Homeowners across the UK are thought to be dropping an average of £24,947 (8.42%) from their asking prices in order to get a sale.1
And in certain places across the country, the discounts could be larger. Topping the list of largest asking price reductions are locations like the Isle of Man, Bradford, Doncaster, Blackburn and Hull.
The top ten areas with the largest asking price reductions are:
- Isle of Man – £41,212 (8.36%)
- Bradford – £11,768 (8.01%)
- Doncaster – £12,894 (7.19%)
- Blackburn – £10,059 (7.06%)
- Hull – £9,932 (6.95%)
- Mitcham – £41,797 (6.77%)
- Liverpool – £12,112 (6.76%)
- Newcastle – £12,166 (6.68%)
- London – £62,581 (6.66%)
- Swansea – £15,607 (6.59%)
What does this mean for prospective buyers?
As we come into the most popular time of the year for buying a house, this will be welcome news if you’re based in any of the top ten locations listed above. However, property prices across the country increased by 4.4 % in the year to February, which has brought the average cost of a house up to £225,000.2 This is £9,000 higher than last year – meaning on the whole property prices do still seem to be on the up.
When viewing a property, try to suss out the sellers’ situation before making an offer. Ask them whether they’ve found somewhere to buy and where you’d be in the chain if you wanted to buy the property. If they’ve found somewhere they may want a quick sale and be open to negotiations when it comes to an offer. Also, try to find out how many other viewings they’ve had, as this will give you the opportunity to see where you stand in terms of competition. If there’s been a lot of viewings, chances are there could be other offers made, so you’d need to weigh up what to go in with.
How should you be preparing for buying a house?
A crucial thing to do no matter if it’s your first house or you’re wanting to sell your home and buy somewhere else is to make sure your finances are in as good a shape as possible.
The first step in doing so is to check your credit report and score, as it’s this that lenders will look at when considering you for a mortgage. You can do this for free by signing up or logging in to Noddle. The better your score, the better the mortgage deals you could be eligible for, so it’s important to know where you stand as early in the process as possible.
Things to do:
- Make sure all details on your credit report are correct. If there’s anything that doesn’t seem right you can raise a dispute through Noddle and we can help get this sorted – find out more here
- Make sure you’re on the electoral roll
- Keep up with all your monthly payments to help ensure your credit score is as healthy as possible
- Consider ways to improve your credit score – find out more here
- Compare mortgages to see what you could afford to borrow and whether you could make savings if you already have one. You can do this for free through Noddle’s partner Trussle – just log in to Noddle to find out more
We hope you find these tips useful. It would be great to hear how you get on with your house hunt and how you find the market in your area. Tweet us @useyournoddle
1 Statistics taken from research carried out by Zoopla, referenced within: http://www.thisismoney.co.uk/money/mortgageshome/article-5630133/Sellers-desperate-flog-homes-slashing-asking-prices-25k.html
2 Data taken from the Office for National Statistics (ONS), referenced within: http://www.thisismoney.co.uk/money/mortgageshome/article-5630133/Sellers-desperate-flog-homes-slashing-asking-prices-25k.html