A house is only worth what someone is willing to pay for it

The dynamics of today’s property market, where asking prices are wildly optimistic, is creating some unique opportunities for buyers.

Properties priced above their true open market value can provide buyers with extra leverage during negotiations, particularly where a property has been unsold for a lengthy period of time. Sellers may be more willing to enter negotiations if they have received an underwhelming level of interest, opening the door for buyers and their buying agents.

There is a notable increase in the number of sellers coming onto the market today who have not moved for a relatively long time, 25 years or more. An overoptimistic asking price will put some buyers off immediately, without even a viewing, but buyers who have all their financial ducks in a row and can move quickly are often in a good position to capitalise.

If a house is correctly priced to begin with it will sell quickly, avoiding the downward spiral of incremental price drops which can end up far below true value.

The property market is often referred to as a single entity but in fact it’s made up of thousands of micro markets with their own levels of supply and demand. What’s happening in one local area can be completely different from another location just a few miles away.

Therefore, understanding the local market, with sound research and the help and assistance of an experienced buying agent, can save significant time and money. It is true that a house is only worth what someone is prepared to pay for it.