As we head into the summer months, the property market is continuing to bolster as an increase in market activity continues to benefit home movers. Let’s take a look at recent property market data and how the current market conditions benefit sellers and buyers alike.

Recent market data

According to Zoopla's house price index, there were 20% more properties for sale in March 2024 than the previous year.* There was also a 9% rise in sales agreed during this time period.*

This rise in market activity is partly due to an increase in the average working wage and an overall robust job market, both of which boost consumer confidence. In fact, confidence in personal finances has reached the highest level in more than two years, according to GFK's Consumer Confidence Barometer.** This made homeowners considerably more interested in buying a new home, therefore increasing market activity.

Benefits for buyers

More choice

An increase in market activity leads to a wider range of choices available for buyers to consider. This improved choice empowers buyers to explore various properties, compare features and prices, and ultimately make more informed decisions that align with their preferences and needs.

Price stability

The market remains well balanced as the demand for properties and the supply of homes for sale have equally increased. Because of this, prices are less likely to fluctuate, potentially making for a more stable investment. Increased market activity also helps to create a clearer picture of the true value of properties, further contributing to stable pricing.

More negotiating power

Due to increased confidence, buyers have the opportunity to be more assertive when negotiating a price for a property. Since the supply of properties is so high, buyers are less desperate to secure a particular property and can carefully consider their options.

More opportunity for investment

For those looking to invest in property, the increased supply increases their options massively. In a busy market, investors can buy a property, make renovations, and sell for a profit in a shorter timeframe.

Benefits for sellers

Increased demand

With more people in the market for a new home, sellers can command higher sale prices for their properties as buyers engage in bidding wars. By achieving a higher sale price, sellers can then look for a higher-value property than they previously considered possible.

Faster sales

The increased level of demand makes it easier for sellers to find potential buyers, which can lead to faster sales and less problematic property chains. Additionally, if a buyer is particularly interested in a property, they may be willing to pay a slightly higher price to secure a quick sale.

Flexible terms

Strong demand can give sellers the upper hand in negotiating certain terms. For example, if the seller needs to close the sale quickly, they can choose the buyer who is in the best position to complete the transaction as soon as possible.

Less pressure

In a balanced and active market, sellers may experience less pressure to accept lower offers or make compromises that they're uncomfortable with. They can feel confident that a more suitable buyer will soon show interest and make a better offer.

How an estate agent can help

Estate agents use their in-depth knowledge of the property market to assist buyers and sellers alike in taking advantage of summer 2024’s active market. They have access to a wide range of property listings and can help movers identify suitable properties that match their needs and preferences. They are also skilled negotiators who can secure favourable terms and prices while guiding movers through every step of the process.

Your home is your most valuable asset, and while the market is in a good position, it could be tempting to place your own price tag on it and try your luck. However, the reality is that you can’t rely on guesswork when it comes to determining your home’s true value. Let’s explore why.

While the UK average asking price can give you a rough idea of how the market is holding up, local factors are more significant to the true value of your home. Factors such as proximity to amenities, school catchment areas, local crime rates, and quality of transport links all hold weight in the overall value of the property.

2.You could set an unrealistic price

Setting an unrealistic price could be more detrimental to your sale than you might think. For starters, many buyers use online filters to find suitable properties. So, if you’re asking price is too high, your home won’t land on their search page. 

Secondly, your home’s asking price should be competitive. If similar homes in your local area are asking for much less, they’re likely to secure a buyer before you do.

Lastly, overpricing your home takes away some of your power to negotiate. An outlandishly high asking price can put off potential buyers, leaving you having to settle for an inferior offer. You could also be at risk of ‘gazundering’ or down-valuing later in the process, where your options could be limited, and again, you might have to settle for a much lower offer than you hoped for.

Conversely, even a well-informed guess could have you selling yourself short. Without expert insight, you may miss current local trends that have caused your home to spike in value. Underselling your home is another example of setting an unrealistic figure, leaving you in a poor position to negotiate with the buyer and could cause you to settle on a lower price than your home deserves. 

Accurate property valuations are important to most major banks and lenders, and your buyer will most likely have one carried out early into the sales process. Guessing your home’s value is risky business when it comes to securing your next mortgage, as overestimating can leave you in a tricky position once your buyer has their valuation carried out. 

You’ll need clarity on your borrowing capacity from the get-go before you can apply for a loan, as this could save you a great deal of time and uncertainty when applying for your next mortgage deal.

Market averages are important, but they aren’t everything. Unlike online assessments or guesses based on similar properties, an expert valuer will consider your home’s specific characteristics and overall condition before they settle on a figure. This includes things such as layout, repairs and renovations, building age, and anything that makes your home unique and enticing to today’s buyers. 

As summer rapidly approaches, on the back of a more than buoyant spring, homemovers are achieving good asking prices and getting offers accepted on their new homes. House prices are firming up, instead of rapidly rising, due to sensibly paced house price inflation. This creates good buying and selling conditions; however, it’s as important as ever to price your home correctly, so you can ‘mind the gap’.

What does ‘mind the gap’ mean? 

‘Minding the gap’ refers to the difference between the asking price a vendor is willing to accept and the agreed selling price of a home. The good news is the gap is narrowing, with the average difference between the asking price and the agreed sale price growing smaller, with average discounts at 3.9% in March, falling from 4.5% in November 2023.* These figures are yet more proof of an improving market. In some cases, this gap may not exist and it’s also worth remembering that homes are usually priced knowing that there will be room for negotiation. 

The art of negotiation

When an agent places a value on your home, they will do so knowing that buyers, will more often than not, try to negotiate on price, so they will take this into account. As a seller, you want to achieve the best possible price for your home and as a buyer, you want to get a lower than asking price offer accepted. Your agent or agents, if you are selling with one and buying with another, are working in your best interests. So, when it’s time to negotiate, even though it’s completely up to you what price you want to offer or accept, listening carefully to your agent's advice is crucial. 

Your home and your position in the market are unique 

Your home is as unique as you are, and may achieve more than the asking price, if it gets a lot of buyer interest. This could bring about a sealed bid. Even if this does not happen, you may not have a gap between your asking price and the agreed selling price of your home. On the other hand, if a cash buyer makes an offer below your asking price, then you may decide to accept the offer so you can make your move more quickly. Setting the asking price correctly in the first place should mean you will not have to reduce your price by too much. But, that does not mean you should simply choose the agent who places the highest value on your home.

The best valuations are not always the highest 

A good agent will value your home thoroughly, which is what you want. This is because they will find the features and positives of your home, its location, and the local market, so you can achieve a good selling price. It may be tempting to choose the agent who places the highest value on your home; however, it’s not always a good idea. Overvaluing your home can lead to your sale becoming stale. Some homemovers have found that they sell with a second agent, after not selling with their first choice, because the asking price was set too high.

Know your market 

In March, the percentage of asking prices achieved in the UK stood at 96.1% and with a 9% increase in sales agreed, the market is getting stronger.** However, your local estate agent will be an expert in your local market and in advising you on how to prepare your home for sale. They will also put local market analysis and a database of buyers to good use which will help your home find the right buyer at the right price. It’s good to keep track of the market yourself, by checking out recently sold prices, and comparing the condition of other similar properties. Then you can come up with the right pricing strategy with your agent, that gets you to where you want to be, without a big gap.

Zoopla*
hometrack**

Moving home is about getting the numbers right and, of course, finding the right property. The good news is that on both counts, things are getting better, with home moving numbers on the up. But this is only part of the story of moving. As estate agents compete for your business, their levels of expertise and service improve, which is more good news for you.

Prop-Tech

Like most industries, the benefits of rapidly improving technology makes it easier to connect people to your property. Thanks to improved property technology or ‘prop-tech’, agents can present your home to a vastly higher number of buyers in more efficient ways. You are constantly informed about the latest market updates or potential homes through emails, e-zines, 3D tours, hosted videos, social media, and live chats to answer your burning questions day or night, not to mention automated searches and instant valuations. These tools all help in showcasing properties to a wider audience.  

Attention to detail

Through utilising your estate agents’ expertise, such as their experience, market knowledge and property intellect, you can rest assured knowing the utmost attention to detail is being paid. Place your mind at ease knowing your property is being positioned in the market relative to local activity and using market insights. Furthermore, your estate agent will endeavour to add a human touch and use their in-depth knowledge to aid with face-to-face valuations and accompanied viewings in order to find you the home which you truly connect with.

Placing the right value on your home

While today’s market is looking good with buyer and seller activity improving, it’s never been more important to place the right value on your home. It’s tempting to go with the agent who places the highest value on your property. Some homemovers will accept the first-highest valuation from an agent, only to sell later with another agent for a more realistic price. Today, good agents can place the correct valuation on your home derived from a combination of solid data, experience and their understanding of the market. The UK property market is more complex and differs from one region to another, making the insight of a good local agent imperative. 

Communication and support 

Agents have learnt, as perhaps we all have, that communication is key to making most things in life go smoothly. You do not want to be left wondering about how your sale is progressing. Often, agents get blamed for a slow solicitor or a break further down in the chain. A good agent will constantly update you, keeping you firmly in control of your move. As you move through the property-buying or selling process, your mind can be full of what-ifs and worries. Modern estate agents have the right people in the right places so that you get the best and latest advice to keep you from feeling anxious. Teams made up of valuation experts and seasoned mortgage advisors are complemented by recommended  conveyancers who will not want to keep clients waiting around where possible. 

Final thoughts  

Ultimately, you want to ensure that the right value is placed on your home, with an attention to detail paid and experience expert communication throughout your journey. Thankfully, estate agents today have the skills and tools necessary to ensure this is possible like never before.