Estate agent comparison site, GetAgent.co.uk, has revealed that in some areas of the UK property market, homes are commanding a higher price even after their original transaction has fallen through – nearly £4,000 more in some cases.
GetAgent analysed house price data looking at the change in asking price for homes returning to the market after a sale had fallen through and how this compared to the average asking price.
There are a wealth of reasons a property sale can collapse including a change of heart from a buyer, the problematic results or a survey, issues further up the chain and much more.
It’s often a home sellers worst nightmare and it means going back to square one to find a new buyer. While they will generally list back on the market for roughly the same price, it’s not uncommon for a seller to reduce their asking price expectations in order to secure a quicker resale.
In Wales, the average home returning to the market currently does so at a -1.5% discount, with sellers in the North West (-0.2%), the East of England (-0.5%), the North East (-0.6%) and London (-0.8%) also returning to the market at a slightly lower price.
However, with such high demand for homes in the current market and insufficient stock to meet this demand, home sellers in some regions of Britain are chancing their arm at a higher price.
The South West is home to the largest increase in the value of homes returning to the market, with those to have seen their sale fall through pricing 1.2% higher – that’s almost £4,000 more.
In Scotland, this increase sits at 1% or almost £2,000 more, while in the South East a 0.5% jump when re-marketing their home is seeing home sellers snag almost £2,500 more, with those in the West Midlands increasing their asking price by almost £1,000.
Founder and CEO of GetAgent.co.uk, Colby Short, commented:
“The collapse of a property transaction is, unfortunately, a common place occurrence in the UK property market and the vast majority of the time, it has very little to do with the property itself.
That doesn’t make it any less frustrating for those trying to sell and a variety of factors, such as time constraints, will often see them remarket their home below market value in order to quickly secure another buyer.
However, homes are currently in such high demand that many are finding they can achieve an even better price when they do return to the market because the value of their home has climbed during the few months that they were preceding with this original transaction.
It doesn’t make a sale falling through any less annoying, but it’s a silver lining nonetheless.”
