“Price is what you ask, value is what you (eventually) get”
There’s been a lot of talk this past week of the third of all homes on the market that have had their asking price reduced at least once. Reading apparently is where this is happening the most and on the big website Zoopla you can see evidence of these reductions displayed for all to see.
I maintain that the asking price is usually just an indication of the sellers greed or the estate agents enthusiasm to get the business. Buyers decide what something is worth, sellers have the luxury of choosing if it’s enough to get them to part with it. The danger these days is that your optimistic guide taints your property in the same way that HS2 for example has blighted some homes along the proposed route.
Lots of properties fail to make the asking prices. Estate agents themselves say that in July 80% of what they sold fetched less than the guide. With help from data companies TwentyCi and Lonres I was able to prepare a selection for the FT Weekend Festival at Kenwood House where I was once again fortunate to be a guest speaker in the FT Money tent. I gave the audience a flavour of the kind of discounts to asking prices that have happened recently and to illustrate how irrelevant the asking price can be and how unforgiving the market can be if you get it wrong. This market is cruel and unforgiving so take care with your ambitions. Competition obtained from a sensible guide price remains the best way to ensure you get the highest price for your property as a seller but over optimism gets punished – as these examples have been;-