MAKE SURE THE PRICE IS RIGHT

Years ago, the property market would hit pause when the summer holidays began, with very little activity as people instead concentrated on heading for the sun, writes Andrew Cusack.

More recently, activity has become more consistent. This doesn’t necessarily mean a breakneck pace throughout but given that many homes look their best in the sunshine, enhancing their appeal, the summer can in fact be a very good time to be selling.

We did see a very brief lull in the market during the two weeks or so prior to the general election, but this was a minor distraction.  As soon as the polls closed and we had political certainty, a frantic pace resumed, and shows little sign of slowing down.

The market is rather more balanced than it was a year or two ago, when a huge mismatch between supply and demand meant that buyers were fighting among themselves to view and purchase the few properties which were being offered.  A better balance is good news for everyone, although it is still not completely in equilibrium: there are still more buyers than there are houses for sale.

This may surprise people who have read recent comments about price reductions increasingly being seen across the market.  But as ever, it is important to look behind the headlines to find the full truth.

The fact is that if a property is priced at a point where the market perceives is right, then it will still sell quickly – often within a couple of weeks.  The problem comes when the asking price is set too high, either because of unrealistic expectations on the part of the seller, or following an inflated valuation by an agent desperate to win the business.

Trying for a high price may seem tempting, but if that results in few or even no viewings, it can be counter-productive.  Buyers’ perception of a price reduction can range from viewing it as an opportunity to put in an even lower offer, to thinking there is something inherently wrong with the property.

Even in a market where there are more buyers than properties for sale, pitching the asking price at the correct level is one of the most important parts of maximising value for vendors.  Don’t be tempted by an aggressive valuation from an agent who is either ignorant of or ignoring where the market stands – it will almost always result in it taking longer to sell the property, and usually in achieving a lower actual selling price, too.