Keep­ing buy­ers and sell­ers on same track in ris­ing mar­ket

Yorkshire Post - Property - - PROPERTY - Tim War­ing

WITH re­cov­ery of the UK res­i­den­tial prop­erty mar­ket ex­ten­sively re­ported in the me­dia by the Royal In­sti­tute of Char­tered Sur­vey­ors (RICS), amongst oth­ers, it is in­evitable that both buy­ers and sell­ers are con­tem­plat­ing the fu­ture.

My big­gest fear for the res­i­den­tial prop­erty mar­ket is the po­ten­tial for a “dis­con­nect” be­tween buy­ers and sell­ers in what is widely now ac­knowl­edged as an im­prov­ing mar­ket place across York­shire.

Un­der­stand­ably, sell­ers wish to max­imise their price and are start­ing to harden their po­si­tion with some hav­ing now con­vinced them­selves that prices will be higher next spring.

A re­cent ex­am­ple I ex­pe­ri­enced was an owner want­ing to in­crease their price af­ter the first viewer made an of­fer at the guide price.

My worry is that if this think­ing be­comes wide­spread, sales will stall. Some buy­ers are still ex­pect­ing heavy dis­counts be­cause “they have the cash”. Iron­i­cally, on the same day as the pre­vi­ous ex­am­ple, we had an in­quiry from a po­ten­tial pur­chaser, on a house that had only been on the mar­ket for 10 days ask­ing “is the buyer likely to ac­cept a sig­nif­i­cantly re­duced price for a quick deal?”

Both po­si­tions are very un­der­stand­able and some­thing I am par­tic­u­larly aware of given I am sell­ing my own house at the mo­ment.

Ev­i­dence over the last cou­ple of months would ap­pear to sug­gest that the ma­jor­ity of buy­ers and sell­ers are heed­ing the ad­vice by ac­cept­ing or pay­ing the mar­ket price in sum­mer 2013 and not spec­u­lat­ing on what could hap­pen next year.

It is en­cour­ag­ing that some sales are tak­ing place in com­pet­i­tive cir­cum­stances with more than one buyer chas­ing the same house. Whilst not of our mak­ing I has­ten to add, we have even had a case of gazump­ing re­cently which many prob­a­bly thought was a ter­mi­nol­ogy that had dis­ap­peared from the es­tate agent dic­tionary.

Ac­tiv­ity lev­els, par­tic­u­larly in the main­stream ur­ban mar­ket­place, are presently the most en­cour­ag­ing for many months and this is start­ing to spread into coun­try lo­ca­tions, par­tic­u­larly those that of­fer con­ve­nience for the com­muter.

The lat­est re­search from Knight Frank’s Har­ro­gate of­fice shows a con­tin­u­ing up­ward trend of our sales to buy­ers mov­ing into the area from out of York­shire.

Be­tween July 2012 and June 2013, the per­cent­age in­creased to 40 and this com­pares with 38 per cent in the cal­en­dar year 2012, 36 in 2011 and 33 in 2010. I do not pro­pose to re­it­er­ate my view as to the rea­sons for such statis­tics, other than to say the re­gion’s im­prov­ing in­fra­struc­ture is a ma­jor fac­tor in this re­gard.

Some read­ers have pre­vi­ously men­tioned to me that per­haps I have be­come an ambassador for Wel­come to York­shire as I ex­tol the virtues of the re­gion.

So it is against a back­ground of in­creas­ing con­fi­dence and in­creas­ing sales that Knight Frank will use the tra­di­tional start of the au­tumn sell­ing sea­son in Septem­ber to launch a raft of new in­struc­tions un­der the unique ban­ner of “Se­cret Satur­day”. Es­tate agents are al­ways seek­ing to ex­plore new sales ini­tia­tives to gen­er­ate in­ter­est from buy­ers with “Se­cret Satur­day” per­haps one of the most in­no­va­tive of late.

We in­tend to launch th­ese new in­struc­tions on Septem­ber 14, and all are properties that have not pre­vi­ously been of­fered to the open mar­ket. Some are only be­ing of­fered for a fixed two-week pe­riod in the hope that both buy­ers and sell­ers can be matched at an ap­pro­pri­ate price with­out the at­ten­dant costs as­so­ci­ated with for­mal mar­ket­ing. So when we have all en­joyed our sum­mer hol­i­days, the chil­dren are back at school, and you are think­ing of buy­ing, or in­deed sell­ing this au­tumn, let us know in ad­vance,be­cause we might have some in­ter­est­ing new in­struc­tions to tell you about.

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