Property agents are having to work up to three times as hard to make sales (as opposed to last year), due to the fact that many sellers are asking for unrealistic prices and can afford not to go ahead with sales.
According to the property conveyancer, 1st Property Lawyers, a sensational 29% of potential property sales fall through. The main cause of this is not what you expect; it is not the lack of mortgage finance available, but that sellers pull out because they expect to sell at pre-crisis, pre-recession prices – mad fantasy? Indeed, but they can often afford not to go through with the sale.
Head to Head – Sellers Vs Buyers
A mixture of the low interest rates and the cost of almost nothing to put a property on the market have led tens of thousands of sellers to “test the water,” only to withdraw when they don’t receive pre-crisis level price offers.
These low interest rates mean most sellers can afford to not sell their property if their desired, often unrealistic, prices aren’t met. The problem is that buyers can not pay the crazy prices that the seller wants and the seller won’t sell until their crazy prices are matched.
What a palaver.
One way to resolve this issue is to return to the day we had relaxed mortgage lending, another would be for interest rates to rise (or bank forbearance to fall), but this doesn’t seem to be on the horizon.
Ultimately, there are thousands of properties on the market that aren’t actually for sale – It’s a massive waste of time for everyone involved.
www.makproperty.com
sourced: www.globaledge.co.uk
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