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Homeowners slash prices to entice buyers

Homeowners slash prices to entice buyers

Category: Mortgages

Updated: 08/02/2012
First Published: 08/02/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Homeowners looking to sell their properties have resorted to cutting thousands of pounds off their original asking prices.

New figures show that more than a third (36.7%) of UK properties for sale currently have been reduced in price on at least one occasion since coming to the market.

Homeowners have slashed huge sums from their original asking prices in an attempt to attract buyers.

In fact, research from Zoopla shows that the average discount off the original asking price being offered by sellers across the UK on these homes now stands at £19,580 (7.5%) – an all time high.

The average discount on price-reduced properties on offer today is over £1,000 more than this time last year when it stood at £18,475 (7%), with the total amount reduced from the asking prices of all properties currently for sale across the country standing at £2.5 billion.

Nicolas Leeming, business development director of Zoopla, said the figures indicate that sellers have come to terms with the realities of the property market.

"Pricing correctly remains key when selling a home and whilst there is a shortage of sale stock currently, buyers are more discerning and more informed than ever before," he added.

"Serious sellers must do their homework and follow the advice of their agent before settling on an asking price – otherwise they may well find their property on the market for longer than they'd hoped."

Glasgow tops the list of places where the biggest discounts are currently on offer with an average price reduction of 9.2% (£12,566).

Sellers in Blackpool are also making big concessions, knocking 9% off their original asking prices on average, whilst Maidstone rounds out the top three areas with the highest average reductions in price at 8.5% (£19,668).

Stockport has the highest proportion of discounted properties for sale with nearly half (49%) of sellers having cut their asking prices at least once.

Other areas where a big proportion of sellers have felt the need to drop prices include Chesterfield (45%) and Rotherham (44%).

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