With the stamp duty holiday in place, buyers and vendors want to conclude their property transaction as quickly as possible. The deadline isn’t until 31st of March 2021, but it is easy to see why people are keen to complete their move sooner rather than later.
At Stones Residential, we are here to assist you. We have experience and expertise in the local housing market. If you want to move quickly, and without compromising on the quality of your move, we are more than happy to help.
As well as staying in touch with the local housing market, we follow the latest news and studies in the market. Therefore, analysis from Rightmove regarding the likelihood of a sale in relating to the initial price is of interest.
Setting a realistic price saves time in the housing market
The property portal examined 300,000 listings on their site. They found that properties where the price was reduced had a 32% chance of finding a buyer in a reasonable time-frame, compared to 63% if the property is priced realistically at the start of the sales process.
Rightmove believes that an over-priced property will take around 26 additional days to sell. The average time to find a buyer for a realistically priced property is 21 days, and this increased to 47 days when the property price needs to be reduced.
Reductions have fallen this year
The same analysis suggests that since May, 16% of properties have been reduced, which is a fall from the 18% of the same period in 2019. The average size of reduction in 2019 was 5.2% and in 2020, it is 5%.
Rightmove’s Director of Property Data Tim Bannister says: “This analysis shows just how vital it is that sellers listen to their agent when they recommend the asking price that the property should be listed at. If sellers are serious about selling, then starting with too high an asking price can cause unnecessary delays, and also make it a lot less likely they will actually find a buyer in the end. The temporary stamp duty holiday means more sellers are in a hurry to get a sale through conveyancing, and with this also taking longer at the minute a realistic asking price could soon end up being the difference between completing in time or losing out on the savings.”
Tim Bannister also said; “A number of properties are reduced every year, and it’s important to say that not all cases are down to over-pricing. If there’s an area of lower demand than supply then a reduction may be needed if the seller needs to move. Also, if prices have gone down in an area it’s understandable that a seller will be hesitant or may not be able to afford to put their home on for a lower price than they bought it for. But in the busy market we have right now there will also be some sellers who may think it’s worth a punt to ask for their home to be put up for sale for the same price as their neighbour across the road, when their neighbour may have extra room or their home may be in a better condition. A good local agent will be able to look at a number of things before valuing a home, such as the condition of the home and comparable properties, making them the experts at getting the price right first time.”
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.
