As we leave the memorably hot summer behind us, some
interesting statistics have come to light on the Southampton Property Market
which will be thought provoking for both homeowners and buy to let landlords
alike.
Over the last 12 months 5,143 households have changed hands
in Southampton, interesting when compared with the 10-year average of 5,855
households per year.
Yet, for the purpose of this week’s article, I want to
discuss the pricing of the current crop of Southampton’s property sellers and
the prices they are asking for their homes and the prices they are achieving
(or not as at the case may be). It is so important for all property owners to know
the real story, so they can judge for themselves where they stand in the
current Southampton housing market, thus enabling them to make suitable and
informed decisions… and that is why, in my blog about the Southampton Property
Market, I pride myself in telling the people of Southampton the real answers,
not just the ones they want to hear.
The national average of homes selling at or above the asking
price currently stands at around 10%, so around 90% go below the asking price –
but by how much? Well according to Rightmove, in the Southampton area, the
average difference between the ‘FINAL asking price’ to the price agreed is 3.1%
… yet note I highlighted the word FINAL in the last statement.
You see some Estate Agents will deliberately over inflate
the suggested initial asking price to the house seller, because it gives them a
greater chance to secure the property on that agent’s books, as opposed to a
competitor. This practice is called overvaluing. Now of course, each homeowner
wants to get the most for their property, it is quite often their biggest asset
– yet some agents know this and prey on those house sellers. You might ask,
what is the issue with that?
Well, you only get one chance of hitting the market as a new
property. Everyone has access to the internet, Rightmove and Zoopla etc, and
your potential buyers will know the market like the back of their hand. If you
have a 3 bed semi that is on the market for a 3 bed detached house price.. those
buyers will ignore you. Your Southampton property sticks on the market,
potential buyers will keep seeing your Southampton property on Rightmove each
week, then start to think there is something wrong with it, dismiss it even
further, until you, as the house seller have to reduce the asking price so much
(to make it appear inexpensive) to get it away. According to our own research,
the average house buyer only views between 4 and 5 houses before buying – so
don’t assume viewers will come round your optimistically priced (i.e. overvalued) property, thinking they
will knock you down – no quite the opposite!
So how widespread is overvaluing in Southampton? The results
might surprise you …
40.8% of
properties in Southampton, currently on the market, have reduced their asking
price by an average reduction of 4.8% (which equates to £12,300 each)
So, all I ask is this.. be realistic and you will sell at a
decent price to a decent buyer. First time – every time – enabling you to move
on to the next chapter of your life.
If you are looking for an agent that is well established, professional andcommunicative, then contact us to find out how we can get the best out of your investment property.
Email me on brian.linehan@belvoirlettings.com or call on 023 8001 8222.
Don't forget to visit the links below to view back dated deals and Southampton Property News.
Twitter, https://twitter.com/sotonbelvoir
LinkedIn, https://www.linkedin.com/in/brianlinehan
LinkedIn, https://www.linkedin.com/in/brianlinehan
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