If you are considering buying or selling a property this year, you are likely to be considering what the most realistic pricing strategy is now that we are facing a tougher property market. Deborah Richards, our Founder and Managing Partner, gives some insight into the shifting expectations of both buyer and seller over the past three years, and explains how it’s not all doom and gloom. Great news for those of you looking to sell your house or buy property in and around Tunbridge Wells!

Changes in the UK property market

When a market shifts, it can do so slowly or quickly. Over the past three years (yes, it is now three years since Coronavirus hit our headlines!), we have seen two very fast market shifts: swinging from a hard buyers’ market to a booming sellers’ market in the summer of 2020, and then back to a buyers’ market in the autumn of 2022.

Whenever a market changes, it always takes time for buyers’ and sellers’ price expectations to become aligned. Throughout the recent booming sellers’ market, we saw buyers bidding high and with conviction to secure their dream property.

Buyers are looking for lower prices

Now, we see buyers opening the negotiations with low offers, often 10% below asking price – having assessed the negative media commentary, taking predictions as fact, and believing that they can pick up a bargain. Then, when their opening bids are rejected, further negotiation see offers being agreed at closer to the asking price but still around three per cent lower according to Zoopla.  

Currently, we are finding a higher number of offers than ‘normal’ being rejected due to a mismatch between buyer and seller expectations. Some sellers are under the illusion that they will enjoy the boom market of the past two and a half years, and although they will undoubtedly be aware of rising mortgage rates and the cost-of-living crisis they sadly do not believe this will affect their property sale. Some buyers, to whom a property purchase represents so much more than an investment to make money, think they will be able to capitalise on a more subdued market.

Changing needs sustain a property market

The reality is that most people move home because they need to, and these needs will continue to keep the property wheels turning. It is those sellers and buyers who are more realistic on their property pricing who will make the move and enjoy how their new home meets their changing needs for many years to come.

No matter how experienced you are as an agent, some factors are completely out of your control in the world of real estate. And although we can’t control every aspect of every deal we are involved in, Maddisons Residential prides itself on setting realistic expectations for our clients. If you are looking to buy or sell a property, please get in touch, we’d love to help!