Article Category
Touch of reality boosts home sales
Posted: 2009/07/01
SCOTTISH house sellers are becoming more realistic about the price their property will fetch in today's market.
That is the view of Edinburgh and Lothians solicitors and estate agents Warners. They say that in recent months they have seen sellers in the capital now be more willing to accept a lower price to ensure their home sells.
In turn, according to Warners' observations, this price reality check is helping stimulate the market, which is resulting in an increase in the number of property sales finalised.
The firm is also confident this upbeat trend will continue due to the fact the economic downturn plus Home Reports are producing a more realistic market for both buyers and sellers.
Scott Brown, estate agency partner with Warners, explained: "There has definitely been a change within the past few months where sellers have become a lot more realistic about the value of their properties and how much they expect to achieve from them. Some of this can be attributed to the introduction of Home Reports, which include a property valuation that buyers can view before making an offer, and we have seen many more people choose to market their property at an offers-around price as a result of this.
"After all, if your valuation says that your home is worth £400,000, there is no point putting it up for sale at a higher figure.
"But it appears that there has also finally been a realisation by sellers that the property market is not performing as well as it was two years ago.
Despite the fact that house prices have been falling over the past year, until recently there were many sellers still expecting to sell their homes for higher prices than they were likely to achieve.
"I think now that many of these sellers - some of whom would have had their properties up for sale for almost a year - have reached the point where they have realised they won't get the price they want for their home.
"They are now more receptive to the idea of accepting a slightly lower offer, or reducing their asking price, in order to sell up and move on."
This realism by sellers, he says, has led to an increase in sales. From selling an average of around half a dozen properties a week, they are now selling 13 or 14. Adding to their upbeat mood is the fact closing dates are now being set on some properties with others attracting multiple bids.
"Although it's important to note that house prices are still down on last year's figures, " he continued, "the rise in the number of weekly sales is an encouraging sign.
"While it's too early to say whether prices will start to rise back to their previous highs, there is a lot to be cautiously optimistic about."
