While discounts can be found given the fact that it currently a buyer’s market, many purchasers’ expectations are proving to be unrealistic, according to buying agent Jo Eccles.
She says, put simply, buyer discount expectations are often not being matched with reality, especially at the upper end of the housing market.
“We’re seeing a real disconnect between the expectations of new buyers coming into the prime central London market, particularly those searching in the £2m – £5m price range, and the reality that faces them once they start actively house hunting,” said Eccles. “Transaction volumes are down significantly compared to twelve months ago, but in my view this is largely price related, rather than demand related.”
Sellers have, in Eccles’ view, started to price properties more realistically and she has seen some instances of estate agents refusing to take on a sales instruction which they believe is priced unrealistically high. Despite this, some buyers are entering the market thinking they hold all the cards.
She explained: “[Buyers are] expecting to automatically achieve a 20% discount on last year’s prices, but are finding themselves disappointed – and in the process of submitting unrealistic offers they are losing credibility with agents.
“Discount opportunities do exist and can be found, with careful searching and tactful negotiation, but a strategic and considered approach is required.”
She argues that reduced confidence in the market has brought about a shift in mindset, with buyers much less willing to take a view on matters that arise during the conveyancing process.
She continued: “Our network of experts from heritage and planning teams to architects and interior designers, tree and acoustic specialists, are proving indispensable for pre-exchange advice on points that buyers would normally view as non-critical.
“We’re also navigating buyers through negotiations on long and complex fixtures and fittings lists and other purchase conditions such as boundaries, potential construction costs and ongoing maintenance expenditure. This is in contrast to normal market conditions where we see a higher degree of urgency, with both sides usually more inclined to show greater flexibility or take a view to maintain momentum.”
