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There has been so much written and said about property prices in London that it is easy to see why many people have been left jaded or bored with the discussion. However, given the importance of property, it is natural that people retain an interest and want to be fully informed when it comes to property prices. One topic that has risen in importance of late is asking prices in London. It would be correct to say that asking prices in London are too high and at Brixton Property Blog, I am here to help you manage expectations with what you want to achieve in the London property market.

NAEA Propertymark have highlighted the fact that asking prices are higher than selling prices. In a report looking at prices for March of 2018, it was found that 86% of properties sold in the UK were sold at a price that is lower than the asking price. Records for this type of analysis began were first collated in 2013 and this figure was the highest percentage.

Asking prices have been higher than sales prices for some time

However, it is not as though the March 2018 figures came out of the blue or that there had been no warning. In their year-end review of 2017, NAEA Propertymark declared that 77% of homes sold for less than the initial asking price. The same organisation also said that for February of 2018, the figure was 74%. This suggests that overall, there should be serious concerns about this gap and a lot of criticism has been laid at the door of estate agents.

Agents who have provided high valuations and encouraged property owners to list their home for a high price have been branded “irresponsible”. It is easy to see why some estate agents have acted in this manner. The property market is highly competitive, and many agents are under pressure to meet targets and bring clients in. It is perhaps natural for these professionals to make big claims to clients with the hope of winning instructions. The problem comes further down the line when homeowners realise that they are not going to sell their home for the sort of money that was suggested by the estate agent.

Make sure you know what your budget is

If the seller is basing their next step in the property market on expectations of what they can sell their home for, a lower figure may cause property owners to rethink their options. There is also the fact that some property owners will end up thinking that it isn’t worth their while to sell their home when the offer price comes in much lower than the asking price.

This could have a hugely negative impact on the property market, affecting everyone.

Therefore, it is best that property owners are realistic about what they can expect when selling their home. It is vital to be aware that selling prices are often lower than asking prices, and then adjust your own expectations accordingly. Of course, there are ways in which you can increase the value of your home, making it more attractive to prospective buyers. If you would like to positively impact on the value and attractiveness of your home, I am more than happy to help so please get in touch.