The Thurrock Property Blog
By Paul Tobias-Gibbins
WHY Tilbury Sellers are Having to Reduce Their Asking PricesNovember 3, 2018 by Paul Tobias-Gibbins
Some interesting statistics have come to light on the Tilbury Property Market which will be thought provoking for homeowners and landlords alike. Over the last 12 months, 159 households have changed hands in Tilbury, interesting when compared with the 10-year average of 161 households per year.
For the purpose of this article, I wanted to discuss the pricing of the current crop of Tilbury’s property sellers; Looking at the prices they are asking for their homes and the prices they are achieving (or not as at the case may be). It is so important for all property owners to know the real story, so they can judge for themselves where they stand in the current housing market. Thus enabling them to make suitable and informed decisions. I pride myself in telling the people of Thurrock the real answers, not just the ones they want to hear.
Asking Price vs. Final Price
The national average of homes selling at or above the asking price currently stands at around 10%, so around 90% go below the asking price – but by how much? Well according to Rightmove, in the Tilbury area, the average difference between the ‘final asking price’ to the price agreed is 3.1%. The word final being very important here
You see some Estate Agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a greater chance to secure the property on that agent’s books, as opposed to a competitor. This practice is called overvaluing. Now of course, each homeowner wants to get the most for their property. It is quite often their biggest asset – yet some agents know this and prey on those house sellers. You might ask, what is the issue with that?
Overvaluing Means Underselling
You only get one chance of hitting the market as a new property. Everyone has access to the internet, Rightmove and Zoopla etc, and your potential buyers will know the market like the back of their hand. If you have a 3 bed semi that is on the market at a 3 bed detached price.. those buyers will ignore you. Your property sticks on the market, potential buyers will keep seeing it on Rightmove each week, then start to think there is something wrong with it.
This continues until you, the house seller, has to reduce the asking price so much (to make it appear inexpensive) to get it away. According to our own research, the average house buyer only views between 4 and 5 houses before buying – so don’t assume viewers will come round your optimistically priced (i.e. overvalued) property, thinking they will knock you down – no quite the opposite!
So how widespread is overvaluing in Tilbury?
The results might surprise you …
26.9% of properties in Tilbury, currently on the market, have reduced their asking price by an average reduction of 4.9% (which equates to £13,100 each)
So, all I advise is.. be realistic and you will sell at a decent price to a decent buyer. First time – every time – enabling you to move on to the next chapter of your life.
Property question? Drop me a line at Paul@thurrockpropertyblog.co.uk