Vendors take £13,000 asking price hit to sell home
If you are selling your house, don't expect to get the asking price.
Research from estateagent4me.co.uk has found that on average homes are sold for £13,000 less than the asking price.
That's the equivalent of Stamp Duty on a £460,000 home, so far from an insignificant amount of money. Ben Thompson, managing director of estateagent4me, said: "Sellers should be absolutely focused on securing the right agent for them to ensure they get as close to asking price as possible."
Regional differences
Just how much of a hit you will need to take on the asking price in order to shift your home varies by location, as the table below demonstrates:
Area | Average Asking Price | Difference to Sale Price | Percentage of asking price achieved |
Outer London | £499,995 | -£15,858 | 97.6% |
Bristol | £230,000 | -£7,704 | 97.4% |
Reading | £289,475 | -£8,693 | 97.2% |
Sheffield | £127,748 | -£5,245 | 96.5% |
Cardiff | £180,000 | -£8,495 | 96.3% |
Central London | £950,000 | -47,272 | 96.1% |
Nottingham | £120,000 | -£7,154 | 95.7% |
Manchester | £135,000 | -£8,112 | 95.5% |
Birmingham | £149,950 | -£9,544 | 95.2% |
Leeds | £159,950 | -£10,925 | 94.8% |
Liverpool | £115,000 | -£10,647 | 93.9% |
Wales | £169,500 | -£11,658 | 93.4% |
England | £225,000 | -£12,792 | 95.9% |
UK | £209,995 | -£12,742 | 95.8% |
Source: estateagent4me
As you can see, vendors in Wales are taking the biggest percentage hit, managing just 93.4% of the asking price. That's the equivalent of slashing more than £11,500 off the average asking price.
While vendors in outer London are dropping their price by the least in percentage terms, the value of the property means that the discount is still very significant at almost £16,000.
Getting more than the asking price
However, not everyone is having to cut the price in order to shift their home. In fact some estate agents are regularly managing to sell properties at more than the asking price.
Given the booming property market in London, it is perhaps no surprise that the estate agents that managed to get the biggest transactions above asking price are all found in the capital.
Hastings International in Rotherhithe achieved an average of £31,105 over asking price over the last six months, Winkworth in Palmers Green managed an extra £16,215 and Douglas Allen in Dalston got its clients an average of £15,083 above the asking price.
How to minimise the gap
So how do you improve your chances of selling your house for the asking price, or at least very close to it?
Set a realistic price
The best way to achieve your asking price is to quote a realistic asking price in the first place. Many estate agents will quote an inflated asking price in order to win your custom. Don't fall into this trap by getting at least three valuations from different agents and compare them with recent sold prices in your area. You can find data on sold prices on the Land Registry website or property portals such as Rightmove or Zoopla.
Price right for online portals
Thompson advises doing additional research on the portals - looking at their price bands.
"Check out the cut-off points on the online agents and make sure you're pricing to sit within the bands you want to attract interest from," he said
Dress for success
As well as tidying up your home and making sure it looks its best, also consider who is likely to buy your house. "If it's a young family leave toys in the play areas, or if it's older downsizers, keep the space clear and uncluttered," explains Thompson. "Young professionals will want to know about local options in terms of bars, restaurants and so on."
