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House sellers cutting more off their asking prices

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Date: 11th May 2011

Sellers are chopping their asking prices by increasing amounts. The average price reduction is now £18,790, or 7.1%, off the original asking price, and over one-third of all properties for sale have been discounted at least once.

The information is from property portal Zoopla, which has a feature allowing users to search by discount.

This shows that 36.9% of all properties currently on the market in the UK have been discounted at least once. Although this is very slightly less than the 37.4% in February, the average discount is now £494 higher than in February, and £2,576 higher than last August, as sellers try to shift their properties.

Sellers in the North are generally having to reduce their prices by more and far more often than those in the South.

The highest asking price discounts are in Bolton where the average price reduction is 8.5%, followed closely by Rotherham (8.4%), Newcastle (8.2%), Huddersfield (8.2%) and Glasgow (8%).

In Doncaster, almost half (46.4%) of all properties on the market today have been reduced in price at least once from the original asking price.

Other areas of the country with the highest proportion of price-reduced properties include Wolverhampton (44.6%), Stockport (43.2%), Birmingham (42.8%) and Chelmsford (42.8%).

At the other end of the scale, properties in Croydon (5.7%) have the lowest average discount to the original asking price.

However, the story is quite different at the top end of the market for properties listed at £1m-plus where the average price reduction is at one of its lowest levels of the past 12 months, a sign that demand at the upper end of the market is strengthening.

Paul Gillespie, Founding Partner at multi award winning agents Gibbs Gillespie said: “This research highlights a couple of key points for sellers to consider when putting their homes on the market.

Instructing the right agent at the right price will help reduce the chances of a property going stale and the risk of being seen to chop asking prices, often time and time again.

A good agent will justify their views on pricing and agree a positive marketing plan with a seller that is designed to maximise the value obtained.

In addition, it highlights that whilst the challenging economic conditions affect the whole country, the market cannot be looked at nationally and that different locations and market sectors are operating differently due to a variety of local and regional factors. Again, getting good advice from the local market leading estate agency is a key part of achieving a successful sale.”

For further media information contact Jo Ryan on 020 8869 9863.