to put in an offer even if it is a bot below the asking price. as is said, nothing ventured, nothing gained.
red devil Wrote:

I've always suspected their MO is to over value in
order to get a seller to sign up with them, give
it a few weeks and then drop the price to the
going rate. But in this case 40% over the going
rate is quite a mark-up...


agreed. 10-20%...okay they're trying their luck. 40% just seems self defeating.
If I see a Foxton's Mini I generally give it the obligatory two fingered salute!
dbboy Wrote:

If you're selling make sure you go with an agent
who can actively market your property at a price
that is going to attract offers and conversely if
you'r a buyer and you see a property you like,
don't be afraid to put in an offer even if it is a
bot below the asking price. as is said, nothing
ventured, nothing gained.

But if you're a seller and not in a hurry to sell - just
testing - then you'll go high just to see.
red devil Wrote:

I've always suspected their MO is to over value in
order to get a seller to sign up with them, give
it a few weeks and then drop the price to the
going rate. But in this case 40% over the going
rate is quite a mark-up...

I agree and currently there is a shortage of properties coming on to the market. Foxton's are marking up this high to ensure they get the instruction.
There are lots of houses for sale in the area at the moment so I can't see how overpricing some helps anyone..
Shortage vs lots of houses for sale? Which one?
Don't think anybody knows - People saying big difference at the moment between asking and selling prices.

So lots on sale but not many being sold maybe ??
I wouldn't use an estate agent, the fees are too high, and they valued my house for 100,000 less than it was worth. I got the full asking price and the 100,000 I would have lost. I wondered if my estate agent was "at it"??? in that they sell your house for low price to "a friend or interested party" get their commission and part profit on re-sale maybe.

I went with House Network, pay upfront, and do your own viewings. They were very good and got the full asking price. I saved THOUSANDS on fees.
Foxton's did something amazing for me. So, yes - I am fully aware of the impact they have on the market, but from a personal point of view - just what I needed.
I would kindly join the two fingered salute to foxtons & the other big highstreet agents. We used emoove last year (online agents)...worked very well and saved a hefty amount of money.
Jules-and-Boo Wrote:

Foxton's did something amazing for me.


What was it then, selling a house, a magic trick, or a sexual favour? They usually sell houses, but your post did make me wonder.
They also like to find tenants for landlords and charge an eye watering amount.
TheCat Wrote:

But I do have to ask, practically, how do they
continue to be so brazen?

It's very simple. It's the same way as enforcement companies get bailiffs to be so beastly, and banks persuade(d) their clerks to flog useless products to victims who could never use them. What you do is hire some young, smart, idealistic self-starter and then, once they're signed up, make it perfectly clear that, unless they do the brazen stuff, they won't hit the end of probation, let alone pocket the commission that, for most of them, has to do in place of a living wage.

Once the innocence and idealism has rubbed off, all that's left is hollow greed. And, to be fair, professional detachment. But that's understandable. The detachment that lets an estate agent stitch up a tenant is no different from the detachment that lets a surgeon stick a knife in a grandmother. And, like surgeons, they can smile and dress like brothel-keeper's butlers, but beneath that urbane exterior is nothing more or less than what's in all of us. It's just they have a job that allows, nay requires them, to let it loose.

If there is a difference it's that we're all complicit now. In days of yore, it was the toffs that led from the office, oppressing peasants by means of other peasants, and only peasants got hurt. But now it's shareholders - the institutions that invest our savings and our pension funds - that set the targets on our behalf. In other words, it's us. I don't know if that's much comfort, but that's how it is.
Burbage Wrote:

> TheCat Wrote:
--------------------------------------------------
-----
> But I do have to ask, practically, how do they
> continue to be so brazen?

It's very simple. It's the same way as enforcement
companies get bailiffs to be so beastly, and banks
persuade(d) their clerks to flog useless products
to victims who could never use them. What you do
is hire some young, smart, idealistic self-starter
and then, once they're signed up, make it
perfectly clear that, unless they do the brazen
stuff, they won't hit the end of probation, let
alone pocket the commission that, for most of
them, has to do in place of a living wage.

Once the innocence and idealism has rubbed off,
all that's left is hollow greed. And, to be fair,
professional detachment. But that's
understandable. The detachment that lets an estate
agent stitch up a tenant is no different from the
detachment that lets a surgeon stick a knife in a
grandmother. And, like surgeons, they can smile
and dress like brothel-keeper's butlers, but
beneath that urbane exterior is nothing more or
less than what's in all of us. It's just they have
a job that allows, nay requires them, to let it
loose.

If there is a difference it's that we're all
complicit now. In days of yore, it was the toffs
that led from the office, oppressing peasants by
means of other peasants, and only peasants got
hurt. But now it's shareholders - the institutions
that invest our savings and our pension funds -
that set the targets on our behalf. In other
words, it's us. I don't know if that's much
comfort, but that's how it is.

You have to make corporate bullies afraid of the customer
by loudly complaining.

Problem is you'll usually pick on the innocent one accidentally smiling smiley
We are currently trying to move to Beckenham and have run into trouble as the bank have valued the property we were hoping to buy for a wopping £75k under the price we had agreed to pay. We got in touch with the vendors and asked to meet them half way. They replied by offering.... £5k off. So we are pulling out. It just seems crazy what people are hoping to achieve compared with what banks are willing to lend. In our case, they were asking for three qurarters of a millions pounds for a semi detatched 30s property in zone 5....... YOu can get caught up and think this is a great deal or you can listen to the banks who think this is crazy. Who is right?

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