The Right Price for the Property Triangle

Selling at an inflated price doesn’t help the easy flow of the properties for sale triangle involving the buyer, seller and agent. Firstly, it can put off the all-important buyer. True, the savvy buyers will still view and make an offer they can afford but for those less experienced, it can alienate them from even viewing a property.



Surely it’s better to have too many viewings with the potential to try to outbid each other than no interest at all? Secondly, it can frustrate those sellers who have been misadvised and are patiently waiting for buyers to line up and view their property; but all they are experiencing is a glossy advert week after week. Thirdly, the estate agents –a house waiting to sell at an over inflated price doesn’t help them achieve their commission.



The flow of the triangle will work much better if the three points work in harmony with the market place. The days of any of the said entities having complete power have gone and within the sensitive industry it’s best to ease a little on expectation. Recent data shows that although there are plenty of buyers in the market but that they remain price sensitive and this is the key to gaining a sale at a realistic price. According to Hamptons International, the supply of

properties for sale is up 15 percent versus 2010 which gives the buyers more choice. Hence, to achieve a speedy sale, the price must be in line with local market value.



It’s important to note how quickly the market statistics can change. Marc Goldberg, Head of Sales for Hamptons International (a property company who has over 140 years experience and 80 offices in the UK and key overseas markets) recently commented; "our January results implied that demand was about to surge, with new instructions and the number of registered buyers up in every region. However, February and March demand data is less clear cut." Goldberg urges vendors that this is a key point underlining the price sensitivity in the market place and realistic pricing is the only way to achieve a harmonious sale.



One of the other factors helping the easy flow of the triangle transaction is the availability of mortgage products. Property companies such as Hamptons International who deal with purchasers who don’t require high loan to value mortgages are less affected by the lending restrictions. Furthermore, their offices are predominately in London where transaction levels are strong and having a knock on effect across the south of the UK. Overall this is the not the same picture across the nation but with the new deals coming into the market giving wider availability of the 90 percent mortgage shows that lending is moving in the right direction.