With house prices rising, and the demand for home being so high, it is easy to see why many homeowners set a high asking price when they placed their property on the market.
While some industry experts believe house prices will continue to rise as we move into 2022, it might be time for buyers to be aware of a slight fall in demand for homes. It is helpful to be aware of the gap between asking price and sales price, and if you want to connect with likely buyers, it is best to come to market with an appropriate price.
If you are looking to connect with buyers, contact Stones Residential, and we will do everything we can to best represent you.
What is the average gap between sales price and asking price?
A study undertaken by MoveStreets highlights the following points:
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The average asking price on major property portals stands at £296,950
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The average sales price stands at £258,464
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This means there is a gap of 13% or £38,486 when it comes to asking prices versus sales prices
Regional variations exist when it comes to overpricing
As you would expect, there is a bigger gap in London!
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The average asking price stands at £833,944
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The average sales price is £494,673
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This is a difference of 41%, or £339,321
Other gaps across the country are as follows:
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The South West, there is a difference of 24% between asking price and sales price
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The South East features a difference of 23% between asking and sales price
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In the East Midlands, there is a gap of 21% between the asking and sales price
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For the North East, the gap between asking and sales price is 21%
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In the West Midlands and the North West, there is a gap of 20% between the asking and sales price
Adam Kamani, CEO and Co-Founder of MoveStreets, commented: “We’ve seen an incredibly hot market of late and despite the end of the stamp duty holiday, high levels of buyer demand and low levels of available stock continue to see properties fly off the shelf at pace and for a very good price. However, it’s clear that even in current conditions, many sellers are listing their homes at an over-optimistic price point, no doubt in an attempt to take advantage of the market boom.”
Adam Kamani concluded by saying; “This can be detrimental to your sale regardless of how the market is performing and can result in months of little to no interest in your home. It’s the responsibility of the listing agent to guide sellers and set these expectations. While some will value a home at a higher price point to win business, a difference of ten to hundreds of thousand pounds above market value is perhaps a little too far.”
According to Rightmove, as of November 2021, house prices in Belsize Park are as follows;
“Properties in Belsize Park had an overall average price of £1,230,626 over the last year.
The majority of sales in Belsize Park during the last year were flats, selling for an average price of £901,273. Terraced properties sold for an average of £2,088,067, with semi-detached properties fetching £4,057,857.
Overall, sold prices in Belsize Park over the last year were 4% up on the previous year and similar to the 2017 peak of £1,232,989.”
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
