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COUNTRY MARKET COMMENT |
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Above: Devon, £1.25 million
guide
Top left: Dorset, £520,000 guide
Above far left: Northamptonshire, £625,000 guide
Above left: Surrey, £595,000 guide (part) |
Choice rewards
In markets
other than property, greater choice usually creates faster
and growing sales, as ever more tempting products persuade
buyers to part with their cash. But the market for, say,
shoes, would be rather different if, every time you wanted
a new pair, you first had to find a buyer for those you
were standing in. In such a market, rewards flow to those
who accept its conditions and plan accordingly.
Buyers of mainstream country houses are relatively spoilt
for choice at the moment. The level varies from one part
of the country to another but, across our 39 offices as
a whole, the number of properties on our books is up by
over 20% on the same time last year, whilst the number
of would be buyers registered has fallen by some 5%. Ostensibly
great news for buyers, their glee is restrained by the
fact that most are sellers, too, unable to make a bid
until a purchaser is found for the home they are in. So
a lot of frustrated window shopping goes on and it takes
more time, not less, for sales to be agreed. Even after
they have been, a greater proportion are falling through
than for some years, as arguments arise over relatively
small matters and the buyer, seeing opportunities elsewhere,
decides to walk away. Yet such exasperations are far from
inevitable: a remarkable number of our sales continue
to be agreed in weeks, not months and to reach completion,
still at or above the original guide price, without major
incident. Achieving this cannot be guaranteed, but there
are proven steps towards maximising its likelihood. These
revolve around generating competition and anticipating
pitfalls.
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Pricing
is critical. This is easy to accept in theory but takes
a little nerve to put into practice because the best strategy,
often, is to set a realistic guide price at the lower
end of your expectations. For many, such a move goes against
the grain – surely one should set a price that allows
you to ‘come down’ a little? This sounds sensible
but, in these internet-browsing days, buyers make multiple
comparisons very quickly. They recognise value when they
see it and ask to see only houses that offer it. Go in
too high, and you will be ignored. In contrast, an attractive
price, coupled with strong marketing, drives all serious
potential buyers to you more or less simultaneously, heightening
the chances of early competitive bids and, time and time
again, securing an excellent price. In agreeing that price,
however, one must, as far as possible, identify any potential
misunderstandings as to what it includes, as last minute
differences of view often take on a disproportionate significance.
Typical grey areas include remaining heating oil and good
furniture that appears to be fitted but is not.
Below left: Devon, offers
in excess of £520,000
Below: Kent, £1.5 million
guide
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A thoughtful approach
to the market in which you wish to sell is all the more
likely to reap rewards because, in most areas, the market
is considerably stronger than some reports suggest. It
is true that some of our offices have seen a sharp fall
in the number of sales achieved and that, overall, sales
are down. But, bucking the trend, some offices have managed
an increase and the average reduction in sales volume
is just 5%. Our average sale price, meanwhile, continues
to rise, up by an extraordinary 14.7%, year-onyear, at
the time of writing. In a market with more sellers and
fewer buyers, this seems hardly possible. Are we saying,
contrary to the general view, that mainstream country
house prices have risen? No – a closer examination
of our results makes it clear that much of this increase
is due to higher demand at the very top of the market
and our greater share of that sector. Nevertheless, taken
with the lack of pressure for interest rates to rise and
the still healthy number of sales being agreed each month
by almost all of our offices, this does bode well for
the continuance of a market which, though highly competitive,
remains active and alive with opportunity.
Above: Cheshire, £1.675 million
guide
Above left from the top:
Gloucestershire, £2.25 million guide
York, £925,000 guide
Norfolk/Suffolk borders, £2.2 million guide
Hayling Island, Hampshire, £745,000 guide |
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