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Property agencies feeling the pinch
SEVERAL estate agency branches have closed as
the South and West Dorset housing market goes through a nervous time.
Banks are being blamed for the problem because they are taking a tough line on mortgages in the wake of international finance problems known as the credit crunch.
The result is that the housing market in Weymouth, Portland and Dorchester has been hit by difficulties getting a mortgage which in turn has seen several estate agencies close offices to streamline their operations.
Real Directions has closed its office in Dorchester while Goadsby and Fordingtons have both closed offices on Portland.
Real Directions partner Glenn Smith said today that the company's remaining offices on Portland and in Weymouth remain open.
Mr Smith added: "A lot of agents are experiencing problems at the moment.
"It is a difficult time to do deals and often sales are collapsing because finance which was available at the start was not then available when the deal came to be closed. It is an extremely difficult market.
"We are streamlining our business and we have closed our office in Dorchester. We will be meeting with people to discuss the situation. That is all I can say at the moment."
Fordingtons spokesman Alan Diamond said: "The housing climate is very difficult at the moment.
"There has been massive growth over the past few years and people just can't get on the bottom rung of the ladder because of the cost of mortgages.
"Interest rates need to come down if the situation is to improve."
Senior Weymouth estate agent Mark Bonnett of Hull, Gregson & Hull said: "The market is tough at the moment. Alder King and Austin Wyatt both shut their Weymouth offices in December and more estate agency offices have closed since.
"Properties are selling but only at competitive prices, so it is inevitable that some estate agencies will streamline their operations.
"They are cutting back in a variety of ways, including advertising, and office closures are to be expected. It's all down to the banks and
the way they have massively tightened the criteria for obtaining a mortgage.
"House buyers who could have bought with a 90 or 95 per cent mortgage are now being told that they can only have 80 per cent and this is stopping sales or making them fall through.
"An interesting point is that in the housing crash of 1988-1991 there were very few people looking to buy a house, but that is not the case here.
"We have a wide range of people who want to move but can't get the money to do so. It's a tough time now right across the board."
11:12am Tuesday 20th May 2008
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CommentPosted by: The Spy, Here on 11:47am Tue 20 May 08
SAD!!!!!!
Posted by: The Spy, Here on 11:48am Tue 20 May 08
SAD!!!!!!
Posted by: liz, weymouth on 12:32pm Tue 20 May 08
Tragic. I didn't hear the estate agents complain or advise people to refuse to pay OTT prices a year ago. Maybe there will be one good thing to come out of all this, realistically priced housing.
Tragic. I didn't hear the estate agents complain or advise people to refuse to pay OTT prices a year ago. Maybe there will be one good thing to come out of all this, realistically priced housing.
Posted by: Duval, Weymouth on 3:22pm Tue 20 May 08
Liz, you obviously do not own house so therefore do not fully understand the role of a estate agent. A seller appoints an agent with one sole purpose to sell their property for the price they want not the agents price. Why would agents want to over value houses and advise people to buy at inflated prices, any product is harder to sell at a high price and if at unsustainable prices the market will crash and companies will fold leaving the agent with no job. The problem is the market is driven by sellers and the sellers are driven by greed and if the agent does not go along with them in the first instance he attracts no new business therefore the agent cannot win either way. If all sellers put there properties on the market at the agents recommended prices the market would be much more stable. Therefore don't blame the agents especially the ones who now have no job and a family still to support. Also the above report is somewhat out of date as yesterday Real Directions ceased trading altogether pushing further staff out of work.
Liz, you obviously do not own house so therefore do not fully understand the role of a estate agent. A seller appoints an agent with one sole purpose to sell their property for the price they want not the agents price. Why would agents want to over value houses and advise people to buy at inflated prices, any product is harder to sell at a high price and if at unsustainable prices the market will crash and companies will fold leaving the agent with no job. The problem is the market is driven by sellers and the sellers are driven by greed and if the agent does not go along with them in the first instance he attracts no new business therefore the agent cannot win either way. If all sellers put there properties on the market at the agents recommended prices the market would be much more stable. Therefore don't blame the agents especially the ones who now have no job and a family still to support. Also the above report is somewhat out of date as yesterday Real Directions ceased trading altogether pushing further staff out of work.
Posted by: Duval, Weymouth on 3:25pm Tue 20 May 08
Liz, you obviously do not own house so therefore do not fully understand the role of a estate agent. A seller appoints an agent with one sole purpose to sell their property for the price they want not the agents price. Why would agents want to over value houses and advise people to buy at inflated prices, any product is harder to sell at a high price and if at unsustainable prices the market will crash and companies will fold leaving the agent with no job. The problem is the market is driven by sellers and the sellers are driven by greed and if the agent does not go along with them in the first instance he attracts no new business therefore the agent cannot win either way. If all sellers put there properties on the market at the agents recommended prices the market would be much more stable. Therefore don't blame the agents especially the ones who now have no job and a family still to support. Also the above report is somewhat out of date as yesterday Real Directions ceased trading altogether pushing further staff out of work.
Liz, you obviously do not own house so therefore do not fully understand the role of a estate agent. A seller appoints an agent with one sole purpose to sell their property for the price they want not the agents price. Why would agents want to over value houses and advise people to buy at inflated prices, any product is harder to sell at a high price and if at unsustainable prices the market will crash and companies will fold leaving the agent with no job. The problem is the market is driven by sellers and the sellers are driven by greed and if the agent does not go along with them in the first instance he attracts no new business therefore the agent cannot win either way. If all sellers put there properties on the market at the agents recommended prices the market would be much more stable. Therefore don't blame the agents especially the ones who now have no job and a family still to support. Also the above report is somewhat out of date as yesterday Real Directions ceased trading altogether pushing further staff out of work.
Posted by: CoogarUK, Dorchester on 5:40pm Tue 20 May 08
Interest rates need to go back UP, to tackle the real problem of inflation. If house prices continue to fall back to more realistic prices as a result, all the better.
Interest rates need to go back UP, to tackle the real problem of inflation. If house prices continue to fall back to more realistic prices as a result, all the better.
Posted by: yogi, weymouth on 8:27pm Tue 20 May 08
What Joy Whats next maybe accountants start closing down.Should not the estate agents foresee this, for years they have been pushing prices sky high and taken there cut with no trouble at all,and now with a credit crunch they can't shut up shop quick enough.
What Joy Whats next maybe accountants start closing down.Should not the estate agents foresee this, for years they have been pushing prices sky high and taken there cut with no trouble at all,and now with a credit crunch they can't shut up shop quick enough.
Posted by: nige, dorchester on 8:29pm Tue 20 May 08
What a load of Tash. How on earth can you defend estate agents? Is there anyone who feels genuine sorrow to see an estate agent down on his luck, without a job and possibly about to lose his/her home? Or are people secretly rubbing their hands with glee and uttering a secretive snigger?
What a load of Tash. How on earth can you defend estate agents? Is there anyone who feels genuine sorrow to see an estate agent down on his luck, without a job and possibly about to lose his/her home? Or are people secretly rubbing their hands with glee and uttering a secretive snigger?
Posted by: DingDonG, Wilds of Wiltshire on 10:28pm Tue 20 May 08
Knock a zero off the "value" of ALL properties. Who would loose out?
(1) Estate Agents commission fees.
(2) Government Stamp Duty revenue.
(3) People who bought for gain, often several houses.
Offset the above with those who would benefit?
People who buy a house to live in !!
Knock a zero off the "value" of ALL properties. Who would loose out?
(1) Estate Agents commission fees.
(2) Government Stamp Duty revenue.
(3) People who bought for gain, often several houses.
Offset the above with those who would benefit?
People who buy a house to live in !!
Posted by: Derek Hughes, Weymouth on 6:12am Wed 21 May 08
Maybe its about time the estate agents started pricing the weymouth and portland correctly instead of over inflating the price so they earn a fat commission off the back of others, and the introduction of the HIBs pack what a load of codswallop that turns out to be.
I feel sorry for any one loosing their job, but lets face it estate agents are a bread all of their own.
Maybe its about time the estate agents started pricing the weymouth and portland correctly instead of over inflating the price so they earn a fat commission off the back of others, and the introduction of the HIBs pack what a load of codswallop that turns out to be.
I feel sorry for any one loosing their job, but lets face it estate agents are a bread all of their own.
Posted by: Derek Hughes, Weymouth on 6:15am Wed 21 May 08
Maybe its about time the estate agents started pricing the weymouth and portland correctly instead of over inflating the price so they earn a fat commission off the back of others, and the introduction of the HIBs pack what a load of codswallop that turns out to be.
I feel sorry for any one loosing their job, but lets face it estate agents are a bread all of their own.
Maybe its about time the estate agents started pricing the weymouth and portland correctly instead of over inflating the price so they earn a fat commission off the back of others, and the introduction of the HIBs pack what a load of codswallop that turns out to be.
I feel sorry for any one loosing their job, but lets face it estate agents are a bread all of their own.
Posted by: Glenn on 8:45am Wed 21 May 08
It is with regret that, for commercial reasons, the partners of Real Directions LLP have decided to cease trading with effect from 20 May 2008. The responsibility for ensuring the successful completion of the sale of all properties currently under offer has now formally transferred to [bold]The Real Estate Bureau Ltd[/bold] , of which Glenn Smith FNAEA, former Partner of Real Directions, is a Director. It is also proposed that the entire portfolio of property instructions is transferred to The Real Estate Bureau.
The Real Estate Bureau is based at 3 Easton Street, Portland, and the new logo and branding will be revealed soon. Detailed arrangements have been put in hand to ensure a seamless transfer of the completion of sales already agreed and the continued marketing of all other properties. Under the personal direction of Glenn, ably assisted by Peter-Grout Smith and Rosemary Connelly, The Real Estate Bureau will offer all vendors the same level of high quality, customer focussed service they have experienced to date, utilising an innovative approach to marketing through the use of the very latest technology available.
All vendors will be contacted shortly. However, in the meantime, if they have any concerns or require any further information, they should contact [bold]The Real Estate Bureau[/bold] on [bold]01305 826999[/bold] .
It is with regret that, for commercial reasons, the partners of Real Directions LLP have decided to cease trading with effect from 20 May 2008. The responsibility for ensuring the successful completion of the sale of all properties currently under offer has now formally transferred to
The Real Estate Bureau Ltd , of which Glenn Smith FNAEA, former Partner of Real Directions, is a Director. It is also proposed that the entire portfolio of property instructions is transferred to The Real Estate Bureau.
The Real Estate Bureau is based at 3 Easton Street, Portland, and the new logo and branding will be revealed soon. Detailed arrangements have been put in hand to ensure a seamless transfer of the completion of sales already agreed and the continued marketing of all other properties. Under the personal direction of Glenn, ably assisted by Peter-Grout Smith and Rosemary Connelly, The Real Estate Bureau will offer all vendors the same level of high quality, customer focussed service they have experienced to date, utilising an innovative approach to marketing through the use of the very latest technology available.
All vendors will be contacted shortly. However, in the meantime, if they have any concerns or require any further information, they should contact
The Real Estate Bureau on
01305 826999 .
Posted by: Duval, Weymouth on 11:38am Wed 21 May 08
Estate Agents do not push prices up for ! if a property is sold for 10k more than the value the agent earns a mere £150 more in commission but with higher prices come less sales offset the additional small commission rate against the number of sales any agent would rather sale more homes at lower prices than less homes at higher prices. You all need to take your blinkers off and try reading. I hope you are all financially safe, because if house prices fall it will effect you all and it wont just be agents losing their jobs it will be you as well, perhaps then you will change your pethetic childish attitudes.
Estate Agents do not push prices up for ! if a property is sold for 10k more than the value the agent earns a mere £150 more in commission but with higher prices come less sales offset the additional small commission rate against the number of sales any agent would rather sale more homes at lower prices than less homes at higher prices. You all need to take your blinkers off and try reading. I hope you are all financially safe, because if house prices fall it will effect you all and it wont just be agents losing their jobs it will be you as well, perhaps then you will change your pethetic childish attitudes.
Posted by: local resident, weymouh on 9:58am Thu 22 May 08
I agree estate agents do not put house prices up.
Its 10 years of Gordon Brown and his tax and spend policy. This fueled house inflation which people took as added income. Unfortunately this gravy train has hit the buffers and it is pay back time. Thanks a lot Gordon.
I agree estate agents do not put house prices up.
Its 10 years of Gordon Brown and his tax and spend policy. This fueled house inflation which people took as added income. Unfortunately this gravy train has hit the buffers and it is pay back time. Thanks a lot Gordon.
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