As winter closes out Rightmove’s lastest figures report that this month see the price of property coming to market increased by 2.0% (+£5,986).
The relatively modest pace of price rises will mean that over-priced properties are at greater risk of standing out as poorer value for longer, diminishing the interest of potential buyers. If prices are rising quickly then they will catch up with an over-priced property sooner, making it less obvious that it is more expensive than local comparable properties. With buyer affordability increasingly stretched, three quarters of agents (75%) surveyed by Rightmove report their local market as price sensitive and that an asking price more than a few percent too high will harm interest levels in the property. Only one in four agents (25%) said interest was still generated if prices were more than 5% too high. In addition, Rightmove analysis of over 100,000 newly-listed properties shows that sellers are 40% more likely to sell with that agent if the property is priced right when they first come to market.
Miles Shipside commercial director of Rightmove advises that : “The majority of the market is price sensitive with most agents we surveyed reporting that possible buyers are reluctant to enquire about a property just a few percent too high in price. With the annual rate of price increase now at 2.3% a property that is over-priced by more than 5% will have to wait more than two years for the market to catch up with it. Some sellers may have thought there is no price to pay by starting high and reducing the asking price later. However, our extensive tracking of properties that have found a buyer shows that your property should substantially out-perform the level of interest in similar properties in your local area during the first three weeks of marketing to minimize the risk of being left on the shelf. Over-pricing loses you that vital initial interest and impetus, and buyers often have reservations about a property that has not sold as quickly as others or has had a price reduction.”
We at Changing Home are seeing that demand is still strong for realistically valued property. We also agree that the early period of marketing is very important.
If you would like a full market appraisal and an honest view on current value to you property do contact us and we would be delighted to help.