Realistic pricing required in today’s sales market

27th July 2023

The days of sellers receiving offers that match the asking price - or even exceed it – are, in the majority, over for now. New research from Zoopla has shown the current property market in a new light and it’s clear the power rests firmly with purchasers. The portal has found a rise in supply and as a result, sellers are having to accept lower offers more readily now, when compared to the last five years.

Discounts rocket in 12 months

The disparity between what sellers hope to achieve and the reality of the transaction is quite stark and the expectation gap is getting wider. In May, Zoopla found the average discount sellers were giving was 4.5% whereas now, in late July, 42% of sellers are accepting 5% or more off the asking price.

The power shift towards purchasers is even more apparent when you compare current statistics to last year, when the average discount secured by buyers was 0%. In 2022, sellers did not have to negotiate over the price to realise a sale and they consistently achieved their asking price or more.

Increase in supply

At the moment, buyers are in a strong position in the market thanks to the amount of choice they have. There are 18% more properties for sale now, when compared to the previous five year average, returning the number of available homes back to pre-pandemic levels. Unfortunately for sellers, this means they have stiff competition making it more likely that they will have to accept lower offers - especially if they price their property too high to start with.

Drop in house prices

Adding to the current sales climate is a drop in UK house prices across the board. Rightmove has recorded a modest. average drop of an £82, which is to be expected with the economic challenges we have seen over the last year. This is not something to panic about – Rightmove has found that, despite the wider national financial picture, there are 6% more people enquiring about homes now than the same period in 2019.

Be realistic from the outset

The key takeaway from the current crop of market analysis is to take a realistic approach to valuations and pricing your home, especially if you need a quick sale. If you are aiming to move this year, the key will be to price to sell rather than price out of greed. Purchasers will be aware of their strong position and will negotiate a more realistic price if their dream home seems overvalued.

Get the best sales advice

If you are thinking about selling a property you own, you will need precise and professional advice when it comes to a valuation. Don’t risk an estate agent who gives a valuation that aims to impress but fails to attract buyers. Contact Move Places now for a price that is designed to sell.