Are Foxtons actually selling houses in ED?

[Unkle_Paulie]

we decided to get foxtons round to give us a valuation after feeling a little bit desperate! they valued our house 5% higher than 3 other agents. when i asked them to justify why it was worth more, they told me it was because they could command that amount!! when i asked "what if they couldn't" they said they would get us the best deal they could! so, when you take into account the additional 1% commission over and above everyone else you have to be pretty confident they can sell at a price that covers their fee! not an easy task given the climate...

[Sebs]

Just a quick comment on how Foxtons works (as I was an employee once!). The people ringing you up effectively canvassing for business are not estate agents. They are 18-25yr olds working in the head office over in Chiswick Park. Their function is business generation, not selling houses!

That said the firm is a good agency IF you know what you have no illusions. The Foxtons approach to selling property is unsubtle and is based on a simple numbers game: push enough people through the doors and one is bound to make an offer eventually. This is reinforced by the opening hours & the fact they target the branches on the percentage of sole agency instructions - effectively if a buyer can only view properties after work, then they will be registered with foxtons.

If you think your house will appeal to buyers aged 25-35 who work long hours, then by all means use them. You'll have a lot of viewings, but remember the best house agents probably don't need to do +50 viewings to match a buyer with a property. Sometimes less is more!

[fishneed]

Seb - Foxtons philosophy sounds to be pretty similar to just about any estate agent that currently practises with one caveat. You mention Foxtons push enough potential buyers through the door. This appears great to sellers except that a percentage of these buyers will have no desire to buy the property they have just viewed whatsoever - if your statement is the case.

Unkle Paulie. The market we are now in is not one of rapid growth, or one where a valuer is likely to agree with a sale price if he thinks it's unrealistic given other supporting comparable properties that have sold recently. Even if Foxtons or any other agent for that matter got a very high offer an any given property, there is a very big chance that the valuer will not agree and provide a lower valuation for the mortgage lender. In most circumstances this will lead to a revised and lower offer from the buying party.

There are glass ceilings being set by Surveyors, and this is another reason for many sales not completing. There have to be a number of factors as to why sales volume is so low. Its not all because of lower levels of mortgage lending.

[susyp]

Last summer I sold my very difficult to sell flat through Roy Brooks. They gave it a realistic price (what I was thinking but found it hard to say no to other estate agents saying it was worth more). They sold it in 2 weeks and were fantastic to deal with. I H ad been trying to sell it for 2 years. Look at their website for how they sell things - amazing. Have been round quite a few and they are hugely a cut above anyone else.

And no I don't work for them!

Susypx

[Senor Chevalier]

When I sold my last place, one agent valued it significantly higher than the others, but guess what... their % fee was the highest.

I asked them to justify the higher sales price. They gave me the usual flannel about being very confident, having identified buyers and having recently achieved blah blah.

I told them I was prepared to go with them but that I could only justify their fee if they achieved their forecast sales price otherwise their fee rate would need to step down to match the other agents. They protested at this, but I simply said that it was up to them, take it or leave it, if they were so confident then they should put their money where their mouth is.

Despite their fee being "non-negotiable" they went for it, as the only argument they could make to not accept my terms was that they didn't believe their own price forecast.

Suffice to say it sold for less than their estimate, but at least I paid them at the lower rate. I also quite like having the agent properly incentivised to achieve a good price rather than the usual model of putting your place on the market and then pressuring you to drop the price 2 weeks' later.

[benmorg]

Senor Chevalier Wrote:

-------------------------------------------------------

> When I sold my last place, one agent valued it

> significantly higher than the others, but guess

> what... their % fee was the highest.

>

> I asked them to justify the higher sales price.

> They gave me the usual flannel about being very

> confident, having identified buyers and having

> recently achieved blah blah.

>

> I told them I was prepared to go with them but

> that I could only justify their fee if they

> achieved their forecast sales price otherwise

> their fee rate would need to step down to match

> the other agents. They protested at this, but I

> simply said that it was up to them, take it or

> leave it, if they were so confident then they

> should put their money where their mouth is.

>

> Despite their fee being "non-negotiable" they went

> for it, as the only argument they could make to

> not accept my terms was that they didn't believe

> their own price forecast.

>

> Suffice to say it sold for less than their

> estimate, but at least I paid them at the lower

> rate. I also quite like having the agent properly

> incentivised to achieve a good price rather than

> the usual model of putting your place on the

> market and then pressuring you to drop the price 2

> weeks' later.

Nice thinking.

[potter]

We had our house valued by 4 agents in February. 3 said ?650-675k, Foxtons said ?750k! Bonkers.

[Sebs]

That's exactly right Fishneed. A decent proportion of the "buyers" won't be suitable for the property.

Remember, each negotiator at Foxtons is on an aggressive commission-led pay scale and competes directly against his co-workers. There is therefore not a great coordinated or co-operative approach by the staff, to selling. Instead its more about quantity.

Although for some properties that might be a good strategy... ;-)

[Frankito]

I don't trust them at all. Their 2.5% inflexible rate will be their downfall. They claim that they can get you more for your property but that is nonsense and nothing more than woolly marketing. Your property is only worth as much as someone will pay for it, irrespective of the agent.... They lost out ontwo sales in Marmora Road last year, I know both vendors who pulled the business as they were very displeased at the service, or lack of...

[Frankito]

Fishneed, just read your thread from 13th AprIl. We need more people like you out there! I was looking to sell my property last year (1m+) and with Foxtons they refused to negotiate on the 2.5%.... So by calculation, their fee would have been in excess of 25k and that is before VAT. I think not! Can you post details of what you do on here, if allowed, as I would be very interested in knowing more..

[Cam123]

We went with Foxtons for our house as we were planning on buying through them at the time and figured it would lubricate the process. In terms of valuations, not naming names, but we had 2 LL agents value higher than Foxtons - and they did go ahead and defend the lower valuation and didn't hike it up. Fair enough i thought ( after my initial surprise that they weren't the highest!)

As far as Roy Brookes goes, i'd avoid them like the plague. As explained on this forum before, they very nearly had our purchase fall through due to their absolute incompetence.

[TonyQuinn]

I think the length of this thread at 3 pages illustrates exactly what is going on with Dulwich. People, rather than slagging off one or other of the local estate agents, tell each other some points of interest about the market as a whole. It's just too middle class slagging off Foxtons and then using them to up your price. Go to my far more interesting opening thread "Dulwich Housing Market Lessons" for clearer insights. Best TQ.

[Cam123]

"Go to my far more interesting opening thread "Dulwich Housing Market Lessons" for clearer insights"

lol!

Please all of you excuse my utterly ridiculous previous post. I am embarrassed and will not make another murmur, unless it is to spout my Economics 101 in an oh-so-working-class accent.

[paulsimon]

Lol - funky looking Estate Agents though - looks like a bar...

[usamagpie]

I wish I'd read this thread before I put properties with Foxtons................

[Sebs]

OPEN INVITATION - if anyone needs some insight or advice on a property matter, feel free to PM me... Between my girlfriend & I we ought to be able to help out.

Qualifications as follows:

I work for a large commercial & residential real estate firm in Chelsea, have a masters in property valuation and have worked in residential agency for over 6 yrs.

My partner is an ARLA qualified residential property manager for a central London firm.

Barry Road residents for a year.

B)