Property pricing. A sensitive subject for sure, especially in our current economic climate.
You may have heard many stories from home owners and agents telling you about the heated property market from late 2020 to early 2022. With buyers literally lined up outside homes eagerly waiting to view properties and entering into bidding wars by paying over the asking price just to secure their dream homes or investments. It was for sure a sellers’ market and to a certain degree it still is, however, the market appears to be transitioning into the opposite. Mortgage rates have at least doubled since 2020, we’re now in a high inflationary environment pushing up the cost of living and the average persons disposable incomes are dwindling.
This is important to understand if you really do want to sell your home. Whilst there are still plenty of motivated buyers and sellers in the market place, we have found people are paying more and more attention to their finances and the sustainability of owning a home. Plenty of market reports from Halifax, Nationwide and many other credible sources say property price growth has certainly stalled if not negative in certain parts of the country. However, I’ve seen a lot of homeowners still pricing their homes as if the market is still on the rise!
Understanding local market conditions and pricing realistically are essential to achieve a sale. Zoopla report that while 59% of listings in February had no price reductions, four in ten did.
8-14 days is the optimum listing duration for agents to achieve the best possible price for your home, according to research of over 6,500 agents by HomeOwners Alliance. A listing that is too short may not give enough time for potential buyers to discover the property and make an offer; if a property remains on the marker buyers may fear it is overpriced.
The latest survey by RICS indicates that the average sale is currently being agreed within a 5% margin of asking price.
Our Advice:
We urge all home owners looking to list their property for sale to be realistic about their expectations on what price can be achieved. Do not always go with an agent that gives you an absurd high valuation and the lowest fee. They’re likely to be telling you what you want to hear rather than what you should hear! Alternatively, be sure to ask that agent how they came up with that valuation and what are the foundations of what they’re telling you. A reputable agent should give you good comparables and clearly explain why their valuation has any substance.
Pricing sensitivity is becoming increasingly evident in the property market, understanding local conditions and pricing realistically are essential to achieve a sale. At AG Estate Agents we take market research very seriously. If you’ve seen any of our past blogs or quarterly market updates about the Furzton and Milton Keynes Property market, you’ll know.
My name is Keval Gudka. At AG Estate Agents we love to talk about property and Milton Keynes. We give bespoke marketing advice as well as thoroughly researched valuations. If you would like to sell your home faster and for the best price, can we talk?
You can email me at keval@agestateagents.co.uk or speak to me on 0208 614 0740.
Thanks for reading.
Keval
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