The housing market recovery has come “too late” for many estate agents, according to accountants, as recent figures showed insolvencies have risen 57pc in the year to the end of June.
Let’s cut to the chase about house prices and the way houses should be bought and sold; without further delay?
Here’s the dilemma. If we leave the way things work in the housing market as they are, what will continue to happen is estate agents will try more and more desperately hard to get the best possible price for their clients (and so stay instructed) in what is indisputably a difficult market - with money still extremely hard to chase for.
What usually happens is ‘For Sale’ notices stay up a long-long time, until somebody with enough money and a great desire for the house in question decides to sign up and pay up.
That’s all fine and dandy provided there’s someone out there who is prepared to make that leap of faith for the particular house being sold.
The downside is, this can take a long time and may well result in hard negotiating with the prospect of downwards serial price adjustments before contracts ultimately exchange. Selling to move up (or indeed down) the chain is doubly troublesome as a result.
Anyone buying under these criteria will clearly have to be expecting to stay for the medium/long term at their next house because they will know there will be no easy sale, should that be needed, for some while to come. They are effectively buying into a future market, betting on the likelihood that prices will eventually go up further.
Our alternative strategy, on the other hand, is to trade on the gains available from selling at slightly more attractive prices.
The idea is that if properties start changing hands more quickly and more frequently, the knock-on effect for the whole market would be more sales completions per year and hence more business, more fees and more market activity.
The added bonus would be more speed in selling whenever the day comes for each homeowner to do so.
The result of this would be the market would trade better both in difficult and in buoyant times. Everyone would benefit. There would be no losers.
The only reason why this cannot happen straight away is that agents are continually chasing for more houses to beat the numbers on their competitors’ books!
This is what needs to be changed. I’m proposing that if the Internet was allowed to compete with estate agents equally, everything would start to come right - for everyone, even for agents themselves.
Therefore I support the idea of levelling the playing field for all people to sell either on the Internet direct, with agents (but not with sole agency contracts), or using both ways at the same time.
To summarise, I am claiming here, there would be no losers.
I urge anyone reading this to have faith in these proposals. They, and they alone, can carry the whole housing economy out of the quagmire it is presently in.
They can resolve all the crises involved, including the problem of how to distribute currently available property to those whom need it most.
They can in addition, stimulate the production of new housing development commensurate with the level of demand for it, naturally based on the population in existence at the time.
If anyone has any question about the viability of this plan for marketing houses equitably, we shall be glad to respond with a full explanation of how that particular aspect of the plan would work.
We are therefore happy to explain any aspect of this plan in sufficient detail to satisfy all genuine enquiries about it.
Posted by: Property Match (UK): The modern way to market houses