Home Property Finance & InvestmentMortgages Some sellers are simply ‘not in a position to accept reduced offers’

Some sellers are simply ‘not in a position to accept reduced offers’

by LLP Finance Reporter
21st Aug 23 4:04 pm

Asking prices saw their sharpest August fall since 2018 as sky-high mortgage costs put buyers under pressure, according to new figures published by Rightmove today.

The portal said average new seller asking prices fell by 1.9%, or £7,012, on average to £364,895 this month.

Though many sellers are clearly recalibrating to current housing market conditions, experts have said the refusal of some sellers to lower their asking price is being driven by financial necessity rather than stubbornness.

Ranald Mitchell, director of Norwich-based independent mortgage broker, Charwin Private Clients, said: “Some sellers are simply not in a position to accept reduced offers, with debt secured to the hilt on their properties. Many people have built a lifestyle based on ultra-low rates and they are now in a corner.”

Clive Read, owner at Essex-based mortgage broker, Goldmanread, mirrored Mitchell’s verdict: “British households have taken on unprecedented levels of household debt while interest rates have remained so low. For some sellers, the only way out of this debt trap is achieving a certain price level for their house, which they may be unable to deviate too far from.”

Darryl Dhoffer, founder of Bedford-based The Mortgage Expert, reminded sellers that they can mitigate the impact of reduced sales prices by negotiating hard on their next property: “For the home movers out there, everything is relative, so a sensible selling price means they can also negotiate a sensible purchasing price, and I would highly recommend working with reputable agents that understand this process.”

Meanwhile, Samuel Mather-Holgate of Swindon-based advisory firm, Mather & Murray Financial, warned that sellers playing hardball could be hit harder financially: “Those that price competitively are more likely to sell their homes quickly and without needing to reduce and become involved in a protracted negotiation. Sellers who find it difficult to adjust expectations downwards could see a more negative outcome overall.”

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