In recent months, in certain parts of the country, the British property market has exhibited signs of cooling.
As a result, homeowners selling their homes face increasing competition from more homes on the market.
The increase in mortgage rates has played a pivotal role in this cooling, taking a toll on potential buyers’ incomes, thereby lowering affordability and demand.
The consequence? Some previously buoyant regions, especially in the South, have experienced price corrections.
As the market faces this colder front, local factors like the availability of reputed schools, amenities, and public services remain paramount for those looking to buy.
𝗧𝗵𝗲𝗢𝘃𝗲𝗿𝗽𝗿𝗶𝗰𝗶𝗻𝗴𝗧𝗿𝗮𝗽
In a tougher property market, a common strategy by some agents is to suggest you put your property on the market at an inflated price, only to encourage the homeowner to drop it months later.
Large estate agencies have the resources to allow many listed homes to remain unsold, whereas smaller agencies rely heavily on consistent sales. Hence, the latter often propose more realistic prices to ensure they get the house sold.
I have encountered countless Warrington homeowners being advised to list their property at an elevated price despite their reservations. Over time, with sparse viewings and no genuine offers, they drop the asking price. The original overestimation meant a prolonged waiting period and they lost homes they wanted to buy. People like to think they are level-headed and wise to such tricks.
So why does this happen? Remember, greed can take over when an estate agent says they can get you an extra £30k than another agent. That is why estate agents do it.
Of course, it’s tempting to price your Warrington home ambitiously. While testing the waters with a slightly higher price tag is understandable (we do it often at our agency), refusing to adjust the asking price after the first few weeks if there is no substantial interest could be a costly mistake.
An overpriced home can stagnate on the market, leading potential buyers to assume there’s something wrong with it. The longer it sits unsold, the more it becomes stigmatised.
A lack of early interest regarding viewings should be a clear signal; if there are no serious inquiries and/or offers within the first few weeks, it’s imperative to reconsider the asking price. By being responsive and proactive, Warrington homeowners can avoid the pitfalls of a stale listing and increase their chances of a successful sale and move.
So why is it so much of an issue now?
𝟭𝟰𝟲.𝟱% 𝗺𝗼𝗿𝗲𝗪𝗮𝗿𝗿𝗶𝗻𝗴𝘁𝗼𝗻𝗛𝗼𝗺𝗲𝘀𝗮𝗿𝗲𝗼𝗻𝘁𝗵𝗲𝗠𝗮𝗿𝗸𝗲𝘁𝗧𝗼𝗱𝗮𝘆𝘁𝗵𝗮𝗻𝟮𝟬𝗠𝗼𝗻𝘁𝗵𝘀𝗔𝗴𝗼
2021 was an exceptional year for people moving home. There were more buyers than sellers, meaning the number of properties on the market in Warrington was reduced. Looking at the numbers…
The number of properties on the market on 1st January 2021 in the Warrington area (WA1 to WA5) was 1,342, but by 31st December 2021, that had reduced to 752.
By the 31st December 2022, that had increased to 1,381 homes for sale, a rise of 83.6% in only 12 months.
It has continued to rise and today stands at 1,854 properties for sale, a rise of 146.5% in 20 months.
With the average number of sales per month in the Warrington area 20.3% lower per month in 2023 than in 2021, with greater supply (146.5% more properties for sale) and that slightly lower demand (i.e., sales down 20.3%) … getting your asking price right is vital.
𝗗𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗶𝗻𝗴𝘁𝗵𝗲𝗥𝗶𝗴𝗵𝘁𝗣𝗿𝗶𝗰𝗲
Buyers and sellers can arm themselves with information about the Warrington property market. Many online platforms provide data about sold property prices in specific areas, giving Warrington homeowners a benchmark. Additionally, the time properties spend on the market can provide insights into an agent’s efficiency (again the portals like Rightmove and Zoopla show you this).
When selling, obtaining valuations from multiple agents and critically analysing them is vital. It’s crucial to ensure that agents provide evidence to back their valuations, enabling homeowners to make informed decisions.
𝗥𝗲𝘁𝗵𝗶𝗻𝗸𝗶𝗻𝗴𝘁𝗵𝗲𝗦𝗲𝗹𝗹𝗶𝗻𝗴𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆
The Warrington property market tends to shift collectively, much like boats carried by the same tide. Things are okay if you’re not faced with financial losses and can manage an upgrade. Many assume continuous gains are certain when selling your home, but the real profit materialises only when you part with your final property. You may not even realise this profit directly, but it could be used later for elderly care expenses or as a legacy for your family.
Once a property is listed, attention to its online journey is essential. The initial four weeks provide insights into whether your Warrington property is priced correctly, gauged by the number of web views on the portals, actual viewings of your property and offers received.
Yet, deciding to reduce the listing price is more than just about attracting buyers; personal timelines and goals play a significant role. For instance, one might ponder: Is there a deadline by when the property must be sold? Can waiting a few months make a difference? These considerations help in making informed decisions on price adjustments.
However, it’s beneficial to consider independent or boutique agents, like our agency in Warrington, in a challenging market. They often tend to offer a more authentic experience and realistic valuations.
Finally, one strategy employed by some savvy Warrington home sellers is to list their property at a slightly lower price to spark more interest and drive up offers.
𝗦𝘄𝗶𝘁𝗰𝗵𝗶𝗻𝗴𝗔𝗴𝗲𝗻𝘁𝘀𝗼𝗿𝗚𝗼𝗶𝗻𝗴𝗢𝗻𝗹𝗶𝗻𝗲?
With a slow property market, one’s patience can wear thin. If you are considering switching agents, sellers should evaluate the current agent’s efforts and communication frequency. Another option is multi-agency agreements. However, this approach has recently declined due to associated higher fees.
With their fixed fees and remote operations, online agencies seem like an attractive option. Yet, their one-size-fits-all model can fail to capture the nuances of individual properties, making them less effective in slower property markets.
𝗥𝗲𝗻𝘁𝗶𝗻𝗴𝗮𝘀𝗮𝗻𝗔𝗹𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝘃𝗲
Renting out unsold properties is gaining traction where rent is rising. However, prospective landlords should tread carefully, considering growing mortgage interests, tax restrictions, and tenant-related challenges. Again, if that is a potential option for you, do give our agency a call.
𝗙𝗶𝗻𝗮𝗹𝗧𝗵𝗼𝘂𝗴𝗵𝘁𝘀
The current Warrington property market is complex. The recent freeze by the Bank of England base rates is a welcome pause. It won’t turn the Warrington property market into a frenzy like the stamp duty holiday did in mid-2020, yet it is a welcome respite.
With the right strategies and awareness, Warrington home sellers can effectively navigate these waters, ensuring their property finds the right buyer at the right price.
If you are a Warrington property owner, and this article has sparked any questions, do not hesitate to give the office a call.
