Words: Ashley Rigg
Published: 18th July 2011
*Time wasters on the rise
Speaking to one of the more successful agents in the UK overseas property market last week, he told me he was working three times as hard as last year for the same results.
There are pockets of success, but times seem to be tough for many agents – especially those selling lifestyle property without the cash flow cushion of a successful rentals business.
Across the globe, property markets have shifted – with the exception of the super prime market, it’s tough for almost everyone selling property for personal use (primary or second homes).
In the UK, the problem for sales agents is being compounded by a rise in the number of vendors wasting everyone’s time.
According to property conveyancers,1st Property Lawyers, an incredible 29% of property sales fall through. The biggest reason? Not a lack of mortgage finance as one might expect but sellers taking their properties off the market.
A combination of the low interest rates and the fact that it costs almost nothing to put a property on a market has led tens of thousands of “vendors” to test the water, only to withdraw when they don’t receive pre-crisis level price offers.
Fantasy price stand off
Low interest rates mean most vendors can afford not to sell if their unrealistic price expectations are not met.
Buyers can’t pay the fantasy land prices sellers want. And sellers won't sell if their fantasies aren't fulfilled. Cue a stand off.
The only way out is either a return to the heyday of lax mortgage lending or for interest rates to rise (or bank forbearance to fall).
The fact is that there are thousands of properties “on the market” which are actually not for sale.
It’s a huge waste of time for everyone concerned.
Source: Global edge
User Comments
Well Amen to that..... sales falling through more often than completing in our neck of the woods and for all of the reasons stated above.
Kelly Macfarlane,
Didim Sun Properties