The UK housing market has seen a shift. A year ago, houses were in high demand, and there weren’t enough available. Now, things have flipped. There are more houses for sale than people looking to buy. One big reason is the high cost of borrowing money for a house, also known as mortgage rates.

The Daily Mail summarises what you need to know if you’re thinking of buying or selling:

1. House Prices are Dropping

• Recently, the average asking price (what sellers hope to get) for a house dropped by 1.9% to £364,895. This drop is quicker than usual for this time of the year.

2. What Experts Say for Buyers:

• Don’t just go by the asking price. A price listed might just be what a seller hopes to get, not what they’ll actually accept.
• The market has changed. Since there are more houses than buyers, you have a stronger position to negotiate a better deal.
• Treat the asking price like a “wish” rather than a fixed number. It’s often just a starting point for discussion.

3. What Experts Say for Sellers:

• Price your property sensibly. If you’re hoping for a quick sale, don’t aim too high.
• Make sure your home is in top shape. Buyers today are cautious about homes that need a lot of work. That means clean, decluttered homes with neat gardens are more appealing.
• Be flexible. If you get a good offer but can’t find a new home right away, consider renting for a bit or staying with family. It’s better to close a good deal than risk it falling through.

Both buyers and sellers need to adapt their strategies. One important tip from property experts is for buyers to understand the market they are buying in. Due to the current surplus of properties for sale, buyers have more negotiating power. Offers that were once considered unrealistic may now be taken more seriously.

Another piece of advice from buying agent Henry Pryor is to pay little attention to asking prices. He emphasizes that the buyer ultimately determines the value of a property, while the seller has the luxury of deciding whether the offer is acceptable. Asking prices are often inflated and do not reflect the true market value. It’s worth noting that around 75% of properties currently sell for less than the asking price, so buyers should not judge the success or failure of a transaction solely based on the asking price.

Sellers looking to achieve a successful sale need to price their property sensibly in light of the declining market. It is recommended that sellers consult with experienced agents who have a good understanding of the market in their specific area. By pricing their property competitively, sellers increase their chances of attracting more buyers and receiving offers.

Property maintenance and presentation also play a crucial role in attracting buyers. Sellers should ensure that their property is well-maintained, clutter-free, and clean. A well-kept garden can also make a positive impression on potential buyers. Moreover, as mortgage rate uncertainty and the high cost of builders make some buyers more cautious about properties needing extensive work, sellers should be prepared to address any necessary repairs or renovations before putting their property on the market.

Lastly, buyers and sellers should be prepared to “break the chain” if necessary. Fall-through rates have increased this year, so if an acceptable offer is received and there are concerns about the availability of suitable homes or the length of the chain, it may be advisable to consider renting or temporarily staying with friends or family in order to ensure a successful transaction.

In summary, navigating a declining housing market requires buyers to understand their negotiating power, pay little attention to asking prices, and carefully consider the property’s true value. Sellers need to price their properties sensibly, present them in the best possible condition, and be prepared to respond to market conditions by adjusting their asking price. By following these tips, buyers and sellers can improve their chances of success in a changing housing market.