Demand for credit cards and mortgages in UK falling fast, warns BofE

High street banks predict borrowing on cards will fall to lowest since 2007 with mortgages down to 2010 level

Borrowing on credit cards is expected to plunge to the lowest levels since 2007 in the three months before Brexit, according to the Bank of England, in the latest indication of stresses facing the UK economy.

According to the latest quarterly healthcheck on credit conditions from Threadneedle Street, high street banks forecast borrowing on plastic will decline in the first quarter by the most since records began 12 years ago.

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Look inside the penthouse overlooking the home of golf

The views from the roof terrace are every amateur golfer’s dream.

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Look inside the penthouse overlooking the home of golf https://t.co/5uowFTpenS #estate agents Nottingham

Look inside the penthouse overlooking the home of golf https://t.co/5uowFTpenS #estate agents Nottingham (via Twitter http://twitter.com/conveyandmove/status/1085839526998827009)

The Freakonomics of commission

In their fascinating book Freakonomics, (subtitled “The hidden side of everything”) Levitt and Dubner explore the issue of estate agents’ commissions.  They propose that one way of discovering whether an estate agent is doing their best for their client, is to measure the difference in the results achieved for their clients, and those of their own personal home sales.

The results were not particularly surprising, at least, not to me.  (Incidentally, the best property brochure I’ve ever seen was produced by an estate agent to sell his own house.) It turns out that an estate agent keeps their own home on the market an average of ten days longer, and sells it for an extra 3%.  (On a £500,000 home, that’s £15,000.)  The book goes on to explain, “when he sells his own house, an agent holds out for the best offer; when he sells yours, he pushes you to take the first decent offer to come along”.

The authors believe that the difference in the agent’s commission between an asking price offer, and one say, 10% below the asking price, is so little that they will recommend the offer is accepted.

Let’s look at some figures: assuming a sales commission of 1.5% on a house worth £500,000, the seller will pay the agency £7,500, about 5% of which will go to the sales negotiator, or £375.  If an offer is received of £450,000, the negotiator’s commission will plummet to £337.50.  So he stands to lose £37.50 against the seller’s loss of £50,000.  Now imagine that this particular house has been on the market for a few months, it’s two more weeks until payday, and his girlfriend’s birthday is looming.  What is he going to do?

When the seller asks him for his advice on whether or not to take the offer, what is he going to say?  The negotiator would much prefer a certain £337.50 than a possible £375, and who can blame him?

Either we need better-trained, highly-motivated, somewhat altruistic negotiators with the integrity of a nun, or else we need a better system.  And for me, and all those sellers out there, it can’t come soon enough.

If you’d like my help to sell your home more effectively, please answer a few short questions here and if I think I can help you, I’ll be in touch.

The post The Freakonomics of commission appeared first on Home Truths.

from Home Truths http://bit.ly/2RvZL3x
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The Freakonomics of commission

In their fascinating book Freakonomics, (subtitled “The hidden side of everything”) Levitt and Dubner explore the issue of estate agents’ commissions.  They propose that one way of discovering whether an estate agent is doing their best for their client, is to measure the difference in the results achieved for their clients, and those of their own personal home sales.

The results were not particularly surprising, at least, not to me.  (Incidentally, the best property brochure I’ve ever seen was produced by an estate agent to sell his own house.) It turns out that an estate agent keeps their own home on the market an average of ten days longer, and sells it for an extra 3%.  (On a £500,000 home, that’s £15,000.)  The book goes on to explain, “when he sells his own house, an agent holds out for the best offer; when he sells yours, he pushes you to take the first decent offer to come along”.

The authors believe that the difference in the agent’s commission between an asking price offer, and one say, 10% below the asking price, is so little that they will recommend the offer is accepted.

Let’s look at some figures: assuming a sales commission of 1.5% on a house worth £500,000, the seller will pay the agency £7,500, about 5% of which will go to the sales negotiator, or £375.  If an offer is received of £450,000, the negotiator’s commission will plummet to £337.50.  So he stands to lose £37.50 against the seller’s loss of £50,000.  Now imagine that this particular house has been on the market for a few months, it’s two more weeks until payday, and his girlfriend’s birthday is looming.  What is he going to do?

When the seller asks him for his advice on whether or not to take the offer, what is he going to say?  The negotiator would much prefer a certain £337.50 than a possible £375, and who can blame him?

Either we need better-trained, highly-motivated, somewhat altruistic negotiators with the integrity of a nun, or else we need a better system.  And for me, and all those sellers out there, it can’t come soon enough.

If you’d like my help to sell your home more effectively, please answer a few short questions here and if I think I can help you, I’ll be in touch.

The post The Freakonomics of commission appeared first on Home Truths.

from Home Truths http://bit.ly/2RvZL3x
via IFTTT

The Freakonomics of commission

In their fascinating book Freakonomics, (subtitled “The hidden side of everything”) Levitt and Dubner explore the issue of estate agents’ commissions.  They propose that one way of discovering whether an estate agent is doing their best for their client, is to measure the difference in the results achieved for their clients, and those of their own personal home sales.

The results were not particularly surprising, at least, not to me.  (Incidentally, the best property brochure I’ve ever seen was produced by an estate agent to sell his own house.) It turns out that an estate agent keeps their own home on the market an average of ten days longer, and sells it for an extra 3%.  (On a £500,000 home, that’s £15,000.)  The book goes on to explain, “when he sells his own house, an agent holds out for the best offer; when he sells yours, he pushes you to take the first decent offer to come along”.

The authors believe that the difference in the agent’s commission between an asking price offer, and one say, 10% below the asking price, is so little that they will recommend the offer is accepted.

Let’s look at some figures: assuming a sales commission of 1.5% on a house worth £500,000, the seller will pay the agency £7,500, about 5% of which will go to the sales negotiator, or £375.  If an offer is received of £450,000, the negotiator’s commission will plummet to £337.50.  So he stands to lose £37.50 against the seller’s loss of £50,000.  Now imagine that this particular house has been on the market for a few months, it’s two more weeks until payday, and his girlfriend’s birthday is looming.  What is he going to do?

When the seller asks him for his advice on whether or not to take the offer, what is he going to say?  The negotiator would much prefer a certain £337.50 than a possible £375, and who can blame him?

Either we need better-trained, highly-motivated, somewhat altruistic negotiators with the integrity of a nun, or else we need a better system.  And for me, and all those sellers out there, it can’t come soon enough.

If you’d like my help to sell your home more effectively, please answer a few short questions here and if I think I can help you, I’ll be in touch.

The post The Freakonomics of commission appeared first on Home Truths.

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Looking for a quiet property? Tips if peace is your priority Nottingham Estate Agents

With increasing numbers of people moving to busy cities and towns, peace and quiet can seem a rare commodity. Some people are happy living close to the action, but for others, a quiet home is a priority. If you are house hunting, it can be difficult to know (beyond the obvious) of what to consider. […]

The post Looking for a quiet property? Tips if peace is your priority appeared first on OnTheMarket.com blog.

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