Property asking prices on the increase
March 24, 2010
The property market has been through a turbulent time for the past couple of years, and homeowners have seen tens of thousands of pounds wiped off the value of their homes in some cases. However, over recent months property prices have been gathering pace and the property market has seen a number of signs of improvement, swaying once again towards the seller rather than the buyer.
In fact, it has been reported recently that not only have property values increased in the UK but those that are selling their homes are getting very close to the asking price. This is bad news for buyers that may have thought that they could get a bargain by bidding low on a property to a seller that was desperate to get a fast sale - something that was probably true a year or so ago when estate agents couldn’t shift properties that were on their books.
Buyers now have to give far more thought to the amount that they are prepared to bid on a property that they really want. Rising interest in the property market from would be buyers means that competition for properties is much stiffer than it was last year, and this is helping to drive up asking prices with sellers safe in the knowledge that they can afford to turn down unreasonable offers because there will most likely be someone else waiting to put in a better offer.
If you are thinking of looking for a property and wondering what sort of offer you should make it is important to bear in mind that many sellers are now receiving close to 95 percent of the asking price, so there may not be that much leeway for negotiation.
This is something that you should also consider when determining whether you can afford to purchase a property, as there may not be much scope for reduction in terms of asking price.
Some industry officials advise buyers to offer around 10 percent less than the price that they consider to be fair to start off with but to be prepared to go higher as the seller will not usually take the first offer.
Making a totally unreasonable offer could mean that you lose the property, so unless you are not that bothered about whether your offer is accepted or not you need to make sure that you make a bid that is reasonable and that you can afford to revise upwards if the seller turns it down.
One financial sector official stated: ‘You need to factor in everything from whether the estate agent is greedy or desperate, to whether the seller is a glass half full or half empty kind of person. My tip would be to go in 10% below what you consider a fair price - but be realistic and don’t make it offensive - and then work up in small steps while letting the seller know you are serious. And just to spell this out, I mean 10% below what you think is a fair price. So, not the asking price, or even what the seller considers a fair price, but what you consider to be the fair price. If a property is on the market at £330,000 and you think £300,000 is a fair price then you go in 10% below that, so £270,000.’
- Good news for homeowners in relation to property prices Over the past couple of years many homeowners who may have been hoping to see the equity levels in their homes keep rising may have been disappointed after the property bubble burst and house prices
- More price rises reported by surveyors It has been reported that a rising number of surveyors have been reporting property price increases, further fuelling speculation that the property market may have bottomed out and that prices are now on the up.
- Slowdown in house price increase for December Recently released figures have shown that house prices increases in the UK have seen a slowdown for the month of December, with growth in properties across both England and Wales slowing down for the month.
- Continued increase in property prices Recently released figures have shown that there has been a continued increase in property prices in the UK Officials from the Nationwide Building Society have said that house prices have now risen for the fourth
- Credit crunch does not stop asking prices from rising According to recent reports asking prices on some properties are still increasing despite the fact that property values have been falling for almost a year. Figures have revealed that the mortgage famine and falling property
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