Is it up to estate agents to manage sellers expectations?

[Livinginthecountrynow]

Just that really.

DD 26 who is a first time buyer, recently had an offer declined on a property that's been on the market for nearly a year. She offered 10% under asking price then increased to 5%. Seller wouldn't negotiate and said she wanted full asking price. There have been other properties in the same area that have sold recently for less/the same price that DD offered. I think the estate agent was scratching her head with it all.

DD did the right thing (we think) and walked away. Luckily there is another property that she's going to view on the weekend but I know she was disappointed as she liked the other one. It got me thinking though, do estate agents try and reason with sellers, provide advice and try and make them see sense or just keep their mouth shut?

Obviously they can't force someone to sell their property but surely it must be frustrating for them putting in all that work (marketing, viewings etc) with no return, at least for a while anyway.

They will have advised on what price to list it at. Unless the sellers are in a hurry, and they clearly aren’t, there’s no reason not to hold out for the asking price. A property is worth what someone will pay, and some Mners have weirdly programmatic ideas about offering 10% under asking price as some kind of rule.

do estate agents try and reason with sellers, provide advice and try and make them see sense or just keep their mouth shut

The seller can do what they like. They're obviously not in a hurry to sell, and an agent will not risk pissing off their client.

They used to certainly. Can't talk for now but a few years ago when I was selling the agent tried to get us to accept an offer 5% below asking price. We held out and offer was increased to asking price. It's a gamble from both parties and depends how much the buyer wants it and how desperate the seller is to sell.

Well,1.5% of a 10% reduction is probably not that significant, at least at the lower end of the market, compared with the effort of continuing to show an unsold house.

@AlliumLake makes sense. I think they listed it at 2022-2023 prices but as we all know the market has rapidly changed and I suppose the vendor has that figure in their mind now.

@Dotto yes that's true, it's their property after all. I just wondered if agents get annoyed having to conduct viewings and put work in on properties that have been on sale for so long.

If she wants it then she pays the asking price. Seems a bit counterintuitive to walk from a house she likes for a relatively small amount.

From my experience they do although one of the last EAs I used made up a ridiculously high price.

But the seller is in charge so if they won't listen then the property will sit there. It's madness in this economic climate but some sellers will not accept that their property is only worth what someone will pay you for it.

Your DD will be fine. She'll find someone else she likes better and she's in a strong buying position.

Agents do manage sellers expectations or at least try to.

But at the end of the day some sellers know what they want/need and will not listen to the agents. The only way they will listen to reality is when the market gives them the bad news. Often after many months languishing on the market while prices fall away from them.

You also need to bear in mind that a lot of agents will price high to win the instruction and then attempt to manage down seller expectations when no interest appears. This works if the seller can be managed down, but that is not always the case.

@Tel12 yes totally get that but DD, as did we, felt it was overpriced given that bigger, modern houses have sold for less recently and that's why she decided to walk away.

My question was more geared towards the agents and how they handle sellers like this. I'm just curious!

Now the agent will know that this particular house is only available at 'offers above'. It's not worth their hassle trying to change their client's mind. 'Reality' is, it's up to the seller. There's no objective right or wrong here.

@Dotto I actually don't think they knew that the seller wasn't willing to accept offers until DD came along so at least they know for future buyers now.