by Mark Johnston
What’s the price of your property?
In today’s financial climate it seems that it is hard to find anyone who can be 100% sure what their home is actually worth!
This may be due to the fact that the housing market simply is not functioning at the moment. It is not that prices have fallen as fluctuating prices have and always will be part of a healthy market.
It is common knowledge that this a particularly difficult time to sell any property, it is not just a lack of buyers that is leaving some properties unsold, it is also the fact that sellers are still putting their houses on the market for inflated prices.
Despite the slump in the property market since 2007, asking prices are still higher than what houses are actually sold for.
Comparing advertised prices with the official register of sales the reality gap between asking and selling prices averages more than £15,000.
Property website figures show that sellers in the flat and semi detached end of the market are more realistic than most, they tend to drop their prices by around 10%.
This register also shows that the gap was widest for more expensive properties; detached houses sell for almost 20% below their asking price.
MeetMyAgent.co.uk, an independent estate agent review website recently conducted a survey and found that 93% of agents said that at least a tenth of the properties on their books would benefit from a price reduction and almost 4 in 10 agents believed that more than 30% of their stock was overpriced.
By over valuing a property home owners are likely to prolong the selling process further, which is already a long winded and stressful process.
Some data has shown that the main reason sellers do not lower their price is that they are happy to wait in order to get the offer they want.
So why do some sellers put greater values on their homes than they are actually worth?
Well, sometimes this can be due to an attachment to the home….people love their homes and have put a lot of time and effort in to getting them just right and therefore feel that it is better than all the others on the street!
Another reason is that people remember what they bought their home for and then have a problem in coming to terms with the fact that house prices have plummeted since then.
The simple fact is that there is no end of buyers viewing properties but very few are actually committing to a purchase as many buyers still feel that sellers are asking too much for their properties.
It seems then that with interest rates expected to remain at their current level through out this year and in to 2013, this Mexican standoff could continue for some time yet!
In conclusion the only reliable way of anyone finding out what their property is actually worth is to put it on the market and see what happens!
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