Asking Prices Slashed in the South East as Home Sellers Struggle to Find Buyers
Home sellers in the South East of England are reducing asking prices in a bid to attract buyers, according to new data from property website Zoopla. Eight out of the top 10 areas in the UK with the highest proportion of price reductions of 5% or more are located in the South East. Thanet in Kent, which includes the town of Margate, has seen over 20% of its current property listings slashed by 5% or more in the last 90 days. Other areas such as Dover, Brighton and Hove, and Surrey Heath have also experienced significant price reductions.
Increase in Price Reductions Across the UK
Overall, 11.8% of homes across the UK have seen their prices cut by 5% or more in the past 90 days. This is a significant increase compared to the previous five years, where the proportion was only 6.9%. Rightmove has also reported that over a third of homes for sale have had their asking prices reduced, the highest since January 2011. The average home up for sale has seen a price reduction of 6.2% or £22,700.
Sellers Becoming More Desperate to Attract Buyers
Zoopla suggests that the larger price reductions of 5% or more indicate that more sellers are becoming desperate to attract interest from buyers, particularly in the South East. Many sellers are also reducing their asking prices by smaller amounts, fearing that larger cuts may limit their options for buying their next property.
Opportunities for Bargain Hunting
Whether the property market is ripe for bargain hunting depends on the future direction of house prices. However, experts suggest that there may be greater room for negotiation and haggling below the asking price. Buyers should be aiming high and offering low, especially for homes with asking prices outside their budget. Motivated sellers are more likely to prioritize a quick sale over the maximum price, creating opportunities for well-prepared buyers who are chain-free.
Asking Prices Don’t Necessarily Reflect Value
It’s important for buyers to remember that asking prices are not necessarily an indication of value or what the seller will accept. Professional buying agent Henry Pryor states that an asking price is part of the marketing strategy and is often influenced by the owner’s greed and the agent’s enthusiasm. It’s crucial not to rely solely on the asking price when determining the value of a property.
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