More than 8 in 10 homes are selling for less than the asking price
Some 81% of homes sold in May failed to make their asking price. We look at what this means if you're buying and selling at the moment.
June 26, 2019
More than eight in ten homes sold in May failed to make their asking price, according to NAEA Propertymark.
The association’s members also reported that just 5% sold for more than the original price listed.
The figures suggest an increasingly widespread buyer’s market.
The NAEA Propertymark’s latest housing report also shows there’s an increasing number of potential buyers looking to snap up property. The number of house-hunters registered per estate agent branch averaged 307 in May, up from 265 in April. However this is still down from the 351 seen last May.
Meanwhile, property supply among members was up to its highest level so far this year, averaging 41 properties per branch.
And sales agreed have also increased for the second month running. Member branches have reported a rise from an average of 8 per branch in April to 9 in May.
No more Brexit delays
NAEA boss Mark Hayward says: “It’s evident that buyers and sellers are no longer waiting for the outcome of Brexit and want to get things moving, particularly as many sellers are realising that it’s a buyers’ market in certain areas of the country.
“More than eight in ten (81%) properties sold for less than the original asking price in May, which shows that estate agents, with buyers and sellers, are successfully negotiating a property sale, with them coming to an agreement on the value of the home.”
What does this mean for buyers?
The good news is this shows there are deals to be had. But as always, it’s essential to take steps in order to secure the property for the best possible price.
This starts before making an offer. When you first meet the estate agent, downplay the amount you are willing to spend – it will put you in a stronger negotiating position.
Remember to do your homework. Keep a close eye on the property market. In particular, research how much similar properties in the area are selling for – and how quickly. If they are moving very slowly and going for under the asking price then you are in a stronger position to put in a lower offer.
When you make an offer, as with all negotiations start low, a good rule of thumb is to offer 5% to 10% lower than the asking price.
When is a low bid more likely to be successful?
Negotiating to buy a house can seem stressful and daunting. However, remember the seller will also be worried about getting the price they want.
There could be circumstances that work in your favour. For example, has the house has been on the market for a long time? If so it suggests they are having problems selling and other people think it is overpriced. Also check, has the asking price dropped since it was put on the market? And does the seller need to move quickly? Then they may be open to a lower offer.
What if I’m selling?
The figures may suggest it’s an increasingly widespread buyer’s market but if you are selling the advice remains the same: the key is still to make sure the property is listed for the right price.
Don’t rely solely on your estate agent. Do your own research as well. Become an expert in local house prices. Start off by researching how much houses have sold for and how much they are on the market for.
Use our free instant online home valuation tool to get a high and low estimation, as well as possible rental income.
While with our estateagent4me tool you can enter your house details and click the button “Help Me Estimate” to see how much other houses in your area or street have sold for or are currently on sale for. In particular, find out what similar properties have sold for.
At the same time make sure your house is in top condition before going on the market. There are some top tips in our guide on how to make your house more appealing to buyers.