Paul Reynolds says “if you are thinking of selling your home you need to make sure you set a realistic price in order to achieve a sale, especially during the current tough market conditions. Get one of our qualified and professional estate agents to conduct a free valuation on your property”
Despite the depressed housing market sellers are still generally aiming 15% too high with their asking prices. This not only results in the house remaining on the market for an indefinite period of time but the house then becomes ‘stale’ and the seller may have to drop the price substantially to sell. Waiting for the market to catch up with an overpriced house could take a long time as economists expect the current conditions to remain for at least the next two to three years. Pricing your house correctly will ensure a fair market-related price is achieved in an acceptable period of time, rather than having to endure a protracted discount-cutting process which, more often than not, ends up with a lower price being achieved. In fact, about 87% of sellers are realising less than the asking prices. Most sellers believed that the downturn in the property market would be shorter than it has been and are now having to cut their price expectations. Some properties have sat on the market for in excess of 200 days with prices eventually dropping. Currently properties are sitting, on average, 17 weeks on the market.
The differences between asking and selling prices are around 10 to 15 %. Market dynamics ultimately determine the right price and for a house to sell it must be comparatively valued with the surrounding houses. While there has been an increase in house sales of late a large portion of this contribution is from distressed sales and ‘scaling down’ due to financial pressures. House prices are set to remain at depressed levels for some time. This is largely due to the over-supply combined with high debt levels affecting affordability, and limited access to finance as banks become stricter with the granting of bonds. As a result real house prices , which have dropped 15% since the pre-boom 2008 period, will continue to be negative till early 2013. Paul reminds that ‘While it is a buyers market remember that once sold you then become the buyer in a depressed market!”
Please contact your nearest Durr Estates branch for professional and friendly service.