Talking property

It's an emotional market out there, says ISABEL MORTON

THE TRIALS and tribulations of buying and selling property are recognised as being stressful at the best of times, but in the worst of times, as we’ve been experiencing over the last few years, these pressures have multiplied.

What was always a bit of a psychological game being played out between vendor and purchaser has now become a psychological battle, with a lot more parties involved in the fray.

With financial institutions applying pressure on so many people, a new breed of reluctant vendors has emerged. Forced to put their property on the market at one of the worst times in Irish economic history, these vendors know from the outset that they are at the mercy of everyone and everything.

As many have no choice in the matter, they feel vulnerable, embarrassed and cornered, which results in them becoming upset and angry. Invariably, the only person on whom these reluctant vendors can vent their anger is their estate agent.

“I’m obliged to do it but I dread ringing a vendor to pass on a low offer, as I’m the one who’ll get my head snapped off,” one estate agent told me. “People take it as a personal insult if they are offered a sum which they consider paltry.” She went on to explain that it is equally difficult dealing with potential buyers who presume that any offer, however low, should be greeted with delight.

“When you try explaining that there is no point in passing on the offer to the seller because it is far too low, some become furious and tell me that I should be grateful to get any offer at all.”

Needless to say, sellers and buyers also complain about each other and, of course, their estate agent. One such vendor recently said “we gave the property to one firm of estate agents because they gave us the highest valuation and we needed every cent, but of course, they changed their opinion on the asking price just before we put it on the market. They threatened us that we’d get no viewers if the asking price was too high so we lowered it. I don’t think they care what price we get, just as long as they make a sale.”

Prospective buyers are equally suspicious of every aspect of the market. They fear that property prices will drop further, believe that many properties are still overpriced, and are unconvinced when told of the existence of another interested party.

Estate agents are often abused for not returning calls to would-be buyers. One estate agent despaired of the situation: “I’ve had a number of occasions where I’ve warned a prospective buyer that we’ve had an offer which was higher than theirs and asked if they were prepared to go further but they say no. So we sell the property, and then we get abuse from the underbidder, who claims that they would have gone higher but they didn’t really believe us, even when we made it absolutely clear that we were no longer going to refer back to them.”

Communication is key to the sales process but sometimes it’s impossible to be open and honest, explained another estate agent, who had recently had that difficulty when dealing with a couple who were selling their Dublin home in order to move closer to their married daughter in England.

“The house was so cluttered with trinkets and furniture that you couldn’t move in it. I tried to explain that it would be impossible to view properly and that the décor was perhaps a little dramatic, but they were having none of it.

“The house was on the market for months and didn’t sell until they decided to move anyway and thankfully, took all the house contents with them. Within a week of them clearing out the house, it sold for close to the asking price.”

This is a regular problem apparently, as many vendors fail to grasp the fact that despite having spent a fortune extending, renovating and decorating their home, it may not be to everyone’s taste and might not necessarily increase its value.

And when values drop below a certain point, people become very nervous, particularly if the property is in negative equity and the owners are in the process of going through a torturous separation.

“Walking away from a relationship with a few bob in your pocket from the sale of your home is one thing, but when you add negative equity into the mix, separating couples feel they are somehow bound together in debt.” explained a solicitor. “Many avoid selling and agree to let their property, which allows them to rent separately themselves, but, of course, this means that the property is in effect forcing them to stay in contact, as joint owners and landlords.”

Most invest a lot in their homes, not just financially but emotionally and, these days, emotions are lying very close to the surface.

Isabel Morton is a property consultant