While it is currently a buyer’s market, with room for negotiations on many properties, purchasers’ expectations are proving to be unrealistic, according to buying agent Jo Eccles.
She says, put simply, buyer discount expectations are often not being matched with reality, especially at the upper end of the housing market.
“We’re seeing a real disconnect between the expectations of new buyers coming into the prime central London market, particularly those searching in the £2m – £5m price range, and the reality that faces them once they start actively house hunting,” said Eccles. “Transaction volumes are down significantly compared to twelve months ago, but in my view this is largely price related, rather than demand related.”
Sellers have, in Eccles’ view, started to price properties more realistically and she has seen some instances of estate agents refusing to take on a sales instruction which they believe is priced unrealistically high. Despite this, some buyers are entering the market thinking they hold all the cards.
She explained: “[Buyers are] expecting to automatically achieve a 20% discount on last year’s prices, but are finding themselves disappointed – and in the process of submitting unrealistic offers they are losing credibility with agents.
“Discount opportunities do exist and can be found, with careful searching and tactful negotiation, but a strategic and considered approach is required.”
She argues that reduced confidence in the market has brought about a shift in mindset, with buyers much less willing to take a view on matters that arise during the conveyancing process.
She continued: “Our network of experts from heritage and planning teams to architects and interior designers, tree and acoustic specialists, are proving indispensable for pre-exchange advice on points that buyers would normally view as non-critical.
“We’re also navigating buyers through negotiations on long and complex fixtures and fittings lists and other purchase conditions such as boundaries, potential construction costs and ongoing maintenance expenditure. This is in contrast to normal market conditions where we see a higher degree of urgency, with both sides usually more inclined to show greater flexibility or take a view to maintain momentum.”
I don’t mean to be rude but certain estate agents are still overvaluing property massively. Then after 2 weeks dropping the price drastically.
certainly in the lakes this is happening.
a lot of the house info is still geared to the London lock down audience which is a real miss on the target audience left. Business is business take the offer or don’t simple.
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This happens everywhere.
An agent overvalues the property to win the instruction, then reduces the price significantly to secure a sale and therefore their commission.
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I’m in agreement with the last comment property in my local area most estate agents are pricing like we are in the crazy period of the pandemic and everyone still has deals of 1% or less on their mortgages.
About 4 months ago I offered 200k for a 2 bed bungalow priced at 245k, I was laughed out of the building for my unrealistic bid.
I was told you have no chance of a discount as the market is not on a downward spiral as I suggested the prices would increase due to Eden project development nearby & we have cash investors lined up ( I’m getting sick of the we have cash investors spiel from all the estate agents in my area so far it’s getting tiresome ) .
The house in question now sits at a reduced price of 210k like many other properties I’ve bid on are now massively reduced but still nowhere near where they should I’m waiting it out to pick up a bargain when the housing market finishes it’s inevitable crash/slowpuncture/ whatever you want to call it .
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