Navigating the UK property market can be akin to treading a tightrope. The list price of a property can profoundly influence both its selling speed and the eventual transaction amount. Using insights from Dataloft Inform, we aim to underscore the significance of striking the right pricing chord from the outset. Join us as we delve into why setting a realistic and sensible initial price can significantly determine your sales success.
Property Prices & The State of the Market
The UK property market has witnessed a moderation in prices. While the demand continues unabated in various sectors, the initial pricing of the property is a determining factor in sales success. It’s not just about listing your property but ensuring that the price is appealing enough to the current market while also reflective of its genuine worth. This balance is crucial.
The Implications of a Price Reduction
Rightmove’s data provides a telling insight into the repercussions of incorrect initial pricing. Properties that undergo a price reduction have a 10% lesser likelihood of receiving an offer. Additionally, these properties languish on the market for more than double the time compared to their accurately priced counterparts before eventually being marked as SSTC (Sold Subject To Contract). This delay can translate into added stress for the seller, potential extra costs, and, in some cases, a lower final sales price.
The Pitfall of Over-Optimism
A surge in property prices can sometimes give rise to unwarranted optimism among sellers. The recent bullish phase in property prices has led some sellers to anchor their expectations too high. While optimism is generally positive, in the real estate market, it must be tethered to reality. The key to sidestepping this over-optimism is to consult with experienced and knowledgeable estate agents. These professionals keep their fingers on the pulse of the market and will guide sellers in pricing their property congruent with the current market dynamics.
Reductions & The Reality
Zoopla’s latest research paints a compelling picture of the real-world implications of mispricing. On average, the reduction from the initial asking price at the point of sale stands at 3.8%. However, this statistic takes a more concerning hue when you realise that over 40% of recent sellers have accepted offers that were 5% or even more below their initial listing price. This isn’t just a minor dip – for a property listed at £400,000, a 5% drop is a whopping £20,000. It underscores the necessity of pricing it right, right from the outset.
As you prepare to make one of the most significant financial decisions of your life, remember the importance of accurate and realistic pricing. Trust in professionals who have an in-depth understanding of the current market. Your property deserves the best chance of a quick, successful sale, and that starts with getting the price right the first time.
Considering selling your property? Don’t leave such a critical decision to guesswork. Reach out to the experienced team at Northwood Estate Agents who can guide you towards a pricing strategy tailored to the current market conditions.