Why Does it Take 186 Days to Sell a Home in Southampton?

 

The average time to sell a house in the UK from start to finish is 170 days, equivalent to 24.3 weeks or 5.6 months from the first day of marketing to legal completion, whilst in Southampton it’s 186 days.

The actual time can vary depending on market conditions, location, property type, and pricing strategy, so in this article I delve deeper. Here is a breakdown of that 186 days.

 

Step 1 - Time to Accept an Offer:

On average, nationally, it takes 50 days (up from 43 days in 2022) to accept an offer on a property. This time starts with placing the property on the market, viewings, negotiating an offer and reaching an agreement with a potential buyer.

 

In Southampton, it is taking 47 days on average to agree a sale on a property.

 

Again, the type of Southampton property makes a huge difference as well.

The best-performing type of property is a Southampton semi-detached house, which takes an average of 41 days to agree a sale, to the poorest-performing type of property, which is a Southampton detached house, which take an average of 55 days.

 

Step 2 - Time from Offer Acceptance to Completion:

Once an offer is accepted, over the last 12 months, it has taken an average of 120 days nationally for the sale to be completed. This period involves finalising the legal and financial aspects of the sale to the legal exchange of contracts, with legal completion a week or a fortnight later.

 

In Southampton, it is currently taking on average 139 days from the sale agreed to the sale being completed.

It's important to note that these figures are based on averages and can vary depending on individual circumstances.

 

If you need to sell your Southampton house quickly, there are a few steps you can take to expedite the process.

 

There are many factors that can affect how long it takes to sell a house. The three major factors are:

a.      Your Asking Price: The price you ask in relation to similar Southampton properties on the market has the most significant impact. Overpricing can result in fewer viewers, meaning fewer buyers, while competitive pricing generates immediate interest. Look at properties that are similar to yours on the market at the moment. When searching the property portals, not only search for them in price order, search for them in how long they have been on the market. That will give you a fascinating insight into the current state of the property market for Southampton homes like yours.

b.      Buyers' Market, Balanced Market or Sellers' Market: The market condition, whether hot or cold, plays a significant role. In a hot market (sellers’ market), homes sell fast and pricing is not as sensitive, while in a cold market (buyers’ market), competitive pricing is crucial to avoid a prolonged time on the market with no chance of a sale.

c.      Quality of Solicitors: Agreeing a price/sale is only half the battle to getting you moved. Your solicitor's efficiency can impact your sale's progress. Choosing a responsive solicitor who cooperates with estate agents can help prevent delays. Again, we can suggest some excellent Southampton and regional solicitors that are experts in their field.

If you are considering a move in the next 6 to 12 months, now is the perfect time to start planning. Selling your Southampton home can be a complex process, but with the proper guidance, you can navigate it smoothly and efficiently. As experienced estate agents in Southampton, we understand the local market dynamics and have a track record of success.

Our team is well-versed in the factors that impact selling time, including the price asked and market conditions. We work with responsive solicitors who prioritise efficiency and collaboration regarding legal matters. Their cooperation with us as estate agents helps prevent delays, ensuring a smooth progression from offer acceptance to completion.

 

By pricing your property competitively, we attract immediate interest from potential buyers. Our knowledge of the local Southampton market enables us to navigate buyer and seller markets effectively.

 

If you want to sell your Southampton home, we offer a no-obligation free appraisal to discuss your selling timescales. Our personalised advice and guidance are tailored to your situation, giving you the information you need to make informed decisions. Together, we can make your move a reality.

Is Southampton a Buyers’ or Sellers’ Property Market?

 

A Comprehensive Guide for Southampton Homeowners

In the ever-changing world of Southampton property, the terms ‘buyers’ market’ and ‘sellers’ market’ are phrases bandied about.

These property market conditions can significantly impact your ability to buy or sell a Southampton property, regardless of which side of the fence you find yourself on.

As a Southampton estate agent, I will provide you with a detailed analysis of the Southampton property market to find out if we are in a buyers’ or sellers’ market and offer valuable tips to navigate through them successfully.

Additionally, I will shed light on a lesser-known market condition called a ‘balanced market’. So, let's delve into the nuances of these markets and equip you with the knowledge to make informed decisions on buying and selling in Southampton.

What is a Southampton Buyers’ Market?

A ‘buyers’ market’ occurs when the number of Southampton homes available for sale exceeds the number of potential buyers. In this scenario, buyers hold the advantage, as they have more choices and can take their time to make decisions. They may even negotiate with sellers to secure more favourable prices. This is an ideal market for Southampton buyers as attractive deals are plentiful, while sellers face the challenge of standing out in a sea of properties for sale.

 

What is a Southampton Sellers’ Market?

Conversely, a sellers’ market arises when there is a higher demand for homes than available inventory. This creates a power shift in favour of sellers, who can benefit from increased competition among buyers. In a seller's market, Southampton properties tend to sell quickly and sellers often receive multiple offers, driving up property prices. This market can be challenging for Southampton buyers, as they may face bidding wars and have limited negotiating power.

 

Introducing a Balanced Market.

Apart from the buyers’ and sellers’ markets, a balanced property market exists where the number of people looking to sell property matches the number of potential buyers. In a balanced market, equilibrium is achieved, leading to stable prices and a reasonable timeframe for property sales. This market condition offers a fair playing field for both buyers and sellers, creating a more harmonious real estate environment.

 

Understanding the Dynamics: Supply and Demand of Southampton Property.

At the core of these property market conditions lies the principle of supply and demand.

Southampton home buyers have the upper hand when the supply of Southampton homes surpasses the demand. Conversely, when demand outpaces supply, Southampton house sellers hold the advantage. Recognising which property market you are in is crucial for making informed decisions, regardless of whether you are a buyer or a seller.

 

What Kind of Property Market is Southampton in?

The best way anyone can judge the market is to analyse the percentage of properties marked as "Sold STC" (Sold Subject to Contract) and "Under Offer" in relation to the total stock of properties on the market.

E.g. if there are 500 properties on the market (both available and sold stc/under offer) and 200 are sold stc/under offer … 200 as a percentage of 500 is 40%.

Everyone can do this by searching the property portals (e.g. Rightmove, Zoopla and OnTheMarket) by searching for Southampton and calculating it by asking for the results with sold stc/under offer and without sold stc/under offer.

The designated property market states are as follows:

 

·         0% to 20%: Extreme Buyers' Market

·         21% to 29%: Buyers' Market

·         30% to 40%: Balanced Market

·         41% to 49%: Sellers' Market

·         50% to 59%: Hot Sellers' Market

·         60%+: Extreme Sellers' Market

 

This methodology is widely used by many professional property traders, corporate asset managers and developer part exchange providers to quickly assess the temperature of any local market. It offers a reliable and efficient measurement of market heat, enabling informed individuals to select the right strategies and stay ahead of the market to achieve superior results.

The statistics have been sourced from website ‘The Advisory’, which have calculated the market state stats for many years. I wanted to share them back to the summer of 2018, so you can see for yourself.

What are the Statistics for Southampton for the Last 5 Years?

 

	Jun-18	Jun-19	Jun-20	Jun-21	Jun-22	Dec-22	Mar-23	May-23	Jun-23
SO14	44%	32%	24%	45%	56%	47%	41%	38%	37%
SO15	55%	46%	35%	64%	68%	60%	59%	61%	59%
SO16	47%	47%	41%	70%	74%	66%	55%	55%	56%
SO17	54%	43%	37%	63%	65%	63%	58%	53%	56%
SO18	60%	52%	46%	75%	77%	66%	65%	61%	60%

 

 

You can quite clearly see Southampton went into an extreme sellers’ market during 2021 and 2022 and is still at a level higher than pre pandemic.

 

Now of course this could all change, so let me explain both extremes for either market.

Tips for Southampton Home Sellers in a Buyers’ Market

Selling a Southampton property in a buyers’ market can be daunting, but you can improve your chances of success with the right approach. Here are some valuable tips for Southampton home sellers:

1. Be realistic with your asking price: If the Southampton property market becomes a buyers’ market, home sellers will need to understand the challenging market conditions and set a competitive price from the beginning. Overpricing will deter potential Southampton buyers from even viewing and lead to your home being on the market for months. People will start to think there will be something wrong with your home and dismiss it even more.
2. Present your Southampton home at its best: In a competitive buyers’ market, making your property stand out is vital. Consider staging your home and completing any necessary repairs to make it more appealing to home buyers.
3. Maximise your exposure: Effective marketing is crucial, particularly in a buyers’ market. Collaborate closely with a reputable local Southampton agent with extensive area knowledge and a strong marketing team to ensure maximum visibility for your property. Gone are the days of just putting the property on Rightmove and hoping.
4. Be prepared to negotiate on more than the pound notes: Price is not the only factor in negotiations. Buyers may also be open to discussing terms and conditions like what you are leaving regarding fixtures and fittings, so be flexible and willing to find common ground.

 

Tips for Buyers in a Southampton Seller's Market

If you find yourself navigating a sellers’ market as a Southampton buyer, these tips will help you improve your chances of securing the right property:

1. Define your necessities: Clearly understand your property needs and prioritise them. Be prepared to compromise on certain aspects to increase your chances of finding a suitable property.
2. Be friendly: Build a positive rapport and relationship with the home sellers on the viewing. This can really work in your favour. First impressions can make a difference.
3. Act quickly: In a seller's market, hesitation can lead to missed opportunities. If you come across a Southampton property that meets your criteria, schedule a viewing promptly and be prepared to make an offer if it resonates with you.
4. Make fair offers: While everyone wants a great deal, offering a reasonable price shows respect to sellers and increases the likelihood of your offer being considered. Silly low offers are often dismissed in competitive markets and can sometimes offend.
5. Practice patience: Although speed is essential, exercising patience is equally vital. Rushing into a decision can result in regret. The right property will come along, so balancing acting swiftly and making informed choices is critical.

 

Understanding the dynamics of buyers’ and sellers’ markets is essential for both buyers and sellers in the Southampton property market.

By grasping the nuances of each market condition and applying the appropriate strategies, you can maximise your chances of achieving your Southampton property goals. Whether you find yourself in a buyer's market, seller's market, or a balanced market, adapting your approach and working closely with an experienced local agent will significantly enhance your chances of success in the ever-changing world of real estate.

But let me leave you with this one last thought. Regardless of whether it's a buyer's or seller's market, it's important to recognise the interconnected nature of these market conditions.

 

A significant statistic to consider is that 81% of sellers are also buyers.

 

This means that as you gain an advantage as a seller in a hot market, you may face challenges when transitioning to the buyer's side. 

Conversely, in a buyers’ market where you have the upper hand as a buyer, you might encounter difficulties when selling your own property.

It's crucial to understand this dynamic and plan accordingly, as the dynamics of the Southampton property market are often a delicate balance between gaining and losing, and this holds true for both buyers and sellers.

These are my thoughts, do share yours in the comments or by reply.