With house prices surging upwards as they have done in the last couple of years it is difficult to even contemplate a reversal of this trend but like it or not, that is exactly what is happening at the present time. We are not for a minute suggesting house values will tumble back to the levels of pre-Covid days, but there is plenty of evidence to tell us we are witnessing a price correction and for homeowners who want or need to sell, they may need to trim their price expectations a little.
When we say there is plenty of evidence showing house values have come back a little, we base this on a number of market indicators:
- More homes are being passed on at auction than say 2 – 3 months ago.
- Attendance at open home inspections has dropped away.
- Multiple offers are less frequent than they were, irrespective of the method of sale.
- The ‘fear of missing out’ (FOMO) is not as intense as it was. Buyers are being more circumspect and taking more time before confirming their buying decisions.
- Rising mortgage interest rates and the difficulty of arranging finance has removed some buyers from the market.
- Negotiated sales over the last two months have shown there has been a definite dip from the level of prices being obtained previously.
- Houses are taking longer to sell and home sellers need to factor this into their timetable when selling.
- The number of homes for sale has increased considerably over recent weeks, meaning buyers have a greater choice and will likely negotiate harder.
This probably sounds like doom and gloom, though we don’t wish to convey that message as there are always exceptions to the rule and there will be instances where top prices are negotiated. One way of looking at the situation is to acknowledge that the prices being obtained a few months ago could not be sustained but today’s values will still show a handsome profit for those who have been in ownership for a year or more.
Without going into too much detail, we list below a few pointers that may assist homeowners selling over the next few months:
- Ask your Tommy’s agent to provide you with market data from recent sales when establishing an asking price or price range. We stress the need to absorb good advice and be guided in particular by recent market data.
- Take into account the level of opposition you have in your particular location. Savvy buyers will be looking for the best value. There are a number of properties for sale at present and you must be competitive. The number of properties for sale normally increases in spring so make the most of the next couple of winter months.
- Price is the key factor in any home buying decision. Going to the market with an overpriced property causes anxiety, frustration, and is a springboard for other houses to sell. A property that has been on the market for a prolonged period of time becomes stigmatised unnecessarily and buyers look for faults that probably don’t exist. Don’t fall into the trap of going with the theory that ‘if l start at a high price I can always come down’. In a competitive market, a property price needs to be pitched at the right level to encourage offers. Your Tommy’s agent can then negotiate the best possible price on your behalf.
- Don’t overlook that if you are purchasing again on the same market, you will likely counter any perceived reduction in your sale price.
There is no doubt that pricing a property correctly is the first step towards achieving a successful sale and it is unrealistic to base your expectations on last year’s market prices. In a competitive market though there are the obvious pointers that are worthy of your consideration, and therefore worth repeating.
Presentation is paramount and first impressions are important. Ensure your gardens and lawns are well groomed. De clutter the interior of your house. Less furniture can give the impression of additional space. Do you need to enhance the appearance of your home by home-staging with more modern furniture? Would a little paint and paper make the home more attractive to buyers? Show flexibility with settlement dates and make sure that any chattels being sold are in good condition and clearly defined.
To reiterate though, pricing is paramount, and your Tommy’s agent will give you the advice required to ensure you obtain the best price possible on what is a changing market. Talk to your local Tommy’s agent’s, we’re here to help.