House buyers are successfully negotiating a discount of just 3.7% off the listed sale price
Property sellers across England and Wales appear to be pricing realistically in line with what buyers expect, according to new research by Zoopla.
Their analysis of their own listings data and records from the Land Registry suggest that the average property sold for 96.3% of the original asking price in the last year.
This translates to buyers negotiating a discount of just £8,000 on average, although this varies significantly by region. For example, buyers in Ascot were able to secure as much as £50,000 off the price.
However, sellers in the most discounted regions still only accepted offers 8.5% below the asking price, whilst all but 2 of the top 10 locations where discounting was lowest were in the northern regions.
In some instances, buyers and sellers both completely agree on the price, with properties in Driffield in Yorkshire, Dronfield in the East Midlands, and Salford in the North West exchanging for 100% of the asking price.
According to Zoopla, the data indicates that homeowners are now setting their asking prices in line with expectations when listing their home for the first time, in a positive sign after a prolonged period of subdued transaction volumes and slower price growth.
In addition, it correlates with anecdotal reports from estate agents that the property market is being driven by serious and dedicated buyers and sellers keen to see a sale, instead of what it describes as “cheeky” offers.
Laura Howard, spokesperson for Zoopla, said: “This close relationship between initial listing and final sale prices, points to a healthy and robust property market in which estate agents and sellers alike are well-versed in and realistic about property values.”
Property transactions have risen by their fastest rate in almost a year, according to recent research by London Central Portfolio.