There is a lot of talk about London property prices but ultimately, you need to think about how the marketing impacts on you and its relevancy to you. After all, value for money is a subjective matter and there will be many things in life that represent value for money for you that would be unsuitable for other people and vice versa. However, the gap between asking prices and actual selling price is likely to be something that causes annoyance or possible difficulties in the property market, and it is important people are aware of this matter.
The fact that the start of 2018 has seen an increase in comments and discussion of rising asking prices indicates it is becoming an issue. With one leading source stating irresponsible agents are to blame for the rise in asking prices and various industry figures highlighting the rising prices, a situation is developing where some property owners will wonder if it is worth their while placing their home on to the market.
More and more homes are selling for less than the asking price
In their end of year review for 2017, NAEA Propertymark stated that 77% of homes sold for a price that was lower than the asking price. This figure was corroborated by Zoopla who also announced a similar result. More recently, Rightmove have tried to create enthusiasm by saying that the percentage of properties that sold for the asking price was at its highest level since June of 2016 but even with this, the proportion of properties that sold for less than the asking price was in the 70s.
Given the level of competition in the property market and the need to win instructions, it is easy to see why so many estate agents promote higher asking prices to property owners. This is a strategy that works well in the short-term but there must be concerns about its suitability in the longer-term. When agents develop a reputation for stating high asking prices and deliver actual prices that are much lower than property expect or hope for, they will find it harder to find new instructions and bring in new clients.
Some property owners are deciding against selling their home
There will also be property owners who decide that the price they receive, as opposed to the price they are told they will receive, is not enough to persuade them to sell, which means they may hold off and wait for a more appropriate time. This could lower the level of supply to the market in the short-term, before the market corrects itself with higher prices, but ultimately, many property owners are left feeling frustrated, let down and perhaps even duped by high asking prices.
If you are keen to sell your home in an effective manner, rely on an estate agent with a solid reputation in the local area. At Oaks Estate Agents, we are delighted to say that we have helped many homeowners sell their property and our testimonials indicate that people are happy with the services we offer. If you want assistance from a local agent that cares, contact Oaks Estate Agents.