With the end of June only a week away we’re half way through the year and here at Power Bespoke we’ve been discussing the market and how it’s changed so far in 2017.
The first thing most people are noticing is that on any given day looking at Rightmove there are now as many properties reducing their marketing price as there are instructing new to the market. In some locations there are more.
This is a sign of how tough it is out there, agents & homeowners alike, who, weeks ago were confident in the prices they were seeking have come to realise that in the current climate they won’t be achieved.
With this in mind, it’s important to know how to see it from a potential buyers perspective. We’re finding that not only the number of offers are down, but also the amount buyers are increasing from the initial offer to their final offer has decreased.
Last year and earlier this year, we were negotiating offers up by an average 4% from their starting point. This has reduced now to an average of 2%. On a starting offer of £500,000, that is the difference in getting £510,000 instead of £520,000 for your home. Pricing is still critical, in a rising market you can go high and you may still get low offers, now people just won’t come through the door.
Gain back what you lose
Where the only offers are below the initial expectation, rather than become fixated on what the home ‘should be worth’ the best thing we can do is use the certainty of a proceedable offer and try and find somewhere for you and a greater reduction. Infact people who are upsizing will actually be better off.
This is where we have helped clients secure the next home for far less than they thought they could. Anything you lose against your initial expectation we will help you gain back off of your purchase.
This year, I have personally helped clients save an average of £20,500 off their onward purchases. One client in particular who came to Power Bespoke looking for some help and advice had been on the market with Purple Bricks unsuccessfully.
After relaunching his property and increasing the viewings we achieved a couple of offers, the best being £16,000 (3%) below the initial marketing price. Rather than make a rash decision to accept or decline the offer straight away, we looked at helping gain it back with the onward purchase. The property that was at the top of the wish list was still available. After a second viewing and a period of negotiating, we were able to secure the home for £100,000 less than the marketing price (8%). So, a £16,000 ‘perceived LOSS’ on their house vs a £100,000 GAIN on their onward purchase = £84,000 net gain, which was more than enough to gain back what they thought they’d be losing by taking the lower offer.
It’s all about thinking ‘ULTIMATE GOAL’
Staying ahead of the curve
With the market as it is right now, we can’t afford to be missing any opportunity of securing a buyer, which is why we now made investments that allow us to respond to EVERY enquiry within 5 minutes, 24 Hours, 7 Days a week. Along with our outstanding photography, video marketing, social media coverage and the highest click through rates across the major property portals we will make sure your home is seen by as many people as possible.
If you need any help or advice re your property, I’d love to help.
Just fire me and email, email@example.com, or call the office on 01737 246 777.