As we leave the memorably hot summer behind us, some interesting statistics have come to light on the Newbury Property Market which will be thought provoking for both homeowners and buy to let landlords alike.
Over the last 12 months 710 households have changed hands in Newbury, interesting when compared with the 10-year average of 883 households per year.
Yet, for the purpose of this week’s article, I want to discuss the pricing of the current crop of West Berkshires property sellers, the prices they are asking for their homes and the prices they are achieving. It is so important for all property owners to know the real story, so they can judge for themselves where they stand in the current Newbury housing market, thus enabling them to make suitable and informed decisions… and that is why, in my blog about the Newbury Property Market, we pride ourselves in telling the people of Newbury the real answers, not just the ones they want to hear.
The national average of homes selling at or above the asking price currently stands at around 10%, so around 90% go below the asking price – but by how much? Well according to Rightmove, in the Newbury area, the average difference between the ‘FINAL asking price’ to the price agreed is 3.1% … yet note I highlighted the word FINAL in the last statement.
You see some Estate Agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a greater chance to secure the property on that agent’s books, as opposed to a competitor. This practice is called overvaluing. Now of course, each homeowner wants to get the most for their property, it is quite often their biggest asset – yet some agents know this and prey on those house sellers. You might ask, what is the issue with that?
Well, you only get one chance of hitting the market as a new property. Everyone has access to the internet, Rightmove and Zoopla etc, and your potential buyers will know the market like the back of their hand. If you have a 3 bed semi that is on the market for a 3 bed detached house price, those buyers will ignore you. Your Newbury property sticks on the market, potential buyers will keep seeing your Newbury property on Rightmove each week, then start to think there is something wrong with it, dismiss it even further, until you, as the house seller have to reduce the asking price so much (to make it appear inexpensive) to get it sold. According to our own research, the average house buyer only views between 4 and 5 houses before buying – so don’t assume viewers will come round your optimistically priced (i.e. overvalued) property, thinking they will knock you down – no quite the opposite!
So how widespread is overvaluing in Newbury? The results might surprise you …
37.5% of properties in Newbury, currently on the market, have reduced their asking price
So, all I ask is this.. be realistic and you will sell at a decent price to attract a decent buyer. First time – every time – enabling you to move on to the next chapter of your life. Here at Downer & Co we try to value accurately and we do not ask that you sign a lengthy lock in period. It means we can’t rely on overvaluing to gain the business for a property that does not sell. Have confidence in your chosen agent and if the valuations seems over-inflated ask yourself why before signing that contract! Finally to the buyers; everyone loves a bargain but if the asking price seems fair then don’t lose your dream property over a few thousand pounds, a £5k haggle on a 25 year mortgage works out at about £20 a month…
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