Prudent Price Setting Is Imperative
Having experienced a marked increase in activity since the start of the year, compared to the same period in 2012, CKD Galbraith believes the Scottish property market is showing encouraging signs of optimism.
Contrary to recent reports that the average asking price in Scotland’s prime residential market should fall by a further 10% from the asking price set to match the level at which buyers are willing to purchase, the prices achieved by CKD Galbraith for all properties sold during 2012 were on average within 0.5% of the asking price.
Within the Edinburgh market, the prices achieved by CKD Galbraith for all properties sold during the first quarter of 2013 were on average above home report valuations.
Alasdair Mackenzie, head of the firm’s Edinburgh residential agency, said: “Setting a prudent price is still very much the most important factor when selling however, the resurgence of setting closing dates has resulted in premiums being achieved over the valuation for many properties we have brought to the market.
“With a good degree of activity at all levels of the property chain, many buyers are more assured when going into a purchase and are now prepared to pay over the home report valuation. Nevertheless, they do still have to be fairly sure of the property, have funds in place and be able to move quickly.
“With the increase in competition for good quality properties, there has been an increasing trend towards setting a closing date as demand still outstrips supply for quality houses, particularly near good schools and in city centre locations, creating a very competitive market place.”
Of the properties that the Edinburgh agency agreed sales on in the first quarter of this year, 66% of sales have gone to closing date with the majority achieving a decent premium over the home report value.
Over the same quarter the Edinburgh agency has experienced a marked increase in transactions with January and February being our busiest months for viewings in the last 5 years.
Some recent sales include:
- Denham Green Place in Trinity was sold at a closing date for a figure of more than £50,000 above the asking price after 25 viewings and three notes of interest.
- North Park Terrace sold at a closing date in December after a launch at the end of November having received 23 viewings and three notes of interest and receiving an offer above the home report valuation.
- Clarendon Cresent went to a closing date in January and achieved three offers all above the asking price, with the agreed price comfortably in excess of the home report valuation.
- Raeburn Place was launched on January 3rd. After two and a half weeks and 35 viewings CKD Galbraith had five notes of interest and four offers with an offer agreed at substantially above the home report valuation.
It is more important than ever to select a selling agent with an accurate knowledge of the market in order to set realistic prices where home reports have allowed for greater transparency.
CKD Galbraith’s recent sales experience highlights the firm’s unrivalled local knowledge of the market and expertise in setting prudent valuations in accordance with the home report value.
CKD Galbraith has 12 offices across Scotland all offering estate agency services. Please do not hesitate to get in touch with your nearest office to discuss any aspect of property sales.