On a UK wide basis, homeowners and potential investors continue to be bombarded by our media on a daily basis with alarming reports of falling house prices, coupled to high-interest rates and the possibility of negative equity.
Bad news sells newspapers!
It is fair to say that in certain parts of the country, the property market has shown definite signs of cooling and homeowners selling their homes have faced increased competition given that there are more homes available.
The month-by-month increase in mortgage rates until last month has played a pivotal role in this cooling down, taking a toll on potential buyers’ incomes and squeezing affordability/demand. The consequence? Some previously buoyant regions, especially in the South, have experienced price corrections. As their markets encounter this cooler front, the availability of good schools, amenities, and transport links remain paramount for those looking to buy.
Here in Harrogate & District, we have experienced all of the negative influences but the inbuilt robustness and demand in our local property marketplace, aided by a certain Yorkshire trait of being very steady under fire – means that sales and the selling prices of homes with a really good Agent (I recommend Myrings) remain strong.
We are great matchmakers – and tell our clients to fall in love and marry the house and only date the interest rates.
In any property marketplace however under some stress even in Harrogate, the strategy of some Agents is to suggest that a property is put on the market at an over-inflated price with the option to make it seem more inviting if there are no takers.
We think this a bad idea – expert/realistic pricing is the best way for all parties involved.
Having said that we do understand that it’s tempting in the right circumstances to price a home ambitiously and test the waters with a slightly higher price tag (and we do it all the time).
Close attention week by week to its direction of travel is essential.
After four weeks of marketing, it is possible to judge if a property is priced correctly, gauged by the number of web views on the property portals (as per Rightmove / Zoopla etc), actual viewings of your property and any offers received.
However, if there are no real takers – refusing to adjust the asking price after a few weeks can be a costly mistake.
An overpriced home can stagnate on the market, making some potential Buyers assume there’s something wrong. The longer a property sits unsold, the more it becomes stigmatised.
A lack of any serious early interest/viewings is a red flag and it’s important then to reconsider the asking price.
Being responsive and proactive, homeowners can avoid the pitfall of a stale listing and increase their chances of a successful sale and move.
In all of this should a property generate a number of interested Buyers – all can be successfully resolved in a ‘Best & Final’ offer and sale.
Sometimes, properties for various reasons, don’t sell at a price which is acceptable to the homeowner.
Here renting out an unsold property is an interesting option given our strong rents & high demand locally but we would suggest you talk to a good Letting Agent (again I would recommend Myrings). Becoming a Landlord is a considerable undertaking and nothing close to a fascinating hobby such as stamp collecting.
It’s a very serious financial investment/business and if managed correctly can be very rewarding.
Landlords must tread carefully and be aware of legally binding regulations, mortgage rates, tax implications and tenant-related challenges.
Finally, we would encourage any homeowners considering a Sale (or becoming a Landlord) in the next 6 months to contact us to discuss the above or any other
property opportunities/interests.
Charles.
