Price Correctly if you wish to sell
March 26th, 2008 by 
Guy
Property Home Owners are not to weighing up to the reality of the credit crunch by marketing their houses on the market at unbeleivable prices, according to the latest survey from Rightmove.
The UK’s biggest property website claimed that sellers, who are still looking for prices near to the peak of the boom in early 2007, need to price their properties more realistically now, rather than wait until later this year, if the UK is to fend off a stagnant house market.
They also wanted quick action from the Government to strengthen the funding markets and ease the credit crisis which is stopping some people from getting mortgages.
While sellers were firstly looking for similar prices to the boom times, some deals can be struck at 10pc below peak boom prices, demonstrating that the difference between the amount sellers want and the amount buyers are willing to pay.
Rightmove said “the average asking price was £239,655 in March, an increase of 0.8pc compared with the previous month. However, the annual rate of actual selling prices fell from 5.8pc to 5pc.”
Miles Shipside, commercial director of Rightmove stated: “Most sellers coming to the market seem to be ignoring the increased competition from other unsold properties and the challenge buyers now face in obtaining a mortgage.”
“As many of these sellers are likely to be buyers themselves, they seem to be trying to bank a higher figure for their home but want a bargain when they buy. It’s human nature, but in the current market, sellers should price below their competition to achieve more interest now and avoid a larger price drop later in the year.”
Rightmove said that the situation is likely to worsen, as the excess of supply over demand is on course to worsen and the ongoing credit crunch leads to a further tightening of lending criteria, preventing some potential buyers from getting a mortgage.
According to Righmove, of 10 regions across England and Wales, average prices fell in two - the West Midlands by 2.9pc and East Anglia by 0.6pc.
The biggest increase was in Wales, where the average home sold for 3.5pc more than in February.
Posted in Mortgage news | 