What is going on! Rightmove says the average marketing price of properties on their property portal is £233,139 (Sept 2011). The Land Registry tell us that the average selling price is £162,347 (Aug 2011). A MASSIVE difference of over £70,000! If your average house was on the market for £230,000 would you accept offers of around £160,000?? Who is causing this gap? Are sellers being greedy? Are they inflating the price to test the market? Are they showing off or being cheeky and really not expecting to sell? Is it the Estate Agents overvaluing to get the business. Its true to say that sellers are savvy and will on most occaisions invite multiple agents to offer them a true market appraisal! Well Rightmove and many other property spokespeople are saying prices are too high. This index proves it!
As an example - we at Roberts, Edwards & Worrall have just agreed a sale on a nice semi detached property marketed at around £170,000, The sale was negotiated and agreed at £165,000. A good deal for both buyer and seller. Another, very similar property in the same road has gone on the market with another local agent. This agent, known for their sometimes under hand tactics, are marketing theirs at £185,000. Yes, definately pushing the price up trying to get a better sale (and commission no doubt)! Thats not too bad, and the chances are that, if they want to sell, the sellers will need to bring the price down. Well, today, just further up the road, a smaller house with a smaller garden, with an extra room has just been put on the market for £280,000!
Its no wonder so many overpriced houses are on the market and why there is such a gap between the marketing value and the selling price.
To all sellers- get your valuer to explain how he/she has valued your property and get them to show you proof! Get them to talk about what sales are happening in your locality and to show you some comparible evidence. Get your Agent to market your property at a realistic price, else you may never sell!