Last updated 09:30, Tuesday, 15 April 2008

In its March survey of house prices, Rightmove, the UK’s leading property website, reported that the number of unsold properties was at its highest level for this time of year since it began to publish its survey in 2002, and that each estate agent currently had an average of 67 properties on its register, up from 56 in the previous month.

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Crucial: When house prices fall, it pays sellers to put effort into fixing the most attractive price

Rightmove’s latest figures also showed that average asking prices had risen 0.8 per cent nationally to £239,655 as homeowners attempt to push up prices.

However, its figures estimate that actual selling prices have fallen 10 per cent nationally since their peak last year causing them to recommend that, in the current market, sellers should price below their competition to attract more interest now and avoid a larger price drop later in the year.

They also recommend that, as mortgage lending is tightened, sellers must accept the new house price values quickly or risk their home becoming “unsaleable”.

They comment that most sellers seem to be ignoring the increased competition from other unsold properties and the challenge that some buyers now face in obtaining a mortgage.

According to Rightmove’s latest figures, the length of time houses are on the market before selling is falling from 93 days to 82 days and, while sales are being achieved, current selling prices are below the levels seen at the peak of the housing market.

Cumbria’s housing market has seen a reduced number of prospective buyers moving from outside the county, which typically included job relocations, the retired and buy-to-let investors.

This has resulted in demand for houses being predominantly local and “price sensitive,” so realistic asking prices are now essential to attract sufficient 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 slowing economy, increasingly tighter credit conditions and a resulting fall in buyer confidence.

So what steps should you take to sell your property in the current market?

Before you can market your property you must make a 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 realistic from the outset, make sure that each agent shows you their comparable evidence for recent sales of other similar properties, and ask them what they recommend for your property.

If, for example, the expected value of your property is in the region of £210,000, a technique to help 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 the current 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 may 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.

Visit the website at www.cumberland.co.uk