It is feeling very autumnal across Rotherham. Alongside this, some interesting statistics have come to light on about our local property market. I think they will be thought provoking to both homeowners and buy-to-let landlords.
One headline that has stuck out is this: over the last 12 months 2,196 households have changed hands in Rotherham. This is slightly below the average for the last 10 years, which is numbered at 2,216 households per year.
Yet, for the purpose of this article, I want to discuss the pricing of the current crop of Rotherham’s property sellers. What interests me is the price people are asking for their homes compared with the prices that they are actually achieving (or not, as 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 housing market. This will enable you to make suitable and informed decisions. I always aim to give the real answers, not simply the answers what people want to hear.
The problem with over-valuing a house
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 Rotherham area, the average difference between the ‘FINAL asking price’ to the price agreed is 3.5% … 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 Rotherham property sticks on the market, potential buyers will keep seeing your Rotherham property on Rightmove each week, then start to think there is something wrong with it and dismiss it even further, until you, as the house seller have to reduce the asking price so much (to make it appear inexpensive) to sell it.
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 Rotherham?
The results might surprise you… 42.0% of properties in Rotherham, currently on the market, have reduced their asking price by an average reduction of 6.4% (which equates to £10,500 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 need my advice I am happy to help. Please get in touch here.