Seller's Guide | Spring 2023

When selling a property, it is understandable to want to make as much profit reasonable. Whether you’re moving up the ladder or downsizing, the price matters. This means that understanding how you price a property important. Are you looking for a quick sale? Does the property need work, and do you know will be discovered in a survey? Do you need a specific amount to make your next move? The motivation for pricing a property is an individual decision and will depend on the quality of your asset.

But just like when buying a property, market factors are inherent considerations. Newer features help you when you come to sell, extensive or unfinished work will be factored into the value of your property. Do your research, as now the market is still very much in flux. When conducting your research, start by comparing your own home to the value of similar properties. Don’t just limit it to properties on your street. Look for places that match your home’s layout, and in different areas if it’s applicable. This is definitely the case in London. Buyers have very specific ideas of where they want to live, sometimes down to a specific street, but it’s wise to think about the next up and coming spot. Another worthwhile idea is to shop around for an agent you trust and can build rapport with. Get at least three quotes from different agencies.

Market factors like the increase in mortgage rates, cost of living crisis and fallout from the mini budget back in September are all playing a part. But moving forward, the market is broadly stabilising and the power between buyer and seller is looking more evenly distributed. A Zoopla report from late last year says sales were down 28% compared to the year before. The report says “weaker sales and more homes coming to the market mean that the stock of homes for sale continues to rebuild off a low base. The average estate agency office has 23 homes for sale. This is the highest since January 2021 but almost a fifth lower than pre-pandemic levels. This trend is being recorded across all areas of the UK.”

More homes on the market means more competition, which is another reason to price your property competitively, even if you feel it’s worth more. A property crash is fairly unlikely, but prices are tipped to continue dropping. As reported in Rightmoves last House Price Index for 2022, the average price of property coming to market dropped by 2.1% (-£7,862) in December, a bigger dip than usual at this time of year. This is likely due to determined sellers pricing aggressively to tempt hesitant buyers. But while there are more properties on the market, the scarcity will continue, especially in highly desirable areas or property brackets. This should buoy prices this year.

Zoopla’s report is very clear about the rebalancing of prices, stating “one in four homes for sale since 1 September [2022] has experienced a price reduction of any size. Over one in ten (11%) has recorded a reduction of over 5%. Price reductions have been greatest in southern England, where sales activity has fallen back the most. The South East and East of England regions have seen almost 1 in 3 homes for sale have their asking price reduced in the hope of attracting more buyer interest.” But this needn’t be a disaster. Market rebalancing is important, as is understanding the true value of your property.

To see the rest of our Q2/23 Magazine, click the link below to view the articles online:

https://issuu.com/briklondon/docs/brik_magazine_-_2023_-_q2_-_issue

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