The Inside Edge
Those with a property on the market right now might find they have to bite the bullet and reduce the asking price to make a sale. Before you start knocking thousands off of the price of your home, work out how much you can afford to reduce the price by first. Take into account your moving costs including conveyancing, estate agent fees and stamp duty. You also need to include removal company costs, temporary storage if required, the cost of temporary homing for pets and many other costs that people forget to include. If you are lucky you may still come out making a profit.
According to research conducted by Zoopla, the average price reduction of a property in the UK has reached a new high and currently stands at £19,500. More than 40% of properties currently for same have had their asking price discounted at least once and that figure is growing.
Of the properties that have had a reduction the average discount stands at 7.4% which represents a reduction of almost £3 billion off the initial asking price. Sellers are becoming more and more realistic and more desperate to move before the year comes to a close.
Even those more resilient markets in London have not escaped the great price crash. 32.6% of available properties in the capital have had their asking prices reduced. However the average reduction in London is smaller at 6.43%.
Nicholas Leeming, business development director of Zoopla.co.uk, said:
“With the current economic uncertainty and difficulty buyers face in finding funding, it is no wonder that sellers are having to reduce prices in order to encourage sales. And with the latest economic forecasts for 2012 looking decidedly gloomy, sellers may have to reduce their expectations further if they are serious about making a move.”
Of course, reducing the asking price is nothing new and nothing to necessarily be panicked by. Even when the economy is booming many have had to reduce their prices in order to make a sale. It all comes down to how desperate you are to move and how low you can afford and are prepared to go. Reducing the asking price and then finding you won’t have enough money to move after all can be avoided by doing your homework, finding a good mortgage deal and ensuring you have enough money to cover your moving costs.