Homes are selling for less than the asking price
These figures are good starting points but in their end of year review for 2017, NAEA Propertymarket released information that means property owners may need to re-evaluate their expectations when selling their home. The NAEA figures suggest that in 2018, properties were sold for a figure less than the asking price on 77% of the time. The proportion of property that was sold for a price higher than the initial asking price was just 4%. This means than less than 20% of property sold for the asking price, so you cannot use the initial asking price as your foundation for expected income or on what you should do next in the market.
This situation isn’t going to come as a surprise to people who have experience in the property market of late, but when you see the volume in black and white, it can be a shock to the system. It is therefore essential that property owners understand, or at least informed of, the impact that these circumstances can have on people’s property ambitions.
There is no simple solution to this issue
With this knowledge in mind, it may be that it will influence your decision when placing property on the market. There is no doubt some people or parties who believe the solution is to price their property at a higher figure and then hope they receive their initially expected figure when they sell the home. The issue with this approach is that buyers are savvy and many will know the true value and worth of a property. Inflating a property price with the hope of obtaining a lower figure can cause problems, and may harm your ability to sell your property at all or for a lower price.
Any homeowner that lowers their asking price will inevitably receive questions of what problems exist with their property. There will be some homeowners who achieve success with this strategy but in the long run, it is far better to take an honest approach to property pricing and to be realistic with expectations in the 2018 property market.
If you want advice and guidance from a property specialist, come and speak to Austin Property Services. We are on hand to ensure you make the most informed decision for your needs and we’ll aim to provide you with the best guidance for your 2018 property moves.