Cluttons has instead been pricing properties to sell, and in most cases this has created serious competition amongst buyers, resulting in above asking price sales.
James Hyman, Partner for Residential Sales at Cluttons, comments:
“Sellers shouldn’t be over-zealous on price. While values remain relatively strong in the prime central London market there is still market sensitivity. Buyers are very well-informed; if sellers price above the market level they are liable to alienate a proportion of their target buyers. With limited footfall through the door, a property can get stale very quickly.
“It is better to price competitively in the first place, thereby generating plenty of interest and lots of viewings and creating a situation where buyers are competing to secure the property, rather than overvaluing initially and having to drop the price four to five weeks later. This will result in a faster sale and higher final sale price.
“Properties need to be under offer in six weeks to harness the higher levels of interest while it is new to the market. Going to market with the highest valuation is not necessarily the best way to secure the highest price. Buyers know the true market value and will no longer just offer the traditional 10% below asking price.”
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