Chester Property Market: The importance of realistic pricing

The UK's property market landscape has undergone a notable transformation in recent years, presenting valuable insights and implications.

In October 2021, the UK boasted an abundant selection of 424,809 properties available for purchase. Presently, this figure has surged to an impressive 664,780, denoting a remarkable increase of 56.5%. Analysing property sales during the same period, October 2021 witnessed a commendable 111,229 properties sold subject to contract (STC). However, by October 2023, this number experienced a decline, reaching 88,737 properties sold STC - a reduction of 20.3%.

Taking a closer look at the year-to-date (YTD) figures for both 2021 and 2023, the data showcases intriguing insights. YTD until the end of October 2021, the UK recorded a substantial 1,252,108 property sales. In stark contrast, the YTD until October 31, 2023, saw a dip in property sales with a total of 933,690 - a notable drop of 25.44%.

These changes in the UK property market, characterised by a surge in available properties alongside a decline in sales, create a unique and somewhat complex environment. Particularly in Chester - a city renowned for its rich history, excellent transportation links, and esteemed educational institutions - proper positioning of our homes becomes essential, as we strive to stand out amidst the abundant options available.

The Danger of Overpricing Property

Now, let's dive into something truly fascinating. Within my extensive reservoir of property insights acquired over the years, a striking pattern emerges. When homeowners set excessively high prices for their properties, particularly in a saturated market, dire consequences often follow.

Decreased Interest: In today's digital age, buyers are more knowledgeable than ever. They meticulously compare properties on various platforms, and if your home appears overpriced compared to similar ones, it may not even catch their attention, let alone prompt them to schedule a viewing.

Extended Time on the Market: Overpriced homes tend to linger unsold for longer durations. And the longer a home remains on the market, the more prospective buyers ponder, "Is there something wrong with it?"

Stagnant Appeal: A home that overstays its welcome on the market loses its allure. It becomes 'stale', provoking disinterest even if the price is later reduced. The initial excitement surrounding a fresh listing fades away, leading to a desperate attempt to catch up, often resulting in a much lower sale price than if the property had been accurately valued from the start.

Missed Opportunities: As the property languishes unsold, homeowners might miss out on advantageous mortgage rates for their next purchase or their dream home that becomes available.

Harness the Power of Accurate Pricing

Correctly pricing your home from the outset yields numerous benefits. Not only does it attract more potential buyers, but it also increases the likelihood of receiving multiple offers, potentially driving up the final sale price. Moreover, it expedites the selling process, reducing uncertainty and stress.

Ignore the Naysayers

It's crucial to remember that while property sales have dipped in 2023 compared to 2021, the property market remains robust. Let us recall that the total UK house sales year-to-date until the end of October 2023 are only 94.0% of the average for the years 2017, 2018, and 2019. Thus, although the current environment is challenging, it is not as dire as sensationalised by certain newspapers. Once again, I must emphasise the significance of setting realistic prices.

What Should Homeowners in Chester Do?

For Chester homeowners looking to sell their homes, here are some expert tips:

Conduct thorough research: Get a clear understanding of the current Chester property market and assess where your property stands. Analyse recently sold and available properties to determine a competitive asking price. Research indicates that Chester properties typically sell within a 1% to 2% range of the final asking price.

Seek guidance from professionals: It's crucial to work with an experienced estate agent who is well-versed in the Chester property market. Their advice on pricing and market dynamics can prove invaluable.

Be realistic: Remember, the objective is to sell your home swiftly, not let it linger on the market. Pricing it attractively can lead to faster sales and better outcomes.

The dynamic Chester property market is continuously evolving. While the increase in new listings presents challenges, it also brings opportunities for those who navigate it wisely.

I want to emphasize to Chester homeowners the importance of not overpricing your homes for sale. With the right strategy, backed by thorough research and expert insights, we can maximize the current market conditions and help your home find its ideal buyers.

To all residents of Chester, best of luck with your selling journey, and here's to a prosperous property future!