PROPERTIES SELL WITHIN 4% OF ASKING PRICES IN ENGLAND

Properties in England and Wales are selling for more 96% of their asking price suggesting owners are being realistic about what their home is worth.
The typical property changed hands for 96.3% of its original listing price in the past 12 months, with buyers managing to negotiate discounts averaging just £8,000, our data has found.
In three areas in Manchester, Yorkshire and Derbyshire, homes achieved 100% of their initial asking price, meaning buyers have not been able to negotiate a discount at all.
And even in the worst performing town, buyers were only able to knock 8.5% off the asking price.
Spokesperson, Laura Howard, said: “This close relationship between initial listing and final sale prices, points to a healthy and robust property market in which estate agents and sellers alike are well-versed in and realistic about property values.”

Why is this happening?

The fact that buyers are only able to negotiate small discounts on properties suggests that after a period of subdued transaction levels and stagnant house price growth in some regions, homeowners have become more realistic about their asking price when they first list their home.
It also chimes with anecdotal evidence from estate agents that the market is currently populated by serious buyers and sellers who are keen to get on with a move, rather than people who are testing the water with either high listing prices or ‘cheeky’ offers.

Where are sellers getting closest to their asking price?

Sellers in Driffield in the East Riding of Yorkshire, Dronfield in North East Derbyshire and Salford in Manchester managed to achieve 100% of their asking price during the past 12 months.
Those in Sheffield were not far behind at 99.6%, while homeowners in Droitwich in the West Midlands completed the top five having to discount their properties to just 99.5% of their original asking price.
All but two of the top 10 post towns where properties were sold for closest to their asking price were in northern regions, where the property market is currently more buoyant.
It is also worth noting that only two towns on the list had average house prices above £250,000, namely Hailsham in East Sussex at £263,000 and Altrincham in Greater Manchester at £350,000, suggesting that affordability may also play a role.

Where are buyers able to negotiate the biggest discounts?

Buyers in Mountain Ash, south Wales were able to secure the largest discounts, knocking typical asking prices down by 8.5% or £6,500.
They were followed by those in Abertillery in Wales and buyers in Bishop Auckland in County Durham at 8.3% and 8.2% respectively.
The biggest discounts in monetary terms were in Ascot in Berkshire, where vendors accepted offers from buyers that were an average of £50,000 or 7.9% below the asking price, followed by Weybridge in Surrey, where sellers accepted offers of £40,000 less.

What about London?

In London, homeowners in Waltham were achieving closest to their asking price at an average of 97.9%, followed by those in Bexley at 97.8% and those in Barking at 97.1%.
At the other end of the scale, homeowners in Camden were accepting offers that were 9% below their original asking price, meaning buyers were able to negotiate average discounts of £75,000.
The discount was even larger in Kensington, at £116,000, although this was only 8.3% below the listing price, while in the City of London, homeowners were accepting offers that were 8.2% or £75,000 less than they had originally asked for.

Top 3 takeaways

  • The typical property changed hands for 96.3% of its original listing price in the past 12 months, with buyers managing to negotiate discounts averaging just £8,000
  •  In three areas in Manchester, the East Ridings of Yorkshire and North-East Derbyshire, homes achieved 100% of their initial asking price
  • Even in the worst performing town, buyers were only able to knock 8.5% off the asking price.