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Sellers forced to shave £8,000 off asking prices to get homes sold

Homeowners trying to sell their property at the moment for the price they had initially hoped for may feel that they’re fighting a losing battle.

The uncertainty surrounding Brexit and concerns about the economy mean that many of Britain’s prospective buyers are holding off from making a move.

But new figures published today suggests that those vendors who are realistic about the value of their home are succeeding in getting offers – as long as they shave an average of £8,000 off the initial asking price to secure a sale, according to new figures from property website Zoopla.

The average discount to a property’s initial asking price across England and Wales is 3.7 per cent, but in some areas buyers are getting 100 per cent of what they hoped for, while in others they must cut more deeply to get under offer.

This map shows the ten areas where sellers get closest to their initial asking price: Home sellers in Salford, Driffield and Dronfield typically achieve the full asking price

This map shows the ten areas where sellers get closest to their initial asking price: Home sellers in Salford, Driffield and Dronfield typically achieve the full asking price

This map shows the ten areas where sellers get closest to their initial asking price: Home sellers in Salford, Driffield and Dronfield typically achieve the full asking price

House sellers in Driffield in East Yorkshire are achieving 100 per cent of the initial asking price

House sellers in Driffield in East Yorkshire are achieving 100 per cent of the initial asking price

House sellers in Driffield in East Yorkshire are achieving 100 per cent of the initial asking price

A selection of Northern towns were all found to have buyers who typically paid the full price, while Welsh locations dominated the top ten areas for the biggest discount.

Those selling their home in Driffield, in East Yorkshire, Dronfield, in Derbyshire, and Salford, in Greater Manchester, all typically achieved the initial asking price, at £175,000, £223,000 and £160,000 respectively. 

Zoopla analysed the initial asking prices of properties for sale in England and Wales, and then compared them with sold prices from the Land Registry database.

It found that the average discount on an initial asking price was 3.7 per cent, the equivalent of £8,000 on the average £225,000 price of a home in England and Wales.   

Locations where buyers got close to asking price stood in contrast to the places seeing the biggest gaps between the initial asking price and the actual sold prices.

Mountain Ash, in South Wales, is the worst performing town in England and Wales, with properties achieving 91.5 per cent of the initial asking price.

It equates to an average discount of £6,500 on an average asking price in Mountain Ash of £75,000.

It is followed by Abertillery, also in Wales, where homes achieved 91.7 per cent of the asking price, while homes in Bishop Auckland, in the North East, generated 91.8 per cent of the initial listing price.

Sellers in Dronfield, in Derbyshire, are also achieving the full initial asking price on average

Sellers in Dronfield, in Derbyshire, are also achieving the full initial asking price on average

Sellers in Dronfield, in Derbyshire, are also achieving the full initial asking price on average

Home sellers in Abertillery, in Wales  only typically achieved 91.7 per cent of the asking price

Home sellers in Abertillery, in Wales  only typically achieved 91.7 per cent of the asking price

Home sellers in Abertillery, in Wales  only typically achieved 91.7 per cent of the asking price

THE TEN TOWNS WITH BIGGEST DISCOUNTS TO ASKING PRICES
Rank Town % of asking price to achieved (median) % difference from asking price to transaction price Average discount Average Asking Price
1 Mountain Ash 91.50% 8.50% £6,500 £75,000
2 Abertillery 91.70% 8.30% £6,000 £83,000
3 Bishop Auckland 91.80% 8.20% £9,000 £110,000
4 Tonypandy 91.90% 8.10% £8,000 £84,000
5 Ascot 92.10% 7.90% £50,000 £550,000
6 Weybridge 92.70% 7.30% £40,000 £585,000
7 Middlesbrough 92.90% 7.10% £7,000 £100,000
7 Ebbw Vale 92.90% 7.10% £7,000 £99,000
7 Aberystwyth 92.90% 7.10% £14,500 £210,000
10 Peterlee 93.40% 6.60% £4,000 £60,000
Source: Zoopla         

In London, the average home achieved 94.6 per cent of the asking price with the London borough of Waltham performing the best, achieving 97.92 per cent of the initial asking price.

By contrast, homes in Camden performed the worst, selling at 91 per cent of the initial asking price.

The 9 per cent discount in Camden equates to £75,000, based on the average property price in the borough being £835,000.

In monetary terms, the biggest discount was in Kensington, where asking prices were typically discounted by £125,000. It equates to 8.3 per cent, based on an average property value in the borough of £1,395,000.

In London, Camden performed the worst, with homes selling at 91 per cent of the asking price

In London, Camden performed the worst, with homes selling at 91 per cent of the asking price

In London, Camden performed the worst, with homes selling at 91 per cent of the asking price

TOP 10 LONDON BOROUGHS ACHIEVING CLOSEST TO THE ASKING PRICE
Rank London Borough % of asking price to achieved (median) % difference from asking price to transaction price Average discount Average Asking Price
1 Waltham 97.90% 2.10% £10,000 £475,000
2 Bexley 97.80% 2.20% £9,000 £375,000
3 Barking 97.10% 2.90% £10,000 £325,000
4 Havering 96.90% 3.10% £11,000 £375,000
4 Newham 96.90% 3.10% £12,500 £400,000
4 Redbridge 96.90% 3.10% £15,000 £470,000
7 Greenwich 96.60% 3.40% £15,000 £390,000
8 Sutton 96.30% 3.70% £15,000 £425,000
9 Enfield 95.90% 4.10% £20,000 £430,000
10 Croydon 95.30% 4.70% £18,000 £395,000
Source: Zoopla         
THE 10 LONDON BOROUGHS WITH THE BIGGEST DISCOUNTS TO ASKING PRICE
Rank London Borough % of asking price to achieved (median) % difference from asking price to transaction price * Average discount Average Asking Price
1 Camden 91.00% 9.00% £75,000 £835,000
2 Kensington 91.70% 8.30% £125,000 £1,395,000
3 City 91.80% 8.20% £75,000 £950,000
4 Islington 92.90% 7.10% £50,000 £625,000
5 Hammersmith 93.20% 6.80% £60,000 £925,000
6 Brent 93.30% 6.70% £35,000 £540,000
7 Wandsworth 93.50% 6.60% £45,000 £700,000
8 Hackney 93.70% 6.30% £40,000 £625,000
9 Lambeth 93.80% 6.20% £35,800 £550,000
9 Southwark 93.80% 6.20% £35,000 £575,000
Source: Zoopla         

Prospective buyers looking for a discount should consider whether how a property is priced in the first place. Those with relatively high initial asking prices to similar properties are the best target for a discount, while those that sellers have already priced keenly have less room for money off. 

Patrick Alvarado, director of Knightsbridge estate agency Nicolas Van Patrick, said that many London sellers have already lowered asking price expectations to get prospective buyers through the door.

He said: ‘Vendors realise that if you overprice your property you won’t even get a sniff from a buyer who will completely disregard your property on the basis that you are not a serious seller.’

Those selling homes must decide whether it is better to price low now and get under offer before Brexit, or hold out on the basis that a deal could boost the market.  

Laura Howard, of Zoopla, said: ‘The ongoing uncertainty around what kind of Brexit is in store for the nation, could also be a catalyst for realistic pricing – in other words, a less certain future for the property market calls for prices that will be more certain to sell now.

‘Sellers are perhaps more motivated to set a price for their property that will result in a more likely sale this side of Brexit, rather than wait to see what effect it could have on the housing market in the next six months or so.’

TOP  10 POST TOWNS ACHIEVING CLOSEST TO THE ASKING PRICE
Rank Town % of asking price to achieved (median) % difference from asking price to transaction price Average discount Average Asking Price
1= Driffield 100.00% 0.00% £0 £175,000
1= Dronfield 100.00% 0.00% £0 £223,000
1= Salford 100.00% 0.00% £0 £160,000
4 Sheffield 99.60% 0.40% £500 £160,000
5 Droitwich 99.50% 0.50% £1,100 £240,000
6 Hailsham 99.40% 0.60% £1,800 £263,000
7= Willenhall 99.00% 1.00% £1,500 £150,000
7= Altrincham 99.00% 1.00% £3,000 £350,000
8= Wednesbury 98.80% 1.20% £2,000 £130,000
8= Brandon 98.80% 1.20% £2,800 £186,000
Source: Zoopla         

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