A poll by MeetMyAgent, who contacted over 200 estate agents, found that the vast majority of agents (93%) believe at least 10% of property listed is over-priced and that sellers who want to move would benefit from a price reduction.
Luckily in the south we are somewhat protected from the reported fall in house prices in the East Midlands, North – West and Wales, however sellers can’t be complacent if they want to sell and that’s why it’s so important to instruct an estate agent you can trust to provide a realistic price and then to listen to their expert advice, after all it’s part of the service.
There are many reasons a seller might want to achieve or expect a higher price than a down to earth and realistic valuation might suggest. Historically house prices have increased substantially and even though the nation has been experiencing economic difficulties for several years it’s still hard to change the mind set where property values are expected to increase in price continuously.
Another reason that may be given for not budging on the price is that vendors have invested in their home; be it a new kitchen or bathroom, the addition of a conservatory or new flooring, and expect to see that investment returned. It would be highly unusual for updating of a property to increase its value by the amount spent on the work, depreciation and personal style preferences need to be considered, it might be just right for the homeowner but it might not be a prospective purchasers cup of tea.
Sometimes it may be a simple lack of motivation to move, the house is on the market but there doesn’t seem to be the right property to purchase, therefore what’s the rush? But a sold vendor makes a much more appealing and reactive buyer when that right property does appear.
Low mortgage rates are also a factor, making it more appealing to stay put, but no one wants to put their life on hold forever, regardless of the economic factors at play, so it’s worth talking it through with your agent. Express your goals and motivations to help your agent develop the correct marketing approach to serve your needs best.
The MeetMyAgent poll stated that 75% of estate agents have reported more viewings than this time last year showing that there is a lot of interest in the property available, especially as stock levels are tending to be lower that they have been historically at this time of year, in spite of this less are committing to or are able to commit to a purchase and the asking price of a property plays a role in this.
Demand across the area is high, but only at the right price.
If you want to discuss the value of your property contact your local Mackenzie Smith Agent.