Property News > Accurate valuation is the key to selling homes in less active UK property market
Accurate valuation is the key to selling homes in less active UK property market
In the current British housing market, in which activity is slowing, an accurate property valuation is more likely to lead to a quick sale, it is claimed. According to new figures from independent estate agents across 54 branches, realistic valuation is the key to avoid having to reduce the asking price or accept an offer well below what is sought. Andrews Group, who carried out the research, found that 70% of sales completed between January and June 2018 either met or exceeded the asking price. They also pin a greater responsibility on the valuer at a time when more properties are remaining on the market for longer, and are being sold for significantly less than their asking price. ‘Reports which focus on vendors reducing the asking price of their property are, more often than not, tales of an inaccurate valuation in the first place. Simply, a well-priced property will sell fastest,’ said Andrews group chief executive, David Westgate.‘We’ve seen in the first six months of this year that properties which sold either at, or above, the asking price spent just 49 days on the market which compares favourably with the industry average of 96 days,’ he explained.The data shows a clear correlation between the degree of price difference and the time taken to secure a sale, with a sale occurring within an average of 69 days when the difference between asking price and selling price is within 5%. By contrast, properties take an average of 118 days to sell when the difference is 10% or greater. ‘A smart combination of an accurate initial valuation and hands on marketing by agents with genuine local knowledge is vital to securing a swift sale in what remains a challenging market,’ Westgate pointed out.‘This is all about successfully managing expectations and unfortunately there remains a significant percentage of agents prepared to provide a high valuation simply to secure the listing. When this is coupled with a vendor flattered by the news that their home is worth a seemingly favourable amount, the property is placed on the market with unrealistic expectations and consequently hangs around for longer and sells for less,’ he said.‘Of course, these figures don’t provide a fool proof recipe for sales success and recent shifts in the market mean that a certain level of haggling is almost the norm in many cases. This data does, however, suggest that accurate pricing isn’t yet standard across the industry and it’s this that’s to blame for such high levels of price reductions,’ he added.