The Right Price
September 23, 2020
Might Sell… Might Not…
It is interesting to note that some sellers are not as committed to moving as they might be, and are prepared to remain on the market until what they regard as an acceptable offer comes along.
Likewise, some buyers, whilst generally remaining committed to a purchase, do not exhibit a great deal of urgency, and believe that they are entitled to submit a relatively low offer in the hope that the seller might just take it.
There are two issues here and we would advise caution to buyer and seller alike. Firstly, if, as a seller, your house fails to sell for whatever reason and you are on the market with a proven good agent, then it is probably priced too ambitiously for the current conditions. If you allow it to remain on the market at that price, it could become stale on the market, resulting in an inevitable fall in price greater than a minor repositioning effected now.
A recent study conducted by Rightmove that shows that sellers are twice as likely to find a buyer for their home if they have an offer accepted on the first listed asking price.
Rightmove looked at over 300,000 homes that were first put up for sale between 13th May and 31st July, to see if they were subsequently reduced and also if they were marked under offer or Sold Subject to Contract. The cut-off date for any reductions or sales activity was 10th September.
The results showed those that needed to be reduced had a one in three chance of finding a buyer (32%) within the timeframe, compared to a 63% chance if priced right from the start.
Rightmove’s Director of Property Data Tim Bannister says: “This analysis shows just how vital it is that sellers listen to their agent when they recommend the asking price that the property should be listed at. If sellers are serious about selling, then starting with too high an asking price can cause unnecessary delays, and also make it a lot less likely they will actually find a buyer in the end. The temporary stamp duty holiday means more sellers are in a hurry to get a sale through conveyancing, and with this also taking longer at the minute a realistic asking price could soon end up being the difference between completing in time or losing out on the savings.
From a buyer’s perspective, we suggest you focus on securing the right home for your needs, within your budget, more than on finding the greatest bargain. A percentage off the asking price is irrelevant if the asking price is too much to begin with, but a well-priced property is always in demand. Unless you act decisively, you could miss out.
So the rule of thumb is this; if you see a property that you can afford, which offers you the accommodation you need in an area you like, and you could be happy there, then snap it up, as the chances are that most of the other buyers in your price range will also want that property. Good value is good value – in any market.
