Last updated 05:14, Friday, 07 November 2008

Competitive pricing is key to boosting the housing market. In its October survey of house prices, property website Rightmove reported that unsold properties on estate agents’ registers remain at historically high levels and that average asking prices had fallen by seven per cent in the north of England over the past year compared to 4.9 per cent nationally.

On the move: But not so many are these days. If you are about to put your house on the market, it is worth doing a little research first

They also comment that a shortage of new sellers entering the market is seeing some agents willing to overprice, and they predict that increasing numbers of forced sales will alter the completion of the market in 2009.

Cumbria’s housing market continues to see fewer prospective buyers moving in from outside the county, which normally includes job relocations, the retired and buy-to-let investors.

This has resulted in demand for houses being predominantly local and extremely “price sensitive”, so realistic asking prices are now essential to attract sufficient interest and, in most cases, any interest.

The main forces which led to steep house price increases over the last several years were low mortgage rates and relatively easy borrowing, together with a surge of buy-to-let investors competing with first-time buyers for entry level houses, causing their prices to rise sharply and releasing the sellers with more funds to trade up on their next purchase.

These forces have now reduced due to lower levels of demand caused by the economic downturn, much tighter lending conditions and a resulting fall in buyer confidence.

So what steps should you take to sell your property in the current market? Before you market your property you must make a sensible decision on the asking price.

The best way to do this is to arrange for two or three local estate agents to advise you.

As the asking price must be sufficiently competitive from the outset, make sure that each agent shows you their evidence for recent sales of other similar properties and current asking prices of comparable properties as these will be competing with your home to attract buyers. Ask each agent to justify the asking price they recommend.

If, for example, the expected value of your property is in the region of £210,000, a technique to help instantly attract the best response is to invite ‘offers over’ £199,000. This competitive pricing approach should help to maximise viewings and it may even unearth competing bidders for your property.

Once you’ve set your asking price you need to appoint a good estate agent.

Fees and service levels normally vary, so before selecting your agent obtain feedback from their previous seller clients and make sure that your agent confirms what they will do to help sell your property so you can assess their progress against these agreed actions.

Once you’re satisfied that the market has been tested for your property, don’t be too downhearted if you receive an offer slightly below the asking price. This behaviour is normal in a difficult market as there are relatively few instances of numerous offers for the same property from competing buyers.

Bear in mind that if you have a proceedable offer you should be able to use this to your advantage by tempting sellers of properties you are interested in buying to consider selling for a price you are prepared to pay, based on having to accept a lower price than you expected for your own property.

Nick Elgey is managing director of Cumberland Estate Agents Ltd. Visit the website at www.cumberland.co.uk